Central Bank and Credit Institutions (Resolution) Act 2011

PART 4

Bridge-banks

17.

Bank’s power to establish bridge-banks.

17.— (1) For the purposes of this Act and in particular for holding assets or liabilities transferred pursuant to a transfer order, the Bank may cause to be formed and registered under the Companies Acts a private company limited by shares if, in the opinion of the Bank, having regard to such of the matters set out in section 9 (6) as appear to the Bank to be relevant in the circumstances, to do so would be in the public interest.

(2) A company formed pursuant to this section is referred to in this Act as a bridge-bank.

(3) A bridge-bank shall be wholly owned by the Bank or a nominee or nominees of the Bank.

(4) The Bank shall not provide capital to a bridge-bank from its own resources, but may use the Fund for the purpose of providing such capital.

(5) A bridge-bank may hold assets and liabilities on a temporary basis, with a view to their transfer to another person as soon as practicable.

(6) Any surplus assets, after all liabilities have been discharged, arising on the winding-up of a bridge-bank shall be transferred to the Fund.