Part 1Special Resolution Regime

Incidental functions

63General continuity obligation: property transfers

1

In this section and section 64—

a

“residual bank” means a bank all or part of whose business has been transferred in accordance with section 11(2)(b) or 12(2),

b

“group company” means anything which is, or was immediately before the transfer, a group undertaking in relation to a residual bank,

c

“group undertaking” has the meaning given by section 1161(5) of the Companies Act 2006 (interpretation),

d

“the transferred business” means the part of the bank’s business that has been transferred, and

e

“transferee” means a commercial purchaser or bridge bank to whom all or part of the transferred business has been transferred.

2

The residual bank and each group company must provide such services and facilities as are required to enable a transferee to operate the transferred business, or part of it, effectively.

3

The duty under subsection (2) (the “continuity obligation”) may be enforced as if created by contract between the residual bank or group company and the transferee.

4

The duty to provide services and facilities in pursuance of the continuity obligation is subject to a right to receive reasonable consideration.

5

The continuity obligation is not limited to the provision of services or facilities directly to a transferee.

6

The Bank of England may, with the consent of the Treasury, by notice to the residual bank or a group company state that in the Bank’s opinion—

a

specified activities are required to be undertaken in accordance with the continuity obligation;

b

activities are required be undertaken in accordance with the continuity obligation on specified terms.

7

A notice under subsection (6) shall be determinative of the nature and extent of the continuity obligation as from the time when the notice is given.