
1 
This Order may be cited as the Building Societies (Prescribed Contracts) (Amendment) Order 1987 and shall come into force on 1st October 1987.
2 
In this Order “the 1986 Order” means the Building Societies (Prescribed Contracts) Order 1986.
3 
The 1986 Order shall be amended as follows —
(a) in article 2 (interpretation), in the definition of “participant”, the words “(other than a guarantor)” shall be inserted after the word “contract”;
(b) in article 3, paragraph (3) (which limits participants) shall be replaced by the following paragraph —“
(3) No prescribed contract may be effected by a society save where the obligations of the participant thereunder fall to be performed by —
(a) a person some of whose liabilities societies, or societies of a particular description, are empowered for the time being, under section 21 (liquid assets) of the Building Societies Act 1986, to hold as assets of an authorised character, or
(b) a person performance of whose obligations under the contract is guaranteed by a person who comes within subparagraph (a) above.”.
4 

(1) Nothing in this Order shall be taken to invalidate any contract effected by a society in the previous period in accordance with the 1986 Order as a prescribed contract.
(2) For the purposes of this article the previous period is the period which —
(a) began on the day on which the 1986 Order came into force, and
(b) ended on the day before the day on which this Order came into force.
In witness thereof the common seal of the Building Societies Commission is hereto fixed, and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 13th August 1987.
D. B. Severn
Secretary to the Commission
We consent to this Order
Peter Lloyd
David Lightbown
Two of the Lords Commissioners of Her Majesty’s Treasury
20th August 1987