House of Commons Public Bill Committee Proceedings

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

37

House of Commons

Tuesday 18th November 2008

Public Bill Committee Proceedings

Banking Bill

[Seventeenth Sitting]

Clauses 123 to 131 Agreed to.

Ian Pearson

Agreed to  163

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

Ian Pearson

Agreed to  164

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

Ian Pearson

Agreed to  165

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

‘(b) Ignore sub-para. (3).’.

Ian Pearson

Agreed to  166

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

Public Bill Committee Proceedings: 18th November 2008
38

Banking Bill, continued

‘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.’.

Mr David Gauke

Withdrawn  179

Clause  132,  page  71,  leave out lines 28 to 33.

Clause, as amended, Agreed to.

Clauses 133 to 137 Agreed to.

Ian Pearson

Agreed to  167

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

Ian Pearson

Agreed to  168

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

bank”)’.

Ian Pearson

Agreed to  169

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

onward transferee”).’.

Ian Pearson

Agreed to  170

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

transfer instrument’ and insert ‘onward transferee’.

Ian Pearson

Agreed to  171

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

Public Bill Committee Proceedings: 18th November 2008
39

Banking Bill, continued

Ian Pearson

Agreed to  172

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

transfer instrument’ and insert ‘original bridge bank’.

Ian Pearson

Agreed to  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.’.

Ian Pearson

Agreed to  174

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

Clause, as amended, Agreed to.

Clauses 139 to 142 Agreed to.

Ian Pearson

Agreed to  15

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

Clause, as amended, Agreed to.

Clauses 144 to 146 Agreed to.

Public Bill Committee Proceedings: 18th November 2008
40

Banking Bill, continued

Ian Pearson

Agreed to  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

Agreed to  176

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

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

Clause, as amended, Agreed to.

Clauses 148 to 153 Agreed to.

Ian Pearson

Agreed to  16

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

Clause, as amended, Agreed to.

Clauses 234 to 238 Agreed to.

Ian Pearson

Agreed to  33

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

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

Clause, as amended, Agreed to.

Clause 240 Agreed to.

Public Bill Committee Proceedings: 18th November 2008
41

Banking Bill, continued

New Clauses

“Financial institution”

Ian Pearson

Added  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

Added  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

Added  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—