|
| |
|
134 | Administrator’s proposals |
| |
(1) | This section applies before the giving of an Objective 1 Achievement Notice (at |
| |
which point paragraph 49 of Schedule B1 to the Insolvency Act 1986 applies in |
| |
accordance with section 132). |
| |
(2) | The bank administrator must as soon as is reasonably practicable after |
| 5 |
appointment make a statement setting out proposals for achieving the |
| |
Objectives in section 124. |
| |
(3) | The statement must say whether the bank administrator proposes to pursue |
| |
Objective 2(a) or 2(b) in section 127. |
| |
(4) | The statement must have been agreed with the Bank of England. |
| 10 |
(5) | But a bank administrator who is unable to agree a statement with the Bank of |
| |
England may apply to the court for directions under paragraph 63 of Schedule |
| |
B1 to the Insolvency Act 1986 (as applied by section 132); and the court may |
| |
make any order, including dispensing with the need for the Bank of England’s |
| |
| 15 |
(6) | The bank administrator must send the statement to the FSA. |
| |
(7) | The bank administrator may revise the statement (and subsections (4) to (6) |
| |
apply to a revised statement as to the original). |
| |
(8) | The statement shall be treated in the same way (subject to this section) as a |
| |
statement under paragraph 49 of Schedule B1 to the Insolvency Act 1986. |
| 20 |
| |
(1) | This section applies to bank administration following transfer to a bridge bank. |
| |
(2) | Within the period of 5 days beginning with the day on which the bank |
| |
administrator is appointed, the Bank of England must give the bank |
| |
administrator information about the financial positions of the residual bank |
| 25 |
| |
(3) | While the residual bank is in bank administration the bridge bank must give |
| |
the bank administrator on request information about the financial position of |
| |
the bridge bank that the bank administrator requires for the purposes of |
| |
pursuing Objective 1 in section 124. |
| 30 |
(4) | Until the Bank of England has given an Objective 1 Achievement Notice, the |
| |
| |
(a) | give the Bank of England information on request, |
| |
(b) | allow the Bank of England access to records on request, |
| |
(c) | give the bridge bank information on request, |
| 35 |
(d) | allow the bridge bank access to records on request, |
| |
(e) | keep the Bank of England informed about, and allow the Bank to |
| |
participate in, any discussions between the bank administrator and |
| |
another person which relate to, or are likely to affect, pursuit of |
| |
Objective 1 in section 124, and |
| 40 |
(f) | keep the bridge bank informed about, and allow the bridge bank to |
| |
participate in, any discussions between the bank administrator and |
| |
another person which relate to, or are likely to affect, pursuit of |
| |
Objective 1 in section 124. |
| |
|
| |
|
| |
|
(5) | The Treasury shall by regulations prescribe— |
| |
(a) | the classes of information that must be provided under subsections (2) |
| |
| |
(b) | the classes of record to which access must be allowed under subsection |
| |
| 5 |
(6) | Regulations under subsection (5)— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
| 10 |
136 | General application of this Part |
| |
(1) | This section applies where more than one property transfer instrument is made |
| |
| |
(2) | For that purpose “property transfer instrument” includes— |
| |
(a) | supplemental instruments under section 39, |
| 15 |
(b) | onward property transfer instruments under section 40, and |
| |
(c) | property transfer orders under section 41). |
| |
(3) | This Part applies to the bank with any modifications specified by the Treasury |
| |
| |
| 20 |
(a) | shall be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and approved by |
| |
resolution of each House of Parliament. |
| |
137 | Bridge bank to private purchaser |
| |
(1) | This section applies where the Bank of England gives a bank administrator — |
| 25 |
(a) | an Objective 1 Achievement Notice in respect of a bridge bank, and |
| |
(b) | notice that Objective 1 is still required to be pursued in respect of a |
| |
commercial purchaser who has acquired all or part of the business of |
| |
| |
(2) | An Objective 1 Achievement Notice accompanied by a notice under subsection |
| 30 |
(1)(b) is referred to in this Part as an Objective 1 Interim Achievement Notice. |
| |
(3) | Where an Objective 1 Interim Achievement Notice is given, Objective 1 |
| |
| |
(a) | in accordance with section 125(3), and |
| |
(b) | with the commercial purchaser being treated as the “private sector |
| 35 |
| |
(4) | An Objective 1 Interim Achievement Notice in respect of the bridge bank— |
| |
(a) | has effect as between the bank administrator and the bridge bank, but |
| |
(b) | has no other effect for the purposes of provisions of this Part which |
| |
refer to the giving of an Objective 1 Achievement Notice. |
| 40 |
|
| |
|
| |
|
(5) | When the Bank of England gives the bank administrator an Objective 1 |
| |
Achievement Notice in respect of the commercial purchaser, section 126 and |
| |
other provisions of this Part which refer to the giving of an Objective 1 |
| |
Achievement Notice shall have effect. |
| |
138 | Property transfer from bridge bank |
| 5 |
(1) | This section applies where the Bank of England — |
| |
(a) | transfers all or part of the business of a bank to a bridge bank by making |
| |
a property transfer instrument in accordance with section 11(2), and |
| |
(b) | later makes or proposes to make an onward property transfer |
| |
instrument under section 40(2) from the bridge bank. |
| 10 |
(2) | If the transferee under the onward property transfer instrument is a company |
| |
which is wholly owned by the Bank of England— |
| |
(a) | the transferee is treated as a bridge bank for the purposes of this Part, |
| |
| |
(b) | the bridge bank under the original property transfer instrument is |
| 15 |
treated as a residual bank for the purposes of this Part. |
| |
(3) | In any other case, section 137 shall apply as if the Bank of England had given— |
| |
(a) | an Objective 1 Interim Achievement Notice in respect of the bridge |
| |
bank under the original property transfer instrument, and |
| |
(b) | a notice under section 137(1)(b) in respect of the transferee under the |
| 20 |
onward property transfer instrument. |
| |
(4) | Where a bank is put into bank administration in reliance on this section, the |
| |
Bank of England may not give an Objective 1 Interim Achievement Notice. |
| |
139 | Property transfer from temporary public ownership |
| |
(1) | This section applies where the Treasury— |
| 25 |
(a) | make a share transfer order, in respect of securities issued by a bank, in |
| |
accordance with section 12(2), and |
| |
(b) | later make a property transfer order from the bank under section 41(2). |
| |
(2) | This Part applies to the transferor under the property transfer order as to the |
| |
transferor under a property transfer instrument. |
| 30 |
(3) | For that purpose this Part applies with any modifications specified by the |
| |
Treasury in regulations; and the regulations— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and approved by |
| |
resolution of each House of Parliament. |
| 35 |
| |
| |
(1) | This section applies if— |
| |
(a) | the Bank of England has given an Objective 1 Achievement Notice, and |
| |
(b) | the bank administrator has pursued Objective 2(a) in section 127 and |
| 40 |
believes that it has been achieved. |
| |
|
| |
|
| |
|
(2) | The bank administrator may give a notice under paragraph 80 of Schedule B1 |
| |
to the Insolvency Act 1986 (notice bringing administrator’s appointment to an |
| |
end on achievement of objectives). |
| |
(3) | A bank administrator who gives a notice in accordance with subsection (2) |
| |
must send a copy to the FSA. |
| 5 |
(4) | Failure without reasonable excuse to comply with subsection (3) is an offence. |
| |
141 | Winding-up or voluntary arrangement |
| |
(1) | This section applies if— |
| |
(a) | the Bank of England has given an Objective 1 Achievement Notice, and |
| |
(b) | the bank administrator pursues Objective 2(b) in section 127. |
| 10 |
(2) | The bank administrator may— |
| |
(a) | give a notice under paragraph 84 of Schedule B1 to the Insolvency Act |
| |
1986 (no more assets for distribution), or |
| |
(b) | make a proposal in accordance with section 1 of that Act (company |
| |
| 15 |
(3) | Part 1 of that Act shall apply to a proposal made by a bank administrator, with |
| |
the following modifications. |
| |
(4) | In section 3 (summoning of meetings) subsection (2) (and not (1)) applies. |
| |
(5) | The action that may be taken by the court under section 5(3) (effect of approval) |
| |
includes suspension of the bank administration order. |
| 20 |
(6) | On the termination of a company voluntary arrangement the bank |
| |
administrator may apply to the court to lift the suspension of the bank |
| |
| |
(7) | The bank administrator may not act under subsection (2) above unless satisfied |
| |
that the bank has received any funds it is likely to receive from any scheme |
| 25 |
under a resolution fund order under section 46. |
| |
| |
142 | Disqualification of directors |
| |
(1) | In this section “the Disqualification Act” means the Company Directors |
| |
Disqualification Act 1986. |
| 30 |
(2) | In the Disqualification Act— |
| |
(a) | a reference to liquidation includes a reference to bank administration, |
| |
(b) | a reference to winding up includes a reference to making or being |
| |
subject to a bank administration order, |
| |
(c) | a reference to becoming insolvent includes a reference to becoming |
| 35 |
subject to a bank administration order, and |
| |
(d) | a reference to a liquidator includes a reference to a bank administrator. |
| |
(3) | For the purposes of the application of section 7(3) of the Disqualification Act |
| |
(disqualification order or undertaking) to a bank which is subject to a bank |
| |
administration order, the responsible office-holder is the bank administrator. |
| 40 |
(4) | After section 21A of the Disqualification Act (bank insolvency - inserted by |
| |
|
| |
|
| |
|
section 108 above) insert— |
| |
| |
Section 142 of the Banking Act 2008 provides for this Act to apply in |
| |
relation to bank administration as it applies in relation to liquidation.” |
| |
143 | Application of other law |
| 5 |
(1) | The Secretary of State and the Treasury may by order made jointly— |
| |
(a) | provide for an enactment about insolvency or administration to apply |
| |
to bank administration (with or without specified modifications); |
| |
(b) | amend, or modify the application of, an enactment about insolvency or |
| |
administration in consequence of this Part. |
| 10 |
(2) | In subsection (1) “enactment” includes— |
| |
(a) | subordinate legislation, |
| |
(b) | an Act of the Scottish Parliament and an instrument under an Act of the |
| |
| |
(c) | Northern Ireland legislation. |
| 15 |
(3) | An order under subsection (1)— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and approved by |
| |
resolution of each House of Parliament. |
| |
| 20 |
(1) | Before exercising an insolvency power in respect of a residual bank the FSA |
| |
must give notice to the Bank of England, which may participate in any |
| |
proceedings arising out of the exercise of the power. |
| |
| |
(a) | “residual bank” means a bank all or part of whose business has been |
| 25 |
transferred to a commercial purchaser in accordance with section 10 or |
| |
to a bridge bank in accordance with section 11, and |
| |
(b) | “insolvency power” means— |
| |
(i) | section 359 of the Financial Services and Markets Act 2000 |
| |
(application for administration order), and |
| 30 |
(ii) | section 367 of that Act (winding-up petition). |
| |
| |
(1) | The Treasury may by order provide for this Part to apply to building societies |
| |
(within the meaning of section 119 of the Building Societies Act 1986) as it |
| |
applies to banks, subject to modifications set out in the order. |
| 35 |
| |
(a) | amend the Building Societies Act 1986 or any other enactment which |
| |
relates, or in so far as it relates, to building societies; |
| |
(b) | amend an enactment amended by this Part; |
| |
(c) | replicate, with or without modifications, a provision of this Part; |
| 40 |
(d) | apply a provision made under or by virtue of this Part, with or without |
| |
modifications, to this Part as it applies to building societies. |
| |
|
| |
|