The Bank Recovery and Resolution Order 2016

Property transfer instruments and bail-in: supplementary matters

12.—(1) After section 44B (property transfer instruments: special bail-in provision), insert—

“Property transfer instruments and special bail-in provision: supplementary matters

44BA.— (1) The following provisions apply in relation to a property transfer instrument which makes special bail-in provision under section 44B(1) as they apply in relation to a resolution instrument—

(a) section 48L (powers in relation to securities)(1);

(b) section 48O (power to direct directors of the bank);

(c) section 48Q (continuity);

(d) section 48R (execution and registration of instruments);

(e) section 48S (resolution instruments: general matters);

(f) section 48U (supplemental resolution instruments).

(2) In sections 6E(4)(a)(iii)(2), 48B, 48X(2)(b)(ii)(3) and 48Y(1)(a) and (2)(a) a reference to a resolution instrument includes a reference to a property transfer instrument which makes special bail-in provision under section 44B(1).

(3) Where special bail-in provision is being made in—

(a) a supplemental property transfer instrument under section 42 in relation to which the original instrument is an onward property transfer instrument under section 43(2), or

(b) an onward property transfer instrument under section 43(2),

references in sections 48B (except in subsection (9)), 48L, 48O and 48U to a bank include a resolution company (whether or not it is a bank).

(4) Where subsection (3) applies, the references in section 48B(3) and (9) to a banking group company, or to a banking group company in relation to a bank, are to a banking group company in relation to the bank in respect of which the Bank of England originally exercised a stabilisation power (and not to a banking group company in relation to the resolution company).”

(1)

Section 48L was inserted, with sections 48B to 48W, by paragraph 4 of Schedule 2 to the Financial Services (Banking Reform) Act 2013.

(2)

Section 6E was inserted by S.I. 2014/3329.

(3)

Section 48X was inserted, with section 48Y by S.I. 2014/3329.