House of Commons Amendments

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

LORDS amendments to the
Banking Bill
[The page and line references are to HL Bill 13, the bill as first printed for the Lords.]
Clause 4
1
Page 3, line 24, at end insert—

“(8A)
In subsection (4), the reference to the stability of the financial systems of the

United Kingdom includes, in particular, a reference to the continuity of

banking services.”
Clause 5
2
Page 3, line 33, leave out paragraph (a) and insert—

“(a)
how the special resolution objectives are to be understood and

achieved,

(aa)
the choice between different options,”
3
Page 3, line 40, leave out “and”
4
Page 4, line 1, leave out paragraph (f) and insert—

“(f)
sections 63 and 66, and

(g)
compensation.”
Clause 10
5
Page 6, line 3, at end insert “the effect of the special resolution regime on—

(a)
banks,

(b)
persons with whom banks do business, and

(c)
the financial markets.

(1A)
In particular, the panel may advise the Treasury about—

(a)
”
6
Page 6, line 6, leave out “and third party compensation orders” and insert “, third

party compensation orders and orders under section 75(2)(b) and (c)),

“(b)
the code of practice under section 5, and

Bill 59 54/4

2

(c)
anything else referred to the panel by the Treasury.”
Clause 22
7
Page 10, line 15, after “means” insert “a Type 1 or Type 2 default event provision

as defined in subsections (1A) and (1B).

(1A)
A Type 1 default event provision is”
8
Page 10, line 16, after “that” insert “has the effect that”
9
Page 10, line 16, at end insert “or situation arises”
10
Page 10, line 27, at end insert—

“(1B)
A Type 2 default event provision is a provision of a contract or other

agreement that has the effect that a provision of the contract or

agreement—

(a)
takes effect only if a specified event occurs or does not occur,

(b)
takes effect only if a specified situation arises or does not arise,

(c)
has effect only for so long as a specified event does not occur,

(d)
has effect only while a specified situation lasts,

(e)
applies differently if a specified event occurs,

(f)
applies differently if a specified situation arises, or

(g)
applies differently while a specified situation lasts.

(1C)
For the purposes of subsections (1A) and (1B) it is the effect of a provision

that matters, not how it is described (nor, for example, whether it is

presented in a positive or a negative form).”
11
Page 10, line 38, after “that” insert “is done by the instrument or order or”
12
Page 10, line 43, after “(4)” insert—

“(a)
”
13
Page 10, line 44, at end insert “, cases or circumstances;

(b)
differently for different purposes, cases or circumstances.”
14
Page 10, line 44, at end insert—

“(7)
A thing is not done by virtue of an instrument or order for the purposes of

subsection (5)(b) merely by virtue of being done under a contract or other

agreement rights or obligations under which have been transferred by the

instrument or order.”
Clause 23
15
Page 11, line 5, after “purposes,” insert “cases or circumstances,”
16
Page 11, line 6, at end insert “, cases or circumstances.”
Clause 24
17
Page 11, line 19, at end insert—

“(3)
Where the Treasury receive a copy of a share transfer instrument under

subsection (1) they shall lay a copy before Parliament.”

3

Clause 34
18
Page 16, line 12, at end insert—

“(5)
A property transfer instrument may provide for a transfer to be conditional

upon a specified event or situation—

(a)
occurring or arising, or

(b)
not occurring or arising.

(6)
A property transfer instrument may include provision dealing with the

consequences of breach of a condition imposed under subsection (5); and

the consequences may include—

(a)
automatic vesting in the original transferor;

(b)
an obligation to effect a transfer back to the original transferor, with

specified consequences for failure to comply (which may include

provision conferring a discretion on a court or tribunal);

(c)
provision making a transfer or anything done in connection with a

transfer void or voidable.”
19
Page 16, line 12, at end insert—

“(7)
Where a property transfer instrument makes provision in respect of

property held on trust (however arising) it may also make provision

about—

(a)
the terms on which the property is to be held after the instrument

takes effect (which provision may remove or alter the terms of the

trust), and

(b)
how any powers, provisions and liabilities in respect of the

property are to be exercisable or have effect after the instrument

takes effect.”
Clause 36
20
Page 17, line 5, leave out subsection (7)
Clause 38
21
Page 17, line 29, after “means” insert “a Type 1 or Type 2 default event provision

as defined in subsections (1A) and (1B).

(1A)
A Type 1 default event provision is”
22
Page 17, line 30, after “that” insert “has the effect that”
23
Page 17, line 30, at end insert “or situation arises”
24
Page 17, line 41, at end insert—

“(1B)
A Type 2 default event provision is a provision of a contract or other

agreement that has the effect that a provision of the contract or

agreement—

(a)
takes effect only if a specified event occurs or does not occur,

(b)
takes effect only if a specified situation arises or does not arise,

(c)
has effect only for so long as a specified event does not occur,

(d)
has effect only while a specified situation lasts,

(e)
applies differently if a specified event occurs,

(f)
applies differently if a specified situation arises, or

4

(g)
applies differently while a specified situation lasts.

(1C)
For the purposes of subsections (1A) and (1B) it is the effect of a provision

that matters, not how it is described (nor, for example, whether it is

presented in a positive or a negative form).”
25
Page 18, line 9, leave out “to be, or that” and insert “done by the instrument or is to

be, or”
26
Page 18, line 14, after “(4)” insert—

“(a)
”
27
Page 18, line 15, at end insert “, cases or circumstances;

(b)
differently for different purposes, cases or circumstances.”
28
Page 18, line 15, at end insert—

“(7)
A thing is not done by virtue of an instrument for the purposes of

subsection (5)(b) merely by virtue of being done under a contract or other

agreement rights or obligations under which have been transferred by the

instrument.”
Clause 40
29
Page 19, line 5, after “purposes,” insert “cases or circumstances,”
30
Page 19, line 6, at end insert “, cases or circumstances.”
Clause 41
31
Page 19, line 19, at end insert—

“(3)
Where the Treasury receive a copy of a property transfer instrument under

subsection (1) they shall lay a copy before Parliament.”
Clause 48
32
Page 23, line 15, after “acquires” insert “, by way of security,”
33
Page 23, leave out lines 16 and 17 and insert—

“(aa)
“title transfer collateral arrangements” are arrangements under

which Person 1 transfers assets to Person 2 on terms providing for

Person 2 to transfer assets if specified obligations are discharged,”
34
Page 23, line 18, leave out “or “netting””
35
Page 23, line 19, leave out from beginning to “and” and insert “two or more debts,

claims or obligations can be set off against each other,”
36
Page 23, line 20, leave out “includes,” and insert “are arrangements under which a

number of claims or obligations can be converted into a net claim or obligation and

include,”
37
Page 23, line 21, after “which” insert “actual or”
38
Page 23, line 23, at end insert—


“or to be converted into a net debt, and

(d)
“protected arrangements” means security interests, title transfer

collateral arrangements, set-off arrangements and netting

arrangements.”