C1C2Part 1Special Resolution Regime
Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2
F6Chapter 3 Special resolution action
Pt. 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
Incidental functions
I164Special continuity obligations: property transfers
1
Expressions in this section have the same meaning as in section 63.
2
The Bank of England may—
a
cancel a contract or other arrangement between the residual bank and F3a third party (whether or not rights or obligations under it have been transferred to a transferee);
b
modify the terms of a contract or other arrangement between the residual bank and F4a third party (whether or not rights or obligations under it have been transferred to a transferee);
c
add or substitute a transferee as a party to a contract or other arrangement between the residual bank and F5a third party;
d
confer and impose rights and obligations on a group company and a transferee, which shall have effect as if created by contract between them;
e
confer and impose rights and obligations on the residual bank and a transferee which shall have effect as if created by contract between them.
3
In modifying or setting terms under subsection (2) the Bank of England shall aim, so far as is reasonably practicable, to preserve or include—
a
provision for reasonable consideration, and
b
any other provision that would be expected in arrangements concluded between parties dealing at arm's length.
F14
The power under subsection (2) must be exercised by way of provision in a property transfer instrument (or supplemental instrument).
5
The power in subsection (2)(d) and (e) may be exercised only—
a
in so far as the Bank of England thinks it necessary to do so to ensure the provision of such services and facilities as are required to enable the transferee to operate the transferred business, or part of it, effectively, and
b
with the consent of the Treasury.
6
An obligation imposed on the residual bank or a group company under subsection (2)(d) or (e) continues to apply despite the residual bank or group company entering insolvency, and may not be disclaimed by a liquidator under section 178(2) of the Insolvency Act 1986 or Article 152(2) of the Insolvency (Northern Ireland) Order 1989.
F27
For the purposes of subsection (2), “third party” includes a group company.
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2