The Building Societies (Commercial Assets and Services) Order 1988

SECTION B

1.  The power of a society conferred by this Part of this Schedule is available only while the society has a qualifying asset holding, but the cessation of its availability does not require the disposal of any property or rights.

2.—(l) A society may, at any time, bail a leasable chattel to an individual only if the price at which the society acquired that chattel was less than x minus y where at that time—

(a) x is—

(i) the limit for the time being in force under section 16(8) (loans to individuals) of the Act, or

(ii) if a mobile home loan to that individual is outstanding as a result of which the amount which may be lent to him under section 16 of the Act is less than that limit, that lesser amount, and

(b) y is the aggregate of—

(i) sums outstanding in respect of loans made by the society under section 16 of the Act to that individual,

(ii) facility limits on any facility account of that individual with the society, and

(iii) the price at which the society acquired any leasable chattel bailed under any other current leasing agreement between the society and that individual.

(2) Joint bailees of a leasable chattel shall be treated, for the purpose of the limit on bailment under this paragraph, as a single individual and the aggregate of the following shall be taken into account in determining the maximum (in respect of the price referred to in subparagraph (1) above) available for any further leasing agreement between the society and them—

(a) sums outstanding in respect of loans made by the society under section l6 of the Act to any one of them;

(b) facility limits on any facility account of any one of them with the society; and

(c) the price at which the society acquired each leasable chattel bailed under any other current leasing agreement between the Society and any one of them.