The Banking Act 2009 (Bank Administration) (Modification for Application to Multiple Transfers) Regulations 2009

• Citation: S.I. 2009/313
• Sections: 4

Section 1 Citation, commencement and interpretation

(1) These Regulations may be cited as the Banking Act 2009 (Bank Administration) (Modification for Application to Multiple Transfers) Regulations 2009 and come into force on 21st February 2009.

(2) In these Regulations—

“ the Act ” means the Banking Act 2009;

“a bank in temporary public ownership” is a reference to a bank wholly owned by the Treasury or a nominee of the Treasury;

“onward public sector transferee” means a transferee under a property transfer order by virtue of section 45(2) of the Act who is a company wholly owned by—

the Bank of England,

the Treasury, or

a nominee of the Treasury;

“private sector transferee” means a transferee under a property transfer order by virtue of section 45(2) of the Act who is not an onward public sector transferee;

“property transfer instrument” has the meaning given by section 149(2) of the Act .

Section 2 Modification of Part 3 where more than one property transfer instrument is made (other than in respect of a bank in temporary public ownership)

The modifications of Part 3 of the Act listed in the Table to the Schedule apply where—

(a) the Bank of England makes more than one property transfer instrument in respect of a bank, and

(b) Part 3 applies to the bank by virtue of section 149 of the Act.

Section 3 Modification of Part 3 where more than one property transfer instrument is made in respect of a bank in temporary public ownership

(1) The modifications of Part 3 of the Act listed in the Table to the Schedule apply with the general modifications specified in paragraph (2) where—

(a) the Treasury make a share transfer order, in respect of the securities issued by a bank (or a bank’s holding company), in accordance with section 13(2) of the Act,

(b) the Treasury make more than one property transfer instrument in respect of the bank under section 45(2) of the Act , and

(c) Part 3 applies to the bank by virtue of section 149 and 152 of the Act .

(2) The general modifications to the Table to the Schedule are—

(a) a reference to “the Bank of England” is a reference to “the Treasury”;

(b) a reference to a “private sector purchaser” is a reference to a “private sector transferee”;

(c) a reference to a “bridge bank” is a reference to an “onward public sector transferee”.

Section 138A Objective 1: Application where more than one property transfer instrument is made—

(1) Where more than one property transfer instrument is made and business is transferred from a bank to more than one transferee, Objective 1 is to be pursued in relation to each private sector purchaser or bridge bank who, in the opinion of the Bank of England, is to be supplied with such services and facilities as are required to enable it to operate effectively.

(2) Where the bank administrator considers that the supply to one private sector purchaser or bridge bank of services and facilities may prejudice the supply of services and facilities to another transferee, the bank administrator—

(a) must consult with the Bank of England, and the Bank of England may give directions to the bank administrator regarding the supply of services and facilities to transferees,

(b) shall pursue Objective 1 in respect of each transferee in so far as is reasonably practicable in the circumstances, and

(c) may apply to the court for directions under paragraph 63 of Schedule B1 to the Insolvency Act 1986 (applied by section 145 below) if unsure whether to pursue a proposed action.