Banking Act 1979 (Exempt Transactions) Regulations 1983
| Jurisdiction | UK Non-devolved |
| Citation | SI 1983/1865 |
| Year | 1983 |
1983 No. 1865
BANKS AND BANKING
The Banking Act 1979 (Exempt Transactions) Regulations 198314thDecember 1983
19thDecember 1983
10thJanuary 1984
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, commencement and interpretation
1.—(1) These Regulations may be cited as the Banking Act 1979 (Exempt Transactions) Regulations 1983.
(2) These Regulations shall come into operation on 10th January 1984.
(3) In these Regulations, unless the context otherwise requires—
"the Act" means the Banking Act 1979;
"deposit", except in the expressions "pre-contract deposit" and "deposit fund", shall be construed in accordance with section 1 of the Act;
"exempt transaction" shall be construed in accordance with Regulation 3 of these Regulations;
"industrial and provident society" means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965(b) or under the Industrial and Provident Societies Act (Northern Ireland) 1969(c) but does not include a credit union within the meaning of the Industrial and Provident Societies Act (Northern Ireland) 1969 or the Credit Unions Act 1979(d).
Revocation
2. The Regulations set out in Schedule 1 to these Regulations are hereby revoked.
(a) 1979 c.37.
(b) 1965 c.12.
(c) 1969 c.24 (N.I.).
(d) 1979 c.34.
Exempt transactions
3. The transactions referred to in the following Regulations are prescribed for the purposes of section 2 of the Act as transactions to which the prohibition in section 1(1) of the Act on the acceptance of a deposit does not apply. Such transactions are referred to in these Regulations as "exempt transactions".
Charities
4.—(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) In this Regulation "charity" means any institution, trust or undertaking, whether corporate or not, which is established solely for charitable purposes, and in the application of this Regulation to Scotland "charitable" shall be construed in the same way as in the Income Tax Acts.
Church deposit funds
5.—(1) The acceptance by the Central Board of Finance of the Church of England of a deposit in the course of administering a deposit fund within the meaning of paragraph 1 of the scheme contained in the Schedule to the Church Funds Investment Measure 1958(a) is an exempt transaction.
(2) The acceptance by the Central Finance Board of the Methodist Church of a deposit in the course of administering a deposit fund within the meaning of paragraph 1 of the scheme contained in the First Schedule to the Methodist Church Funds Act 1960(b) is an exempt transaction.
Industrial and provident societies
6. The acceptance by an industrial and provident society of a deposit in the form of withdrawable share capital is an exempt transaction.
Agricultural, forestry and fisheries associations
7.—(1) Without prejudice to Regulation 6, the acceptance by an association to which section 33 of the Restrictive Trade Practices Act 1976(c) 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
(a) 1958 No.1.
(b) 1960 c. xxiii.
(c) 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) a prospective member, provided that the deposit is made in order to qualify him for membership of the association.
Retail and other co-operative societies
8.—(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 an industrial and provident society,
(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) at least ninety per cent. of its shares both by reference to the total number of such shares and their nominal value are held by qualifying shareholders, and
(c) the society participates in the Scheme and accordingly is a Participating Society within the meaning of clause 2(4) thereof.
(3) In this Regulation—
(a) references 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 of which are set out in Schedule 2 to these Regulations, and such references do not include references to the Scheme as amended or varied;
(b) the reference to qualifying shareholders is to industrial and provident societies which have the principal business described in paragraph (2)(b)(i) of this Regulation and societies which are registered within the meaning of the Friendly Societies Act 1974(a) or are registered or deemed to be registered under the Friendly Societies Act (Northern Ireland) 1970(b).
British Railways Savings Bank
9. The acceptance by the British Railways Board of a deposit pursuant to section 32(2) of the British Railways Act 1966(c) (establishment and maintenance of and the receipt of moneys at British Railways Savings Bank) is an exempt transaction.
(a) 1974 c.46.
(b) 1970 c.32. (N.I.).
(c) 1966 c.xvii.
Solicitors
10.—(1) The acceptance by a practising solicitor in the course of his profession of a deposit is an exempt transaction.
(2) In this Regulation "practising solicitor" means a solicitor who is qualified to act as such under section 1 of the Solicitors Act 1974(a), article 4 of the Solicitors (Northern Ireland) Order 1976(b) or section 4 of the Solicitors (Scotland) Act 1980(c), and in Scotland includes a firm of practising solicitors.
Deposits accepted in the course of estate agency work
11.—(1) The acceptance in the course of estate agency work of a deposit which is a pre-contract deposit is an exempt transaction.
(2) In this Regulation "estate agency work" has the meaning assigned to it by section 1(1) of the Estate Agents Act 1979(d), and "pre-contract deposit" has the meaning assigned to it by section 12(3) of that Act.
Certain public undertakings
12. The acceptance by a body listed in Schedule 3 to these Regulations of a deposit made by another such body is an exempt transaction.
The National Children's Charities Fund Limited
13. The acceptance by the National Children's Charities Fund Limited of a deposit by any person is an exempt transaction if the deposit is accepted on terms that no interest or premium shall be payable in respect thereof unless the total amount of deposits by that person with the National Children's Charities Fund Limited exceeds £10,000.
Commodity brokers and clearing houses
14.—(1) The acceptance by a member of a market organisation listed in Part 1 of Schedule 4 to these Regulations (in this Regulation described as a "broker") of a deposit from a client is an exempt transaction if the deposit is taken either—
(a) as security in respect of any loss which the broker may incur as a result of entering into a contract to which this paragraph applies or of the client's failure to perform an obligation under such a contract, or
(b) on terms that it will be repaid on demand if it is not applied by the broker—
(i) as security as described in sub-paragraph (a) above, or
(ii) on behalf of the client, as consideration under a contract to which this paragraph applies.
(a) 1974 c.47.
(b) S.I. 1976/582 (N.I. 12).
(c) 1980 c.46.
(d) 1979 c.38.
(2) Paragraph (1) above applies to a contract made by a broker with or on behalf of a client which is subject to the contract terms or conditions prescribed by, or otherwise subject to the rules of, the London Gold Market, The London Metal Exchange or the London Silver Market or a futures market, whether or not such futures market is regulated by a market organisation listed in Part 1 of Schedule 4 to these Regulations.
(3) In paragraph (1) above the reference to a member of a market organisation listed in Part 1 of Schedule 4 to these Regulations includes:—
(a) an institution which is represented on the market by a director or employee of or partner in the institution who is himself a member of the market organisation, and
(b) in the case of the London International Financial Futures Exchange Limited, the tenant of a seat on the Exchange.
(4) The acceptance by a body listed in Part 2 of Schedule 4 to these Regulations of a deposit by a member of that body is an exempt transaction.
T Garel-Jones, Alastair Goodlad, Two of the Lords Commissioners of Her Majesty's Treasury.
14th December 1983.
Regulation 2
SCHEDULE 1
REVOCATIONS
Regulations revoked References
The Banking Act 1979 (Exempt Transactions) S.I. 1979/1204
Regulations 1979
The Banking Act 1979 (Exempt Transactions) S.I. 1980/345
(Amendment) Regulations 1980
The Banking Act 1979 (Exempt Transactions) S.I. 1980/346
(Amendment) (No.2) Regulations 1980
The Banking Act 1979 (Exempt Transactions) S.I. 1981/112
(Amendment) Regulations 1981
The Banking Act 1979 (Exempt Transactions) S.I. 1981/1381
(Amendment) (No.2) Regulations 1981.
The Banking Act 1979 (Exempt Transactions) S.I. 1983/510.
(Amendment) Regulations 1983
Regulation 8
SCHEDULE 2
DEED ESTABLISHING THE CO-OPERATIVE DEPOSIT PROTECTION...
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