The Bank Recovery and Resolution (No. 2) Order 2014

Stay of legal proceedings

185.—(1) Where—

(a) the Bank has made a mandatory reduction instrument or exercised a stabilisation power in relation to any bank, building society, investment firm or banking group company (“institution under resolution”),

(b) the institution under resolution is a party to legal proceedings before any court in the United Kingdom, and

(c) the Bank reasonably considers that a stay of those proceedings is necessary for an effective application of the resolution tools or the stabilisation powers,

the Bank may apply to that court for a stay of the proceedings.

(2) In this article—

“bank” has the meaning given by section 2 of the Banking Act 2009(1);

“banking group company” has the meaning given in section 81D of the Banking Act 2009(2);

“building society” has the meaning given in section 119 of the Building Societies Act 1986;

“mandatory reduction instrument” has the meaning given in section 6B(1) of the Banking Act 2009(3); and

“stabilisation powers” has the meaning given in section 1(4) of the Banking Act 2009(4).

(1)

Section 2 was amended by the Financial Services Act 2012, sections 101(1) and (3) and 102(1) and (3) and Schedule 17, paragraph 3, and by S.I. 2011/2832.

(2)

Section 81D was inserted by the Financial Services Act 2012, section 100(5); and was amended by the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 7(3), and by S.I. 2014/3329.

(3)

Section 6B was inserted by S.I. 2014/3329.

(4)

Section 1(4) was substituted by the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 12(1) and (4); and was amended by S.I. 2014/3329.