Banking Act 2009

58 Resolution fund U.K.

(1) A resolution fund order must include provision for determining—

(a) who will be entitled to a share of the proceeds on disposal of things transferred,

(b) the way in which the proceeds will be calculated, and

(c) the way in which shares will be calculated.

(2) Provision under subsection (1)(b) may, in particular, provide for proceeds to be calculated net of—

(a) amounts required for the repayment of loans from public funds or for other payments in respect of public financial assistance;

(b) some or all of the administrative or other expenses incurred in connection with the provisions of this Part.

(3) A resolution fund order may include provision for—

(a) an independent valuer to make a determination under the order (in which case sections 54(2) to (5), 55 and 56 shall apply);

(b) valuation principles to be applied in making a determination (in which case section 57(2) shall apply).

(4) A resolution fund order may confer a discretionary function on—

(a) a Minister of the Crown,

(b) the Treasury,

(c) the Bank of England, or

(d) any other specified person.

(5) A resolution fund order may include provision for the determination of disputes about the application of its provisions (whether by conferring jurisdiction on a court or tribunal or otherwise).

(6) A resolution fund order may require the Bank of England in managing a [F1 resolution company] to aim to maximise the proceeds available for distribution in accordance with the order; and an order which includes a requirement must—

(a) specify its extent, and

(b) include provision about how the Bank is to comply with it.

(7) A resolution fund order may require the Treasury to ensure that a bank in temporary public ownership in accordance with section 13(2) is managed with the aim of maximising the proceeds available for distribution in accordance with the order; and an order which includes a requirement must—

(a) specify its extent, and

(b) include provision about how the Treasury is to comply with it.

(8) A requirement under subsection (6) or (7) is to be complied with only in so far as is compatible with—

(a) pursuit of the special resolution objectives, and

(b) compliance with the code of practice under section 5.

Textual Amendments

F1 Words in s. 58(6) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 66

Commencement Information

I1 S. 58 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I2 S. 58 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1