[F1Chapter 3 U.K. Special resolution action]

TreasuryU.K.

(1)The Bank of England may not exercise [F2the power to make a resolution administrator appointment instrument or a mandatory reduction instrument or] a stabilisation power in respect of a bank if the Treasury notify the Bank that the exercise would be likely to contravene an international obligation of the United Kingdom.

(2)A notice under subsection (1)—

(a)must be in writing, and

(b)may be withdrawn (generally, partially or conditionally).

(3)If the Treasury give a notice under subsection (1) the Bank of England must consider other exercises of [F3the power to make a resolution administrator appointment instrument or a mandatory reduction instrument or] the stabilisation powers with a view to—

(a)pursuing the special resolution objectives, and

(b)avoiding the objections on which the Treasury's notice was based.

(4)The Treasury may by notice to the Bank of England disapply subsection (3) in respect of a bank; and a notice may be revoked by further notice.

[F4(5)“Resolution administrator appointment instrument” means an instrument under section 62B(2)(a).]