PART 2Restrictions on partial property transfers
Additional restrictions on reverse transfers8
1
This article applies to a partial property transfer to which this Order applies which is made—
a
by the Bank under section 44 of the Act; or
b
by the Treasury under section 46 of the Act.
2
Subject to paragraph (3), a partial property transfer to which this article applies may not provide for the transfer of—
a
any property, rights or liabilities which were not transferred under the original instrument or order;
b
any liability which was not, at the time immediately before the original instrument or order was made, a liability owed by the banking institution; or
c
rights or liabilities under a financial instrument.
3
Paragraph (2) does not apply to—
a
a transfer of property, rights or liabilities which have accrued, become or ceased to become payable, changed or lapsed as a result of the application of a default event provision which applies by virtue of the original instrument or order;
b
a transfer of property, rights or liabilities to which consent has been given by the transferee, the transferor and any other person whose consent for the transfer would be required were the transfer not being effected by a property transfer instrument or order;
c
a transfer of a claim for damages or an award of damages against the banking institution which was in existence immediately before the original instrument or order was made;
d
a transfer to an undertaking which has not entered insolvency; or
e
a transfer under article 12(6).
4
In this article—
a
“original instrument” has the meaning given by section 44 of the Act and “original order” has the meaning given by section 46 of the Act; and
b
the reference to insolvency includes a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) receivership, (vi) a composition with creditors, and (vii) a scheme of arrangement.