S.I. No. 108/1990 - Building Societies (Savings Protection) Regulations, 1990.

S.I. No. 108 of 1990.

BUILDING SOCIETIES (SAVINGS PROTECTION) REGULATIONS, 1990.

The Minister for the Environment, in exercise of the powers conferred on him by sections 3 and 94 of the Building Societies Act, 1989 (No. 17 of 1989), and after consultation with the Minister for Finance and the Central Bank, hereby makes the following regulations:—

1. (1) These Regulations may be cited as the Building Societies (Savings Protection) Regulations, 1990.

(2) These Regulations shall come into operation on the 1st day of May, 1990.

2. In these Regulations, "deposit protection account" means the account that has been established and is being maintained by the Central Bank by virtue of section 54 of the Central Bank Act, 1989 .

3. As soon as practicable after the coming into operation of these Regulations the amount maintained on deposit with the Central Bank by each society in accordance with section 93 of the Building Societies Act, 1989 , shall be transferred to the deposit protection account in respect of that society and the said account shall operate in relation to banks and building societies in common.

4. Subject to the provisions of these Regulations, the provisions of Chapter V of Part II of the Central Bank Act, 1989 , shall apply, mutatis mutandis, in relation to building societies.

5. In the application of Chapter V of Part II of the Central Bank Act, 1989 —

( a ) the definition in section 53 of "excluded depositor", section 54, sub-sections (1) to (8) of section 55 and section 73 of the Central Bank Act, 1989 , shall not have effect in relation to building societies;

( b ) a reference to a "holder of a licence" shall be construed as including a reference to a building society authorised under section 17 of the Building Societies Act, 1989 ;

( c ) a reference to a "former holder of a licence" shall be construed as including a reference to a building society whose authorisation under section 17 of the Building Societies Act, 1989 , has been revoked;

( d ) a reference to "a deposit" with a holder or former holder of a licence shall be construed as including a shareholding in, as well as a deposit with, a building society;

( e ) "excluded depositor" means, in relation to building societies, a person maintaining deposits with or shareholdings in (including deposits if any, on current accounts) a society which has become insolvent and is being wound up and, in relation to that society, where the person is—

(i) an officer of the society;

(ii) subject to section 64 of the Central Bank Act, 1989 , a person connected to a person (within the meaning of the said Chapter V) specified in subparagraph (i) of this paragraph;

(iii) subject to section 64 of the Central Bank Act, 1989 , a trustee of a trust for the benefit of a person specified in subparagraphs (i) or (ii) of this paragraph;

(iv) a subsidiary of the society or a body corporate (not being a subsidiary of the society) in respect of which the society is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights ( other than voting rights which arise only in specified circumstances) in the body corporate;

(v) a person excluded by virtue of section 63 of the Central Bank Act, 1989 ;

(f) a reference to "a licence" shall be construed as including a reference to an authorisation under section 17 of the Building Societies Act, 1989 ;

( g ) the reference in paragraph (a) of section 56 of the Central Bank Act, 1989 , to the making of regulations under section 72 (2) of that Act for the purposes of section 55 (2) of the said Act shall be construed, in relation to building societies, as a reference to the making of regulations under section 94 of the Building Societies Act, 1989 , and the reference to "Minister" in section 56 of the Central Bank Act, 1989 , shall be construed for the purposes of paragraph (a) of that section as a reference to the Minister for the Environment;

( h ) section 60 (2) of the Central Bank Act, 1989 , shall not apply as respects shareholdings in a society;

( i ) "eligible deposits" shall not include, in addition to the matters specified in subparagraphs (i) to (vii) of section 62 (1) of the Central Bank Act, 1989 , holdings of deferred shares within the meaning of section 17 (10) of the Building Societies Act, 1989 ;

( j ) in relation to building societies, paragraph (a) of subsection (1) of section 64 of the Central Bank Act, 1989 , shall be construed as referring to a connected person to whom subparagraph (ii) of the definition of "excluded depositor" in paragraph (e) of this article applies;

( k ) in relation to building societies, paragraph (b) of subsection (1) of section 64 of the Central Bank Act, 1989 , shall be construed as referring to a trustee of a trust for the benefit of a connected person to whom subparagraph (iii) of the definition of "excluded depositor" in paragraph (e) of this article applies;

( l ) the reference in section 66 (2) of the Central Bank Act, 1989 , to "the Minister" shall be construed as including a reference to the Minister for the Environment.

6. Where the liability of a society to a person maintaining eligible deposits with the society is related to both deposits with and shareholdings in the society the amount of the payment made to that person under section 60 of the Central Bank Act, 1989 , shall be applied to reducing the liability of the society to the person in respect of the deposits and shares respectively in the same proportion as that which the amount of the deposits bears to the amount of the shares within the said liability.

GIVEN under the Official Seal of the Minister for the Environment, this 30th day of April, 1990.

PADRAIG FLYNN,

Minister for the Environment.

EXPLANATORY NOTE.

The Regulations provide for the application to building societies of the provisions of Chapter V of Part II of the Central Bank Act, 1989 thereby bringing most deposits with, and shareholdings in, building societies within the ambit of the limited protection scheme established for deposits with banks by the Central Bank Act.