1. This Order may be cited as the Building Societies (Member States) Order 1992 and shall come into force on 1st July 1992.
2.—(1) In this Order, except where the context otherwise requires—
“the Act” means the Building Societies Act 1986;
“relevant provision” means a provision of the Act which applies in relation to advances secured on land;
“society” means a building society;
“specified advance” means an advance which a society may make by virtue of this order;
“specified country” means a member State other than the United Kingdom, and
“specified countries” shall be construed accordingly; and
“specified security” means the form of security to which paragraph 1 of Schedule 1 to this Order refers.
(2) For the purposes of this Order, a provision of the Act which applies in relation to advances fully secured on land shall be treated as one which applies in relation to advances secured on land.
3.—(1) Subject to paragraph (2) below, the specified countries are designated as countries as respects which advances under section 14 of the Act (power to make advances secured on land overseas) may be secured on land.
(2) Schedule 1 to this Order shall have effect in respect of—
(a)the forms of security on land which may be taken for such advances,
(b)the circumstances in, and the conditions subject to which, such forms of security may be taken, and
(c)the classification of specified advances as class 1 advances or class 2 advances for the purposes of Part III of the Act for the structure of commercial assets,
in relation to the specified countries.
4. The power conferred by this Order is not available to a society which does not for the time being have a qualifying asset holding, but the cessation of its availability does not require the disposal of any property or rights.
5. Nothing in this Order is to be taken as precluding a society from taking security for an advance in addition to the form of security required by Schedule 1 to this order, but the value of the other security shall be disregarded for the purpose of that schedule.
6. Subject to Schedule 2 to this Order, the relevant provisions shall apply in relation to specified advances as they apply in relation to other advances secured on land and in any relevant provision—
(a)any reference to a mortgage shall include reference to the specified security, and
(b)any reference to a mortgage debt shall be construed accordingly.
Tim Wood
Tim Boswell
Two of the Lords Commissioners of Her Majesty’s Treasury
29th June 1992