|
| |
| |
| |
| |
(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 137 and |
| 5 |
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) |
| 10 |
must send a copy to the FSA. |
| |
(4) | Failure without reasonable excuse to comply with subsection (3) is an offence. |
| |
151 | Winding-up or voluntary arrangement |
| |
(1) | This section applies if— |
| |
(a) | the Bank of England has given an Objective 1 Achievement Notice, and |
| 15 |
(b) | the bank administrator pursues Objective 2(b) in section 137. |
| |
(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 |
| 20 |
| |
(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) |
| 25 |
includes suspension of the bank administration order. |
| |
(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 |
| 30 |
that the bank has received any funds it is likely to receive from any scheme |
| |
under a resolution fund order under section 52. |
| |
| |
152 | Disqualification of directors |
| |
(1) | In this section “the Disqualification Act” means the Company Directors |
| 35 |
Disqualification Act 1986. |
| |
(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 |
| |
subject to a bank administration order, and |
| |
(d) | a reference to a liquidator includes a reference to a bank administrator. |
| 5 |
(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. |
| |
(4) | After section 21A of the Disqualification Act (bank insolvency - inserted by |
| |
section 118 above) insert— |
| 10 |
| |
Section 152 of the Banking Act 2008 provides for this Act to apply in |
| |
relation to bank administration as it applies in relation to liquidation.” |
| |
153 | Application of other law |
| |
(1) | The Secretary of State and the Treasury may by order made jointly— |
| 15 |
(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. |
| |
(2) | An order under subsection (1)— |
| 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. |
| |
| |
(1) | Before exercising an insolvency power in respect of a residual bank the FSA |
| 25 |
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 |
| |
transferred to a commercial purchaser in accordance with section 11 or |
| 30 |
to a bridge bank in accordance with section 12, and |
| |
(b) | “insolvency power” means— |
| |
(i) | section 359 of the Financial Services and Markets Act 2000 |
| |
(application for administration order), and |
| |
(ii) | section 367 of that Act (winding-up petition). |
| 35 |
| |
(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. |
| |
| 40 |
(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; |
| |
(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. |
| |
| 5 |
(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. |
| |
(4) | Provision made under or by virtue of this Part may make special provision in |
| |
relation to the application of this Part to building societies. |
| 10 |
| |
(1) | The Treasury may by order provide for this Part to apply to credit unions |
| |
(within the meaning of section 31 of the Credit Unions Act 1979) as it applies |
| |
to banks, subject to modifications set out in the order. |
| |
| 15 |
(a) | amend the Credit Union Act 1979, the Industrial and Providential |
| |
Societies Act 1965 or any other enactment which relates, or in so far as |
| |
it relates, to credit unions; |
| |
(b) | amend an enactment amended by this Part; |
| |
(c) | replicate, with or without modifications, a provision of this Part; |
| 20 |
(d) | apply a provision made under or by virtue of this Part, with or without |
| |
modifications, to this Part as it applies to credit unions. |
| |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | may not be made unless a draft has been laid before and approved by |
| 25 |
resolution of each House of Parliament. |
| |
(4) | Provision made under or by virtue of this Part may make special provision in |
| |
relation to the application of this Part to credit unions. |
| |
| |
(1) | Section 411 of the Insolvency Act 1986 (company insolvency rules) is amended |
| 30 |
| |
(2) | After subsection (1A) (inserted by section 122 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 |
| |
| 35 |
(a) | in relation to England and Wales, by the Lord Chancellor with |
| |
| |
| |
(ii) | in the case of rules that affect court procedure, the Lord |
| |
| 40 |
(b) | in relation to Scotland, by the Treasury.” |
| |
(3) | In subsection (2), after “(1A)” (inserted by section 122 above) insert “or (1B)”. |
| |
| |
| |
|
| |
| |
(4) | After subsection (2C) (inserted by section 122 above) insert— |
| |
“(2D) | For the purposes of subsection (2), a reference in Schedule 8 to this Act |
| |
to doing anything under or for the purposes of a provision of this Act |
| |
includes a reference to doing anything under or for the purposes of Part |
| |
3 of the Banking Act 2008.” |
| 5 |
| |
(a) | after “bank liquidator” (inserted by section 122 above) insert “or |
| |
| |
(b) | after “Part 2” (inserted by section 122 above) insert “or 3”. |
| |
(6) | Section 413(2) of the Insolvency Act 1986 (rules: duty to consult Insolvency |
| 10 |
Rules Committee) shall not apply to the first set of rules which is made in |
| |
reliance on this section. |
| |
| |
After section 414(8A) of the Insolvency Act 1986 (fees orders - inserted by |
| |
section 123 above) insert— |
| 15 |
“(8B) | This section applies in relation to Part 3 of the Banking Act 2008 (bank |
| |
administration) as in relation to Parts I to VII of this Act.” |
| |
| |
In section 433(1) of the Insolvency Act 1986 (admissibility of statements of |
| |
affairs) after paragraph (aa) (inserted by section 125 above) insert (before the |
| 20 |
| |
“(ab) | a statement made in pursuance of a requirement imposed by or |
| |
under Part 3 of that Act (bank administration),”. |
| |
| |
(1) | The Lord Chancellor may, by order made with the concurrence of the Secretary |
| 25 |
of State and the Lord Chief Justice, modify provisions of this Part in their |
| |
application to partnerships. |
| |
(2) | For procedural purposes an order under subsection (1) shall be treated in the |
| |
same way as an order under section 420 of the Insolvency Act 1986 |
| |
| 30 |
(3) | This section does not apply in relation to partnerships constituted under the |
| |
| |
161 | Scottish partnerships |
| |
(1) | The Secretary of State may by order modify provisions of this Part in their |
| |
application to partnerships constituted under the law of Scotland. |
| 35 |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
| |
| |
|
