Banking (Special Provisions) Act 2008

Alteration of terms of securities or contracts etc.

4 (1) An order under section 3 may make provision for varying or nullifying the terms, or the effect of terms, of—

(a) securities issued by the relevant deposit-taker (whether or not transferred by such an order),

(b) securities issued by any of its group undertakings, or

(c) other relevant instruments.

(2) The provision that may be made by virtue of sub-paragraph (1) includes provision—

(a) for securing that transactions or events of any specified description have or do not have (directly or indirectly) such consequences as are specified, or are to be treated in the specified manner for any specified purposes;

(b) for discharging persons from further performance of obligations under relevant instruments, and for dealing with the consequences of persons being so discharged.

(3) In this paragraph “relevant instrument” means any agreement, licence or other instrument to or by which any of the following is a party or bound—

(a) the relevant deposit-taker,

(b) any of its group undertakings, or

(c) any person having a specified connection with the relevant deposit-taker or any of its group undertakings (whether framed by reference to a sale of assets by one to the other, or otherwise).