Part 1U.K.Special Resolution Regime

Modifications etc. (not altering text)

[F1Chapter 3 U.K. Special resolution action]

Textual Amendments

F1Pt. 1 Ch. 3 formed from ss. 4-83 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 7

Transfer of propertyU.K.

[F244BProperty transfer instruments: special bail-in provisionU.K.

(1)A property transfer instrument under section [F311(2), 12(2), 12ZA(3)] or 41A(2), or an associated supplemental property transfer instrument, may make special bail-in provision with respect to the bank (see section 48B).

(2)The reference in subsection (1) to an “associated” supplemental property transfer instrument is to a supplemental property transfer instrument in relation to which the original instrument (as defined in section 42(1)) is a property transfer instrument under section [F411(2), 12(2), 12ZA(3)] or 41A(2).

(3)In the case of a property transfer instrument under section 12(2), [F5or 12ZA(3),] or a supplemental property transfer instrument in relation to which the original instrument is a property transfer instrument under section 12(2), [F5or 12ZA(3),] the power under subsection (1) to make the provision described in section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes power to make provision replacing a liability (of any form) of the bank mentioned in subsection (1) with a security (of any form or class) [F6of the bank or] of the bridge bank mentioned in section 12(1) [F7or the asset management vehicle mentioned in section 12ZA(1) (as the case may be)].

(4)Where securities of the bridge bank (“B”) are, as a result of subsection (3), held by a person other than the Bank of England, that does not prevent B from being regarded for the purposes of this Part (see particularly section [F812(1A) and 12ZA(2)]) as being wholly owned by the Bank of England, as long as the Bank of England [F9is entitled to exercise, or control the exercise of, voting rights in respect of] all the ordinary shares issued by B.]

Textual Amendments