House of Commons portcullis
House of Commons
Session 2008 - 09
Internet Publications
Other Bills before Parliament

Banking Bill


 

Banking Bill

 
 

EXPLANATORY NOTES

Explanatory notes to the Bill, prepared by the Treasury, are published separately as

Bill 6—EN

EUROPEAN CONVENTION ON HUMAN RIGHTS

Mr Chancellor of the Exchequer has made the following statement under section

19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Banking Bill are compatible with the Convention

rights.

 
Bill 654/4
 

 


 

Banking Bill

 

 
 

Contents

Part 1

Special Resolution Regime

Introduction

1   

Overview

2   

Interpretation: “bank”

3   

Interpretation: other expressions

Objectives and code

4   

Special resolution objectives

5   

Code of practice

6   

Code of practice: procedure

Exercise of powers: general

7   

General conditions

8   

Specific conditions: private sector purchaser and bridge bank

9   

Specific conditions: temporary public ownership

10   

Banking Liaison Panel

The stabilisation options

11   

Private sector purchaser

12   

Bridge bank

13   

Temporary public ownership

Transfer of securities

14   

Interpretation: “securities”

15   

Share transfer instrument

16   

Share transfer order

17   

Effect

18   

Continuity

19   

Conversion and delisting

20   

Directors

 

Bill 6                                                                                                  

54/4

 
 

Banking Bill

ii

 

21   

Ancillary instruments: production, registration, &c.

22   

Termination rights, &c.

23   

Incidental provision

24   

Procedure: instruments

25   

Procedure: orders

26   

Supplemental instruments

27   

Supplemental orders

28   

Onward transfer

29   

Reverse share transfer

30   

Bridge bank: share transfers

31   

Bridge bank: reverse share transfer

32   

Interpretation: general

Transfer of property

33   

Property transfer instrument

34   

Effect

35   

Transferable property

36   

Continuity

37   

Licences

38   

Termination rights, &c.

39   

Foreign property

40   

Incidental provision

41   

Procedure

42   

Supplemental instruments

43   

Onward transfer

44   

Reverse property transfer

45   

Temporary public ownership: property transfer

46   

Temporary public ownership: reverse property transfer

47   

Restriction of partial transfers

48   

Power to protect certain interests

Compensation

49   

Orders

50   

Sale to private sector purchaser

51   

Transfer to temporary public ownership

52   

Transfer to bridge bank

53   

Onward and reverse transfers

54   

Independent valuer

55   

Independent valuer: supplemental

56   

Independent valuer: money

57   

Valuation principles

58   

Resolution fund

59   

Third party compensation: discretionary provision

60   

Third party compensation: mandatory provision

61   

Sources of compensation

62   

Procedure

Incidental functions

63   

General continuity obligation: property transfers

64   

Special continuity obligations: property transfers

65   

Continuity obligations: onward property transfers

 
 

Banking Bill

iii

 

66   

General continuity obligation: share transfers

67   

Special continuity obligations: share transfers

68   

Continuity obligations: onward share transfers

69   

Continuity obligations: consideration and terms

70   

Continuity obligations: termination

71   

Pensions

72   

Enforcement

73   

Disputes

74   

Tax

75   

Power to change law

Treasury

76   

International obligation notice: general

77   

International obligation notice: bridge bank

78   

Public funds: general

79   

Public funds: bridge bank

80   

Bridge bank: report

Building societies, &c.

81   

Application of Part 1: general

82   

Temporary public ownership

83   

Distribution of assets on dissolution or winding up

84   

Interpretation

85   

Consequential provision

86   

Credit unions

Part 2

Bank Insolvency

Introduction

87   

Overview

88   

Interpretation: “bank”

89   

Interpretation: “the court”

90   

Interpretation: other expressions

Bank insolvency order

91   

The order

92   

Application

93   

Grounds for applying

94   

Grounds for making

95   

Commencement

Process of bank liquidation

96   

Objectives

97   

Liquidation committee

98   

Liquidation committee: supplemental

99   

Objective 1: (a) or (b)?

100   

General powers, duties and effect

 
 

Banking Bill

iv

 

101   

Additional general powers

102   

Status of bank liquidator

Tenure of bank liquidator

103   

Term of appointment

104   

Resignation

105   

Removal by court

106   

Removal by creditors

107   

Disqualification

108   

Release

109   

Replacement

Termination of process, &c.

110   

Company voluntary arrangement

111   

Administration

112   

Dissolution

113   

Dissolution: supplemental

Other processes

114   

Bank insolvency as alternative order

115   

Voluntary winding-up

116   

Exclusion of other procedures

117   

Notice to FSA of preliminary steps

118   

Disqualification of directors

119   

Application of insolvency law

Miscellaneous

120   

Role of FSCS

121   

Transfer of accounts

122   

Rules

123   

Fees

124   

Insolvency Services Account

125   

Evidence

126   

Co-operation between courts

127   

Building societies

128   

Credit unions

129   

Partnerships

130   

Scottish partnerships

131   

Northern Ireland

132   

Consequential provision

Part 3

Bank Administration

Introduction

133   

Overview

134   

Objectives

135   

Objective 1: supporting private sector purchaser or bridge bank

 
 

Banking Bill

v

 

136   

Objective 1: duration

137   

Objective 2: “normal” administration

Process

138   

Bank administration order

139   

Application

140   

Grounds for applying

141   

Grounds for making

142   

General powers, duties and effect

143   

Status of bank administrator

144   

Administrator’s proposals

145   

Sharing information

Multiple transfers

146   

General application of this Part

147   

Bridge bank to private purchaser

148   

Property transfer from bridge bank

149   

Property transfer from temporary public ownership

Termination

150   

Successful rescue

151   

Winding-up or voluntary arrangement

Miscellaneous

152   

Disqualification of directors

153   

Application of other law

154   

Other processes

155   

Building societies

156   

Credit unions

157   

Rules

158   

Fees

159   

Evidence

160   

Partnerships

161   

Scottish partnerships

162   

Co-operation between courts

163   

Interpretation: general

164   

Northern Ireland

165   

Consequential provision

Part 4

Financial Services Compensation Scheme

166   

Overview

167   

Contingency funding

168   

Special resolution regime

169   

Investing in National Loans Fund

170   

Borrowing from National Loans Fund

171   

Procedure for claims

172   

Rights in insolvency

 
 

 
contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2008
Revised 5 December 2008