Part VII Control of Business Transfers

106 Banking business transfer schemes.

1

A scheme is a banking business transfer scheme if it—

a

satisfies one of the conditions set out in subsection (2);

b

is one under which the whole or part of the business to be transferred includes the accepting of deposits; and

c

is not an excluded scheme.

2

The conditions are that—

a

the whole or part of the business carried on by a UK authorised person who has permission to accept deposits (“the authorised person concerned”) is to be transferred to another body (“the transferee”);

b

the whole or part of the business carried on in the United Kingdom by an authorised person who is not a UK authorised person but who has permission to accept deposits (“the authorised person concerned”) is to be transferred to another body which will carry it on in the United Kingdom (“the transferee”).

3

A scheme is an excluded scheme for the purposes of this section if—

a

the authorised person concerned is a building society or a credit union; or

b

the scheme is a compromise or arrangement to which section 427A(1) of the M4Companies Act 1985 or Article 420A of the M5Companies (Northern Ireland) Order 1986 (mergers and divisions of public companies) applies.

4

For the purposes of subsection (2)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.

5

“UK authorised person” has the same meaning as in section 105.

6

“Building society” has the meaning given in the M1Building Societies Act 1986.

7

“Credit union” means a credit union within the meaning of—

a

the M2Credit Unions Act 1979;

b

the M3Credit Unions (Northern Ireland) Order 1985.