PART 2Amendments of the Banking Act 2009 and related provision

CHAPTER 1Amendments of the Banking Act 2009

Termination rights etc15

1

Section 48Z (termination rights etc) M1 is amended as follows.

2

In subsection (1), in the definition of “crisis prevention measure”—

a

omit the “or” at the end of paragraph (c);

b

at the end of paragraph (d), insert—

, or

e

the appointment by the PRA or the FCA of a person to act as a temporary manager under section 71C of the Financial Services and Markets Act 2000 M2;

3

In subsection (5), for “Subsection” substitute “ Subject to subsection (6A), subsection ”.

4

After subsection (6) insert—

6A

A Part 1 instrument or share transfer order may provide for subsection (6)—

a

not to apply in relation to a contract or other agreement, or

b

to apply in relation to a contract or other agreement only to the extent specified by the Bank of England in the instrument or by the Treasury in the order.

6B

Provision may be made under subsection (6A) only if the Bank of England (in the case of a Part 1 instrument) or the Treasury (in the case of a share transfer order) consider that such provision would advance one or more of the special resolution objectives.