64Special continuity obligations: property transfersU.K.
(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 [F1a third party] (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 [F2a third party] (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 [F3a third party];
(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.
[F4(4)The power under subsection (2) must be exercised by way of provision in a property transfer instrument (or supplemental instrument).
(5)The power in subsection (2)(d) and (e) may be exercised only—
(a)in so far as the Bank of England thinks it necessary to do so 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, and
(b)with the consent of the Treasury.
(6)An obligation imposed on the residual bank or a group company under subsection (2)(d) or (e) continues to apply despite the residual bank or group company entering insolvency, and may not be disclaimed by a liquidator under section 178(2) of the Insolvency Act 1986 or Article 152(2) of the Insolvency (Northern Ireland) Order 1989.]
[F5(7)For the purposes of subsection (2), “third party” includes a group company.]
Textual Amendments
F1Words in s. 64(2)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 72(2)
F2Words in s. 64(2)(b) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 72(2)
F3Words in s. 64(2)(c) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 72(2)
F4S. 64(4)-(6) substituted for s. 64(4) (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 72(3)
F5S. 64(7) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 72(4)
Commencement Information
I1S. 64 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1