Building Societies (Funding) and Mutual Societies (Transfers) Act 2007
| Jurisdiction | UK Non-devolved |
| Citation | 2007 c. 26 |
after subsection (6) insert—“ (6A) or ” ;after subsection (8) insert—After section 90A of the Building Societies Act 1986 (c. 53) insert— The Treasury may by order make provision for the purpose of ensuring that, on the winding up, or dissolution by consent, of a building society, any assets available for satisfying the society's liabilities to creditors or to shareholders are applied in satisfying those liabilities pari passu.liabilities in respect of subordinated deposits;liabilities in respect of preferential debts;any other category of liability which the Treasury specifies in the order for the purposes of this paragraph.Liabilities to shareholders do not include liabilities in respect of deferred shares.A preferential debt is a debt which constitutes a preferential debt for the purposes of any of the enactments specified in paragraph 1 of Schedule 15 to this Act (or which would constitute such a debt if the society were being wound up) .make amendments of this Act;make different provision for different purposes;make such consequential, supplementary, transitional and saving provision as appears to the Treasury to be necessary or expedient.The power to make an order under this section is exercisable by statutory instrument but no such order may be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.(1) The Treasury may, by order, make such modifications of the transfer provisions as it thinks appropriate to facilitate, or in consequence of, the transfer of the whole of the business of a mutual society (the transferor) to a subsidiary of a mutual society (whether or not of the same type) (the transferee) .of the members of the transferor;of persons who, after the transfer, become customers of the transferee.(3) An order under this section may confer such functions on the Financial Services Authority as the Treasury think appropriate.may make such consequential, saving, supplementary or transitional provision as the Treasury think appropriate;may make different provision for different purposes.(5) The power to make an order under this section is exercisable by statutory instrument.makes modifications of a provision mentioned in paragraph (a) , (b) or (c) of subsection (11) , oramends paragraph (a) or (b) of subsection (13) ,(7) Otherwise, an order is subject to annulment in pursuance of a resolution of either House of Parliament.(8) If a draft of an order mentioned in subsection (6) would, apart from this subsection, be treated for the purposes of the Standing Orders of either House of Parliament as a hybrid instrument it must proceed in that House as if it were not such an instrument.(9) Modifications include omissions, additions and alterations.a building society incorporated or deemed to be incorporated under the Building Societies Act 1986 (c. 53) ;a friendly society within the meaning of the Friendly Societies Act 1992 (c. 40) ;a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014;a Crown Dependency mutual society.
- “(6A) The Treasury may, by order—
- (a) provide for subsection (1) to have effect as if the reference to 50 per cent were a reference to such greater percentage (not exceeding 75) as they think appropriate;
- (b) prohibit a society from applying the increased percentage unless a resolution of the society of such description as the Treasury think appropriate is passed in favour of applying the increased percentage.
- (8A) The power to make an order under subsection (6A) is exercisable by statutory instrument but no such order may be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
- “(11) The Treasury may by order amend subsection (1) (a) so as to alter the extent to which the making of loans is required to be funded by a society's members.
- (12) An order under this section may make such consequential, saving, supplementary or transitional provision as the Treasury think necessary or expedient.
- (13) The consequential provision that may be made by virtue of subsection (12) includes, in particular, provision amending any the following so far as relating to funding by the members of a society—
- (a) section 1(1) (a) (functions of the Financial Services Authority in relation to building societies) ;
- (b) section 93(2) (a) (amalgamations) ;
- (c) paragraph 2 of Schedule 2 to this Act (memorandum) .
- “(1) The Treasury may by order make provision for the purpose of ensuring that, on the winding up, or dissolution by consent, of a building society, any assets available for satisfying the society's liabilities to creditors or to shareholders are applied in satisfying those liabilities pari passu.
- (2) Liabilities to creditors do not include—
- (a) liabilities in respect of subordinated deposits;
- (b) liabilities in respect of preferential debts;
- (c) any other category of liability which the Treasury specifies in the order for the purposes of this paragraph.
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