Part 1Transfer of balances in dormant accounts
The general scheme
1Transfer of balances to reclaim fund
(1)
This section applies where—
(a)
a bank or building society transfers to an authorised reclaim fund the balance of a dormant account that a person (“the customer”) holds with it, and
(b)
the reclaim fund consents to the transfer.
(2)
After the transfer—
(a)
the customer no longer has any right against the bank or building society to payment of the balance, but
(b)
the customer has against the reclaim fund whatever right to payment of the balance the customer would have against the bank or building society if the transfer had not happened.
(3)
The reference in subsection (1) to an account that a person holds is to be read as including an account held by a deceased individual immediately before his or her death.
In such a case, a reference in subsection (2) to the customer is to be read as a reference to the person to whom the right to payment of the balance has passed.