# The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020, Regulation 84: Suspension of security interests prior to exercise of stabilisation powers


(1) Where the Bank of England imposes a suspension under regulation 83(1) in respect of a bank, the Bank may make an instrument suspending the rights of a secured creditor of the bank to enforce any security interest the creditor has in relation to any assets of the bank.
(2) But the Bank of England may not suspend the rights of an excluded person to enforce any security interest that person may have in relation to any asset of the bank which has been pledged or provided to the excluded person in question as collateral or as cover for margin.
(3) The Bank of England must ensure that any restrictions on the enforcement of security interests which it imposes by virtue of paragraph (1) are applied consistently with any such restrictions imposed on a banking group company in the same group by virtue of regulation 88.
(4) The Bank of England must have regard to the impact a suspension might have on the orderly functioning of the financial markets before exercising the power in paragraph (1).
(5) A suspension under paragraph (1)—
(a) begins when the suspension under regulation 83(1) begins; and
(b) ends when the suspension under regulation 83(1) ends.
(6) For the purposes of this regulation, a “security interest” means an interest or right held for the purpose of securing the payment of money or the performance of any other obligation.

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Source: https://www.legislation.gov.uk/ukdsi/2020/9780348213676/regulation/84 (the official version)
Page: https://openlegislation.uk/draft-bank-recovery-and-resolution-amendment-eu-exit-regulations-2020/regulation-84
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.