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Version status: Omitted | Document consolidation status: Updated to reflect all known changes
Version date: 26 March 2015 - onwards
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55. Building societies: creation of floating charges

Omitted from 26 March 2015

(1) Section 9B of the Building Societies Act 1986 (restriction on creation of floating charges) is amended as follows.

(2) In subsection (1), at the end insert "unless it complies with the requirements in subsection (1A)".

(3) After that subsection insert -

"(1A) The requirements are that the floating charge -

(a) is created in favour of a participant in a system, and

(b) is created for the purpose of securing any rights and obligations that may arise in connection with participation in that system."

(4) After subsection (2) insert -

"(3) In this section "participant" and "system" have the meaning given by Article 2 of Directive 98/26/EC of the European Parliament and of the Council of 19th May 1998 on settlement finality in payment and securities settlement systems (as amended by Directives 2009/44/EC and 2010/78/EU)."

Comparing proposed amendment...