63General continuity obligation: property transfers
(1)In this section and section 64—
(a)“residual bank” means a bank all or part of whose business has been transferred in accordance with section 11(2)(b) or 12(2),
(b)“group company” means anything which is, or was immediately before the transfer, a group undertaking in relation to a residual bank,
(c)“group undertaking” has the meaning given by section 1161(5) of the Companies Act 2006 (interpretation),
(d)“the transferred business” means the part of the bank’s business that has been transferred, and
(e)“transferee” means a commercial purchaser or bridge bank to whom all or part of the transferred business has been transferred.
(2)The residual bank and each group company must provide such services and facilities as are required to enable a transferee to operate the transferred business, or part of it, effectively.
(3)The duty under subsection (2) (the “continuity obligation”) may be enforced as if created by contract between the residual bank or group company and the transferee.
(4)The duty to provide services and facilities in pursuance of the continuity obligation is subject to a right to receive reasonable consideration.
(5)The continuity obligation is not limited to the provision of services or facilities directly to a transferee.
(6)The Bank of England may, with the consent of the Treasury, by notice to the residual bank or a group company state that in the Bank’s opinion—
(a)specified activities are required to be undertaken in accordance with the continuity obligation;
(b)activities are required be undertaken in accordance with the continuity obligation on specified terms.
(7)A notice under subsection (6) shall be determinative of the nature and extent of the continuity obligation as from the time when the notice is given.