Public Bill Committee: 11th November 2008

128

Banking Bill, continued

Ian Pearson

126

Clause  60,  page  29,  line  32,  leave out ‘consideration at market rate’ and insert

‘reasonable consideration,’.

Ian Pearson

127

Clause  60,  page  29,  line  34,  leave out ‘on market terms’.

Mr David Gauke

Mr Mark Hoban

119

Clause  65,  page  32,  line  10,  at end insert ‘, where the Treasury is satisfied that not

to do so threatens the stability of, or confidence in, the UK financial system’.

Mr David Gauke

155

Clause  65,  page  32,  line  15,  leave out subsection (3).

Ian Pearson

12

Clause  65,  page  32,  line  22,   leave out subsection (5).

Mr David Gauke

Mr Mark Hoban

120

Clause  65,  page  32,  line  39,  after ‘(8)(b),’, insert ‘in order to protect the stability of,

or confidence in, the UK financial systems’.

Mr David Gauke

Mr Mark Hoban

121

Clause  65,  page  32,  line  42,  leave out from ‘days’ to ‘beginning’ in line 44.

Mr David Gauke

156

Clause  65,  page  33,  line  1,  leave out paragraph (c).

Mr David Gauke

157

Clause  65,  page  33,  line  5,  at end add—

‘(10)

No Order under this section may amend subsections (8) or (9).’.

Public Bill Committee: 11th November 2008

129

Banking Bill, continued

Mr Colin Breed

Dr John Pugh

73

Page  32,  line  7,  leave out Clause 65.

Ian Pearson

177

Clause  157,  page  81,  line  42,  after ‘bank’ insert ‘, building society or credit union’.

Ian Pearson

178

Clause  157,  page  81,  line  44,  after ‘bank’ insert ‘, building society or credit union’.

Ian Pearson

17

Clause  157,  page  83,  line  3,  at end insert—

‘(2)	At the end of section 223(3) of the Financial Services and Markets Act 2000

(management expenses) add “;

(c)	under section 214B.”’.

Ian Pearson

158

Clause  90,  page  45,  line  44,  at end insert—

‘Section 135

Provisional appointment

(a)	Treat the reference to the presentation of

a winding-up petition as a reference to

the making of an application for a bank

insolvency order.

(b)	Subsection (2) applies in relation to

England and Wales and Scotland (and

subsection (3) does not apply).

(c)	Ignore the reference to the official

receiver.

(d)	Only a person who is qualified to act as

an insolvency practitioner and who

consents to act may be appointed.

(e)	A provisional bank liquidator may not

pay dividends to creditors.

(f)	The appointment of a provisional bank

liquidator lapses on the appointment of a

bank liquidator.’.

Public Bill Committee: 11th November 2008

130

Banking Bill, continued

Ian Pearson

159

Clause  101,  page  54,  line  3,  after ‘payments’ insert ‘or have their accounts

transferred’.

Ian Pearson

13

Clause  109,  page  57,  line  25,   leave out subsection (2).

Ian Pearson

160

Clause  112,  page  59,  line  1,  leave out subsection (2) and insert—

‘(2)	After subsection (1) insert—

“(1A)

Rules may also be made for the purpose of giving effect to Part 2 of the

Banking Act 2008 (bank insolvency orders); and rules for that purpose

shall be made—

(a)	in relation to England and Wales, by the Lord Chancellor with

the concurrence of—

(i)	the Treasury, and

(ii)	in the case of rules that affect court procedure, the Lord

Chief Justice, or

(b)	in relation to Scotland, by the Treasury.”’.

Ian Pearson

161

Clause  112,  page  59,  line  2,  at end insert—

‘(2A)

In subsection (2)—

(a)	after “subsection (1),” insert “(1A)”;

(b)	in paragraph (b), after “Secretary of State” insert “or the Treasury”.’.

Ian Pearson

162

Clause  112,  page  59,  line  11,  at end insert—

‘(5)	In subsection (5), after “the Secretary of State” insert “or the Treasury”.

(6)	In paragraph 27 of Schedule 8 to the Insolvency Act 1986 (provisions capable of

inclusion in company insolvency rules), after “Secretary of State” insert “or the

Treasury”.’.

Public Bill Committee: 11th November 2008

131

Banking Bill, continued

Ian Pearson

14

Clause  122,  page  61,  line  26,   leave out ‘and an Act of the Scottish Parliament’.

Ian Pearson

163

Clause  132,  page  65,  line  33,  after ‘administration’ insert ‘or administrators’.

Ian Pearson

164

Clause  132,  page  65,  line  34,  after ‘insolvency’ insert ‘or liquidators).’.

Ian Pearson

165

Clause  132,  page  68,  line  27,  at end insert—

‘(b) Ignore sub-para. (3).’.

Ian Pearson

166

Clause  132,  page  71,  line  3,  at end insert—

‘Section 135

Provisional appointment

(a)	Treat the reference to the presentation of

a winding-up petition as a reference to

the making of an application for a bank

administration order.

(b)	Subsection (2) applies in relation to

England and Wales and Scotland (and

subsection (3) does not apply).

(c)	Ignore the reference to the official

receiver.

(d)	Only a person who is qualified to act as

an insolvency practitioner and who

consents to act may be appointed.

(e)	The court may only confer on a

provisional bank administrator functions

in connection with the pursuance of

Objective 1; and section 125(2)(a) does

not apply before a bank administration

order is made.

(f)	A provisional bank administrator may

not pursue Objective 2.

(g)	The appointment of a provisional bank

administrator lapses on the appointment

of a bank administrator.’.

Ian Pearson

167

Clause  138,  page  75,  line  7,  after first ‘bank’ insert ‘(“the original bank”)’.

Public Bill Committee: 11th November 2008

132

Banking Bill, continued

Ian Pearson

168

Clause  138,  page  75,  line  7,  after ‘bridge bank’ insert ‘(“the original bridge

bank”)’.

Ian Pearson

169

Clause  138,  page  75,  line  10,  after ‘bridge bank’ insert ‘to a transferee (“the

onward transferee”).’.

Ian Pearson

170

Clause  138,  page  75,  line  11,  leave out ‘transferee under the onward property

transfer instrument’ and insert ‘onward transferee’.

Ian Pearson

171

Clause  138,  page  75,  line  13,  after first ‘the’ insert ‘onward’.

Ian Pearson

172

Clause  138,  page  75,  line  15,  leave out ‘bridge bank under the original property

transfer instrument’ and insert ‘original bridge bank’.

Ian Pearson

173

Clause  138,  page  75,  line  17,  leave out subsection (3) and insert—

‘(3)	In any other case, the Bank of England may determine that the original bridge

bank is to be treated as a residual bank for the purposes of this Part.

(3A)	Where the original bridge bank is put into bank administration in reliance on

subsection (2)(b), Objective 1 shall apply in accordance with section 125(4) in

relation to both—

(a)	services provided by the original bank to the original bridge bank, and

(b)	services provided by the original bridge bank to the onward transferee.

(3B)	Where the original bridge bank is put into bank administration in reliance on a

determination under subsection (3), Objective 1 shall apply in accordance with—

(a)	section 125(3) in relation to services provided by the original bridge bank

to the onward transferee, and

(b)	section 125(4) in relation to services provided by the original bank to the

original bridge bank.

(3C)	But the Bank may determine—

(a)	that subsection (3B) does not apply, and

(b)	that section 137 shall apply as if the Bank had given—

(i)	an Objective 1 Interim Achievement Notice in respect of the

original bridge bank, and

(ii)	a notice under section 137(1)(b) in respect of the onward

transferee.’.

Public Bill Committee: 11th November 2008

133

Banking Bill, continued

Ian Pearson

174

Clause  138,  page  75,  line  22,  leave out subsection (4).

Ian Pearson

15

Clause  143,  page  77,  line  11,   leave out subsection (2).

Ian Pearson

175

Clause  147,  page  78,  line  28,  leave out subsection (2) and insert—

‘(2)	After subsection (1A) (inserted by section 112 above) insert—

“(1B)

Rules may also be made for the purpose of giving effect to Part 3 of the

Banking Act 2008 (bank administration); and rules for that purpose shall

be made—

(a)	in relation to England and Wales, by the Lord Chancellor with

the concurrence of—

(i)	the Treasury, and

(ii)	in the case of rules that affect court procedure, the Lord

Chief Justice, or

(b)	in relation to Scotland, by the Treasury.”’.

Ian Pearson

176

Clause  147,  page  78,  line  30,  at end insert—

‘(2A)

In subsection (2), after “(1A)” (inserted by section 112 above) insert “or (1B)”.’

Ian Pearson

16

Clause  154,  page  80,  line  25,   leave out ‘and an Act of the Scottish Parliament’.

Ian Pearson

33

Clause  239,  page  115,  line  5,  leave out ‘section 231 extends’ and insert ‘sections

[Registration of charges: Scotland] and 231 extend’.

Public Bill Committee: 11th November 2008

134

Banking Bill, continued

New Clauses

“Financial institution”

Ian Pearson

NC3

To move the following Clause:—

‘(1)	The Treasury may by order provide that a specified institution, or an institution

of a specified class, is or is not to be treated as a financial institution for the

purposes of section 214 or 215.

(2)

An order—

(a)	shall be made by statutory instrument, and

(b)	shall be subject to annulment in pursuance of a resolution of either House

of Parliament.’.

“Enactment”

Ian Pearson

NC5

To move the following Clause:—

‘In this Act “enactment” includes—

(a)	subordinate legislation,

(b)	an Act of the Scottish Parliament and an instrument under an Act of the

Scottish Parliament, and

(c)	Northern Ireland legislation.’.

Registration of charges: Scotland

Ian Pearson

NC6

To move the following Clause:—

‘(1)	The Bankruptcy and Diligence etc. (Scotland) Act 2007 is amended as follows.

(2)	In section 38 (creation of floating charges)—

(a)	in subsection (3), after “to” insert “subsection (3A) and”, and

(b)	after that subsection insert—

“(3A)

If a floating charge is granted in favour of a central institution, it

is created only when the document granting the floating charge

is executed by the company granting the charge.”

(3)	In section 39 (advance notice of floating charges), after subsection (3) add—

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Revised 11 November 2008