|
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“authorised UK deposit-taker” has the meaning given by section 1; |
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“body corporate” includes a body incorporated outside the United |
| |
Kingdom, but does not include the Bank of England; |
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“company” means a company within the meaning of section 1 of the |
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Companies Act 2006 (c. 46); |
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“director”, in relation to a body corporate whose affairs are managed by |
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its members, means a member of the body corporate; |
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(a) | an enactment comprised in subordinate legislation within the |
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meaning of the Interpretation Act 1978 (c. 30), |
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(b) | an enactment contained in, or in an instrument made under, an |
| |
Act of the Scottish Parliament, and |
| |
(c) | an enactment contained in, or in an instrument made under, |
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Northern Ireland legislation within the meaning of the |
| |
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“financial assistance”, in relation to any person, includes— |
| |
(a) | assistance provided by way of loan, guarantee or indemnity, |
| |
(b) | assistance provided by way of any transaction which equates, in |
| 20 |
substance, to a transaction for lending money at interest (such |
| |
as a transaction involving the sale and repurchase of securities |
| |
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(c) | assistance falling within paragraph (a) or (b) provided |
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indirectly to or otherwise for the benefit of the person |
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(including the provision of assistance within paragraph (a) or |
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(b) to any group undertaking of that person), |
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whether provided in pursuance of an agreement or otherwise and |
| |
whether provided before or after the passing of this Act; |
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“FSMA 2000” means the Financial Services and Markets Act 2000 (c. 8); |
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“group undertaking” has the meaning given by section 1161 of the |
| |
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“indemnity” includes any undertaking or other arrangement entered into |
| |
for the purpose of indemnifying any person or for any similar purpose; |
| |
“liabilities” includes obligations; |
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“modifications” includes omissions, additions and alterations, and |
| |
“modify” has a corresponding meaning; |
| |
“pension scheme” means a scheme or other arrangements for the |
| |
provision of benefits to or in respect of people— |
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| 40 |
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(c) | on having reached a particular age, |
| |
(d) | on the onset of any serious ill-health or incapacity, or |
| |
(e) | in similar circumstances; |
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“relevant guarantee arrangements”, in relation to any authorised UK |
| 45 |
deposit-taker, has the meaning given by section 2(6); |
| |
| |
| |
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|
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(b) | debentures, including debenture stock, loan stock, bonds, |
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certificates of deposit and other instruments creating or |
| |
acknowledging indebtedness, and |
| |
(c) | warrants or other instruments entitling the holder to subscribe |
| |
for, or otherwise acquire, securities falling within paragraph (a) |
| 5 |
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and see also subsection (2); |
| |
“specified”, in relation to any order or regulations under this Act, means |
| |
specified in the order or regulations; |
| |
“statutory provision” means any provision made by or under an |
| 10 |
enactment (whenever passed or made); |
| |
“subsidiary undertaking” has the meaning given by section 1162 of the |
| |
Companies Act 2006 (c. 46); |
| |
“UK undertaking” means an undertaking which is incorporated in, or |
| |
formed under the law of any part of, the United Kingdom; |
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“undertaking” has the meaning given by section 1161 of the Companies |
| |
Act 2006 (except in the definition of “indemnity”); |
| |
“wholly owned”, in relation to the Bank of England or the Treasury, is to |
| |
be construed in accordance with subsection (6); |
| |
“wholly-owned subsidiary” has the meaning given by section 1159 of the |
| 20 |
| |
(2) | In this Act any reference (however expressed) to securities issued by any |
| |
authorised UK deposit-taker includes a reference to rights granted by the |
| |
deposit-taker which form part of its own funds for the purposes of Section 1 of |
| |
Chapter 2 of Title V of the Banking Consolidation Directive (and which would |
| 25 |
not otherwise be securities by virtue of subsection (1)). |
| |
(3) | In subsection (2) “the Banking Consolidation Directive” means Directive 2006/ |
| |
48/EC of the European Parliament and of the Council of 14 June 2006 relating |
| |
to the taking up and pursuit of the business of credit institutions (recast). |
| |
(4) | For the purposes of this Act any undertaking that was an authorised UK |
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deposit-taker immediately before the making of the first order under section 3 |
| |
or 6 in relation to the undertaking is to be regarded as continuing to be an |
| |
authorised UK deposit-taker, whether or not it would be one apart from this |
| |
| |
(5) | For the purposes of this Act any reference (however expressed) to an |
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| |
(a) | a group undertaking of an authorised UK deposit-taker, or |
| |
(b) | a subsidiary undertaking of an authorised UK deposit-taker, |
| |
| includes, in relation to any time after the making of the first order under section |
| |
3 or 6 in relation to the deposit-taker (“the relevant time”), a reference to an |
| 40 |
undertaking which was a group or subsidiary undertaking of the deposit-taker |
| |
immediately before the making of that order but is not one at the relevant time. |
| |
(6) | For the purposes of this Act— |
| |
(a) | a company is to be regarded as wholly owned by the Bank of England |
| |
at any time if at that time— |
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(i) | it is a company of which no person other than the Bank or a |
| |
nominee of the Bank is a member, or |
| |
(ii) | it is a wholly-owned subsidiary of a company within sub- |
| |
| |
| |
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|
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(b) | a company is to be regarded as wholly owned by the Treasury at any |
| |
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(i) | it is a company of which no person other than a nominee of the |
| |
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(ii) | it is a wholly-owned subsidiary of a company within sub- |
| 5 |
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(7) | This subsection makes transitional provision for the purposes of this Act in |
| |
relation to expressions defined by subsection (1) by reference to provisions of |
| |
the Companies Act 2006 (c. 46) (“the 2006 Act”)— |
| |
(a) | in relation to any time before the commencement of section 1 of the 2006 |
| 10 |
Act, “company” means a company within the meaning of the |
| |
Companies Act 1985 (c. 6) (“the 1985 Act”) or the Companies (Northern |
| |
Ireland) Order 1986 (S.I. 1986/1032 (N.I. 6)) (“the 1986 Order”); |
| |
(b) | in relation to any time before the commencement of section 1159 of the |
| |
2006 Act, “wholly-owned subsidiary” has the meaning given by section |
| 15 |
736 of the 1985 Act or Article 4 of the 1986 Order; |
| |
(c) | in relation to any time before the commencement of sections 1161 and |
| |
1162 of the 2006 Act, “group undertaking”, “subsidiary undertaking” |
| |
and “undertaking” have the meanings given by sections 258 and 259 of |
| |
the 1985 Act or Articles 266 and 267 of the 1986 Order. |
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| |
(1) | There is to be paid out of money provided by Parliament— |
| |
(a) | any expenditure incurred by the Treasury in connection with the provision of |
| |
financial assistance to any authorised UK deposit-taker in relation to which an |
| |
order is made under section 3 or 6; |
| 25 |
(b) | any expenditure incurred by the Treasury in connection with the provision of |
| |
financial assistance to any person to whom any transfer is made under this |
| |
| |
(c) | any expenditure incurred by the Treasury in connection with the giving of any |
| |
relevant indemnity or the putting in place of relevant guarantee arrangements |
| 30 |
in relation to any particular authorised UK deposit-taker; and |
| |
(d) | any other expenditure incurred by the Treasury by virtue of this Act. |
| |
(2) | In subsection (1)(c) “relevant indemnity” means any indemnity given to— |
| |
(a) | directors of any authorised UK deposit-taker in relation to which an |
| |
order is made under section 3 or 6, |
| 35 |
(b) | directors of any body to which any transfer is made under this Act, |
| |
(c) | directors of any body which is a group undertaking of any body to |
| |
which any transfer is made under this Act, |
| |
(d) | the Bank of England in respect of, or in connection with, any financial |
| |
assistance provided by it to any body within any of paragraphs (a) to |
| 40 |
| |
(e) | any person appointed by the Treasury as an independent valuer for the |
| |
purposes of any order made under this Act. |
| |
(3) | It is immaterial whether the indemnity or arrangements mentioned in |
| |
subsection (1) are given or put in place before or after the passing of this Act. |
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| |
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