# The Bank Recovery and Resolution (No. 2) Order 2014, Paragraph 2: The context for resolution action


(1) In drawing up a resolution plan the Bank must have regard to the different circumstances under which the relevant institution may fail or be likely to fail.
(2) The circumstances to which the Bank must have regard include the following—
(a) that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and
(b) that there is no such a situation or occurrence.
(3) In drawing up a resolution plan the Bank must not assume that the relevant institution will be in receipt of—
(a) extraordinary public financial support other than financing arrangements made in accordance with section 228 or 229 of the Banking Act 2009;
(b) emergency liquidity assistance ; or
(c) any other liquidity assistance provided by the Bank under non-standard collateralisation, tenor and interest rate terms.

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Source: https://www.legislation.gov.uk/uksi/2014/3348/schedule/1/paragraph/2 (the official version)
Page: https://openlegislation.uk/bank-recovery-and-resolution-no-2-order-2014/schedule-1/paragraph-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.