OpenLegislation

Paragraph 91 Continuity obligations: onward property transfersI1I2

United Kingdom

(1)

In this paragraph—

(a)

“onward transfer” means a transfer of property, rights or liabilities (whether or not under a power in this Schedule) from—

(i)

a person who is a transferee under a property transfer instrument under paragraph 29(3) (an “original transferee”), or

(ii)

a CCP, securities issued by which were earlier transferred by a share transfer instrument under paragraph 29(3) or 30(2), and

(b)

the person to whom the onward transfer is made is referred to as an “onward transferee”.

(2)

The Bank may—

(a)

provide for an obligation under paragraph 89 to apply in respect of an onward transferee;

(b)

extend paragraph 90 so as to permit action to be taken under paragraph 90(2) for the purpose of enabling an onward transferee to operate the transferred business, or part of it, effectively.

(3)

Sub-paragraph (2) may be relied on to impose obligations on—

(a)

an original transferee (where the original transfer was a property transfer),

(b)

a residual CCP within the meaning of paragraph 89 (where the original transfer was a property transfer),

(c)

the CCP (where the original transfer was a share transfer),

(d)

anything which is or was a group undertaking (within the meaning of section 1161(5) of the Companies Act 2006) of anything within paragraphs (a) to (c), or

(e)

any combination of the above.

(4)

Sub-paragraph (2) may be used to impose obligations—

(a)

in addition to obligations under or by virtue of paragraph 89 or 90, or

(b)

replacing obligations under or by virtue of either of those paragraphs to a specified extent.

(5)

A power under sub-paragraph (2) is exercisable by giving a notice to each person—

(a)

on whom a continuity obligation is to be imposed under the power, or

(b)

who is expected to benefit from a continuity obligation under the power.

(6)

Paragraphs 89(3) to (10) and 90(3) and (4) apply to an obligation as applied under sub-paragraph (2)—

(a)

construing “transferred business” as the business transferred by means of the onward transfer, and

(b)

with any other necessary modification.

(7)

The Bank may act under or by virtue of sub-paragraph (2) only with the consent of the Treasury.

Annotations

Commencement

I1

Sch. 11 para. 91 not in force at Royal Assent, see s. 86(3)

I2

Sch. 11 para. 91 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)