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back to previous amendments
| 73 | Page 18, line 31, at end insert— |
| "( ) | If it proves impossible or impractical to make the transfer effective as a matter of foreign law, other than by reason of the actions or omissions of the transferee, the Bank of England shall ensure that the transferee suffers no disadvantage thereby." |
| 74 | Page 19, line 5, after "purposes," insert "cases or circumstances," |
| 75 | Page 19, line 6, at end insert ", cases or circumstances." |
| 76 | Page 19, line 13, at end insert— |
| "( ) | A property transfer instrument shall not have effect unless it is made by a statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament." |
| 77 | Page 19, line 34, at end insert— |
| "(c) | provides for property, rights or liabilities specified in the original instrument not to be transferred from the transferor." |
| 78 | Page 22, line 35, at end insert— |
| "( ) | The Treasury shall by order restrict the making of partial property transfers so no partial property transfer can have an effect on contracts or other arrangements which are relevant for regulatory capital purposes. |
| ( ) | No order made under this section or under section 48 shall have the effect of altering contracts or any other arrangements which are relevant for regulatory capital purposes." |
| 79 | Page 22, line 39, after "include" insert "any" |
| 80 | Page 23, line 7, at end insert— |
| "( ) | A partial transfer of property, rights or liabilities effected through a property transfer instrument shall not undermine any pre-existing netting and close-out arrangements." |
| 81 | Page 23, line 14, leave out paragaphs (a) to (c) and insert— |
| "(a) | "security interest" means any legal or equitable interest of any right in security (but not a title transfer collateral arrangement) created or otherwise arising by way of security including a charge, mortgage, pledge or lien and including, in relation to Scotland, a heritable security, |
| (b) | "set-off or netting arrangement" is an agreement or arrangement between two or more parties under which Obligation 1 can be set off or netted against Obligation 2 to discharge or reduce the amount of Obligation 2 or different claims or obligations can be converted into a single net claim or obligation (incuding under a close-out netting provision or a title transfer collateral arranegment), whether by contract, operation of law or otherwise, whether on a bilateral or multilateral basis and whether through the interposition of a clearing house central counterparty, settlement agent or otherwise, |
| (c) | "set off" includes, in relation to Scotland, compensation, retention and/or balancing of accounts, as the case may require, |
| (d) | "close-out netting provision" means a term of an arrangement, or any legislative provision under which on the occurrence of a specified event, whether through the operation of netting or set-off or otherwise— |
| (i) | the obligations of the parties are accelerated to become immediately due and expressed as an obligation to pay an amount representing the original obligation's estimated current value or replacement cost, or are terminated and replaced by an obligation to pay such an amount; or |
| (ii) | an account is taken of what is due from each party to the other in respect of such obligations and a net sum equal to the balance of the account is payable by the party from whom the larger amount is due to the other party; |
| (e) | "title transfer collateral arrangement" means an agreement or arrangement, including a repurchase agreement, evidenced in writing, where— |
| (i) | the purpose of the agreement or arrangement is to secure or otherwise cover obligations owed to the collateral-taker; |
| (ii) | the collateral-provider transfers legal and beneficial ownership in collateral to a collateral-taker on terms that when the relevant obligations are discharged the collateral-taker must transfer legal and beneficial ownership of the same or equivalent collateral to the collateral-provider." |
| 82 | Page 23, line 15, after "acquires" insert ", by way of security," |
| 83 | 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 those or other assets if specified obligations are discharged," |
| 84 | Page 23, line 18, leave out "or "netting"" |
| 85 | Page 23, line 20, leave out paragraph (c) |
| 86 | 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," |
| 87 | 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." |
| 88 | Page 23, line 24, leave out "may" and insert "shall" |
| 89 | Page 23, line 26, leave out "security interests or set-off or netting" and insert "protected" |
| 90 | Page 23, line 29, leave out "security interests or set-off or netting" and insert "protected" |
| 91 | Page 23, line 33, leave out "security interests or set-off or netting" and insert "protected" |
| 92 | Page 23, line 38, at end insert— |
| "( ) | Until an order has been made under this section a partial property transfer shall have no effect on security interests, set-off or netting arrangements." |
| 93 | Page 23, line 39, after first "to" insert "protected" |
| 94 | Page 23, line 43, leave out "security interests or set-off or netting" and insert "protected" |
| 95 | Page 23, line 43, after "interests" insert ", title transfer collateral arrangements" |
| 96 | Insert the following new Clause— |
| | "Report on partial property transfers |
| (1) | The Treasury must prepare and publish an annual assessment of the efficacy of the safeguards relating to partial property transfers under Part 1 of this Act. |
| (2) | In preparing each assessment the Treasury must consult the Banking Liaison Panel constituted under section 10. |
| (3) | If an assessment indicates that the safeguards are inadequate, the Treasury must make proposals for strengthening them. |
| (4) | Each assessment published under this section must be laid before Parliament." |
| 97 | Page 24, line 26, at end insert— |
| "(5) | The exercise of a third party compensation order will be based on the principle that the Treasury should indemnify counterparties for any loss suffered by them if their netting and close-out arrangements are undermined by the exercise of the stabilisation powers. |
| (6) | After a stabilisation power is exercised with respect to a particular bank, counterparties should be allowed to close-out their own hedged and other positions with respect to that bank in order to determine their losses and to make a claim for compensation from the Treasury." |
| 98 | Page 26, line 2, at end insert— |
| "( ) | An order must provide for the criteria against which a person is to be regarded as independent for the purposes of appointment as an independent valuer." |
| | The above-named Lords give notice of their intention to oppose the Question that Clause 57 stand part of the bill. |
| 99 | Page 28, line 29, leave out subsection (4) |
| 100 | Page 28, line 37, leave out subsection (6) |
| 101 | Page 28, line 40, leave out "subserviate it to" and insert "subordinate it to the" |
| 102 | Page 28, line 44, leave out subsection (7) |
| 103 | Page 29, line 3, leave out "subserviate it to" and insert "subordinate it to the" |
| 104 | Page 29, line 18, leave out "may" and insert "shall" |
| 105 | Page 30, line 30, leave out paragraph (c) |
| 106 | Page 31, line 14, after "provide" insert "for a period not exceeding 2 years" |
| 107 | Page 31, line 21, leave out "reasonable consideration" and insert "such consideration as would be expected in arrangements concluded between parties dealing at arm's length" |
| 108 | Page 32, line 8, leave out "aim, so far as is reasonably practicable, to" |
| 109 | Page 32, line 9, leave out "reasonable consideration" and insert "such consideration as would be expected in arrangements concluded between parties dealing at arm's length" |
| 110 | Page 33, line 39, leave out "reasonable consideration" and insert "such consideration as would be expected in arrangements concluded between parties dealing at arm's length" |
| 111 | Page 34, line 18, leave out "aim, so far as is reasonably practicable, to" |
| 112 | Page 34, line 19, leave out "reasonable consideration" and insert "such consideration as would be expected in arrangements concluded between parties dealing at arm's length" |
| 113 | Page 35, leave out lines 22 and 23 and insert— |
| "(1) | If there is no agreement as to— |
| 114 | Page 35, line 27, at end insert— |
| | "the Treasury may appoint a person to determine what amounts to reasonable consideration and what provisions should be included. |
| (1A) | A person appointed by the Treasury under subsection (1) must be independent of the Bank of England and of any person who is affected directly or indirectly by the relevant continuity obligations." |
| 115 | Page 36, line 3, at end insert— |
| "( ) | The continuity authority shall ensure that compensation is payable to the person on whom the obligation is imposed if that person suffers financial loss because of the nature, extent or timing of a notice given under subsection (1)." |
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