The Building Societies (Designation of Qualifying Bodies) (Amendment) (No. 4) Order 1990

3.  In Part II of the Schedule, for paragraph 8 (meaning of activities in the range from which a society is restricted) there shall be substituted the following paragraph—

“Meaning of activities in the range from which a society is restricted

8.— (1) For the purposes of paragraphs 6C(1)(c) and 7 above an activity of a body corporate is an activity in the range from which a society is restricted where it is an activity which the society could not undertake by reason of the fact that—

(a) it has not adopted a particular adoptable power, whether because the power is not available to it or for any other reason; or,

(b) the activity would be in contravention of a restriction upon the extent of a power the society has adopted, being—

(i) in the case of an appropriate financial service vehicle, an appropriate mortgage company, an appropriate territorial corporation or Girobank plc, either a restriction derived from the Act or any instrument under the Act or a restriction assumed by the society; or,

(ii) in the case of an appropriate estate agency vehicle, either a restriction specified in Part III of Schedule 8 to the Act and relating to a power to provide a financial service within the meaning of section 34(11) of the Act or a restriction assumed by the society.

(2) Notwithstanding subparagraph (1) above, an activity of a body corporate is not an activity within the range from which a society is restricted where it is an activity which comprises—

(a) except in the case of Girobank plc, the continuation, during the first fifteen months following the date on which the body corporate first became associated with the society, of any activity carried on as part of the business of that body corporate immediately before that date; or,

(b) in the case of Girobank plc—

(i) holding shares in The Office of the Banking Ombudsman,

(ii) holding, within the period of twelve months beginning with the date of association, any debt arising under an agreement corresponding to a facility agreement made between an individual and Girobank plc, before the date of association, where the limit corresponding to the facility limit under that agreement exceeds the limit for the time being specified under section 16 of the Act, provided that no increase is made in the limit allowed under that agreement after that date,

(iii) holding any debt owed by a local authority in Great Britain arising from a loan (other than a loan corresponding to an advance secured on land) made before the date of association,

(iv) holding, within the period of twelve months beginning with the date of association, any debt arising from a loan (other than a loan corresponding to an advance secured on land or a loan made under an agreement corresponding to a facility agreement) made to a person other than an individual before the date of association,

(v) holding, within the period of twelve months beginning with the date of association, any debt arising under an agreement which was entered into before the date of association and which relates to the acceptance of bills of exchange or to the issue of letters of credit, and performing, within the period of twelve months beginning with the date of association, any obligation arising under such an agreement,

(vi) performing, within the period of six months beginning with the date of association, any contract of a prescribed description within the meaning of section 23 of the Act which was entered into before the date of association for a purpose other than that specified in that section, or

(vii) investing and supporting or supporting, during the first fifteen months following the date of association Society for Worldwide Inter Bank Financial Telecommunication S.C., Eurocard International S.A. and MasterCard International Incorporated.

(3) In this paragraph “the date of association”, in relation to a society, means the date on which Girobank plc first became associated with that society.”