
1 
This Order may be cited as the Building Societies (Designated Capital Resources) (Deferred Shares) Order 1989 and shall come into operation on 1st April 1989.
2 
In this Order–
 “the Act” means the Building Societies Act 1986;
 “old deferred shares” means shares issued by a building society on or before 31st December 1986 on the terms set out in paragraph 2 of Schedule 1 to the previous regulations;
 “new deferred shares” means shares of the class defined for the purposes of section 119(1) of the Act by the Building Societies (Deferred Shares) Order 1989;
 “the previous regulations” means the Building Societies (Authorisation) Regulations 1981 or the Building Societies (Authorisation) Regulations (Northern Ireland) 1982.
3 
When a building society has issued old deferred shares those shares may for the purpose of the first criterion of section 45(3) of the Act be aggregated with reserves, but only in so far as the nominal value of shares so aggregated does not exceed £75,000.
4 

(1) Where a building society issues new deferred shares those shares may subject to paragraph (2) below for the purposes of the first criterion of section 45(3) of the Act be aggregated with reserves, but only in so far as the nominal value of the shares so aggregated does not together with the nominal value of any old deferred shares for the time being aggregated with reserves for those purposes, exceed £250,000.
(2) Any new deferred shares issued upon terms which are subject to a provision having the effect of the permitted exception set out in paragraph 2 of the Schedule to the Building Societies (Deferred Shares) Order 1989 shall cease to be aggregated for the foregoing purposes with reserves when the Commission has signified to the society its approval of any resolution for the purposes of that provision and shall not thereafter be so aggregated notwithstanding that that resolution is not passed or is revoked.
5 
The Building Societies (Designated Capital Resources) Order 1986 is hereby revoked.
In witness whereof the common seal of the Building Societies Commission is hereunto fixed and is authenticated by me, a person authorised under paragraph 14 of Schedule 1 to the Building Societies Act 1986, on 10th February 1989.
P. H. Gevers
Secretary to the Commission
We consent to this Order.
David Lightbown
Stephen Dorrell
Two of the Lords Commissioners of Her Majesty’s Treasury
14th February 1989.