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New Clause 12

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

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Reverse property transfer

‘(1) This section applies where the Bank of England has made a property transfer instrument in accordance with section 11(2) (“the original instrument”) providing for the transfer of property, rights or liabilities to a bridge bank.

(2) The Bank of England may make one or more reverse property transfer instruments in respect of property, rights or liabilities of the bridge bank.

(3) If the Bank of England makes an onward property transfer instrument under section 40 the Bank may make one or more reverse property transfer instruments in respect of property, rights or liabilities of a transferee of any of the following kinds under the onward property transfer instrument——

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

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

(c) a company wholly owned by a nominee of the Treasury.

(4) A reverse property transfer instrument is a property transfer instrument which—

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

(b) provides for transfer to the bridge bank (where subsection (3) applies);

(c) makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities that are, could be or could have been transferred under paragraph (a) or (b) (whether the transfer has been or is to be effected by that instrument or otherwise).

(5) Sections 7, 8 and 46 do not apply to a reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes including for the purposes of the application of a power under this Part).

(6) Before making a reverse property transfer instrument the Bank of England must consult—

(a) the FSA, and

(b) the Treasury.

(7) Section 39 applies where the Bank of England has made a reverse property transfer instrument.’.—[Ian Pearson.]

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