Schedule 11, Part 5, paragraph 90

Expressions in this paragraph have the same meaning as in paragraph 89. The Bank may— cancel a contract or other arrangement between the residual CCP and a group company or a third party (whether or not rights or obligations under it have been transferred to a transferee); modify the terms of a contract or other arrangement between the residual CCP and a group company or a third party (whether or not rights or obligations under it have been transferred to a transferee); add or substitute a transferee as a party to a contract or other arrangement between the residual CCP and a group company or a third party; confer and impose rights and obligations on a group company or third party and a transferee, which must have effect as if created by contract between them; confer and impose rights and obligations on the residual CCP and a transferee which must have effect as if created by contract between them. In modifying or setting terms under sub-paragraph (2) the Bank must aim, so far as is reasonably practicable, to preserve or include— provision for reasonable consideration, and any other provision that would be expected in arrangements concluded between parties dealing at arm’s length. The power under sub-paragraph (2)— may be exercised only in so far as the Bank thinks it necessary to ensure the provision of such services and facilities as are required to enable the transferee to operate the transferred business, or part of it, effectively, may be exercised only with the consent of the Treasury, and must be exercised by way of provision in a property transfer instrument. An obligation imposed on the residual CCP or a group company under sub-paragraph (2)(d) or (e) continues to apply despite the residual CCP or group company entering insolvency, and may not be disclaimed by a liquidator under section 178(2) of the Insolvency Act 1986 or Article 152(1) of the Insolvency (Northern Ireland) Order 1989.

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Source: legislation.gov.uk · retrieved 2026-09-04