Part 3Bank Administration

Introduction

140Objective 2: “normal” administration

(1)

Objective 2 is to—

(a)

rescue the residual bank as a going concern (“Objective 2(a)”), or

(b)

achieve a better result for the residual bank's creditors as a whole than would be likely if the residual bank were wound up without first being in bank administration (“Objective 2(b)”).

(2)

In pursuing Objective 2 a bank administrator must aim to achieve Objective 2(a) unless of the opinion either—

(a)

that it is not reasonably practicable to achieve it, or

(b)

that Objective 2(b) would achieve a better result for the residual bank's creditors as a whole.

(3)

In pursuing Objective 2(b) in bank administration following transfer to a F1resolution company, the bank administrator may not realise any asset unless—

(a)

the asset is on a list of realisable assets agreed between the bank administrator and the Bank of England, or

(b)

the Bank of England has given an Objective 1 Achievement Notice.