http://www.legislation.gov.uk/ukpga/2009/1/section/48ZBanking Act 2009An Act to make provision about banking.texttext/xmlenStatute Law Database2026-02-20Expert Participation2026-01-19 Banking Act 2009s. 4(8A) (8B)Financial Services Act 2012s. 96(3)Sch. 20s. 122(3)Banking Act 2009s. 8(2)(d) and wordFinancial Services Act 2012s. 96(4)(b)Sch. 20s. 122(3)Banking Act 2009s. 48Z(1)The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018Sch. 1 para. 23(2)(a)reg. 1(2) Part 1Chapter 3 48Z1In this section—“crisis management measure” has the meaning given in Article 2.1(102) of the recovery and resolution directive, and accordingly in relation to the United Kingdom means—the exercise of a stabilisation power in relation to the bank by the Bank of England or the Treasury,the appointment of a resolution administrator under section 62B,the recognition by the Bank of England of third-country resolution action (or part of such action) in accordance with Chapter 5 of this Part, orthe exercise by the Bank of a stabilisation power by virtue of section 89I(3) (exercise of powers in support of third-country resolution action);“crisis prevention measure” ... means—the imposition by the PRA or the FCA under the Bank Recovery and Resolution (No 2) Order 2014 (SI 2014/3348) of a requirement to take relevant measures as described in article 15, 16, or 23 of that Order,,the imposition by the Bank of England of a requirement to take measures to remove impediments to resolvability under section 3A, the taking by the FCA or the PRA of a measure for early intervention under article 111 of the Bank Recovery and Resolution (No. 2) Order 2014, the making of a mandatory reduction instrument by the Bank of England under section 6B , or the appointment by the PRA or the FCA of a person to act as a temporary manager under section 71C of the Financial Services and Markets Act 2000 ;“default event provision” means a Type 1 or Type 2 default event provision (see subsections (2) and (3));“group” has the meaning given by section 474 of the Companies Act 2006;“Part 1 instrument” means—a mandatory reduction instrument,a share transfer instrument,a property transfer instrument, ora resolution instrument.“recognised third-country resolution action” means third-country resolution action, or a part of such action, recognised by the Bank of England in an instrument under section 89H(2); “third-country institution” means an institution established in a country or territory other than the United Kingdom that would, if it were established within the United Kingdom, be regarded as a bank, building society, credit union or investment firm; “third-country parent financial holding company” means a parent financial holding company (within the meaning of Article 4.1(30) of the capital requirements regulation) established or formed under the law of a country or territory outside the United Kingdom; “third-country parent institution” means a parent institution (within the meaning of Article 4.1(28) of the capital requirements regulation) established or formed under the law of a country or territory outside the United Kingdom; “third-country parent mixed financial holding company” means a parent mixed financial holding company (within the meaning of Article 4.1(32) of the capital requirements regulation) established or formed under the law of a country or territory outside the United Kingdom; “third-country parent undertaking” means a third-country parent institution, a third-country parent financial holding company or a third-country parent mixed financial holding company. 2A Type 1 default event provision is a provision of a contract or other agreement that has the effect that if a specified event occurs or situation arises—athe agreement is terminated, modified or replaced,brights or duties under the agreement are terminated, modified or replaced,ca right accrues to terminate, modify or replace the agreement,da right accrues to terminate, modify or replace rights or duties under the agreement,ea sum becomes payable or ceases to be payable,fdelivery of anything becomes due or ceases to be due,ga right to claim a payment or delivery accrues, changes or lapses,hany other right accrues, changes or lapses, orian interest is created, changes or lapses.3A Type 2 default event provision is a provision of a contract or other agreement that has the effect that a provision of the contract or agreement—atakes effect only if a specified event occurs or does not occur,btakes effect only if a specified situation arises or does not arise,chas effect only for so long as a specified event does not occur,dhas effect only while a specified situation lasts,eapplies differently if a specified event occurs,fapplies differently if a specified situation arises, orgapplies differently while a specified situation lasts.4For the purposes of subsections (2) and (3) it is the effect of a provision that matters, not how it is described (nor, for example, whether it is presented in a positive or a negative form).5 Subject to subsection (6A), subsection (6) applies where a contract or other agreement—ais entered into by a bank, a third-country institution or a third-country parent undertaking,bis entered into by a subsidiary undertaking of a bank, a third-country institution or a third-country parent undertaking, whose obligations are guaranteed by a company which is a member of the same group as the bank, third-country institution or third-country parent undertaking, orcis entered into by an undertaking which is a member of the same group as a bank, third-country institution, or third country parent undertaking,and the substantive obligations provided for in the contract or agreement (including payment and delivery obligations and provision of collateral) continue to be performed.6The following are to be disregarded in determining whether a default event provision applies—aa crisis prevention measure, crisis management measure or recognised third-country resolution action taken in relation to the bank, third country institution or a member of the same group as the bank or third country institution, andbthe occurrence of any event directly linked to the application of such a measure or action.6AA Part 1 instrument or share transfer order may provide for subsection (6)—anot to apply in relation to a contract or other agreement, orbto apply in relation to a contract or other agreement only to the extent specified by the Bank of England in the instrument or by the Treasury in the order.6BProvision may be made under subsection (6A) only if the Bank of England (in the case of a Part 1 instrument) or the Treasury (in the case of a share transfer order) consider that such provision would advance one or more of the special resolution objectives.7A Part 1 instrument or share transfer order may provide for subsection (8) or (9) to apply (but need not apply either) in circumstances where subsection (6) would not apply.8If this subsection applies, the Part 1 instrument or share transfer order is to be disregarded in determining whether a default event provision applies.9If this subsection applies, the Part 1 instrument or share transfer order is to be disregarded in determining whether a default event provision applies except so far as the instrument or order provides otherwise.10In subsections (7), (8) and (9) a reference to the Part 1 instrument or share transfer order is a reference to—athe making of the instrument or order,banything that is done by the instrument or order or is to be, or may be, done under or by virtue of the instrument or order, andcany action or decision taken or made under this or another enactment in so far as it resulted in, or was connected to, the making of the instrument or order.11Provision under subsection (7) may apply subsection (8) or (9)—agenerally or only for specified purposes, cases or circumstances, orbdifferently for different purposes, cases or circumstances.12A thing is not done by virtue of a Part 1 instrument or share transfer order for the purposes of subsection (10)(b) merely by virtue of being done under a contract or other agreement rights or obligations under which have been affected by the instrument or order.Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2S. 48Z and cross-heading inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 62Pt. 1 Ch. 3 formed from ss. 4-83 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 7S. 48Z(6A)(6B) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 15(4)Words in s. 48Z(1) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 15(2)(b)Words in s. 48Z(5) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 15(3)Words in s. 48Z(1) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(b)(iii); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(b)(iv); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(c); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(d); 2020 c. 1, Sch. 5 para. 1(1)Words in s. 48Z(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 23(2)(e); 2020 c. 1, Sch. 5 para. 1(1)