Citation and commencement

1. This Order may be cited as the Building Societies Act 1986 (Substitution of Specified Amounts and Modification of the Funding Limit Calculation) Order 2007 and comes into force on 6th April 2007.

Substitution of specified amounts

2. —(1)The Building Societies Act 1986 is amended as follows.

(2) In section 61 (directors: supplementary provisions as to elections, etc. )( 2 )—

(a) in paragraphs (b) and (c) of subsection (2), for “£100” substitute “£200”;

(b) in subsection (3)(a), for “£250” substitute “£500”.

(3) In section 64(2) (substantial property transactions involving directors and connected persons) ( 3 )—

(a) in paragraph (a), for “£100,000” substitute “£200,000”;

(b) in paragraph (b)—

(i) for “£500,000” substitute “£1,000,000”;

(ii) for “£1,000” substitute “£2,000”.

(4) In section 65 (restrictions on loans, etc. to directors and persons connected with them)( 4 )—

(a) in subsection (2)(a), for “£5,000” substitute “£10,000”;

(b) in subsection (2)(c), for “£100,000” substitute “£200,000”;

(c) in subsection (3)(a), for “£10,000” substitute “£20,000”;

(d) in subsection (4)(a), for “£5,000” substitute “£10,000”;

(e) in subsection (6)(b), for “£20,000” substitute “£40,000”.

(5) In section 68 (records of loans, etc. for directors falling within section 65)—

(a) in subsection (7), for “£1,000” substitute “£2,000”;

(b) in subsection (8), for “£5,000” substitute “£10,000”.

(6) In section 69(12) (disclosure and record of income of related businesses), for “£5,000” substitute “£10,000”.

(7) In paragraph 20A(7) of Schedule 2 (establishment, incorporation and constitution of building societies), for “£25” substitute “£50”.

Modification of the funding limit calculation

3. —(1) Subsections (2) and (3) of section 7 of the Building Societies Act 1986 (the funding limit) are modified as follows in their application to the liabilities of relevant subsidiary undertakings of a building society.

(2) For the purposes of section 7(2), there shall be disregarded so much of the aggregate of the principal value of, and interest accrued on, sums deposited with any relevant subsidiary undertaking of the society by individuals acting otherwise than as bare trustees for bodies corporate or for persons who include bodies corporate as does not exceed the limit in paragraph (3).

(3) In respect of any day by reference to which the value of X falls to be calculated for the purposes of section 7(1) in relation to the society, that limit is 10 per cent. of the amount which would, apart from the modifications required by this article and by section 7(3)(aa) , be the value of X on that day.

(4) Where an individual declares that he is depositing a sum with a relevant subsidiary undertaking of a building society otherwise than as a bare trustee for a body corporate or for persons who include a body corporate, he shall, unless the contrary is shown, be conclusively presumed for the purposes of section 7 to have deposited the sum otherwise than as such a trustee.

(5) In this article, “ a relevant subsidiary undertaking ” means a subsidiary undertaking that is incorporated or otherwise established in ... the Channel Islands, the Isle of Man or Gibraltar.