PART 3

Mutual societies

Building societies: miscellaneous

Building societies: creation of floating charges
55
1
Section 9B of the Building Societies Act 1986 (restriction on creation of floating charges) is amended as follows.
2
In subsection (1), at the end insert “unless it complies with the requirements in subsection (1A)”.
3
After that subsection insert—
1A
The requirements are that the floating charge—
a
is created in favour of a participant in a system, and
b
is created for the purpose of securing any rights and obligations that may arise in connection with participation in that system.
4
After subsection (2) insert—
3
In this section “participant” and “system” have the meaning given by Article 2 of Directive 98/26/EC of the European Parliament and of the Council of 19th May 1998 on settlement finality in payment and securities settlement systems (as amended by Directives 2009/44/EC and 2010/78/EU).