(1) The Treasury may make regulations about third party compensation arrangements in the case of partial property transfers.
(2) In making regulations the Treasury shall, in particular, have regard to the desirability of ensuring that if a residual bank enters insolvency after transfer, pre-transfer shareholders or creditors do not receive less favourable treatment than they would have received had it entered insolvency immediately before transfer.
(3) In subsection (2) -
(a) "residual bank" means a bank that is a transferor under a property transfer instrument,
(b) "pre-transfer shareholder or creditor" means a person who -
(i) is a creditor of a holds securities issued by, or is a creditor of, a residual bank immediately before a property transfer instrument takes effect, and
(ii) satisfies conditions specified by the regulations, and
(c) the reference to insolvency includes a reference to (i) liquidation, (ii) bank insolvency, (iii) administration, (iv) bank administration, (v) rece
…