The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020

Contracts for which a contractual term is required

96.—(1) This regulation applies to a contract governing a liability, provided that such liability is—

(a) not an excluded liability;

(b) not an excluded deposit;

(c) governed by the law of a third country; and

(d) a liability of a type described in paragraph (3).

(2) Notwithstanding paragraph (1), this regulation does not apply to a liability to which regulation 99(1) applies.

(3) This paragraph applies to a liability—

(a) created on or after 28 December 2020, regardless of whether it is created under an agreement entered into before 28 December 2020 (including under a master or framework agreement between the contracting parties governing multiple liabilities);

(b) created before 28 December 2020, if the agreement governing the liability is subject to a material amendment on or after 28 December 2020.

(4) An amendment is material for the purposes of paragraph (3) if it affects the substantive rights and obligations of a party to the agreement.

(5) In this regulation—

“amendment” includes an automatic amendment,

“excluded deposit” means a liability which would become a secondary preferential debt within the meaning of section 386(1B) of the Insolvency Act 1986, and

“excluded liability” has the meaning given by section 48B(8) of the Act, except that a liability is not to be regarded as secured for the purposes of section 48B(8)(b) where—

(a)

it was created after 31 July 2016; and

(b)

at the time it was created, it was not a fully secured liability.