(1) This section applies where the Bank of England -

(a) transfers all or part of the business of a bank ("the original bank") to a resolution company ("the original resolution company") by making a property transfer instrument in accordance with section 12(2) or 12ZA(3), and

(b) later makes or proposes to make an onward property transfer instrument under section 43(2) from the resolution company to a transferee ("the onward transferee").

(2) If the onward transferee is a company which is wholly owned by the Bank of England -

(a) the onward transferee is treated as a resolution company for the purposes of this Part, and

(b) the original resolution company is treated as a residual bank for the purposes of this Part.

(3) In any other case, the Bank of England may determine that the original resolution company is to be treated as a residual bank for the purposes of this Part.

(4) Where the original resolution company is put into bank administration in reliance on subsection (2)(b), Objective 1 shall apply in accordance with section 138(4) in relation to both -