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New Clause 13

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

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Temporary public ownership: reverse property transfer

‘(1) This section applies where the Treasury have made a property transfer order in accordance with section 41(2) (“the original order”) providing for the transfer of property, rights or liabilities to a company wholly owned by—

(a) the Bank of England,

(b) the Treasury, or

(c) a nominee of the Treasury.

(2) The Treasury may make one or more reverse property transfer orders in respect of property, rights or liabilities of the transferee under the original order.

(3) A reverse property transfer order is a property transfer order which—

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

(b) makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities which are, could be or could have been transferred.

(4) Sections 7, 8 and 9 do not apply to a reverse property transfer order.

(5) A reverse property transfer order is to be treated—

(a) in the same way as a share transfer order for the procedural purposes of section 24, but

(b) as a property transfer instrument for all other purposes (including for the purposes of the application of a power under this Part).

(6) In the application of section 36 by virtue of subsection (5)(b) above, the power to give directions under section 36(7) vests in the Treasury (instead of the Bank of England).

(7) Before making a reverse property transfer order the Treasury must consult—

(a) the FSA, and

(b) the Bank of England.

(8) Section 39 applies where the Treasury have made a reverse property transfer order.’.—[Ian Pearson.]

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