Article 8 Additional restrictions on reverse transfers

(1)

This article applies to a partial property transfer to which this Order applies which is made by the Bank under section 44^f1 or 46^f2 of the Act.

(2)

Subject to paragraph (3), a partial property transfer to which this article applies may not provide for the transfer of—

(a)

any property, rights or liabilities which were not transferred under the original instrument; or

(b)

any liability which was not, at the time immediately before the original instrument was made, a liability owed by the recognised central counterparty.

(3)

Paragraph (2) does not apply to—

(a)

a transfer of property, rights or liabilities which have accrued, become or ceased to become payable, changed or lapsed as a result of the application of a default event provision which applies by virtue of the original instrument;

(b)

a transfer of property, rights or liabilities to which consent has been given by the transferee, the transferor and any other person whose consent for the transfer would be required were the transfer not being effected by a property transfer instrument;

(c)

a transfer of a claim for damages or an award of damages against the recognised central counterparty which was in existence immediately before the original instrument was made;

(d)

a transfer to an undertaking which has not entered insolvency; or

(e)

a transfer under article 12(6).

(4)

In this article—

(a)

“original instrument” has the meaning given by section 44 or 46 of the Act; and

(b)

the reference to insolvency includes a reference to—

(i)

liquidation;

(ii)

bank insolvency;

(iii)

administration;

(iv)

bank administration;

(v)

receivership;

(vi)

a composition with creditors; and

(vii)

a scheme of arrangement.

Annotations

Footnotes

f1: The section heading will be amended when the Financial Services (Banking Reform)Act 2013 (c. 33), Schedule 2, paragraphs (1) and 16(h) are commenced. Subsection (2) will be amended when the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 16(a) are commenced. Subsection (3) was amended by the Financial Services Act 2012, section 97(1),(6)(a) and will be further amended when the the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs1 and 16(b) are commenced. Subsection (4) will be amended when the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs1 and 16(c) are commenced. Subsection (4A) was was inserted by the Financial Services Act 2012, section 97(1), (6)(b) and will be amended when the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 16(d) are commenced. Subsections (5) and (7) will be amended when the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 16(e), (g) are commenced. Subsection (6) was amended by the Financial Services Act 2012, Schedule 17, paragraphs 1 and 23 and will be amended when the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs (1) and 16(f) are commenced.
f2: Subsection (1) was amended by the Financial Services Act 2012, section 97(1), (7)(a). Subsection (3A) was inserted by the Financial Services Act 2012, section 97(1), (7)(b). Subsection (5A) will be inserted when the Financial Services Act 2012, section 98(1), (5) is commenced. Subsection (7) was amended by the Financial Services Act 2012, Schedule 17, paragraphs 1 and 25.