OpenLegislation

Section 151 Property transfer from resolution companyF3I1

United Kingdom

(1)

This section applies where the Bank of England —

(a)

transfers all or part of the business of a bank (“the original bank”) to a F1resolution company (“the original resolution company”) by making a property transfer instrument in accordance with section 12(2) F2or 12ZA(3), and

(b)

later makes or proposes to make an onward property transfer instrument under section 43(2) from the resolution company to a transferee (“the onward transferee”).

(2)

If the onward transferee is a company which is wholly owned by the Bank of England—

(a)

the onward transferee is treated as a resolution company for the purposes of this Part, and

(b)

the original resolution company is treated as a residual bank for the purposes of this Part.

(3)

In any other case, the Bank of England may determine that the original resolution company is to be treated as a residual bank for the purposes of this Part.

(4)

Where the original resolution company is put into bank administration in reliance on subsection (2)(b), Objective 1 shall apply in accordance with section 138(4) in relation to both—

(a)

services provided by the original bank to the original resolution company, and

(b)

services provided by the original resolution company to the onward transferee.

(5)

Where the original resolution company is put into bank administration in reliance on a determination under subsection (3), Objective 1 shall apply in accordance with—

(a)

section 138(3) in relation to services provided by the original resolution company to the onward transferee, and

(b)

section 138(4) in relation to services provided by the original bank to the original resolution company .

(6)

But the Bank may determine—

(a)

that subsection (5) does not apply, and

(b)

that section 150 shall apply as if the Bank had given—

(i)

an Objective 1 Interim Achievement Notice in respect of the original resolution company, and

(ii)

a notice under section 150(1)(b) in respect of the onward transferee.

Annotations

Textual amendments

F1

Words in s. 151 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(a)

F2

Words in s. 151(1)(a) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(b)

F3

Words in s. 151 heading substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(12)(a)

Commencement

I1

S. 151 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))