Part 3U.K.Bank Administration

Multiple transfersU.K.

151Property transfer from [F1resolution company]U.K.

(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.

Textual Amendments

F1Words in s. 151 heading substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(a)

Commencement Information

I1S. 151 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3