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Section 21 Restructuring deposit takers or insurance companiesI1I2

United Kingdom

(1)

A subsidy for restructuring an ailing or insolvent deposit taker or insurance company is prohibited by this section unless the conditions in subsections (2) to (4) are met.

(2)

The condition in this subsection is that—

(a)

the subsidy is given on the basis of a restructuring plan, and

(b)

the public authority giving the subsidy is satisfied that the restructuring plan—

(i)

is credible, and

(ii)

is likely to restore long-term viability.

(3)

The condition in this subsection is that the beneficiary of the subsidy, its shareholders, its creditors or the business group to which the beneficiary belongs—

(a)

have contributed significantly to the restructuring costs from their own resources, or

(b)

have a contractual obligation to do so.

(4)

The condition in this subsection is that the public authority giving the subsidy has been or reasonably expects to be properly remunerated for the subsidy.

Annotations

Commencement

I1

S. 21 not in force at Royal Assent, see s. 91

I2

S. 21 in force at 4.1.2023 by S.I. 2022/1359, reg. 2