The Payment and Electronic Money Institution Insolvency Regulations 2021

Objectives 1 and 3: TAs: novation of contracts

27.—(1) The TA has effect so that contracts falling within Types 1 to 4 are to be read, immediately after the transfer, as if they had been made by the transferee rather than the institution.

Type	Description
Type 1	PS or EMI contracts which relate to the relevant funds which are transferred.
Type 2	Other PS or EMI contracts which confer or impose rights or liabilities which are transferred but for which no relevant funds are held at the time of transfer.
Type 3	Contracts— (a) where the institution is a payment institution which is a party to the contract, (b) under which another person provides agency services to that institution, and (c) under which that other person provides those services in respect of those users whose relevant funds or rights or liabilities under contracts for payment services are being transferred.
Type 4	Contracts— (a) where the institution is an electronic money institution which is party to the contract, (b) under which another person provides agency or distribution services to that institution, and (c) under which that other person provides those services in respect of those users or holders whose relevant funds or rights or liabilities under PS or EMI contracts are being transferred.

(2) The TA also has effect so that the transferee may, immediately after the transfer, vary the terms of a PS or EMI contract without obtaining the agreement of any person who is party to the contract to the following extent—

(a) to give effect to the TA, and

(b) to ensure that the powers, rights and obligations of the transferee acting as a trustee are exercisable.