Cash Ratio Deposits (Eligible Liabilities) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/1130 |
| Year | 1998 |
1998 No. 1130
BANKS AND BANKING
The Cash Ratio Deposits (Eligible Liabilities) Order 1998
Made 24th April 1998
Laid before Parliament 27th April 1998
Coming into force 1st June 1998
The Treasury, having consulted the Bank of England, such persons as appear to them to be representative of persons likely to be materially affected by the following Order and such other persons as they think fit, and having regard to the financial needs of the Bank of England, in exercise of the powers conferred on them by paragraph 2(2) of Schedule 2 to the Bank of England Act 19981, hereby make the following Order:
Citation and commencement
1. This Order may be cited as the Cash Ratio Deposits (Eligible Liabilities) Order 1998 and shall come into force on 1st June 1998.
Interpretation
2.—(1) In this Order—
“the Act” means the Bank of England Act 1998;
“credit items in the course of transmission”, in relation to an eligible institution, means standing orders and other credit transfers debited to customers' accounts, and payment orders including cheques and bankers' payments, in respect of which the eligible institution is required to make a payment and has not yet made it;
“debit items in the course of collection”, in relation to an eligible institution, means payment orders including cheques (other than cheques passed to United Kingdom offices of other eligible institutions for collection) and bankers' payments in respect of which the eligible institution is entitled to receive a payment and has not yet received it;
“ecu” means—
(a) the European currency unit as defined in Article 1 of Council Regulation No. 3320/94/EC2; or
(b) any other unit of account which is defined by reference to the European currency unit as so defined;
“eligible institution” means an eligible institution for the purposes of Schedule 2 to the Act;
“finance lease” means a lease granted on terms which have the effect of transferring to the lessee all or substantially all of the risk and rewards of ownership of the asset or assets subject to the lease;
“fixed assets”, in relation to an eligible institution, means assets which are intended for use on a continuing basis in the institution’s activities;
“group” has the meaning given by section 262 of the Companies Act 19853;
“items in suspense” means all credit balances in the books of an eligible institution not in customers' names, but relating to funds held on behalf of customers or others, including, without prejudice to the generality of the foregoing—
(a) accounts holding funds awaiting transfer to customers (other than accounts relating to interest accruing and interest suspense accounts);
(b) returnable application monies for issues of securities;
(c) funds of any customer awaiting investment which have been transferred to an account not in the name of the customer;
(d) funds transferred from the account of any customer to an account not in the name of the customer to meet acceptances, confirmed credits and similar obligations;
(e) funds placed on account to meet travellers' cheques issued by the eligible institution but not yet presented;
(f) valuation fees awaiting transfer to a person who has made a report on the value of land; and
(g) accounts holding funds which the eligible institution has received as collecting agent on behalf of a charity;
but excluding balances awaiting settlement of securities transactions held in an account not in the name of the customer;
“net sterling liabilities to non-resident offices”, in relation to an eligible institution, means the amount (if any) by which the institution’s total sterling liabilities to non-resident offices exceed its total sterling claims on non-resident offices;
“non-resident banking subsidiary”, in relation to an eligible institution or a non-resident parent, means a body corporate incorporated in a country or territory outside the United Kingdom, or a partnership or other unincorporated association formed under the law of such a country or territory, whose sole or main business is banking and (in the case of an undertaking with a share capital) all of whose voting share capital is, or (in the case of any other undertaking) all of whose shares are, beneficially owned by that eligible institution or, as the case may be, that non-resident parent;
“non-resident offices”, in relation to an eligible institution, means the offices outside the United Kingdom of—
(a) that institution;
(b) any non-resident banking subsidiary of that institution; and
(c) if that institution has a non-resident parent, that non-resident parent and its non-resident banking subsidiaries (if any);
“non-resident parent”, in relation to an eligible institution, means a body corporate incorporated in a country or territory outside the United Kingdom, or a partnership or other unincorporated association formed under the law of such a country or territory, which beneficially owns (in the case of an undertaking with a share capital) all of the voting share capital of, or (in the case of any other undertaking) all of the shares in, that institution;
“over two year deposits”, in relation to an eligible institution, means deposits made with the institution on terms to the effect that repayment cannot be required before the end of the period of two years beginning with the day on which the deposit is made (other than in exceptional circumstances outside the control of the depositor specified at the time the deposit is made), and which have been reported as such deposits by the institution to the Bank;
“retransfer agreement” means—
(a) a sale and repurchase agreement;
(b) an agreement under which one party sells securities or other assets to another, and by a related transaction undertakes to purchase the same or equivalent securities or assets from that other party on a specified date, or at call, at a specified price; or
(c) an agreement under which one party otherwise transfers securities or other assets to another in return for a cash payment, and as part of the same transaction undertakes to make a cash payment to that other party upon the transfer to it by that other party of the same or equivalent securities or assets on a specified date, or at call;
“sale and repurchase agreement” means an agreement under which one party sells securities or other assets to another, and as part of the same transaction undertakes to purchase the same or equivalent securities or assets from that other party on a specified date, or at call, at a specified price;
“the Schedule” means the Schedule to this Order;
“securities” means shares, stock, debentures, debenture stock, loan stock, bonds, and other securities of any description;
“sterling deposit liabilities to non-resident offices”, in relation to an eligible institution, means sterling liabilities of the United Kingdom offices of that institution to its non-resident offices which fall within paragraph 1 or paragraph 3 of the Schedule, and which have been reported as such liabilities by the institution to the Bank;
“stored value card” means a card (which includes any token, coupon, stamp, form, booklet or other document or thing) issued by an eligible institution under an agreement which provides that the institution will or, as the case may be, a third party may, upon production of the card, supply to the holder of the card goods or services (which includes the payment of cash) of a value not exceeding the amount of any payment or payments previously made to the institution by the holder of the card (or the balance thereof remaining after previous transactions);
“total sterling claims on non-resident offices”, in relation to an eligible institution, means the total sterling claims of the United Kingdom offices of...
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