Banking Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Banking Bill

Banking Bill
Part 8 — General
122

Section
Topic
Parliamentary scrutiny

75
Power to change law
Draft affirmative resolution

(except for urgent cases)

78
Public funds
Negative resolution

(Commons only)

5

82
Building societies: orders
Negative resolution

83
Building societies: assets
(As for orders under section

90B of the Building Societies

Act 1986)

85
Building societies: consequential
Draft affirmative resolution

10

86
Credit unions
Draft affirmative resolution

PART 2 - Bank insolvency

88
Meaning of “bank”
Draft affirmative resolution

119
Application of insolvency law
Draft affirmative resolution

122
Rules
(Expansion of power in

15

section 411 of the Insolvency

Act 1986)

127
Building societies
Draft affirmative resolution

128
Credit unions
Draft affirmative resolution

129
Partnerships
(As for orders under section

20

420 of the Insolvency Act

1986)

130
Scottish partnerships
Negative resolution

132
Consequential provision
Draft affirmative resolution

PART 3 - Bank administration

25

145
Sharing information
Negative resolution

146
Multiple original transfers
Draft affirmative resolution

149
Transfer from temporary public
Draft affirmative resolution

ownership

153
Application of other law
Draft affirmative resolution

30

155
Building societies
Draft affirmative resolution

156
Credit unions
Draft affirmative resolution

157
Rules
(Expansion of power in

section 411 of the Insolvency

Act 1986)

35

160
Partnerships
(As for orders under section

420 of the Insolvency Act

1986)

161
Scottish partnerships
Negative resolution

165
Consequential provision
Draft affirmative resolution

40

PART 4 - Financial Services Compensation Scheme

Banking Bill
Part 8 — General
123

Section
Topic
Parliamentary scrutiny

167
Contingency funding
Draft affirmative resolution

168
Special resolution regime
Draft affirmative resolution

170
Borrowing from National Loans
Negative resolution

Fund

5

PART 5 - Inter-bank payment systems

200
Fees regulations
Negative resolution

201
Information
Negative resolution

PART 6 - Banknotes: Scotland and Northern Ireland

212
Banknote regulations
Negative resolution

10

PART 7 - Miscellaneous

227
Financial institution
Negative resolution

239
FSA - functions
Draft affirmative resolution

241
Central banks: assistance to
Draft affirmative resolution

building societies

15

245
Financial collateral arrangements
Affirmative resolution

PART 8 - General

247
Financial assistance
Negative resolution

252
Repeal of Banking (Special
None

Provisions) Act 2008

20

253
Commencement
None

(4)
A power listed in subsection (5) may be exercised without a draft being laid
before and approved by resolution of each House of Parliament if—
(a)
the power is being exercised for the first time, and
(b)
the person exercising it is satisfied that it is necessary to exercise it
25
without laying a draft for approval.
(5)
The powers are those in—
(a)
section 2 (special resolution regime: meaning of “bank”),
(b)
section 47 (special resolution regime: partial transfers),
(c)
section 48 (special resolution regime: protection of interests),
30
(d)
section 60 (special resolution regime: third party compensation),
(e)
section 85 (special resolution regime: building societies: consequential),
(f)
section 88 (meaning of “bank”),
(g)
section 119 (bank insolvency: application of insolvency law),
(h)
section 127 (bank insolvency: building societies),
35
(i)
section 132 (bank insolvency: consequential provision),
(j)
section 146 (bank administration: multiple original transfers),
(k)
section 149 (bank administration: transfer from temporary public
ownership),
(l)
section 153 (bank administration: application of other law),
40
(m)
section 155 (bank administration: building societies),

Banking Bill
Part 8 — General
124

(n)
section 165 (bank administration: consequential provision), and
(o)
section 168 (Financial Services Compensation Scheme: special
resolution regime).
(6)
Where an instrument is made in reliance on subsection (5)—
(a)
it shall lapse unless approved by resolution of each House of
5
Parliament during the period of 28 days (ignoring periods of
dissolution, prorogation or adjournment of either House for more than
4 days) beginning with the day on which the instrument is made,
(b)
the lapse of an instrument under paragraph (a) does not invalidate
anything done under or in reliance on it before its lapse and at a time
10
when neither House has declined to approve it, and
(c)
the lapse of an instrument under paragraph (a) does not prevent the
making of a new one.
250
Money
Expenditure of the Treasury under, by virtue of or in connection with a
15
provision of this Act shall be paid out of money provided by Parliament.
251
Index of defined terms
The Table sets out expressions defined in this Act for general purposes.

Expression
Section

Action
90 and 163

20

Bank (Part 1)
2

Bank (Part 2)
88

Bank administration
133

Bank administration order
138

Bank insolvency
87

25

Bank insolvency order
91

Bridge bank
12

Bridge bank reverse share transfer instrument
31

Bridge bank share transfer instrument
30

Compensation scheme order
49

30

The court (Part 2)
89

The court (Part 3)
163

Eligible depositors
90

Enactment
248

FSA
3, 90 & 163

35

FSCS
90

Banking Bill
Part 8 — General
125

Expression
Section

Fair
90

Financial assistance
247

Financial institution
227

Full payment resolution
97

5

Independent valuer
54

Inter-bank payment system
179

Liquidation committee
97

Objective 1 Achievement Notice
136

Onward bridge bank
12

10

Onward property transfer instrument
43

Onward share transfer order
28

Partial property transfer
47

Property transfer instrument
33

Property transfer order
45

15

Resolution fund order
49

Reverse property transfer instrument
44

Reverse property transfer order
46

Reverse share transfer order
29

Securities
14

20

Share transfer instrument
15

Share transfer order
16

Special resolution regime
1

Special resolution objectives
4

Stabilisation options
1

25

Stabilisation powers
1

Supplemental property transfer instrument
42

Supplemental share transfer instrument or order
26 & 27

Third party compensation order
49 & 59

Unable to pay debts
90 & 163

30

252
Repeal
(1)
The Treasury may by order repeal the Banking (Special Provisions) Act 2008.
(2)
An order—
(a)
may include savings, and

Banking Bill
Part 8 — General
126

(b)
shall be made by statutory instrument.
(3)
Subsection (2)(a) is without prejudice to the generality of, or the application to
this section of, section 249.
253
Commencement
(1)
The preceding provisions of this Act shall come into force in accordance with
5
provision made by the Treasury by order.
(2)
Subsection (1) does not apply to section 244, which comes into force at the end
of the period of 2 months beginning with the date of Royal Assent.
(3)
An order under subsection (1)—
(a)
may make provision generally or only in relation to specific provisions
10
or purposes,
(b)
may make different provision for different provisions or purposes,
(c)
may include incidental or transitional provision (including savings),
and
(d)
shall be made by statutory instrument.
15
(4)
Where the Treasury or another authority are required to consult or take other
action before exercising a power or fulfilling a duty to make legislation or to do
any other thing under, by virtue of or in connection with this Act, the Treasury
or other authority may rely on consultation or other action carried out before
the commencement of the relevant provision of this Act.
20
254
Extent
(1)
This Act extends to—
(a)
England and Wales,
(b)
Scotland, and
(c)
Northern Ireland.
25
(2)
But—
(a)
sections 243 and 244 extend to Scotland only, and
(b)
an amendment of an enactment has the same extent as the enactment
(or the relevant part).
255
Short title
30
This Act may be cited as the Banking Act 2008.