Banking Bill

With this it will be convenient to discuss new clause 2—Reversion of rescued former building societies to mutual status ‘(1) This section applies in respect of any company to which subsections (2) and (3) apply (and which is referred to in this section as a ““rescued former building society””). (2) This subsection applies if— (a) the assets and liabilities of a building society (within the meaning of section 119 of the Building Societies Act 1986 (““the 1986 Act””)) have been transferred to the company, and (b) the company continues to trade under the name of that society (or under a similar name). (3) This subsection applies if— (a) an order under section 3 (transfer of securities issued by an authorised UK deposit-taker) or 6 (transfer of property, rights and liabilities of an authorised UK deposit-taker) of the Banking (Special Provisions) Act 2008 has been made in relation to the company, or (b) the company has taken part in the bank recapitalisation fund announced by the Chancellor of the Exchequer on 8th October 2008, or (c) the company is subject to any of the stabilisation options provided for in sections 10 to 12 of this Act. (4) The Treasury must by regulations make provision enabling rescued former building societies to reconstitute themselves as building societies within the meaning of the 1986 Act. (5) Regulations under subsection (4) may— (a) disapply or modify the effect of a provision of an enactment, or (b) disapply or modify the effect of a rule of law not set out in legislation. (6) Regulations under subsection (4)— (a) shall be made by statutory instrument, and (b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.’.