Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 1980
| Jurisdiction | UK Non-devolved |
| Citation | SI 1980/345 |
| Year | 1980 |
1980 No. 345
BANKS AND BANKING
The Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 19806thMarch 1980
10thMarch 1980
1stApril 1980
The Treasury, in exercise of the powers conferred upon them by sections 2(1) and (5) of the Banking Act 1979(a) and of all other powers enabling them in that behalf, hereby make the following regulations:—
Citation and commencement
1.—(1) These regulations may be cited as the Banking Act 1979 (Exempt Transactions) (Amendment) Regulations 1980.
(2) These regulations shall come into operation on 1st April 1980.
Interpretation
2. In these regulations the expression "the principal regulations" means the Banking Act 1979 (Exempt Transactions) Regulations 1979(b), and regulation 2 of the principal regulations shall apply for the purposes of these regulations as it applies for the purposes of those regulations.
Amendment of regulation 4 of the principal regulations
3.—(1) For paragraphs (1) and (2) of regulation 4 of the principal regulations there shall be substituted the following paragraph:—
"(1) The acceptance by a charity of a deposit is an exempt transaction if—
(a) the deposit is made by another charity, or
(b) there is payable in respect of the deposit neither interest nor a premium.".
(2) Paragraph (3) of regulation 4 of the principal regulations shall be renumbered as paragraph (2).
(a) 1979 c. 37.
(b) S.I. 1979/1204.
Addition to principal regulations of regulations 10 and 11 and Schedule
4. The principal regulations shall be amended as follows:—
(a) by the addition, after regulation 9, of the following new regulation:—
"Agricultural, forestry and fisheries associations
10.—(1) Without prejudice to regulation 6, the acceptance by an association to which section 33 of the Restrictive Trade Practices Act 1976(a) applies of a deposit by a member of that association is an exempt transaction.
(2) The reference in paragraph (1) of this regulation to a member of an association to which section 33 of the Restrictive Trade Practices Act 1976 applies includes a reference to—
(a) a member of any such association which is a member of that association, and
(b) a prospective member, provided that the deposit is made in order to qualify him for membership of the association.";
(b) by the addition, after the new regulation 10, of the following new regulation:—
"Retail and other co-operative societies
11.—(1) Without prejudice to regulation 6, the acceptance by a co-operative society of a deposit is an exempt transaction if the society fulfils the requirements of paragraph (2) of this regulation and the deposit is not taken in breach of the society's obligations under the Scheme.
(2) The requirements of this paragraph are—
(a) that the society is registered under the Industrial and Provident Societies Act 1965(b) or the Industrial and Provident Societies Act (Northern Ireland) 1969(c),
(b) that either—
(i) the principal business of the society is the sale by retail of goods for the domestic or personal use of individuals dealing with the society, or the provision of services for such individuals, or
(ii) ninety per cent of the shares of the society, both by reference to the total number of such shares and their nominal value, are held by societies having the principal business described in sub-paragraph (b)(i) of this paragraph, and
(c) that the society participates in the Scheme and accordingly is a Participating Society within the meaning of clause 2(4) thereof.
(3) The references in the foregoing provisions of this regulation to the Scheme are to the Scheme constituted by deed dated the 29th February 1980 between the Co-operative Union Limited of the one part and the Co-operative Bank Limited of the other part the provisions
(a) 1976 c. 34. By virtue of article 2 of the Transfer of Functions (Wales) (No. 1) Order 1978 (S.I. 1978/272) certain functions of the Minister of Agriculture, Fisheries and Food under this section were transferred to the Secretary of State for Wales.
(b) 1965 c. 12.
(c) 1969 c. 24 (N.I.).
of which are set out in the Schedule to these regulations. Such references do not include references to the Scheme as amended or varied.";
(c) by the insertion in the principal regulations of the Schedule as follows:—
Regulation 11
"SCHEDULE
DEED ESTABLISHING THE CO-OPERATIVE
DEPOSIT PROTECTION SCHEME
THIS DEED is made the 29th day of February 1980 between CO-OPERATIVE UNION LIMITED of Holyoake House Hanover Street Manchester (hereinafter called 'the Union') of the one part and CO-OPERATIVE BANK LIMITED of New Century House Corporation Street Manchester (hereinafter called 'the Bank') of the other part
WHEREAS:
(a) It is the purpose of this Deed to set up a scheme to grant certain protection on the terms and conditions and subject to the limitations hereinafter contained to a depositor with a co-operative society in membership of the Union against the consequences of the insolvency of that society
(b) The Treasury is empowered by Section 2(1) of the Banking Act 1979 to make regulations prescribing for the purpose of that Section certain transactions
(c) It is intended that a co-operative society so in membership which has elected to join the Scheme established by this Deed shall be able to have its taking of deposits so prescribed by the Treasury.
NOW THIS DEED WITNESSETH AND IT IS HEREBY DECLARED as follows:
1. The Scheme hereby constituted shall be known as the "Co-operative Deposit Protection Scheme".
2.—(1) Subject to sub-paragraphs (2) and (3) below, in this Deed "Deposit" shall mean a sum of money paid on terms
(i) under which it will be repaid in full, with or without interest or a premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; and
(ii) which are not referable to the provision of property or services or the giving of security;
(2) "Deposit" shall not however include:
(a) withdrawable share capital; or
(b) interest unless compounded and added to capital; or
(c) deposits whether or not secured, having an original term to maturity of more than 5 years; or
(d) any sum paid to a co-operative society so in membership by a person who at the time it is paid is a director, controller or manager of the society or the wife, husband, son or daughter of such a person;
(3) For the purpose of sub-paragraph 2(1)(ii) above money is paid on terms which are referable to the provision of property or services or to the giving of security if, and only if—
(i) it is paid by way of advance or part payment for the sale, hire or other provision of property or services of any kind and is repayable only in the event that the property or services is or are not in fact sold, hired or otherwise provided; or
ii) it is paid by way of security for payment for the provision of property or services of any kind provided or to be provided by the person by whom or on whose behalf the money is accepted; or
(iii) it is paid by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise.
(4) In this Deed "a Participating Society" shall mean a co-operative society which (a) has joined the Scheme by (i) resolution of its governing body adopting and agreeing to the Scheme established by this Deed (ii) paying a joining contribution in accordance with clause 5(2) hereof and (iii) executing and delivering to the Union a Deed of Participation in the Scheme to which Deed the Bank and the Union are parties in the form set out in the Schedule to this Scheme; and
(b) has not ceased in accordance with clause 10(1) hereof to be a Participating Society.
(5) In this Deed "Founding Date" shall mean the date of coming into operation of the statutory instrument prescribing for the purposes of the Banking Act 1979 transactions undertaken by Participating Societies.
(6) In this Deed—
"director" shall mean any person who occupies the position of a director by whatever name called;
"controller" shall mean a managing director chief executive or a person in accordance with whose directions or instructions the directors of the co-operative society are accustomed to act; and
"manager" shall mean a person, other than the chief executive, employed by a co-operative society who, under the immediate authority of a director or chief executive of the...
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