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The Building Societies (Limited Credit Facilities) Order 1987

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Class 3 asset limits

7.  The aggregate of facility debts owing to a society shall count in accordance with section 20 (commercial asset structure requirements) of the Act towards the limits applicable to class 3 assets under that section, and in calculating that aggregate—

(a)where a society has the power conferred by section 16 of the Act and the power conferred by this Order, and the society has entered into arrangements which could have been entered into under either of those powers (or could have, had the society at the time of entry had both of those powers, been entered into under either of them), the society shall, in respect of each such arrangement, record the power under which it is to be treated as having been entered into;

(b)where a society has the power conferred by section 34(1) of and paragraph 1 of Part I of Schedule 8 to the Act (power to provide money transmission services) and the power conferred by this Order, any overdrawing which could have been permitted under either of those powers (or could have, had the society at the time of permission had both of those powers, been permitted under either of them) shall be treated as a facility debt;

(c)where the facility accounts of the society include accounts which are also share accounts, the value of shares in those accounts shall not be deducted from that aggregate of facility debts;

(d)where the facility accounts of the society include accounts which are also deposit accounts, the value of the deposits in those accounts shall not be deducted from that aggregate of facility debts.

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