Banking (Special Provisions) Act 2008

Provisions relating to property, rights and liabilities transferred E+W+S+N.I.

2 (1) An order under section 6 may make provision— E+W+S+N.I.

(a) for any transfer of any interests or rights to take effect despite the absence of any required consent or concurrence to or with the transfer;

(b) for any transfer of any interests or rights to take effect as if—

(i) no associated liability existed in respect of any failure to comply with any other requirement, and

(ii) there were no associated interference with the interests or rights;

(c) for securing that in any specified circumstances—

(i) a person is not entitled to terminate, modify, acquire or claim an interest or right (or to treat an interest or right as terminated or modified) until it is transferred by or under the order, and

(ii) the entitlement is subsequently either not enforceable or enforceable only to the specified extent;

(d) for rights and liabilities—

(i) to be transferred so as to be enforceable by or against both the transferee and the transferor, and

(ii) where they are so enforceable, to be enforceable in different or modified respects by or against each of those persons;

(e) for interests, rights or liabilities of third parties in relation to anything to which an order under section 6 relates to be modified in the specified manner, including provision—

(i) for securing that transactions or events of any specified description do 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;

(ii) for persons to be discharged from the further performance of contracts and for dealing with the consequences of persons being so discharged;

(f) for the manner in which—

(i) any property held in trust by the relevant deposit-taker before the transfer date (whether as sole or joint trustee) is to be held on or after that date, and

(ii) any powers, provisions and liabilities relating to any such property are to be exercisable or to have effect on or after that date;

(g) for excluding from the transfer specified property, rights and liabilities comprised in the relevant deposit-taker's business or a specified part of it;

(h) for the creation of rights, liabilities or interests in relation to property, rights or liabilities transferred from or retained by the relevant deposit-taker;

(i) for dealing with cases where securities of a subsidiary undertaking are transferred by or under the order;

(j) for enabling the relevant deposit-taker and the transferee (in accordance with the order) to agree on any modification of the order, so long as the order could originally have been made with that modification in accordance with the relevant provisions of this Act;

(k) for apportioning liabilities in respect of any tax or duty (in the United Kingdom or elsewhere) between the relevant deposit-taker and the transferee.

(2) In sub-paragraph (1)(b) “associated liability” and “associated interference” mean respectively any liability or interference that would otherwise exist by virtue of any provision (of an enactment or agreement or otherwise) having effect in relation to the terms on which the relevant deposit-taker is entitled, or subject, to anything to which the transfer relates.

(3) In sub-paragraph (1)(e) “third parties” means persons other than the relevant deposit-taker or the transferee under an order under section 6.