(1) Expressions in this section have the same meaning as in section 66.

(2) The continuity authority may -

(a) cancel a contract or other arrangement between the transferred bank and a third party;

(b) modify the terms of a contract or other arrangement between the transferred bank and a third party;

(c) confer and impose rights and obligations on a former group company and the transferred bank, which shall have effect as if created by contract between them.

(3) In modifying or setting terms under subsection (2) the continuity authority shall aim, so far as is reasonably practicable, to preserve or include -

(a) provision for reasonable consideration, and

(b) any other provision that would be expected in arrangements concluded between parties dealing at arm's length.

(4) The power under subsection (2) must be exercised by way of provision in a share transfer instrument or order or resolution instrument (or supplemental instrument or order).

(5) The power in subsection (2)(c) may be exercised -