Central Bank and Credit Institutions (Resolution) Act 2011

34.

Application to set aside transfer order.

34.— (1) The transferor in relation to which a transfer order is made or a member of that transferor may apply to the Court by motion on notice grounded upon affidavit, not later than 14 days after the publication, in accordance with subsection (1)(b) of section 31 , of the transfer order, for the setting aside of the transfer order.

(2) The Court shall give such priority to an application under subsection (1) as is necessary in the circumstances, and may give such directions as it considers appropriate in the circumstances—

( a) with regard to the hearing of the application, or

( b) with regard to a matter that arises during the period beginning with the transfer order and ending with the order of the Court under this section.

(3) On an application under subsection (1) , the Court shall set aside the transfer order only if the Court is satisfied that there has been non-compliance with any of the requirements of section 26 or that the decision of the Bank was unreasonable or vitiated by an error of law.

(4) If the Court sets aside a transfer order, no further assets or liabilities shall be transferred as a consequence of the transfer order.

(5) The setting aside of a transfer order does not affect the rights of a transferee (other than a bridge-bank) or the transferee’s title to any asset or liability so transferred before such setting-aside of the transfer order.

(6) If a transfer order is set aside and assets or liabilities have been transferred pursuant to it (other than to a bridge-bank), the transferor is not entitled to any payment other than the consideration paid pursuant to the transfer order or determined to be payable in accordance with section 48 .

(7) If the Court sets aside a transfer order transferring assets or liabilities to a bridge-bank—

( a) if a re-transfer of the assets or liabilities, or any of them, is possible, they shall be transferred back to the transferor and any consideration paid to the transferor shall be repaid to the bridge-bank,

( b) if a re-transfer of the assets or liabilities, or any of them, is not possible, the transfer is not rendered invalid, and

( c) subject to paragraphs (a) and (b), the Court may—

(i) order that the transferor and the bridge-bank be restored as nearly as possible to their respective positions before the order was made, and

(ii) by order resolve, or provide for the resolution of, any dispute.

(8) The Court may, instead of setting aside the transfer order, make an order varying or amending that order in the manner it considers appropriate if the Court is satisfied that—

( a) there has been non-compliance with any of the requirements of section 26 or that the decision of the Bank was unreasonable or vitiated by an error of law,

( b) it would be appropriate to vary or amend the order, having regard to any report referred to in section 30 (2) before the Court, and

( c) the intervention conditions have been fulfilled in relation to the authorised credit institution concerned.

(9) If a variation or amendment of a transfer order, whether made under this section or on application by the Bank under section 33 , would, but for this subsection, have the effect of setting aside a disposition of an asset or liability, subsections (4) to (7) apply with any necessary modifications.

(10) The Court, in considering the order it wishes to make under this section, may, where the applicant is a member of the transferor, have regard to—

( a) the date on which the applicant became a member of the transferor, or increased or decreased the number of shares that the applicant held in the transferor, and

( b) the value of the shares acquired by or disposed of by the member—

(i) as at the date or dates on which the shares were acquired or disposed of, as the case may be, and

(ii) as at the date on which the transfer order concerned was made.