The Building Societies (Limits on Commercial Assets) Order 1988

Specification of limits for the purposes of section 20(2) and (3) of the Building Societies Act 1986

2.—(1) In section 20 (commercial asset structure requirements for building societies) of the Building Societies Act 1986 —

(a) subsection (2) shall have effect during the currency of this Order as if for the percentage specified therein there were substituted —

(i) during the first transitional period, 17.1/2 per cent,

(ii) during the second transitional period, 20 per cent, and

(iii) after the end of the second transitional period, 25 per cent, and

(b) subsection (3) shall have effect during the currency of this Order as if for the percentage specified therein there were substituted —

(i) during the first transitional period, 7.1/2 per cent,

(ii) during the second transitional period, 10 per cent, and

(iii) after the end of the second transitional period, 15 per cent.

(2) In this article —

(a) “the first transitional period” means the period beginning on the day on which this Order comes into force and ending on 31st December 1990; and

(b) “the second transitional period” means the period beginning on 1st January 1991 and ending on 31st December 1992.