Michael Noonan (Limerick City, Fine Gael)

I move amendment No. 2:

In page 23, after line 46, to insert the following:

27.—(1) Unless the Bank provides prior written consent, a transferor shall not dispose of any asset or liability which is to be transferred under a transfer order, except in the ordinary course of its business, during the period beginning with the delivery of the written notice under section 26(1) or the date on which the transferor otherwise becomes aware of the proposed transfer order for the purposes of consultation under section 26(4), whichever is the earlier, and ending on the date of effect of the transfer order under section 48.

(2) The officers and employees of a transferor shall comply with subsection (1).

(3) If the Bank is of the opinion that a transferor is in breach of subsection (1) or has taken steps that would likely lead to such a breach, the Bank may apply ex parte to the Court for an order compelling compliance with that subsection.".

The purpose of amendment No. 2 is to prevent the dissipation of assets and liabilities by a transfer where those assets and liabilities are to be transferred under a transfer order. If the Central Bank is of the opinion that a transfer order is in breach of this provision or has taken steps that would likely lead to such a breach, it can apply ex parte to the High Court for an order compelling compliance.

Amendment No. 18 makes a similar amendment to the Credit Institutions (Stabilisation Act) 2010. The inclusion of these provisions will help to ensure that a transfer can take place as smoothly and successfully as possible. It is to ensure that what is intended in the section can be done and would have the force of the court behind it if there was failure to comply.

See this speech in context