C2C1C3C5C4Part 3Bank Administration

Annotations:
Modifications etc. (not altering text)
C3

Pt. 3 applied (with modifications) by Building Societies Act 1986 (c. 53), s. 90C (as inserted (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), art. 2)

Multiple transfers

I1151Property transfer from F1resolution company

1

This section applies where the Bank of England —

a

transfers all or part of the business of a bank (“the original bank”) to a F2resolution company (“the original F2resolution company”) by making a property transfer instrument in accordance with section 12(2) F3or 12ZA(3), and

b

later makes or proposes to make an onward property transfer instrument under section 43(2) from the F2resolution company to a transferee (“the onward transferee”).

2

If the onward transferee is a company which is wholly owned by the Bank of England—

a

the onward transferee is treated as a F2resolution company for the purposes of this Part, and

b

the original F2resolution company is treated as a residual bank for the purposes of this Part.

3

In any other case, the Bank of England may determine that the original F2resolution company is to be treated as a residual bank for the purposes of this Part.

4

Where the original F2resolution company is put into bank administration in reliance on subsection (2)(b), Objective 1 shall apply in accordance with section 138(4) in relation to both—

a

services provided by the original bank to the original F2resolution company, and

b

services provided by the original F2resolution company to the onward transferee.

5

Where the original F2resolution company is put into bank administration in reliance on a determination under subsection (3), Objective 1 shall apply in accordance with—

a

section 138(3) in relation to services provided by the original F2resolution company to the onward transferee, and

b

section 138(4) in relation to services provided by the original bank to the original F2resolution company .

6

But the Bank may determine—

a

that subsection (5) does not apply, and

b

that section 150 shall apply as if the Bank had given—

i

an Objective 1 Interim Achievement Notice in respect of the original F2resolution company, and

ii

a notice under section 150(1)(b) in respect of the onward transferee.