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.