Part 3Bank Administration

Process

143Grounds for applying

(1)

The Bank of England may apply for a bank administration order in respect of a bank if the following conditions are met.

(2)

Condition 1 is that the Bank of England has made or intends to make a property transfer instrument in respect of the bank in accordance with section 11(2) F1, 12(2) or 12ZA(3).

(3)

Condition 2 is that the Bank of England is satisfied that the residual bank—

(a)

is unable to pay its debts, or

(b)

is likely to become unable to pay its debts as a result of the property transfer instrument which the Bank intends to make.