The Building Societies (Liquid Asset) (Amendment) Regulations 1995
These Regulations amend the Building Societies (Liquid Asset) Regulations 1991. First the existing Regulations provide (in paragraph 1 of Part II of the Schedule) that a deposit with a gilt-edged market maker or a Stock Exchange money broker, or a stock lending right against such a broker, is a liquid asset only where the deposit is secured by the transfer to the society of certain liquid assets which in the case of securities must be of the kind mentioned in paragraph 3(1)(a) of Part I of the Schedule (certain government securities). These Regulations extend the category of permitted security instruments to include the other types of securities mentioned in paragraph 3(1) (those issued by EC credit institutions, certain international organisations and local and other authorities). Secondly these Regulations add to the definition of “mortgage backed securities” in Part III of the Schedule securities guaranteed (as to the timely repayment of principal and payment of interest) by the Federal National Mortgage Association of the United States of America (known as “Fannie Mae”) or the Federal Home Loan Mortgage Corporation of the United States of America (known as “Freddie Mac”).