(1) The Bank of England may apply for a bank administration order in respect of a bank if the following conditions are met.
(2) Condition 1 is that the Bank of England has made or intends to make a property transfer instrument in respect of the bank in accordance with section 11(2), 12(2) or 12ZA(3).
(3) Condition 2 is that the Bank of England is satisfied that the residual bank -
(a) is unable to pay its debts, or
(b) is likely to become unable to pay its debts as a result of the property transfer instrument which the Bank intends to make.