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Public Bill Committee: 28th October 2008                

40

 

Banking Bill, continued

 
 

‘(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

 

13

 

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

 


 

Ian Pearson

 

14

 

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

 


 

Ian Pearson

 

15

 

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

 


 

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’.

 


 

New Clauses

 

“Financial institution”

 

Ian Pearson

 

NC3

 

To move the following Clause:—


 
 

Public Bill Committee: 28th October 2008                

41

 

Banking Bill, continued

 
 

‘(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

 

Parliamentary Star    

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—

 

“(4)    

This section does not apply where a company proposes to grant a floating

 

charge in favour of a central institution.”

 

(4)    

In section 42 (assignation of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where a floating charge is assigned (whether

 

in whole or to a specified extent) to or by a central institution.”

 

(5)    

In section 43 (alteration of floating charges)—

 

(a)    

in subsection (4), for “But paragraph” substitute “Paragraph”, and

 

(b)    

after that subsection insert—


 
 

Public Bill Committee: 28th October 2008                

42

 

Banking Bill, continued

 
 

“(4A)    

Paragraph (b) of subsection (3) above does not apply in respect

 

of an alteration if—

 

(a)    

the holder of the floating charge is a central institution,

 

or

 

(b)    

the holder of the floating charge is not a central

 

institution but the alteration is to be made in connection

 

with a floating charge which is held (or which has been

 

or is to be held) by a central institution.”

 

(6)    

In section 44 (discharge of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where the floating charge to be discharged

 

(whether in whole or to a specified extent) is or has been held by a central

 

institution.”

 

(7)    

In section 47 (interpretation), after “Part—” insert—

 

    

““central institution” means—

 

(a)    

the Bank of England,

 

(b)    

the central bank of a country or territory outside the United

 

Kingdom, or

 

(c)    

the European Central Bank;”.’

 


 

Objectives of the compensation scheme for depositors

 

Mr Mark Hoban

 

Mr David Gauke

 

NC1

 

To move the following Clause:—

 

‘(1)    

This section sets out the objectives for the compensation scheme for depositors.

 

(2)    

Objective 1 is to maintain customers’ confidence in the UK banking system

 

regardless of whether the bank is incorporated in the UK or another EEA country.

 

(3)    

Objective 2 is to be able to make payments to depositors within seven days and

 

to have eligibility criteria, qualification processes and information requirements

 

which facilitate that.

 

(4)    

Objective 3 is to ensure that there are compensation arrangements for each bank

 

brand.

 

(5)    

Objective 4 is to require that the scheme pays customers their gross balance and

 

that any amounts due from customers are collected in the usual way.’.

 


 

Compensation payable to depositors

 

Mr Mark Hoban

 

Mr David Gauke

 

NC2

 

To move the following Clause:—


 
 

Public Bill Committee: 28th October 2008                

43

 

Banking Bill, continued

 
 

‘(1)    

Each depositor will be entitled to receive from the manager of the scheme referred

 

to in section [Objectives of the compensation scheme for depositors] a sum which

 

is the lower of—

 

(a)    

the deposit protection amount; and

 

(b)    

the gross balance held by the person.

 

(2)    

The “deposit protection amount” is £50,000.

 

(3)    

The Treasury may by order amend the figure in subsection (2).

 

(4)    

An order under this section may not be made unless a draft statutory instrument

 

containing such an order has been laid before, and approved by a resolution of,

 

each House of Parliament.’.

 


 

Court’s discretion in mortgage possession proceedings

 

Ms Sally Keeble

 

Mr Mark Todd

 

NC7

 

Parliamentary Star    

To move the following Clause:—

 

‘In The Housing Act 1980 (c.51), after section 89 insert the following:—

 

“89A  

Court’s discretion in mortgage possession proceedings

 

(1)    

This section applies where, in possession proceedings brought by a

 

mortgagee under a mortgage agreement (whether or not regulated by any

 

enactment), it appears to the court that the property is occupied by a

 

person or persons whose occupation derives from an interest or licence

 

created by the mortgagor under that agreement (whether or not such

 

interest or licence was created in breach of the terms of that agreement).

 

(2)    

Where subsection (1) applies, the court may postpone the date of

 

possession, or stay or suspend execution of the order, for such period or

 

periods as the court thinks just, not exceeding three months in total.

 

(3)    

On any such postponement, stay or suspension as is referred to in

 

subsection (1), the court may, unless it considers that to do so would

 

cause hardship to the occupier or would otherwise be unreasonable,

 

impose such conditions as it thinks fit with regard to the payment by the

 

occupier of sums for the use and occupation of the premises (not

 

exceeding the amount of the rent or other contractual payment which the

 

occupier was liable to pay under his agreement with the mortgagor).

 

(4)    

Rules of court shall provide for appropriate notices to be served on the

 

residential occupier of any premises prior to the commencement and in

 

the course of possession proceedings brought by a mortgagee of those

 

premises; and shall provide for the occupier to be heard by the court,

 

whether by being joined as a party to the proceedings or otherwise.

 

(5)    

In fixing the period of any such postponement, stay or suspension as is

 

referred to in subsection (2) and in deciding whether to impose conditions

 

under subsection (3), the court shall have regard to all the circumstances,

 

including—

 

(a)    

the terms, and in particular the duration, of the agreement

 

between the occupier and the mortgagor;


 
 

Public Bill Committee: 28th October 2008                

44

 

Banking Bill, continued

 
 

(b)    

the interests of any children or other vulnerable members of the

 

occupiers household;

 

(c)    

the fact (if applicable) that the occupier’s agreement with the

 

mortgagor has been terminated prematurely;

 

(d)    

the availability of suitable alternative accommodation;

 

(e)    

whether the tenancy or licence between the mortgagor and the

 

occupier was created in breach of the terms of the mortgage

 

agreement, and whether the occupier was aware that his

 

occupation constituted such a breach;

 

(f)    

whether the mortgagee knew, or ought to have known, that the

 

premises were to be let or licensed by the mortgagor, in the

 

course of business or otherwise;

 

(g)    

any prejudice which would be caused to the mortgagee by the

 

deferment of possession or execution; and

 

(h)    

any hardship which would be caused to the occupier by a

 

decision not to defer possession or execution.

 

(6)    

For the avoidance of doubt, nothing in this section affects the right of a

 

person whose interest in the property pre-dates, or otherwise ranks in

 

preference to, the interests of the mortgagee.’”.

 

 

Order of the House [14th OCTOBER 2008]

 

That the following provisions shall apply to the Banking Bill:

 

Committal

 

1.    

The Bill shall be committed to a Public Bill Committee.

 

Proceedings in Public Bill Committee

 

2.    

Proceedings in the Public Bill Committee shall (so far as not previously

 

concluded) be brought to a conclusion on Tuesday 18th November 2008.

 

3.    

The Public Bill Committee shall have leave to sit twice on the first day on

 

which it meets.

 

Consideration and Third Reading

 

4.    

Proceedings on consideration shall (so far as not previously concluded) be

 

brought to a conclusion one hour before the moment of interruption on the

 

day on which those proceedings are commenced.

 

5.    

Proceedings on Third Reading shall (so far as not previously concluded) be

 

brought to a conclusion at the moment of interruption on that day.

 

6.    

Standing Order No. 83B (Programming committees) shall not apply to

 

proceedings on consideration and Third Reading.

 

Other proceedings

 

7.    

Any other proceedings on the Bill (including any proceedings on

 

consideration of Lords Amendments or on any further messages from the

 

Lords) may be programmed.

 


 
 

Public Bill Committee: 28th October 2008                

45

 

Banking Bill, continued

 
 

Order of the Committee [21st October 2008]

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday

 

21st October) meet—

 

(a)  

at 4.30 p.m. on Tuesday 21st October;

 

(b)  

at 9.00 a.m. and 1.00 p.m. on Thursday 23rd October;

 

(c)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 28th October;

 

(d)  

at 9.00 a.m. and 1.00 p.m. on Thursday 30th October;

 

(e)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 4th November;

 

(f)  

at 9.00 a.m. and 1.00 p.m. on Thursday 6th November;

 

(g)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 11th November;

 

(h)  

at 9.00 a.m. and 1.00 p.m. on Thursday 13th November;

 

(i)  

at 10.30 a.m. and 4.30 p.m. on Tuesday 18th November;

 

(2)  

the Committee shall hear oral evidence in accordance with the following

 

Table:

 

TABLE

 

Date

Time

Witness

 
 

Tuesday 21st October

Until no later than 12 noon

HM Treasury

 
 

Tuesday 21st October

Until no later than 1.00 p.m.

Bank of England; Financial

 
   

Services Authority; Financial

 
   

Services Compensation Scheme

 
 

Tuesday 21st October

Until no later than 5.45 p.m.

British Bankers’ Association;

 
   

Building Societies Association;

 
   

London Investment Banking

 
   

Association

 
 

Tuesday 21st October

Until no later than 7.00 p.m.

Association of British Insurers;

 
   

Investment Management

 
   

Association; Citizens Advice

 
   

Bureau; Which?

 
 

(3)  

proceedings on consideration of the Bill in Committee shall be taken in the

 

following order: Clauses 155 and 156; Clauses 158 to 233; Clauses 1 to 76;

 

Clause 157; Clauses 77 to 154; Clauses 234 to 240; new Clauses; new

 

Schedules; remaining proceedings on the Bill;

 

(4)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 7.00 p.m. on Tuesday 18th November.

 


 
 

Public Bill Committee: 28th October 2008                

46

 

Banking Bill, continued

 
 

NOTICES WITHDRAWN

 

The following Notices have been withdrawn:

 

Registration of charges: Scotland

 

Ian Pearson

 

NC4

 

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 42 (assignation of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where a floating charge is assigned (whether

 

in whole or to a specified extent) to or by a central institution.”

 

(4)    

In section 43 (alteration of floating charges)—

 

(a)    

in subsection (4), for “But paragraph” substitute “Paragraph”, and

 

(b)    

after that subsection insert—

 

“(4A)    

Paragraph (b) of subsection (3) above does not apply in respect

 

of an alteration if—

 

(a)    

the holder of the floating charge is a central institution,

 

or

 

(b)    

the holder of the floating charge is not a central

 

institution but the alteration is to be made in connection

 

with a floating charge which is held (or which has been

 

or is to be held) by a central institution.”

 

(5)    

In section 44 (discharge of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where the floating charge to be discharged

 

(whether in whole or to a specified extent) is or has been held by a central

 

institution.”

 

(6)    

In section 47 (interpretation), after “Part—” insert—

 

    

“central institution” means—

 

(a)    

the Bank of England,

 

(b)    

the central bank of a country or territory outside the United

 

Kingdom, or

 

(c)    

the European Central Bank;”.’

 


 
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