The Building Societies (Designated Capital Resources) Order 1988

Interpretation

2.—(1) In this Order—

“the Act” means the Building Societies Act 1986;

“authorised institution” means an institution which is an authorised institution for the purposes of the Banking Act 1987(1);

“creditors”, in relation to a society, includes members holding shares in the society as regards the principal of their shares and any interest due in respect of those shares;

“shares” means shares which are not deferred shares within the meaning of section 119 of the Act or Schedule 1 to the Building Societies (Authorisation) Regulations 1981(2) or Schedule 1 to the Building Societies (Authorisation) Regulations (Northern Ireland) 1982(3);

“society” means a building society;

“subordinated debt” means a sum in sterling borrowed on terms which have the effect that no repayment will be made to the lender following the commencement of the winding up of the borrower until any sums due from the borrower to other creditors (apart from any sums due in respect of other subordinated debts) have been paid to those creditors in full.

(2) Any reference in this Order to the borrower in respect of any debt shall be interpreted as meaning the person to whom the sum due was advanced, or, where some other person has succeeded to the rights and obligations of the recipient of the advance, that other person, and any reference to the lender shall, subject to paragraph (3) below, be interpreted similarly as meaning the person by whom the sum due was advanced or his successor.

(3) In circumstances where a debt is evidenced by a negotiable instrument and the right to enforce the debt is exercisable by a trustee for creditors rather than the holder of the instrument, the holder of the instrument and not the trustee shall be regarded as the lender in respect of the debt.

(1)

1987 c. 22.

(2)

S.I. 1981/1488, revoked by the Building Societies Act 1986.

(3)

S.R.(N.I.) 1982 No. 155, revoked by the Building Societies Act 1986.