For section 6 of the 1986 Act there shall be substituted the following section -

"Making loans

6 The lending limit

(1) A building society shall secure that the difference between -

(a) the value of X on any quarter day; and

(b) the value of Y on that day or the value of Y on the immediately preceding quarter day, whichever is the greater,

does not exceed 25 per cent of that value of X.

(2) For the purposes of subsection (1) above -

X = the difference between the total assets of the society and any subsidiary undertakings of the society as shown in the society's accounts and the aggregate of -

(a) the liquid assets of the society and any such undertakings as shown in those accounts in pursuance of regulations under section 73(7);

(b) the fixed assets of the society and any such undertakings as so shown; and

(c) where any such undertakings are insurance companies within the meaning of the [1982 c. 50.] Insurance Companies Act 1982, such of their assets as shown in those accounts as represent long term insurance funds; and