3.—(1) Section 899 of the Companies Act 2006 M1 (Court sanction for compromise or arrangement) applies in relation to an authorised bank with the modifications specified in paragraph (2).

(2) The court may not sanction any composition between an authorised bank and its creditors, or any arrangement of an authorised bank's affairs, if the composition or arrangement would affect—

(a)the rights of the noteholders under regulations 9(1)(b) and 22;

(b)the rights of the Bank of England in relation to the backing assets; or

(c)the backing assets.