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New Clause 11

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

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Bridge bank: reverse share transfer

‘(1) This section applies where the Bank of England has made a bridge bank share transfer instrument in accordance with section 28(2) (“the original instrument”) providing for the transfer of securities to—

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

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

(c) a nominee of the Treasury.

(2) The Bank of England may make one or more bridge bank reverse share transfer instruments in respect of securities issued by the bridge bank and held by a person within subsection (1)(a) to (c).

(3) A bridge bank reverse share transfer instrument is a share transfer instrument which—

(a) provides for transfer to the transferor under the original instrument;

(b) 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).

(4) Sections 7, 8 and 47 do not apply to a bridge bank reverse share transfer instrument (but it is to be treated in the same way as any other share transfer instrument for all other purposes including for the purposes of the application of a power under this Part).

(5) Before making a bridge bank reverse share transfer instrument the Bank of England must consult—

(a) the FSA, and

(b) the Treasury.

(6) Section 25 applies where the Bank of England has made a bridge bank reverse share transfer instrument.’.—[Ian Pearson.]

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