Special continuity obligations: share transfersU.K.
93(1)Expressions in this paragraph have the same meaning as in paragraph 92.
(2)The Bank may—
(a)cancel a contract or other arrangement between the transferred CCP and a former group company or a third party;
(b)modify the terms of a contract or other arrangement between the transferred CCP and a former group company or a third party;
(c)confer and impose rights and obligations on a former group company or a third party and the transferred CCP, which has effect as if created by contract between them.
(3)In modifying or setting terms under sub-paragraph (2) the Bank must aim, so far as is reasonably practicable, to preserve or include—
(a)a provision for reasonable consideration, and
(b)any other provision that would be expected in arrangements concluded between parties dealing at arm’s length.
(4)The power under sub-paragraph (2)—
(a)may be exercised only in so far as the Bank thinks it necessary to ensure the provision of such services and facilities as are required to enable the transferred CCP to operate effectively,
(b)may be exercised by the Bank only with the consent of the Treasury, and
(c)must be exercised by way of provision in a share transfer instrument.
(5)An obligation imposed on the transferred CCP or a former group company under sub-paragraph (2)(b) or (c) continues to apply despite the transferred CCP or former group company entering insolvency, and may not be disclaimed by a liquidator under section 178(2) of the Insolvency Act 1986 or Article 152(1) of the Insolvency (Northern Ireland) Order 1989.
Commencement Information
I1Sch. 11 para. 93 not in force at Royal Assent, see s. 86(3)
I2Sch. 11 para. 93 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)