Banking Act 2009

64 Special continuity obligations: property transfers

(1) Expressions in this section have the same meaning as in section 63.

(2) The Bank of England may—

(a) cancel a contract or other arrangement between the residual bank and a group company (whether or not rights or obligations under it have been transferred to a transferee);

(b) modify the terms of a contract or other arrangement between the residual bank and a group company (whether or not rights or obligations under it have been transferred to a transferee);

(c) add or substitute a transferee as a party to a contract or other arrangement between the residual bank and a group company;

(d) confer and impose rights and obligations on a group company and a transferee, which shall have effect as if created by contract between them;

(e) confer and impose rights and obligations on the residual bank and a transferee which shall have effect as if created by contract between them.

(3) In modifying or setting terms under subsection (2) the Bank of England shall aim, so far as is reasonably practicable, to preserve or include—

(a) provision for reasonable consideration, and

(b) any other provision that would be expected in arrangements concluded between parties dealing at arm’s length.

(4) The power under subsection (2)—

(a) may be exercised only in so far as the Bank of England thinks it necessary to ensure the provision of such services and facilities as are required to enable the transferee to operate the transferred business, or part of it, effectively,

(b) may be exercised only with the consent of the Treasury, and

(c) must be exercised by way of provision in a property transfer instrument (or supplemental instrument).