Part 1Special Resolution Regime

Transfer of property

I139Foreign property

1

This section applies where a property transfer instrument transfers foreign property.

2

In subsection (1) “foreign property” means—

a

property outside the United Kingdom, and

b

rights and liabilities under foreign law.

3

The transferor and the transferee must each take any necessary steps to ensure that the transfer is effective as a matter of foreign law (if it is not wholly effective by virtue of the property transfer instrument).

4

Until the transfer is effective as a matter of foreign law, the transferor must—

a

hold the property or right for the benefit of the transferee (together with any additional property or right accruing by virtue of the original property or right), or

b

discharge the liability on behalf of the transferee.

5

The transferee must meet any expenses of the transferor in complying with this section.

6

An obligation imposed by this section is enforceable as if created by contract between the transferor and transferee.

7

The transferor must comply with any directions of the Bank of England in respect of the obligations under subsections (3) and (4); and—

a

a direction may disapply subsections (3) and (4) to a specified extent, and

b

obligations imposed by direction are enforceable as if created by contract between the transferor and the Bank of England.

8

In this section “foreign law” means the law of a country or territory outside the United Kingdom.