Section 140 Objective 2: “normal” administrationI1
United Kingdom
Objective 2 is to—
rescue the residual bank as a going concern (“Objective 2(a)”), or
achieve a better result for the residual bank's creditors as a whole than would be likely if the residual bank were wound up without first being in bank administration (“Objective 2(b)”).
In pursuing Objective 2 a bank administrator must aim to achieve Objective 2(a) unless of the opinion either—
that it is not reasonably practicable to achieve it, or
that Objective 2(b) would achieve a better result for the residual bank's creditors as a whole.
In pursuing Objective 2(b) in bank administration following transfer to a F1resolution company, the bank administrator may not realise any asset unless—
the asset is on a list of realisable assets agreed between the bank administrator and the Bank of England, or
the Bank of England has given an Objective 1 Achievement Notice.
Annotations
Textual amendments
- F1
Words in s. 140(3) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(6)
Commencement
- I1
S. 140 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3
Notes on Part 3
Modifications
- C1
Pt. 3 modified (21.2.2009) by Banking Act 2009 (Bank Administration) (Modification for Application to Multiple Transfers) Regulations 2009 (S.I. 2009/313), regs. 1(1), 2, 3, Sch. 1
- C2
Pt. 3 modified (21.2.2009) by The Banking Act 2009 (Bank Administration) (Modification for Application to Banks in Temporary Public Ownership) Regulations 2009 (S.I. 2009/312), regs. 1(1), 2-4, Sch.
- C3
Pt. 3 applied (with modifications) by Building Societies Act 1986 (c. 53), s. 90C (as inserted (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), art. 2)
- C4
Pt. 3 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 Pts. 1, 3 (as amended (7.4.2010) by S.I. 2010/1189, arts. 1(2), 2 and amended (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 8)
- C5
Pt. 3 applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 2 para. 6 (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 198(q)(ii) (with Sch. 2 para. 213))