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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 12 March 2009 - onwards
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4. Effect of balance transfer on membership rights

(1) This section applies where a person ("the member") holds a share in a building society represented by an account with the society, and either -

(a) a transfer is made to a reclaim fund with the result that section 1 applies in relation to the account, or

(b) transfers are made to a reclaim fund and one or more charities with the result that section 2 applies in relation to the account.

(2) After the transfer or transfers the member is to be treated as having whatever share in the building society the member would have if the transfer or transfers had not happened (and accordingly as having whatever rights, including distribution rights, a holder of that share would have as such).

(3) In subsection (2) "distribution rights" means rights to any distribution arising as mentioned in section 96 (amalgamation or transfer of engagements) or 100 (transfer of business) of the Building Societies Act 1986.

(4) Subsection (2) ceases to apply where the balance of the account is paid out followi

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