Banking Act 2009

151 Property transfer from [F1 resolution company] U.K.

(1) This section applies where the Bank of England —

(a) transfers all or part of the business of a bank (“the original bank”) to a [F2 resolution company] (“the original [F2 resolution company]”) by making a property transfer instrument in accordance with section 12(2) [F3 or 12ZA(3)], and

(b) later makes or proposes to make an onward property transfer instrument under section 43(2) from the [F2 resolution company] to a transferee (“the onward transferee”).

(2) If the onward transferee is a company which is wholly owned by the Bank of England—

(a) the onward transferee is treated as a [F2 resolution company] for the purposes of this Part, and

(b) the original [F2 resolution company] is treated as a residual bank for the purposes of this Part.

(3) In any other case, the Bank of England may determine that the original [F2 resolution company] is to be treated as a residual bank for the purposes of this Part.

(4) Where the original [F2 resolution company] is put into bank administration in reliance on subsection (2)(b), Objective 1 shall apply in accordance with section 138(4) in relation to both—

(a) services provided by the original bank to the original [F2 resolution company], and

(b) services provided by the original [F2 resolution company] to the onward transferee.

(5) Where the original [F2 resolution company] is put into bank administration in reliance on a determination under subsection (3), Objective 1 shall apply in accordance with—

(a) section 138(3) in relation to services provided by the original [F2 resolution company] to the onward transferee, and

(b) section 138(4) in relation to services provided by the original bank to the original [F2 resolution company] .

(6) But the Bank may determine—

(a) that subsection (5) does not apply, and

(b) that section 150 shall apply as if the Bank had given—

(i) an Objective 1 Interim Achievement Notice in respect of the original [F2 resolution company], and

(ii) a notice under section 150(1)(b) in respect of the onward transferee.

Textual Amendments

F1 Words in s. 151 heading substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(a)

F2 Words in s. 151 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(a)

F3 Words in s. 151(1)(a) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(b)

Commencement Information

I1 S. 151 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3