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New Clause 10

Banking Bill – in a Public Bill Committee at 11:45 am on 18th November 2008.

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Reverse share transfer

‘(1) This section applies where the Treasury have made a share transfer order in accordance with section 12(2) (“the original order”) providing for the transfer of securities issued by a bank to a person (“the original transferee”).

(2) The Treasury may make one or more reverse share transfer orders in respect of securities issued by the bank and held by the original transferee (whether or not they were transferred by the original order).

(3) If the Treasury makes an onward share transfer order in respect of securities transferred by the original order, the Treasury may make one or more reverse share transfer orders in respect of securities—

(a) issued by the bank, and

(b) held by a transferee under the onward share transfer order of any of the following kinds—

(i) a company wholly owned by the Bank of England,

(ii) a company wholly owned by the Treasury, or

(iii) a nominee of the Treasury.

(4) A reverse share transfer order is a share transfer order which—

(a) provides for transfer to the transferor under the original order (where subsection (2) applies);

(b) provides for transfer to the original transferee (where subsection (3) applies);

(c) makes other provision for the purposes of, or in connection with, the transfer of securities which are, could be or could have been transferred under paragraph (a) or (b).

(5) Sections 7, 9 and 47 do not apply to a reverse share transfer order (but it is to be treated in the same way as any other share transfer order for all other purposes including for the purposes of the application of a power under this Part).

(6) Before making a reverse share transfer order the Treasury must consult—

(a) the FSA, and

(b) the Bank of England.

(7) Section 26 applies where the Treasury have made a reverse share transfer order.’.—[Ian Pearson.]

Brought up, read the First and Second time, and added to the Bill.