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Power To Raise Funds And Borrow Money And Limit On Non-Retail Funds And Borrowing

Volume 98: debated on Wednesday 4 June 1986

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I beg to move, amendment No. 12, in page 6, line 27, leave out 'or loans'.

With this it will be convenient to take the following Government amendments: Nos. 13, 15, 16, 25 to 31, 34 to 37, 85, 87, 88, 92 to 98, 103 to 105, 112, 140, 146, 239, 307, 308, 310 and 381.

What my hon. Friend the Under-Secretary of State for the Environment has said about his amendments goes for my amendments as well.

Amendment agreed to.

Amendments made: No. 13, in page 6, line 40 leave out

'or otherwise lent to'.

No. 14, in page 7, line 1, after 'subsection'. insert

'(4A) and'.

No. 15, in page 7, line 7, leave out 'or otherwise lent to'.

No. 16, in page 7, line 18, leave out 'or otherwise lent to'.

No. 17, in page 7, line 23, at end insert—

  • '(4A) If a building society so elects with respect to any financial year its liabilities in respect of shares or deposits falling within paragraphs (c) or (d) (but no other provision) of subsection (4) above shall, subject to subsections (4B) and (4C) below, not be counted towards the limit in force under subsection (3) above.
  • (4B) The liabilities of the society to any person shall not, by virtue of an election under subsection (4A) above, be disregarded at any time during the financial year to which the election relates if at that time the liabilities to that person exceed the prescribed amount; and in that event all the society's liabilities to that person shall count towards the limit in force under subsection (3) above.
  • (4C) To be effective for the purpose of subsection (4A) above, an election must apply to the society's liabilities in respect of all its shareholders and depositors who fall within subsection (4)(c) and (d) above and notice of it must be given to the Commission before the beginning of the financial year to which it relates.
  • (4D) A copy of the notice shall also be sent to the central office and the central office shall keep the copy in the public file of the society.'.
  • No. 18, in page 7, line 31, leave out 'and'.

    No. 19, in page 7, line 33, after first 'subsection', insert `subsections (4A) to (4D) above'.

    No. 20, in page 7, line 33, after 'and', insert '(c) make'.

    No. 21, in page 7, line 34, leave out 'provisions as appear' and insert ' provision as appears'.

    No. 22, in page 8, line 25, at end insert—

    '(11A) The prescribed amount for the purposes of subsection (4B) above is £50,000 or such other amount as is for the time being substituted for it by order of the Commission made with the consent of the Treasury'.

    No. 23, in page 8, line 26, leave out 'or (11)' and insert '(11) or (11A)'.

    No. 24, in page 9, line 3, leave out 'and'.

    No. 25. in page 9, line 13, leave out 'or other loan to'. — [Mr. Ian Stewart.]