| Commentary

45 Lending

| Commentary

45 Lending1

A building society is subject to the statutory nature limit for lending2. A minimum of 75% of a building society’s or its group’s business assets3 must be made up of loans fully secured on residential property4 (calculated by reference to the Building Societies Act 1986 Sections 6, 6A and 6B). Loans secured by any of three prescribed5 kinds of equitable security interests in property qualify as fully secured on residential property, if eligible in all other respects, and therefore count towards the lending nature limit6. Each building society must ensure that its lending policy and associated business control

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