Banking Act 1979

8 Power to give directions in connection with termination of deposit-taking authority

(1) Subject to sections 9 and 11(5) below, the Bank may give directions under this section to an institution—

(a) at the same time as the Bank gives the institution notice under subsection (3)(a) of section 7 above of its intention to take action under subsection (1)(a) of that section; or

(b) at any time after such a notice has been given to the institution (whether before or after its recognition or licence is revoked); or

(c) at any time after the institution has surrendered its recognition or licence.

(2) Directions under this section shall be such as appear to the Bank to be desirable in the interests of depositors, whether for the purpose of safeguarding the assets of the institution or otherwise, and a direction under this section may do all or any of the following, namely.—

(a) prohibit the institution from dealing with or disposing of its assets in any manner specified in the direction;

(b) prohibit it from entering into any transaction or class of transaction so specified;

(c) prohibit it from soliciting deposits either generally or from persons who are not already depositors; and

(d) require it to take certain steps or pursue a particular course of action.

(3) A direction under this section shall be in writing and shall specify the reasons why the Bank considers it should be given.

(4) The power of the Bank to give a direction under this section includes power to vary such a direction by a further direction; and a direction under this section may be revoked by a notice in writing (which may be contained in a later direction) given to the institution concerned by the Bank.

(5) Any person who fails to comply with a direction for the time being in force under this section shall be liable—

(a) on summary conviction to a fine not exceeding the statutory maximum; and

(b) on conviction on indictment to imprisonment for a term not exceeding two years or to a fine or both.