(1) Shares which are issued by a society upon terms which have the effect of the key term set out in the Schedule to this Order and in respect of which the condition set out in paragraph (2) of this article is satisfied, shall be shares of a class defined as deferred shares for the purposes of section 119 of the Act.

(2)The condition mentioned in paragraph (1) of this article is that -

(a) the document containing the issue terms, or where the issue terms are contained in a series of documents, one of those documents, being in either case a document which is furnished to every applicant for the shares ("the issue document"), and every document evidencing title to the shares ("the title document"), contains a prominent statement to the effect that the shares are deferred shares for the purposes of section 119 of the Act;

(b) where the issue document was issued before 1st December 2001 or where the title document evidences title obtained before that date, that document contains a prominent statement to the effect that the shares are not protected investments for the purposes of payments out of the Building Societies Investor Protection Fund; and