The Building Societies (Liquid Asset) Regulations 1991

PART II PROVISIONS APPLICABLE TO CERTAIN DESCRIPTIONS OF ASSETS

1.  A deposit which comes within paragraph 2(d) or (e) or a stock lending right which comes within paragraph 8 of Part I is a liquid asset only where it is secured by the transfer to the society of liquid assets which come within paragraphs 2(a) or (c), 3(1)(a) of that Part.

2.  A loan which comes within paragraph 7(a) of Part I is a liquid asset only where it is secured by a charge on the Consolidated Fund of Northern Ireland.

3.  A loan which comes within paragraph 7(b) of Part I is a liquid asset only where—

(a) it is secured by a charge on revenues of the relevant authority or on a fund into which such revenues are payable, or

(b) it is made on the giving of—

(i) a receipt for the loan by the Treasurer or other similar officer of the relevant authority, and

(ii) an undertaking by the relevant authority that, if requested to charge the loan on revenues of the authority or on a fund into which such revenues are payable, it will either comply with the request or repay the loan.

4.  For the purpose of paragraphs 2(c) and 3(1)(b) of Part 1, a credit institution is authorised by the competent authorities of any member State of the European Community only if such authorisation is within the ambit of Directive 77/780/EEC(1).

(1)

O.J. L. 322 of 17.12.77.