Provisions required in transfer order if purchaser to be successor
16 Provisions required in transfer order if purchaser to be successor
(1) This section applies if a transfer order provides that the purchaser is to be the successor in law of TIO to the extent of all or part of the insurance business or banking business.
(2) The transfer order must provide that in consequence of the purchaser becoming the successor in law of TIO:
all included assets and included liabilities:
cease to be assets or liabilities of the vendor; and
vest in, and become assets or liabilities of, the purchaser; and
(b) all included instruments that would, apart from the order, apply to the vendor become instruments that:
apply to the purchaser instead of the vendor; and
(ii) as so applying, are taken to have been modified as set out in the order; and
(c) all included rights that would, apart from the order, be available to or against the vendor:
cease to be available to or against the vendor; and
become rights available to or against the purchaser; and
(d) in all included proceedings, the purchaser becomes a party to the proceedings in place of the vendor.
(3) The transfer order must also provide that, despite the purchaser becoming the successor in law of TIO:
all excluded assets remain assets of the vendor; and
all excluded liabilities remain liabilities of the vendor; and
all excluded instruments continue to apply to the vendor; and
(d) all excluded rights continue to be available to or against the vendor; and
(e) in all excluded proceedings, the vendor continues to be a party to the proceedings;
as if the transfer order had not been made.
(4) The transfer order may provide for any other effect of the purchaser becoming the successor in law of TIO.
In this section:
excluded, for a thing, means the thing is identified in the transfer order as not being part of the insurance business or banking business in respect of which the purchaser is to become the successor in law of TIO.
included, for a thing, means the thing is identified in the transfer order as being part of the insurance business or banking business in respect of which the purchaser is to become the successor in law of TIO.
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