Credit Institutions (Stabilisation) Act 2010

Transfer orders.

34.— (1) As soon as may be after completion in relation to a proposed transfer order of the procedures required by section 33 , the Minister shall apply ex parte to the Court for an order (in this Act called a “transfer order”) in the terms of the proposed transfer order.

(2) The Court, when hearing an ex parte application under subsection (1), shall, if satisfied that the requirements of section 33 have been complied with and that the opinion of the Minister under section 33 (2) was reasonable and was not vitiated by any error of law, make a transfer order in the terms of the proposed transfer order (or those terms as varied after consideration of any submission referred to in section 33 (4) (c)).

(3) A report prepared by the Bank (whether or not prepared specifically for the purpose of the application) in relation to matters within the Governor or the Bank’s responsibilities, including the financial position of the relevant institution, is admissible in evidence at the hearing of the application.

(4) If in a proposed transfer order the Minister has declared the intention of preserving or restoring the financial position of a credit institution, and the Court is satisfied that the Minister made the proposed transfer order or part of it with that intention, the Court shall declare in the relevant transfer order that the transfer order or the relevant part of it is a reorganisation measure for the purposes of the CIWUD Directive.

(5) The Court may make a transfer order on terms varied or amended from those in the proposed transfer order only if the Court is satisfied that—

(a) there has been non-compliance with any of the requirements of section 33 or that the opinion of the Minister under section 33 (2) was unreasonable or vitiated by an error of law,

(b) it would be appropriate to do so, having regard to any report referred to in subsection (3), and

(c) to do so is necessary for the purpose specified in the proposed transfer order or any other purpose of this Act.

(6) The Court may give a direction, as it thinks appropriate, in relation to the publication of a transfer order.

(7) A transfer order—

(a) has effect immediately on its making in relation to any asset or liability specified to be transferred immediately, subject to the right of application under section 36 , and

(b) otherwise, has effect—

(i) if an application is made under section 36 , in accordance with the decision of the Court on that application, and

(ii) if no such application is made, 5 working days after service of the order on the relevant institution concerned.