The Building Societies (Bail-in) Order 2014

Charges

3.—(1) Where—

(a) a resolution instrument makes provision under section 84A(5) of the Banking Act 2009 in relation to a building society;

(b) by virtue of the conversion under section 84A(5)(a) of the Banking Act 2009 or the transfer under section 84A(5)(b) of that Act the successor company acquires property or undertaking which is subject to a charge; and

(c) the charge is of a kind which would, if it had been created by the company after the acquisition of the property or undertaking, have been capable of being registered under section 859A of the Companies Act 2006(1) (charges created by a company),

section 859C(2) and (3) of the Companies Act 2006 (charges existing on property or undertaking acquired) applies in relation to that charge.

(2) Despite regulation 6 of the Companies Act 2006 (Amendment of Part 25) Regulations 2013(2), paragraph (1) applies regardless of the date of creation of the charge.

(3) In relation to a charge to which section 859C(2) and (3) of the Companies Act 2006 applies because of paragraph (1), Part 25 of the Companies Act 2006 has effect as if—

(a) for sub-paragraphs (i) and (ii) of section 859K(2)(b)(3) there were substituted the words “the unique reference code allocated to the charge”;

(b) for sub-paragraphs (i) and (ii) of section 859K(3)(b) there were substituted the words “the unique reference code allocated to the charge”;

(c) section 859K(4) were omitted;

(d) for section 859L(4)(b) there were substituted—

“(b) the registered name and number of the successor company that acquired the property or undertaking subject to the charge;”;

(e) section 859L(4)(c) were omitted;

(f) for section 859L(4)(d) there were substituted—

“(d) the unique reference code allocated to the charge.”;

(g) in section 859O(2) the reference to the company that created the charge were a reference to the successor company that acquired the property or undertaking subject to the charge;

(h) section 859O(3)(b) were omitted;

(i) for section 859O(3)(c) there were substituted—

“(c) the unique reference code allocated to the charge.”.

(4) In this article—

“resolution instrument” has the meaning given by section 12A of the Banking Act 2009;

“successor company” has the meaning given by section 84D(8) of the Banking Act 2009.

(1)

Sections 859A and 859C were inserted by S.I. 2013/600.

(2)

S.I. 2013/600.

(3)

Sections 859K, 859L and 859O were inserted by S.I. 2013/6000.