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The Scottish and Northern Ireland Banknote Regulations 2009

Consolidated Text As Enacted Cited authorities 23 Cited in Amendments 24 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2009/3056
  • These Regulations may be cited as the Scottish and Northern Ireland Banknote Regulations 2009 and shall come into force on 23rd November 2009.
    • (1) In these Regulations—
    • “the Act” means the Banking Act 2009;
    • “backing assets” means assets of a kind specified by regulation 6(2) ;
    • “Bank of England banknotes” means banknotes issued by the Bank of England;
    • “excluded banknote” has the meaning given by regulation 7(3) ;
    • “location” includes a vehicle;
    • “rules” means rules made by the Bank of England under these Regulations.
    a banknote is in circulation from the time that it is issued by an authorised bank until the time that it is returned to the bank;in circulation; oran excluded banknote;a reference to the value of a banknote is a reference to the face value of the banknote.(1) The Bank of England may, subject to the provisions of these Regulations, make rules about any aspect of the treatment, holding or issuing of banknotes by authorised banks.(2) The Bank of England must make rules in respect of the matters referred to in regulations 6(2) (a) , 7(1) , 8(4) (b) and 11(1) .a proposed rule; orthe proposed amendment or revocation of a rule.(4) Rules (including any rule amending or revoking a rule) may only be made with the approval of the Treasury.(5) Rules must be published by the Bank of England.(1) Where these Regulations confer a power of approval on the Bank of England, the Bank of England may grant approval subject to conditions.(2) The Bank of England may amend or revoke a condition to which an approval is subject.a proposed condition to which an approval may be subject;the proposed withdrawal of an approval; orthe proposed amendment or revocation of a condition to which an approval is subject.(4) An authorised bank must comply with any conditions to which an approval is subject.
  • Where the Bank of England is required by regulation 3(3) , 4(3) or 7(5) to consult an authorised bank, the Bank of England may rely on consultation with the bank carried out before the coming into force of these Regulations.
    • (1) An authorised bank must have backing assets in accordance with these Regulations and the rules.Bank of England banknotes of such denominations and series as are specified in the rules;current coins of the United Kingdom; andfunds placed on deposit in sterling in an account held by the Bank of England and designated by the Bank of England for the purposes of this regulation.by the Bank of England; orat one or more locations for the time being approved by the Bank of England for this purpose.(4) Backing assets in the form of coins must be held at one or more locations for the time being approved by the Bank of England for this purpose.(5) At least 60% of a bank's backing assets which are held by a bank in respect of its banknotes in circulation must consist of assets of the kinds specified in paragraph (2) (a) and (b) .in locations approved under paragraph (3) (b) or (4) ; orin the form of current coins of the United Kingdom.places funds on deposit in an account designated under paragraph (2) (c) ; orholds backing assets in a location approved under paragraph (3) (b) or (4) .(8) Rules may specify the procedure by which authorised banks may acquire or dispose of Bank of England banknotes and coins held as backing assets.(1) The rules must make provision for determining the value of backing assets which must be held by an authorised bank.(2) Excluded banknotes are not to be taken into account for the purposes of any such determination.such requirements as the Bank of England may specify in the rules; andsuch conditions as may be specified for the purposes of this regulation by the Bank of England in relation to the banknotes of the bank.(4) The Bank of England may amend or revoke any condition relating to an authorised bank's banknotes.(5) The Bank of England must consult an authorised bank before specifying a condition in relation to its banknotes under paragraph (3) (b) , or amending or revoking such a condition under paragraph (4) .(1) The Bank of England must pay interest to an authorised bank on the funds held by the bank in an account designated under regulation 6(2) (c) .(2) If the amount of funds held by the bank in a designated account exceeds the qualifying limit, the Bank of England shall only be required to pay interest on an amount equal to the qualifying limit.40% of the value of an authorised bank's banknotes in circulation; andthe value of the bank's banknotes with the potential to enter circulation.calculated on a daily basis at the rate paid on commercial bank reserves at the Bank of England; andcredited to the account at the end of such periods as are specified in the rules.assets of the bank; andheld for the purpose of protecting holders of banknotes of the bank in accordance with these Regulations and the rules.(2) No person may have any interest in or right over the backing assets, except as provided in these Regulations.(1) An authorised bank may only arrange for a person to hold its banknotes on its behalf otherwise than as bearer where that person is for the time being approved by the Bank of England for this purpose.(2) The rules may specify requirements with which an authorised bank must comply where it arranges for a person to hold its banknotes on its behalf otherwise than as bearer.intends to stop issuing banknotes; ora determination by the Treasury under section 223(1) (b) of the Act (termination of right to issue) ; orsection 223(5) of the Act (bank ceasing to have permission to carry on the regulated activity of accepting deposits) .these Regulations and the rules shall continue to apply to the bank for a period of two years from the date on which it stops issuing banknotes; andthe Bank of England must, by the end of that period, return to the bank any of the bank's backing assets which it still holds.in a case where an

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