House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Public Bill Committee: 30th October 2008
54

Banking Bill, continued

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:—

‘(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

Public Bill Committee: 30th October 2008
55

Banking Bill, continued

(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—

“(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—

“(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

Public Bill Committee: 30th October 2008
56

Banking Bill, continued

(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:—

‘(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

Public Bill Committee: 30th October 2008
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Banking Bill, continued

(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

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;

(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;

Public Bill Committee: 30th October 2008
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Banking Bill, continued

(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.

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;

Public Bill Committee: 30th October 2008
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Banking Bill, continued

(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.