Banking Act 2009

67 Special continuity obligations: share transfers

(1) Expressions in this section have the same meaning as in section 66.

(2) The continuity authority may—

(a) cancel a contract or other arrangement between the transferred bank and a former group company;

(b) modify the terms of a contract or other arrangement between the transferred bank and a former group company;

(c) confer and impose rights and obligations on a former group company and the transferred bank, which shall have effect as if created by contract between them.

(3) In modifying or setting terms under subsection (2) the continuity authority 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 continuity authority thinks it necessary to ensure the provision of such services and facilities as are required to enable the transferred bank to operate effectively,

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

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