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175.   Banking business vesting order

Revised Laws of Saint Lucia (2021)

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PART 13
TRANSFER OF BANKING BUSINESS

175.   Banking business vesting order

  1.  

    (1)   Where an agreement has been entered into for the acquisition by a licensed financial institution or licensed financial holding company (herein referred to as the “transferee financial institution”) of the undertaking of another financial institution or financial holding company, whether or not a financial institution or financial holding company to which the provisions of this Act apply (herein referred to as the “transferor financial institution) the transferor financial institution may, for the purpose of effecting the transfer to, and the vesting in, the transferee financial institution of the undertaking, make a written application to the Central Bank, notice of which shall be published in the Gazette in any case where the Central Bank so directs.

  1.  

    (2)   Upon the making of an application under subsection (1), the Central Bank shall investigate the application including in particular the circumstances leading to the proposed transfer, the ability of the transferee to discharge its obligations under the transfer and the effect, which the transfer is likely to have on the banking services available to the public.

  1.  

    (3)   On completion of the investigation, the Central Bank may, if it thinks fit, make a recommendation to the Minister to make a Banking Business Vesting Order transferring to and vesting in the transferee financial institution the undertaking, as from the date specified therein, and on the making of such an order, all such existing property, rights, liabilities and obligations as are intended by the agreement to be transferred and vested shall, by virtue of this Act, and without further assurance be transferred to, and shall vest in, the transferee financial institution to the intent that the licensed financial institution shall succeed to the whole or such part of the undertaking of the transferor financial institution as is contemplated by the agreement.

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    (4)   No transfer or vesting effected by a Banking Business Vesting Order shall —

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      (a)     operate as a breach of covenant or condition against alienation;

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      (b)     give rise to a forfeiture; or

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      ©     invalidate or discharge a contract or security.

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    (5)   Notwithstanding anything contained in any enactment to the contrary, the Minister may issue a Banking Business Vesting Order which, for the purposes of corporation tax, contain provisions respecting —

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      (a)     the carry forward; and

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      (b)     the set off,

by the transferee financial institution of such of the losses of the transferor financial institution as may be specified in the Banking Business Vesting Order as if the undertaking of the transferor financial institution had not been permanently discontinued on the date specified in the Banking Business Vesting Order and a new banking business had been then set up and commenced by the transferee financial institution.

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