The Bank Insolvency (England and Wales) Rules 2009

law://uk/uksi/2009/356@2026-11-12

Defined terms · 22

Show every defined term

appropriate regulator rules
means the rules, as amended from time to time, made under section 213 of the Financial Services and Markets Act 2000 by the Financial Conduct Authority or the Prudential Regulation Authority;
bank
means the bank (as defined by section 91(1) of the 2009 Act) which is or is to be the subject of the bank insolvency order;
CPR
means the Civil Procedure Rules 1998;
creditors
means those creditors of the bank of whom the bank liquidator is aware, or who are identified in the bank’s statement of affairs and • “the insolvent” means the bank.
eligible depositor
has the meaning given by section 93(3) of the 2009 Act;
liquidation committee
means the committee established pursuant to section 100 of the 2009 Act;
obligation
means an obligation however arising, whether by virtue of an agreement, rule of law or otherwise.
personal service
has the meaning given in Part 6 of the CPR;
protected deposit
means a protected deposit within the meaning given by the appropriate regulator Rules.
registered address
has the meaning given by section 1140 of the 2006 Act;
registered office
means—
relevant date
means the date of the commencement of bank insolvency.”
sealed
means sealed with the seal of the court under which the application was made;
statement of truth
has the meaning set out in Part 22 of the CPR.
the 1985 Act
means the Companies Act 1985;
the 1986 Act
means the Insolvency Act 1986 (and includes those provisions as applied by section 103 of the 2009 Act);
the 1986 Rules
means the Insolvency Rules 1986 including all the amendments to them up to and including those made by the Insolvency (Amendment) (No. 2) Rules 2009;
the 2006 Act
means the Companies Act 2006;
the 2009 Act
means the Banking Act 2009;
the FSCS
means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000) or, where appropriate, the scheme manager of that scheme;
the insolvent
means the bank that has been put into bank insolvency;
the responsible insolvency practitioner
means the person acting in the bank insolvency as the bank liquidator or provisional bank liquidator.

Part 1 · Introductory provisions

1Citation and commencement#

These Rules may be cited as the Bank Insolvency (England and Wales) Rules 2009 and come into force on 25th February 2009.

2Extent#

These Rules extend to England and Wales only.

3Application of rules, construction and interpretation#

(1)These Rules apply in relation to a bank undergoing the procedure in Part 2 of the Banking Act 2009 known as bank insolvency.

(2)In these Rules—• “the 1985 Act” means the Companies Act 1985;• “the 1986 Act” means the Insolvency Act 1986 (and includes those provisions as applied by section 103 of the 2009 Act);• “the 1986 Rules” means the Insolvency Rules 1986 including all the amendments to them up to and including those made by the Insolvency (Amendment) (No. 2) Rules 2009;• “the 2006 Act” means the Companies Act 2006;• “the 2009 Act” means the Banking Act 2009;• “the appropriate regulator” in relation to a bank means—(a) if the bank is a PRA-authorised person (within the meaning of the Financial Services and Markets Act 2000), the Prudential Regulation Authority and the Financial Conduct Authority;(b) in any other case, the Financial Conduct Authority;• “bank” means the bank (as defined by section 91(1) of the 2009 Act) which is or is to be the subject of the bank insolvency order;• “CPR” means the Civil Procedure Rules 1998;• ^note...• “the FSCS” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000) or, where appropriate, the scheme manager of that scheme;• “the insolvent” means the bank that has been put into bank insolvency;• “liquidation committee” means the committee established pursuant to section 100 of the 2009 Act;• “personal service” has the meaning given in Part 6 of the CPR;• “registered address” has the meaning given by section 1140 of the 2006 Act;• “sealed” means sealed with the seal of the court under which the application was made ; and• “statement of truth” has the meaning set out in Part 22 of the CPR.

(3)These Rules consist of—

(a)the rules set out in full;

(b)in the case of a rule applying a rule in Part 4, 7, 8, 9, 11, 12 or 13 of the 1986 Rules, the rule so applied with—

(i)the modifications set out in paragraph (4),

(ii)the modifications contained in the rule applying it, and

(iii)any other necessary modification;

(c)the Schedule, which applies the relevant schedules of the 1986 Rules.

(4)The modifications are that where applicable, a reference to—

(a)the 1986 Act (or to “the Act”) is a reference to that Act as applied, with modifications, by the 2009 Act, (and includes, where appropriate, a reference to Part 2 of the 2009 Act.)

(b)the 1986 Rules (or to “the Rules”) is a reference to these Rules,

(c)an affidavit is a reference to a witness statement,

(d)the commencement of winding up is a reference to the commencement of bank insolvency,

(e)the chairman is a reference to the chair,

(f)a reference to a company is a reference to a bank,

(g)going into liquidation is a reference to entering bank insolvency,

(h)insolvency proceedings is a reference to bank insolvency proceedings,

(i)the official receiver should be ignored unless otherwise stated,

(j)a petition for winding up is a reference to an application for bank insolvency under section 95 of the 2009 Act,

(k)a petitioner is a reference to an applicant,

(l)the provisional liquidator is a reference to the provisional bank liquidator,

(m)winding up is a reference to bank insolvency,

(n)winding up by the court is a reference to a bank being placed into bank insolvency by the court, and

(o)a winding–up order is a reference to a bank insolvency order.

(5)Expressions used—

(a)both in a rule set out in full and in Part 2 of the 2009 Act, or

(b)both in a modification to a rule from the 1986 Rules applied by these Rules and in Part 2 of the 2009 Act,

have the same meaning as in Part 2 of the 2009 Act.

(6)Where a rule applies a rule of the 1986 Rules and modifies that rule by inserting or substituting text—

(a)any reference in the modified rule to the 2009 Rules is a reference to these rules;

(b)expressions inserted or substituted have the same meaning as in these rules.

(7)Where a rule in the 1986 Rules (Rule A) contains a reference to another such rule (Rule B) and—

(a)both Rule A and Rule B are applied by these Rules, or

(b)Rule A is applied by and the provision in Rule B to which Rule A refers is substantially repeated in these Rules,

the reference in Rule A shall be treated, for the purpose of these Rules, as being, respectively, to the rule in these Rules that applies Rule B or the provision in these Rules that substantially repeats the provision in Rule B.

(8)Where a rule (Rule A) refers to another rule (Rule B), and Rule B applies a rule of the 1986 Rules (Rule C) with or without modifications, the reference in Rule A includes a reference to Rule C as applied by Rule B.

(9)Any notice or document required to be sent electronically pursuant to these Rules shall be treated as having been sent to the person if—

(a)it is sent by email to the person’s last known email address, and

(b)the email contains a prompt asking the person for an electronic receipt saying that the email has been read.

(10)Where these Rules provide for a witness statement (either expressly, or through the application of the 1986 Rules as modified above)—

(a)that statement is a reference to a witness statement verified by a statement of truth in accordance with Part 22 of the CPR, and

(b)if the statement is made by the bank liquidator or provisional bank liquidator, the statement should state as such and should include the address at which that person works.

4Overview#

The purpose of these Rules is to provide a procedure for the appointment of a bank liquidator and the operation of bank insolvency under Part 2 of the 2009 Act in England and Wales.

5Forms#

(1)This rule applies where a provision of these Rules—

(a)applies a provision of the 1986 Rules which requires the use of a prescribed form, or

(b)makes provision similar to that made by a provision of those Rules which requires the use of a prescribed form.

(2)The form prescribed for the purposes of those Rules is to be used with any modification that the person using the form thinks desirable to reflect the nature of bank insolvency (whether or not the modification is set out in a Practice Form issued by the Treasury for that purpose).

6Time limits#

(1)Where by any provision of the 1986 Act, the 2009 Act or these Rules, the time for doing anything is limited, the court may extend the time, either before or after it has expired, on such terms, if any, as it thinks fit.

(2)If the court’s consideration of whether to extend the time for doing anything takes place before a full payment resolution has been passed, the court shall only extend the time if it considers that the resulting delay will not significantly prejudice the achievement of Objective 1.

Part 2 · Application for order

7Filing of application#

(1)The application for a bank insolvency order, verified by witness statement in accordance with rule 11, shall be filed in court.

(2)There shall be filed with the application—

(a)1 copy for service on the bank,

(b)1 copy to be attached to the proof of service, and

(c)further copies to be sent to the persons under rule 10.

(3)The court shall fix the venue, date and time for the hearing of the application and in doing so shall have regard to—

(a)the desirability of the application being heard as soon as is reasonably practicable, and

(b)the need to give the bank a reasonable opportunity to attend.

(4)Each of the copies issued to the applicant shall be sealed and be endorsed with the venue, date and time for the hearing.

(5)Any application filed in relation to a bank in respect of which there is in force a voluntary arrangement under Part 1 of the 1986 Act shall be filed in accordance with this rule, but a copy of that application shall also be sent to the court to which the nominee’s report under section 2 of the 1986 Act was submitted, if that is not the same court.

8Service of application#

(1)The applicant shall serve the bank with a sealed copy of the application.

(2)The application shall be served on the bank by personal service at its registered office.

(3)In paragraph (2) “registered office” means—

(a)the place which is specified, in the bank’s statement delivered under section 9 of the 2006 Act or, before that section comes into force, section 10 of the 1985 Act as the intended situation of its registered office on incorporation, or

(b)if notice has been given by the bank to the registrar of companies under section 87 of the 2006 Act or, before that section comes into force, section 287 of the 1985 Act, the place specified in that notice or, as the case may be, in the last such notice.

(4)Service of the application at the registered office may be effected in any of the following ways—

(a)it may be handed to a person who there and then acknowledges that they are , or to the best of the server’s knowledge, information and belief are, a director or other officer, or employee, of the bank, or

(b)it may be handed to a person who there and then acknowledges that they are authorised to accept service documents on the company’s behalf, or

(c)in the absence of such person as is mentioned in sub-paragraphs (a) and (b), it may be deposited at or about the registered office in such a way that it is likely to come to the notice of a person attending the office.

(5)If for any reason it is impracticable to effect service as provided by paragraph (2) or (4), the application may be served in such other manner as the court may approve or direct.

(6)Application for permission of the court under paragraph (5) may be made without notice to the bank, stating in a witness statement what steps have been taken to comply with paragraph (2) or (4), and the reasons why it is impracticable to effect service as there provided.

(7)If the bank or its legal representatives fail to attend the hearing, the court may make the bank insolvency order in its absence if satisfied that the application has been served in accordance with this rule.

9Proof of service#

Apply rule 4.9 of the 1986 Rules.

10Other persons to receive copy of application#

(1)The applicant shall send 2 copies of the application to—

(a)the proposed bank liquidator,

(b)the Bank of England, (if it is not the applicant,)

(c)the Financial Conduct Authority, (if it is not the applicant);

(ca)if the bank is a PRA-authorised person (within the meaning of the Financial Services and Markets Act 2000) and the applicant is not the Prudential Regulation Authority, that Authority;

(d)the FSCS,

(e)^note... any person who has given notice to the Financial Conduct Authority or the Prudential Regulation Authority in respect of the bank under section 120 of the Banking Act 2009,

(f)if there is in force for the bank a voluntary arrangement under Part 1 of the 1986 Act, the supervisor of that arrangement, and

(g)if an administrative receiver has been appointed in relation to the bank, that receiver,

in accordance with paragraph (2).

(2)one copy shall be sent electronically as soon as practicable and the other (a sealed copy) shall be sent by first class post on the business day on which the application is served on the bank.

(3)Any of the persons in sub-paragraph (1) will have the right to attend and be heard at the hearing of the application.

11Verification of application#

(1)This applies where an application has been filed at the court under rule 7 above.

(2)A witness statement shall be attached to the application to state that the statements in the application are true, or are true to the best of the applicant’s knowledge, information and belief.

(3)The witness statement shall identify the person making the statement and shall include the capacity in which that person makes the statement and the basis for that person’s knowledge of the matters set out in the application.

(4)The witness statement is, unless proved otherwise, evidence of the statements in the application.

12Persons entitled to copy of application#

(1)Every contributory or creditor of the bank is entitled to a copy of the application on request from the applicant.

(2)The applicant shall respond to any request for a copy of the application as soon as reasonably practicable after the application has been made on payment of the appropriate fee.

13Certificate of compliance#

(1)Apply rule 4.14 of the 1986 Rules.

(2)In paragraph (1) the period for filing shall be as soon as reasonably practicable before the hearing of the application.

(3)In paragraph (2), leave out the words “a copy or” to the end, and insert—“A witness statement made by the proposed bank liquidator to the effect that—c the person is qualified to act as an insolvency practitioner in accordance with section 390 of the 1986 Act, andd the person consents to act as the bank liquidator,shall be filed in court with the certificate.”

14Leave for the applicant to withdraw#

Apply rule 4.15 of the 1986 Rules. Leave out “at least 5 days” and ignore sub–paragraph (a).

15Witness statement in opposition#

(1)If the bank intends to oppose an application, the bank ^note... may (but need not) file a witness statement in opposition in court.

(2)A statement under paragraph (1) must be filed before the hearing of the application and a copy must be served on the applicant, before the hearing.

(3)The statement may be served on the applicant by personal service or by electronic means.

(4)The statement should also be sent to the persons in rule 10(1) before the hearing by personal service or by electronic means.

(5)The fact that the bank has not filed a statement under this rule shall not prevent it being heard at the hearing.

16Making, transmission and advertisement of order#

(1)The court shall not make a bank insolvency order unless the person nominated to be appointed as the bank liquidator in the application for the order has filed in court a witness statement under rule 13.

(2)When the bank insolvency order has been made the court shall immediately send 5 sealed copies (or such larger number as the bank liquidator may have requested) to the bank liquidator.

(3)The court shall also, if practicable, immediately send a copy of the order to the bank liquidator electronically.

(4)The bank liquidator shall serve a sealed copy of the order on the bank at its registered office and, where the bank liquidator knows the bank’s email address, will send an electronic copy to the bank.

(5)The bank liquidator shall send 2 copies of the order—

(a)to the Bank of England, the appropriate regulator and the FSCS ^note...

(b)to the registrar of companies in accordance with section 130(1) of the 1986 Act (as applied by the 2009 Act) ;

(c)if there is in force for the bank a voluntary arrangement under Part 1 of the 1986 Act, the supervisor of that arrangement; and

(d)if an administrative receiver has been appointed in relation to the bank, that receiver,

in accordance with paragraph (5A);

(5A)One copy shall be sent electronically as soon as practicable and the other (a sealed copy) shall be sent by first class post on the business day on which the order is served on the bank.

(6)The bank liquidator—

(a)shall cause notice of the order to be gazetted as soon as reasonably practicable; and

(b)may advertise notice of the order in such other manner as the bank liquidator thinks fit.

17Authentication of bank liquidator’s appointment#

A sealed copy of the court’s order may in any proceedings be adduced as proof that the person appointed is duly authorised to exercise the powers and perform the duties of the bank liquidator in the bank insolvency.

18Initial duties of bank liquidation committee#

(1)As soon as reasonably practicable after the making of a bank insolvency order, the liquidation committee shall meet the bank liquidator for the purpose of discussing which of the objectives, or combination of objectives, mentioned in section 102(1) of the 2009 Act, the committee should recommend the bank liquidator to pursue.

(2)If the bank liquidator and every individual on the liquidation committee agree, the meeting may be held by audio or video conference.

(3)The liquidation committee shall make its recommendation to the bank liquidator at the meeting.

(4)The Bank of England shall confirm the liquidation committee’s recommendation in writing as soon as practicable after the meeting.

(5)As soon as practicable after the making of a bank insolvency order, the liquidation committee shall also pass a resolution as to the terms on which, in accordance with rule 98, the bank liquidator is to be remunerated.

(6)Until a full payment resolution has been passed, the bank liquidation committee—

(a)shall take decisions and pass resolutions by a simple majority, and

(b)for the purpose of taking decisions and passing resolutions, may communicate by any means that its members consider convenient.

19Expenses of voluntary arrangement#

Apply rule 4.21A of the 1986 Rules.

Part 3 · Provisional bank liquidator

20Appointment of provisional bank liquidator#

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)An application to the court for the appointment of a provisional bank liquidator under section 135 of the Act may be made—

(a)by the Bank of England,

(b)by the Financial Conduct Authority, with the consent of the Bank of England;

(ba)if the bank is a PRA-authorised person (within the meaning of the Financial Services and Markets Act 2000), by the Prudential Regulation Authority with the consent of the Bank of England;

(c)by the Secretary of State.

(3)The application must be supported by a witness statement stating—

(a)the grounds upon which it is proposed that the provisional bank liquidator should be appointed;

(b)that the person to be appointed has consented to act,

(c)that the person to be appointed is qualified to act as an insolvency practitioner,

(d)whether to the applicant’s knowledge—

(i)there has been proposed or is in force for the bank a company voluntary arrangement under Part 1 of the 1986 Act, or

(ii)an administrative receiver is acting in relation to the bank.

(e)the applicant’s estimate of the value of the assets in respect of which the provisional bank liquidator is to be appointed, and

(f)the functions the applicant wishes to be carried out by the provisional bank liquidator in relation to the bank’s affairs.

(4)The court may on the application, if satisfied that sufficient grounds are shown for the appointment, make it on such terms as it thinks fit.

21Notice of appointment#

(1)Where a provisional bank liquidator has been appointed, the court shall notify the applicant and the person appointed.

(2)Unless the court otherwise directs, on receipt of the notification under paragraph (1) the provisional bank liquidator shall give notice of that appointment as soon as reasonably practicable. Such notice—

(a)shall be gazetted; and

(b)may be advertised in such other manner as the provisional bank liquidator thinks fit.

22Order of appointment#

(1)The order of appointment shall specify the functions to be carried out by the provisional bank liquidator in relation to the bank’s affairs.

(2)The court shall, immediately after the order is made, send 4 sealed copies of the order (or such larger number as the provisional bank liquidator may have requested), to the provisional bank liquidator.

(3)The court shall also, if practicable, immediately send a copy of the order to the provisional bank liquidator electronically.

(4)The provisional bank liquidator shall serve a sealed copy of the order on the bank at its registered office and, where the provisional bank liquidator knows the bank’s email address, will send an electronic copy to the bank.

(5)The bank liquidator shall send 2 copies of the order—

(a)to the Bank of England, the appropriate regulator, and the FSCS ^note...

(b)to the registrar of companies, ^note...

(c)(if applicable) to any administrative receiver of the bank ;and

(d)if there is in force for the bank a voluntary arrangement under Part 1 of the 1986 Act, the supervisor of that arrangement,

in accordance with paragraph (6).

(6)One copy shall be sent electronically as soon as practicable and the other (a sealed copy) shall be sent by first class post on the business day on which the order is served on the bank.

23Security#

Apply rule 4.28 of the 1986 Rules.

24Failure to give or keep up security#

Apply rule 4.29 of the 1986 Rules.

25Remuneration#

Apply rule 4.30 of the 1986 Rules. Ignore paragraph (4).

26Termination of appointment#

(1)Apply rule 4.31 of the 1986 Rules.

(2)At the end insert—“3 On the making of a bank insolvency order the appointment of the provisional bank liquidator shall terminate.”

Part 4 · Statement of affairs and other information

27Notice requiring statement of affairs#

(1)Apply rule 4.32 of the 1986 Rules. For “official receiver”, substitute “bank liquidator”.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28Verification and filing#

(1)Apply rule 4.33 of the 1986 Rules. For “official receiver” substitute “bank liquidator”.

(2)For paragraph (6), substitute—“6 The bank liquidator shall file the statement of affairs in court and shall send a copy of it to the registrar of companies.”

(3)Ignore paragraph (7).

29Limited disclosure#

(1)Apply rule 4.35 of the 1986 Rules. In paragraph (1), for “official receiver”, substitute “bank liquidator”.

(2)After paragraph (1), insert—“1A The bank liquidator may also apply to the court for an order of limited disclosure in respect of those depositors of the bank who, at the time of the making of the statement of affairs, still have a claim against the bank in respect of their deposits.”

30Release from duty to submit statement of affairs; extension of time#

Apply rule 4.36 of the 1986 Rules. For “official receiver” substitute “bank liquidator.”

31Expenses of statement of affairs#

Apply rule 4.37 of the 1986 Rules.For “official receiver”, substitute “bank liquidator”.

32Submission of accounts#

Apply rule 4.39 of the 1986 Rules. For “official receiver”, substitute “bank liquidator”.

33Further disclosure#

Apply rule 4.42 of the 1986 Rules. For “official receiver”, substitute “bank liquidator”.

Part 5 · Information to creditors and contributories

34Report by bank liquidator#

(1)The bank liquidator shall, at least once after the making of the bank insolvency order, make a report with respect to the proceedings in the bank insolvency and the state of the bank’s affairs.

(2)Regardless of whether the liquidation committee has passed a full payment resolution, the first report under paragraph (1) shall be, within 8 weeks of the commencement of the bank insolvency, made publicly available on the bank’s website and the bank liquidator shall send a copy of it to any creditor or contributory on request.

(3)The bank liquidator shall include in the report under paragraph (1)—

(a)a statement that the proceedings are being held in the High Court and the relevant court reference number;

(b)the full name, registered office address, registered companies house number and any other trading names of the bank;

(c)details relating to the bank liquidator’s appointment, including the date of appointment, and where there are joint liquidators, details of—

(i)which functions (if any) are to be exercised by the persons appointed acting jointly, and

(ii)which functions (if any) are to be exercised by any of all of the persons appointed.

(d)the names of the directors and secretary of the bank and details of any shareholdings in the bank that they have;

(e)an account of the circumstances giving rise to the bank insolvency;

(f)if a statement of affairs has been submitted, a copy of that statement;

(g)if a statement of affairs has yet to be submitted—

(i)subject to sub paragraph (ii), the names, addresses and details of any debts owed to the creditors, including details of any security held (or, in the case of depositors who still are creditors of the bank at the time the report is made, a single statement of their aggregate debt),

(ii)details of the financial position of the bank at the latest practicable date (which must, unless the court orders otherwise, be a date not earlier than the commencement of bank insolvency);

(h)the basis upon it has been proposed under rule 41, or, if the full payment resolution has yet to be passed, rule 18, that the bank liquidator’s remuneration has been fixed;

(i)to the best of the bank liquidator’s knowledge and belief—

(i)an estimate of the value of the prescribed part (within the meaning of section 176A of the 1986 Act) regardless of whether—

(aa)the bank liquidator proposes to make an application to the court under section 176A(5) of that Act, or

(bb)section 176A(3) of that Act applies, and

(ii)an estimate of the value of the company’s net property;

(j)whether, and if so, why, the bank liquidator proposes to make an application to court under section 176A(5) of the 1986 Act;

(k)a summary of —

(i)how Objective 1 is being or has been achieved and an estimate of the costs to the bank liquidator of achieving it,

(ii)the manner in which the affairs and business of the bank not involved in the achievement of Objective 1 have, since the commencement of the bank insolvency; been managed and financed, including, where any assets have been disposed of, the reasons for such disposals and the terms upon which such disposals were made, and

(iii)how the affairs and business of the bank will continue to be managed and financed; and

(l)an explanation of how it is envisaged the objectives of the bank liquidator will be achieved, including whether a dividend will be paid and an estimate as to the amount of this dividend and how it is proposed that the bank liquidation shall end.

(4)Nothing in this rule is to be taken as requiring either estimate mentioned in paragraph (3) to include any information the disclosure of which could seriously prejudice the commercial interests of the company. If such information is excluded from the calculation the estimate shall be accompanied by a statement to that effect.

(5)The bank liquidator shall file with the court a copy of any report sent under this rule.

35Meaning of “creditors”#

Apply rule 4.44 of the 1986 Rules.

36Report where statement of affairs lodged#

Apply rule 4.45 of the 1986 Rules. For “official receiver”, substitute “bank liquidator”.

37Statement of affairs dispensed with#

Apply rule 4.46 of the 1986 Rules. In paragraphs (2) and (3), for “official receiver” substitute “bank liquidator”.

38General rule as to reporting#

(1)Apply rule 4.47 of the 1986 Rules. For “official receiver” substitute “bank liquidator”.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39Bank insolvency stayed#

(1)Apply rule 4.48 of the 1986 Rules. For “official receiver” substitute “bank liquidator”.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 6 · Meetings of creditors and contributories

Rules of general application

40First meeting#

(1)Once the liquidation committee passes a full payment resolution the bank liquidator shall—

(a)immediately summon a meeting of the bank’s creditors and a meeting of the bank’s contributories, and

(b)fix a venue, date and time for the meetings,

and the date must be within 3 months of the date on which the full payment resolution was passed.

(2)When the venue, date and time of the meetings have been fixed the bank liquidator shall give notice of the meetings to—

(a)the court,

(b)every creditor who is known to the bank liquidator or is identified in the bank’s statement of affairs,

(c)every person appearing (by the bank’s books or otherwise) to be a contributory of the bank, and

(d)each member of the liquidation committee,

^note...

(2A)The bank liquidator—

(a)shall gazette the notice of the meetings as soon as reasonably practicable; and

(b)may advertise it in such other manner as the bank liquidator thinks fit.

(3)In giving the notice mentioned in paragraph (2) the bank liquidator shall, if practicable, indicate whether the present intention of the FSCS is to resign from the liquidation committee at the meeting.

(4)Notice to the court and the members of the liquidation committee shall be given immediately; notice to creditors and contributories shall be given, and the advertisements placed to appear, at least 21 days before the date fixed for the meeting.

(5)The notice to creditors shall specify a time and date, not more than 4 days before the date fixed for the meeting, by which they must lodge proofs and (if applicable) proxies, in order to be entitled to vote at the meeting.

(6)The FSCS is entitled to be represented at the meeting and Schedule 1 to the 1986 Rules, as applied by rule 293, has effect with respect to its voting rights at such a meeting.

(7)Meetings summoned under this rule are known respectively as “the first meeting of creditors” and “the first meeting of contributories”, and jointly as “the first meetings in the bank liquidation.”

41Business at first meetings of creditors and contributories#

(1)At the first meeting of creditors the FSCS shall state whether or not it is resigning from the liquidation committee.

(2)At that meeting those creditors present (or represented by proxy) may—

(a)where the FSCS has not resigned, elect 2 or 4 individuals as new members of the liquidation committee,

(b)where the FSCS has resigned, elect 3 or 5 individuals as new members of the liquidation committee,

in place of the members nominated by the Bank of England and the appropriate regulator. In accordance with section 100(6)(d) of the 2009 Act, the liquidation committee ceases to exist at the end of the meeting if no individuals are elected as mentioned or if the resulting committee would have fewer than 3 members or an even number of members. The maximum number of committee members will be 5.

(3)At the first meeting of creditors no resolutions shall be taken other than the following—

(a)if an application has been made to the court by the creditors under rule 94 for the court to direct the bank liquidator to summon a meeting of creditors for the purpose of removing him, and the court has directed that a resolution may be passed to that effect at the first meeting of creditors, —

(i)a resolution to remove the bank liquidator (or a resolution to remove 1 or more of the bank liquidators if joint liquidators were originally appointed), and

(ii)a resolution to appoint a named insolvency practitioner to be bank liquidator or 2 or more insolvency practitioners as joint liquidators;

(b)if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution specifying the terms on which the liquidator is to be remunerated, or to defer consideration of that matter;

(c)where 2 or more persons are appointed jointly to act as bank liquidator, a resolution specifying which acts are to be done by both of them, all of them or by only 1;

(d)a resolution to adjourn the meeting for not more than 3 weeks; and

(e)any other resolutions which the chair thinks it right to allow for special reasons.

(4)At the first meeting of contributories, no resolutions shall be taken other than the following—

(a)if no individuals have been elected to form a liquidation committee under paragraph (2), a resolution to form a liquidation committee (and rule 117 shall then apply);

(b)a resolution to adjourn the meeting for not more than 3 weeks;

(c)any other resolutions which the chair thinks it right to allow for special reasons.

42General power to call meetings#

(1)Apply rule 4.54 of the 1986 Rules.

(2)Where the bank liquidator has been directed to summon a meeting of creditors under section 195 of the Act (as applied by section 109 of the 2009 Act) for the purpose of removing the bank liquidator, the bank liquidator shall give notice of the meeting to the Bank of England and the appropriate regulator.

43The chair at meetings#

(1)Meetings shall be chaired by the bank liquidator or a person nominated in writing by the bank liquidator.

(2)A person nominated under paragraph (1) must be—

(a)qualified to act as an insolvency practitioner in accordance with section 390 of the 1986 Act, or

(b)an employee of the bank liquidator or of the bank liquidator’s firm who is experienced in insolvency matters.

44Requisitioned meetings: general#

(1)Apply rule 4.57 of the 1986 Rules.

45Requisitioned meetings: reforming the liquidation committee#

(1)Rule 4.57 of the 1986 Rules also applies where—

(a)the liquidation committee has ceased to exist at the end of the first meeting of creditors under rule 41 and no further steps have been taken to re-establish that committee; and

(b)the bank liquidator has been requested, by no less than one-tenth in value of the bank’s creditors, to summon a meeting for the purpose of re-establishing the liquidation committee.

(2)Where a meeting is requisitioned to re-establish the liquidation committee, the time periods set out in rule 4.57 of the 1986 Rules may be expedited by the bank liquidator at the request of the bank’s creditors.

(3)The bank liquidator shall give notice of the meeting to the appropriate regulator and Bank of England.

(4)Rule 41(1) and (2) shall apply at this meeting as if it were the first meeting of creditors.

46Attendance at meetings of bank’s personnel#

Apply rule 4.58 of the 1986 Rules.

47Notice of meetings by advertisement only#

Apply rule 4.59 of the 1986 Rules.

48Venue#

Apply rule 4.60 of the 1986 Rules.

49Expenses of summoning meetings#

Apply rule 4.61 of the 1986 Rules.

50Resolutions#

Apply rule 4.63 of the 1986 Rules.

51Chair of meeting as proxy–holder#

Apply rule 4.64 of the 1986 Rules.

52Suspension and adjournment#

(1)Apply rule 4.65 of the 1986 Rules.

(2)In paragraph (3), leave out “or, as the case may be, 4.114–CVL(3)”.

53Entitlement to vote (creditors)#

(1)Apply rule 4.67 of the 1986 Rules.

(2)Ignore paragraph (ii) of paragraph (1)(a) and paragraph (8).

(3)In paragraph (9), ignore the reference to paragraph (8).

54Entitlement to vote (contributories)#

Apply rule 4.69 of the 1986 Rules.

55Admission and rejection of proof (creditors’ meetings)#

Apply rule 4.70 of the 1986 Rules. For paragraph (5) substitute—“5 The chair is not personally liable for costs incurred by any person in respect of an application under this rule unless the court makes an application to that effect.”

56Record of proceedings#

Apply rule 4.71 of the 1986 Rules.

Part 7 · Proof of debts

57Meaning of “prove”#

(1)Apply rule 4.73 of the 1986 Rules.

(2)In paragraph (5), for “or a Government Department” substitute “, a Government Department or the FSCS”.

(3)Ignore paragraphs (2), and (8).

58Supply of forms#

Apply rule 4.74 of the 1986 Rules.

59Contents of proof#

Apply rule 4.75 of the 1986 Rules.

60Claim established by witness statement#

Apply rule 4.77 of the 1986 Rules. Ignore paragraph (3).

61Cost of proving#

(1)Apply rule 4.78 of the 1986 Rules.

(2)In paragraph (1), leave out “or 4.76–CVL”.

62Bank liquidator to allow inspection of proofs#

Apply rule 4.79 of the 1986 Rules.

63New bank liquidator appointed#

Apply rule 4.81 of the 1986 Rules.

64Admission and rejection of proofs for dividend#

Apply rule 4.82 of the 1986 Rules.

65Appeal against decision on proof#

(1)Apply rule 4.83 of the 1986 Rules.

(2)For paragraph (6) substitute—“6 The bank liquidator is not personally liable for costs incurred by any person in respect of an application under this rule unless the court makes an order to that effect.”

66Withdrawal or variation of proof#

Apply rule 4.84 of the 1986 Rules.

67Expunging of proof by the court#

Apply rule 4.85 of the 1986 Rules.

68Estimate of quantum#

Apply rule 4.86 of the 1986 Rules.

69Negotiable instruments, etc.#

Apply rule 4.87 of the 1986 Rules.

70Secured creditors#

Apply rule 4.88 of the 1986 Rules.

71Discounts#

Apply rule 4.89 of the 1986 Rules.

72Mutual credits and set–off#

(1)This rule applies where, before the bank goes into bank insolvency, there have been mutual credits, mutual debts or other mutual dealings between the company and any creditor of the bank proving or claiming to prove for a debt in the bank insolvency.

(2)The reference in paragraph (1) to mutual credits, mutual debts or other mutual dealings does not include—

(a)any debt arising out of an obligation incurred at a time when the creditor had notice that—

(i)a meeting of creditors had been summoned under section 98 of the 1986 Act,

(ii)a petition for the winding up of the bank was pending, or

(iii)an application for a bank insolvency order in respect of the bank was pending;

(b)any debt which has been acquired by a creditor on assignment or otherwise, pursuant to an agreement between the creditor and any other party where that agreement was entered into—

(i)after the commencement of bank insolvency,

(ii)at a time when the creditor had notice that a meeting of creditors had been summoned under section 98,

(iii)at a time when the creditor had notice that a winding up petition was pending, or

(iv)at a time when the creditor had notice that an application for a bank insolvency order in respect of the bank was pending.

(3)An account shall be taken of what is due from each party to the other in respect of the mutual dealings, and the sums due from one party shall be set off against the sums due from the other.

(4)A sum shall be regarded as being due to or from the bank for the purposes of paragraph 3 whether—

(a)it is payable at present or in the future;

(b)the obligation by virtue of which it is payable is certain or contingent; or

(c)its amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion.

(5)Rule 4.86 of the 1986 Rules shall apply for the purposes of this rule to any obligation to or from the bank which, by reason of its being subject to any contingency or for any other reason, does not bear a certain value.

(6)Rules 74 to 76 shall apply for the purposes of this rule in relation to any sums due to the bank which—

(a)are payable in a currency other than sterling,

(b)are of a periodical nature, or

(c)bear interest.

(7)Rule 259 shall apply for the purposes of this rule to any sum due to or from the bank which is payable in the future.

(8)Subject to rule 73, only the balance (if any) of the account owed to the creditor is provable in the liquidation. Alternatively the balance (if any) owed to the company shall be paid to the bank liquidator as part of the assets except where all or part of the balance result from a contingent or prospective debt owed by the creditor and in such a case the balance (or that part of it which results from the contingent or prospective debt) shall be paid if and when that debt becomes due and payable.

(9)In this rule, “obligation” means an obligation however arising, whether by virtue of an agreement, rule of law or otherwise.

73Disapplication of set off for eligible depositors#

(1)This rule applies if the appropriate regulator Rules allow the FSCS to make gross payments of compensation.

(2)Rule 72 shall apply but, for the purpose of determining the sums due from the bank to the eligible depositor in respect of protected deposits under rule 72(3)—

(a)where the total of sums held by the bank for the depositor in respect of protected deposits is no more than the amount prescribed as the maximum compensation payable in respect of protected deposits under Part 15 of the Financial Services and Markets Act 2000 (“the limit”), then paragraph (3) applies; and

(b)where the sums exceed the limit, then paragraph (4) applies.

(3)Where this paragraph applies there shall be deemed to have been no mutual dealings, regardless of whether there are any sums due from the depositor to the bank, and the sum due to the ^note... depositor from the bank will be the total of the sums held by the bank for that depositor in respect of the protected deposits.

(4)Where this paragraph applies then—

(a)any mutual dealings shall be treated as being mutual dealings only in relation to the amount by which the total of sums due to the depositor exceeds that limit, and

(b)the sums due from the bank to the the depositor in respect of the protected deposits will be—

(i)the amount by which that total exceeds the limit, set off against the amounts due to the bank from the depositor in accordance with rule 72(3), and

(ii)the sums held by the bank for the depositor in respect of protected deposits up to the limit.

(5)Any arrangements with regard to set-off between the bank and the eligible depositor in existence before the commencement of bank insolvency shall be subject to this rule in so far as they relate to protected deposits.

(6)In this rule—• “eligible depositor” has the meaning given by section 93(3) of the 2009 Act;• “appropriate regulator rules” means the rules, as amended from time to time, made under section 213 of the Financial Services and Markets Act 2000 by the Financial Conduct Authority or the Prudential Regulation Authority;• “protected deposit” means a protected deposit within the meaning given by the appropriate regulator Rules.

74Debt in foreign currency#

Apply rule 4.91 of the 1986 Rules. In paragraph (1), leave out from “or, if” to the end.

75Payments of a periodical nature#

Apply rule 4.92 of the 1986 Rules. In paragraph (1), leave out from “or, if” to the end.

76Interest#

Apply rule 4.93 of the 1986 Rules. In paragraph (1), leave out from “or, if” to the end.

77Debt payable at future time#

(1)Apply rule 4.94 of the 1986 Rules.

(2)Leave out from “or, if” to “entered administration”.

Part 8 · Secured creditors

78Value of security#

Apply rule 4.95 of the 1986 Rules.

79Surrender for non–disclosure#

Apply rule 4.96 of the 1986 Rules. Ignore paragraph (3).

80Redemption by liquidator#

Apply rule 4.97 of the 1986 Rules.

81Test of security’s value#

Apply rule 4.98 of the 1986 Rules.

82Realisation of security by creditor#

Apply rule 4.99 of the 1986 Rules.

Part 9 · The bank liquidator

Chapter 1 · General

83Remuneration of bank liquidator#

(1)This rule applies where—

(a)the liquidation committee has ceased to exist as mentioned in rule 41(1),

(b)the committee has not been reformed at a meeting of creditors held under either rule 41, 44 or 45, and

(c)the committee has not been reformed at a meeting of contributories held under rule 117.

(2)Where this rule applies the creditors may, at the first or any subsequent meeting of creditors, pass a resolution as to the terms on which, in accordance with rule 98, the bank liquidator is to be remunerated.

(3)Where such a resolution is passed—

(a)it supersedes any resolution as to the remuneration of the bank liquidator passed by the liquidation committee before the first meeting of creditors, and

(b)the bank liquidator shall be paid under the resolution passed by the bank liquidation committee under rule 18(5) in respect of the performance of his functions before the day on which the creditors’ resolution is passed and under the creditors’ resolution in respect of the performance of his functions on and after that day.

84Replacement of bank liquidator by creditors#

(1)Apply rule 4.100 of the 1986 Rules.

(2)For paragraph (1) substitute—“1 This rule applies where a person is appointed as bank liquidator by a meeting of creditors.”

(3)For paragraph (4) substitute—“4 The chairman of the meeting shall—a send the certificate to the new bank liquidator,b send a copy of the certificate to the Bank of England and the appropriate regulator, andc file a copy of the certificate in court .”

85Authentication of bank liquidator’s appointment#

Apply rule 4.105 of the 1986 Rules). Leave out from “or (as” to “the Act”.

86Appointment to be advertised and registered#

(1)This rule applies where the bank liquidator is appointed by a meeting of the creditors or by the Bank of England under rule 106.

(2)The bank liquidator shall, after receiving the certificate of appointment, give notice of that appointment as soon as reasonably practicable. Such notice —

(a)shall be gazetted; and

(b)may be advertised in such other manner as the bank liquidator thinks fit.

(3)The expense of giving notice under this rule shall be borne in the first instance by the bank liquidator; but he is entitled to be reimbursed as an expense of the bank insolvency.

(4)The bank liquidator shall immediately notify his appointment to the registrar of companies.

Chapter 2 · Resignation and removal

87Creditors’ meeting to be notified of the bank liquidator’s resignation#

(1)Apply rule 4.108 of the 1986 Rules.

(2)For paragraph (1), substitute—“1 Before resigning office, the bank liquidator must obtain the consent of the Bank of England and must call a meeting of creditors to notify them of this.1A The notice summoning the meeting shall indicate that this is the purpose, or one of the purposes, of the meeting and shall draw the attention of the creditors to rule 95 with respect to the bank liquidator’s release.1B The notice in paragraph (1A) shall enclose a copy of the Bank of England’s consent.”

(3)For paragraph (2) substitute—“2 Copies of the notice and of the account mentioned in paragraph (3) shall be sent to the court, the Bank of England and the appropriate regulator.”

88Action following acceptance of resignation#

(1)This rule applies where a meeting is summoned to notify the creditors of the bank liquidator’s resignation

(2)The meeting shall resolve whether to give the bank liquidator their release.

(3)If the meeting resolves not to release the bank liquidator, the bank liquidator shall be given a copy of that resolution and rule 95 applies.

(4)After the meeting the bank liquidator shall file the notice of his resignation in court and shall send copies of the notice to the Bank of England, the appropriate regulator and the registrar of companies.

(5)The bank liquidator’s resignation is effective as from the date on which the court receives the notice of that resignation, and the court shall endorse that date on the notice.

89Advertisement of resignation#

Apply rule 4.112 of the 1986 Rules.

90Meeting of creditors to remove bank liquidator#

(1)Apply rule 4.113 of the 1986 Rules.

(2)In paragraph (1), for “section 174(4)” substitute “section 109 of the Banking Act 2009”.

(3)In paragraph (2), for “official receiver” substitute “Bank of England and the appropriate regulator”.

(4)For paragraph (4) substitute—“4 Where the meeting passes a resolution that—a the bank liquidator be removed;b a new bank liquidator be appointed, orc the bank liquidator not to be given their releasethe bank liquidator shall be given a copy of that resolution and if it has been resolved to remove the bank liquidator, the bank liquidator shall be given a certificate to that effect.”

(5)For paragraph (5) substitute—“5 If the creditors have resolved to appoint a new bank liquidator, the certificate of that appointment shall also be sent to the registrar of companies within that time and rule 4.100 shall apply.”

91Court’s power to regulate meetings under rule 90#

Apply rule 4.115 of the 1986 Rules. Leave out “or 4.114–CVL”.

92Procedure on removal#

(1)Apply rule 4.116 of the 1986 Rules.

(2)For “official receiver”, wherever it appears, substitute “out-going bank liquidator”.

(3)For paragraph (3) substitute—“3 A copy of the certificate so endorsed shall be sent by the court to the outgoing bank liquidator and to any new bank liquidator appointed.”

(4)Ignore paragraph (4).

93Advertisement of removal#

Apply rule 4.118 of the 1986 Rules.

94Removal of bank liquidator by the court#

(1)Apply rule 4.119 of the 1986 Rules.

(2)After paragraph (1) insert—“1A If the liquidation committee has not yet passed a full payment resolution, the court shall dismiss any application under paragraph (1) where the application is made by someone other than the Bank of England, the Financial Conduct Authority, the Prudential Regulation Authority or the liquidation committee.”

(3)In paragraph (2), for “at least 7 days’ notice” substitute—“a if the application is made before the passing of a full payment resolution, such notice as is reasonable in all the circumstances, andb if the application is made after the passing of a full payment resolution, at least 7 days’ notice.”

(4)In paragraph (4), leave out “, at least 14 days before the hearing,”.

(5)After paragraph (4) insert—“4A The notice and copies mentioned in paragraph (4) shall be sent—a if the application is made before the passing of a full payment resolution, within such time so as to give the bank liquidator notice of the hearing as is reasonable in all the circumstances, andb if the application is made after the passing of a full payment resolution, at least 14 days before the hearing.”

(6)In paragraph (6)—

(a)in sub-paragraph (a), for “official receiver” substitute “Bank of England and the appropriate regulator” and at the end insert “and”, and

(b)leave out “and” at the end of sub-paragraph (b), and sub–paragraph (c).

95Release of resigning or removed bank liquidator#

(1)Apply rule 4.121 of the 1986 Rules.

(2)In paragraph (1), for “accepted by” substitute “notified to”.

(3)For rule 4.109 substitute “rule 88 of the 2009 Rules”.

(4)In paragraph (3)—

(a)in sub paragraph (a) for “receive his resignation” substitute “be notified of his resignation”; and

(b)leave out “or” at the end of sub–paragraph (a) and at the end of sub–paragraph (b) insert—“, orc the bank liquidator resigns, and the Bank of England has refused his release,”

(5)For paragraph (4) substitute—“4 When the Secretary of State gives the release, he shall certify it accordingly, file the certificate in court and send a copy to the registrar of companies.”

Chapter 3 · Release on completion of winding up

96Final meeting#

(1)The bank liquidator shall give at least 14 days’ notice of the final meeting of the liquidation committee to be held under section 115 of the 2009 Act to the following—

(a)the appropriate regulator,

(b)the FSCS,

(c)the Bank of England,

(d)the Treasury,

(e)the registrar of companies, and

(f)the members of the liquidation committee.

(2)The bank liquidator’s final report to be laid before the meeting under that section shall contain an account of the liquidator’s administration of the winding up, including—

(a)details as to how Objective 1 was achieved having regard, in particular, to the expenses of the bank liquidator in connection with that Objective,

(b)a summary of the bank liquidator’s receipts and payments,

(c)a statement that the bank liquidator has reconciled his account with that which is held by the Secretary of State in respect of the winding up, and

(d)a statement as to the amount paid to unsecured creditors by virtue of the application of section 176A (prescribed part) of the 1986 Act.

(3)At the same time that notice of the final meeting is sent out, the bank liquidator shall file the final report in court and send it to the registrar of companies.

(4)The bank liquidator shall give notice to all creditors and contributories that the final report is available, either on request to the bank liquidator or at Companies House, and shall cause that notice to be gazetted (and may advertise the notice by such other method as the bank liquidator sees fit) at least 14 days before the final meeting is held.

(5)At the final meeting, the liquidation committee may question the bank liquidator with respect to any matter contained in the final report, and may resolve against the bank liquidator being released.

(6)The bank liquidator shall give notice to the court that the final meeting has been held and the notice shall state whether or not he has been given his release.

(7)Where the liquidation committee does not resolve against the bank liquidator’s release, the bank liquidator vacates office at the end of the meeting and has his release when the notice in paragraph (6) is filed in court.

(8)If there is no quorum present at the final meeting, the bank liquidator shall report to the court that a final meeting was summoned in accordance with section 115 of the 2009 Act, but there was no quorum present; and the final meeting is then deemed to have been held, and the liquidation committee not to have resolved against the bank liquidator being released.

(9)If the liquidation committee resolves against the bank liquidator having his release then rule 95 applies.

97Rule as to reporting#

Apply rule 4.125A of the 1986 Rules. For “Rule 4.124 or 4.125” substitute “Rule 96 of the 2009 Rules”.

Chapter 4 · Remuneration

98Fixing of remuneration#

(1)Apply rule 4.127 of the 1986 Rules.

(2)In paragraph (3), leave out from the beginning to “receiver”.

(3)For paragraph (5) substitute—“5 If, under rule 41(2), the liquidation committee ceases to exist at the end of the first meeting of creditors, the terms on which the bank liquidator is to be remunerated determined by the initial liquidation committee under rule 18 can be redetermined by a resolution of a meeting of creditors, and paragraph (4) applies to the determination of the creditors as it does to the determination of the liquidation committee.”

(4)In paragraph (6), for the words from the beginning to “his” substitute “Where the bank liquidator’s”.

99Bank liquidator’s entitlement to remuneration where it is not fixed under rule 98#

(1)Apply rule 4.127A of the 1986 Rules.

(2)In paragraph (1), for the words from “liquidator” to “his” substitute “bank liquidator’s”.

(3)In paragraph (2), after “Schedule 6” add “to the 1986 Rules as applied by the Schedule to the 2009 Rules”.

100Bank liquidator’s remuneration where he realises assets on behalf of chargeholder#

(1)Apply rule 4.127B of the 1986 Rules.

(2)In paragraph (1), for the words from “liquidator” to “and” substitute “bank liquidator”.

(3)In paragraphs (2) and (3), after “Schedule 6” add “to the 1986 Rules as applied by the Schedule to the 2009 Rules”.

101Other matters affecting remuneration#

Apply rule 4.128 of the 1986 Rules.

102Recourse of bank liquidator to meeting of creditors#

Apply rule 4.129 of the 1986 Rules.

103Recourse to the court#

Apply rule 4.130 of the 1986 Rules.

104Creditors’ claim that remuneration is excessive#

Apply rule 4.131 of the 1986 Rules.

105Primacy of Objective 1#

Nothing done under a rule in this chapter may prejudice the achievement of Objective 1.

Chapter 5 · Supplementary provisions

106Replacement Bank liquidator#

(1)Where the bank liquidator vacates his office for any reason (including death) other than by removal by a meeting of creditors in accordance with rule 90, the Bank of England shall appoint a new bank liquidator as soon as practicable.

(2)Where a bank liquidator has been removed by a meeting of creditors, and no resolution has been passed by that meeting to appoint a new bank liquidator, the Bank of England shall appoint a new bank liquidator as soon as practicable.

(3)The Bank of England shall file in court the document appointing the new bank liquidator (“the certificate of appointment”) together with statements to the effect that the new bank liquidator—

(a)is qualified to act as an insolvency practitioner in accordance with section 390 of the 1986 Act, and

(b)consents to act as the bank liquidator.

(4)The bank liquidator shall send a copy of the certificate of appointment to the appropriate regulator and registrar of companies.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

107Bank liquidator deceased#

(1)Unless notice of the death of the bank liquidator has been given under paragraph (2) or (3), it is the duty of the bank liquidator’s personal representatives, where the bank liquidator has died, to give notice of that fact to the Bank of England and the liquidation committee, specifying the date of the death.

(2)If the deceased bank liquidator was a partner in a firm, notice may be given to the Bank of England, the appropriate regulator and liquidation committee by a partner in the firm who is qualified to act as an insolvency practitioner, or is a member of any body recognised by the Secretary of State for the authorisation of insolvency practitioners.

(3)Notice of the death may also be given by any person producing the relevant death certificate or a copy of it to the Bank of England, the appropriate regulator and the liquidation committee.

(4)The Bank of England shall give notice to the court, for the purpose of fixing the date of the deceased bank liquidator’s release.

108Loss of qualification as insolvency practitioner#

(1)Apply rule 4.134 of the 1986 Rules. For paragraph (2) substitute—“2 The bank liquidator shall immediately give notice of his doing to the Bank of England.3 The Bank of England shall file a copy of this notice in court.”

109Resignation of the bank liquidator#

(1)This rule applies where the bank liquidator was appointed by the bank insolvency order or by the Bank of England.

(2)The bank liquidator can only resign—

(a)after the liquidation committee have passed a full payment resolution, and

(b)with the consent of the Bank of England.

(3)Before calling a meeting of creditors under rule 87 to receive notice of the bank liquidator’s resignation, the bank liquidator must write to the Bank of England notifying it of the intention to resign.

(4)The Bank of England shall notify the bank liquidator in writing within 21 days as to whether it consents to the resignation; if the Bank of England does not consent to the resignation, it shall set out its reasons in writing.

(5)The bank liquidator, if not content with the Bank of England’s response, may apply to the Court for directions under section 168(3) of the 1986 Act.

110Notice to Bank of England of intention to vacate office#

(1)This rule applies where the bank liquidator was appointed by a meeting of creditors.

(2)Apply rule 4.137 of the 1986 Rules.

(3)For “official receiver”, wherever it appears, substitute “Bank of England” and for “receive his resignation” substitute “be notified of his resignation”.

111Bank liquidator’s duties on vacating office#

Apply rule 4.138 of the 1986 Rules. Ignore paragraph (3).

112Power of court to set aside certain transactions#

(1)Apply rule 4.149 of the 1986 Rules.

(2)In paragraph (2)—

(a)leave out “either”, and

(b)leave out “or” at the end of sub–paragraph (a), and after sub–paragraph (b) insert—“, orc it is shown to the court’s satisfaction that the transaction was entered into by the liquidator for the purpose of achieving Objective 1.”

113Rule against solicitation#

(1)Apply rule 4.150 of the 1986 Rules.

Part 10 · The liquidation committee

114Application of rules in this Part#

The rules in this Part apply only in relation to the liquidation committee established ^note... after a full payment resolution has been passed.

115Membership of committee#

(1)Apply rule 4.152 of the 1986 Rules.

(2)For paragraph (1) substitute—“1 Subject to rule 41(1) of the 2009 Rules and rule 4.154 as applied by rule 117 of the 2009 Rules, the liquidation committee shall consist of either 3 or 5 creditors of the bank, elected by the meeting of creditors held under rule 41 of the 2009 Rules.”

(3)Ignore paragraphs (2), (4) and (7) and ignore any reference to contributory members in paragraph (6).

116Formalities of establishment#

Apply rule 4.153 of the 1986 Rules. ^note...

117Committee established by contributories#

(1)Apply rule 4.154 of the 1986 Rules.

(2)For paragraph (1) substitute—“1 This rule applies where the outcome of the creditors’ meeting summoned by the bank liquidator under rule 41 of the ^note... 2009 Rules is, (by virtue of rule 41 (2)), that the liquidation committee ceases to exist at the end of the meeting.”

(3)In paragraph (2), for “that section” substitute “section 141 of the Act”.

(4)In paragraph (4) for “at least 3 and not more than 5”, substitute “3 or 5”.

118Obligations of liquidator to committee#

Apply rule 4.155 of the 1986 Rules.

119Meetings of the committee#

Apply rule 4.156 of the 1986 Rules.

120The chair at meetings#

Apply rule 4.157 of the 1986 Rules.

121Quorum#

A meeting of the committee is duly constituted if due notice of it has been given to all the members, and at least 2 members are present or represented.

122Committee–members’ representatives#

Apply rule 4.159 of the 1986 Rules. ^note...

123Resignation#

Apply rule 4.160 of the 1986 Rules.

124Termination of membership#

Apply rule 4.161 of the 1986 Rules.

125Removal#

Apply rule 4.162 of the 1986 Rules.

126Vacancy (creditor members)#

Apply rule 4.163 of the 1986 Rules.

127Vacancy (contributory members)#

Apply rule 4.164 of the 1986 Rules.

128Voting rights and resolutions#

Apply rule 4.165 of the 1986 Rules.

129Resolutions by post#

Apply rule 4.167 of the 1986 Rules.

130Liquidator’s reports#

Apply rule 4.168 of the 1986 Rules.

131Expenses of members, etc.#

Apply rule 4.169 of the 1986 Rules.

132Dealings by committee–members and others#

Apply rule 4.170 of the 1986 Rules.

133Composition of committee when creditors paid in full#

(1)Apply rule 4.171 of the 1986 Rules.

(2)For paragraph (4) substitute—“4 The members of the liquidation committee will cease to be members at the end of the final meeting held under rule 96 of the 2009 Rules.”

134Committee’s functions vested in the Secretary of State#

Apply rule 4.172 of the 1986 Rules. Ignore paragraph (2).

135Formal defects#

Apply rule 4.172A of the 1986 Rules.

Part 11 · Collection and distribution of bank’s assets by bank liquidator

136General duties of bank liquidator#

Apply rule 4.179 of the 1986 Rules.

137General qualification on powers#

In exercising any power conferred on the bank liquidator by this Part before a full payment resolution has been passed, the bank liquidator shall exercise it consistently with Objective 1.

138Manner of distributing assets#

Apply rule 4.180 of the 1986 Rules.

139Debts of insolvent company to rank equally#

Apply rule 4.181 of the 1986 Rules.

140Supplementary provisions as to dividend#

Apply rule 4.182 of the 1986 Rules.

141Division of unsold assets#

Apply rule 4.183 of the 1986 Rules.

142General powers of the liquidator#

Apply rule 4.184 of the 1986 Rules. In paragraph (1) leave out “section 165(2) or”.

143Enforced delivery up of company’s property#

Apply rule 4.185 of the 1986 Rules.

144Final distribution#

Apply rule 4.186 of the 1986 Rules. For “Part 11 of the Rules”, substitute “Part 21 of the 2009 Rules”.

Part 12 · Disclaimer

145Liquidator’s notice of disclaimer#

Apply rule 4.187 of the 1986 Rules.

146Communication of disclaimer to persons interested#

Apply rule 4.188 of the 1986 Rules.

147Additional notices#

Apply rule 4.189 of the 1986 Rules.

148Duty to keep court informed#

Apply rule 4.190 of the 1986 Rules.

149Application by interested party under s 178(5)#

Apply rule 4.191 of the 1986 Rules.

150Interest in property to be declared on request#

Apply rule 4.192 of the 1986 Rules.

151Disclaimer presumed valid and effective#

Apply rule 4.193 of the 1986 Rules. For “Chapter” substitute “Part”.

152Application for exercise of court’s powers under s 181#

Apply rule 4.194 of the 1986 Rules.

Part 13 · Settlement of list of contributories

153Preliminary#

Apply rule 4.195 of the 1986 Rules.

154Primacy of Objective 1#

Where the bank liquidator considers that the carrying out of a duty imposed by a rule in this Part would prejudice the achievement of Objective 1, the bank liquidator shall postpone the carrying out of that duty until the bank liquidator considers that the carrying out of the duty would no longer be likely to prejudice the achievement of that Objective.

155Duty of liquidator to settle list#

Apply rule 4.196 of the 1986 Rules.

156Form of list#

Apply rule 4.197 of the 1986 Rules.

157Procedure for settling list#

Apply rule 4.198 of the 1986 Rules.

158Application to court for variation of the list#

Apply rule 4.199 of the 1986 Rules.

159Variation of, or addition to, the list#

Apply rule 4.200 of the 1986 Rules. ^note...

160Costs not to fall on bank liquidator#

The bank liquidator is not personally liable for any costs incurred by a person in respect of an application to set aside or vary the bank liquidator’s act or decision in settling the list of contributories, or varying or adding to the list, unless the court makes an order to that effect.

Part 14 · Calls

161Calls by bank liquidator#

Apply rule 4.202 of the 1986 Rules.

162Control by bank liquidation committee#

Apply rule 4.203 of the 1986 Rules.

163Application to court for leave to make a call#

Apply rule 4.204 of the 1986 Rules.

164Making and enforcement of the call#

Apply rule 4.205 of the 1986 Rules.

Part 15 · Special manager

165Appointment and remuneration#

Apply rule 4.206 of the 1986 Rules.

166Security#

Apply rule 4.207 of the 1986 Rules.

167Failure to give or keep up security#

Apply rule 4.208 of the 1986 Rules.

168Accounting#

Apply rule 4.209 of the 1986 Rules.

169Termination of appointment#

Apply rule 4.210 of the 1986 Rules.

Part 16 · Order of payment as to costs, etc. out of assets

170General rule as to priority#

(1)Apply rule 4.218 of the 1986 Rules.

(2)In paragraph (3)—

(a)ignore sub–paragraphs (a)(iii) and (iv), (b), and (d),

(b)in sub-paragraph (c) leave out the words from “or section 415A” to the end, and

(c)in sub-paragraph (la), leave out the words from “in any case” to the end.

171Litigation expenses and property subject to a floating charge–general application#

Apply rule 4.218A of the 1986 Rules.

172Litigation expenses and property subject to a floating charge–requirement for approval or authorisation#

Apply rule 4.218B of the 1986 Rules.

173Litigation expenses and property subject to a floating charge–request for approval or authorisation#

Apply rule 4.218C of the 1986 Rules.

174Litigation expenses and property subject to a floating charge–grant of approval or authorisation#

Apply rule 4.218D of the 1986 Rules.

175Litigation expenses and property subject to a floating charge–application to court by the bank liquidator#

Apply rule 4.218E of the 1986 Rules.

176Saving for powers of the court#

Apply rule 4.220 of the 1986 Rules.

Part 17 · Miscellaneous rules

Chapter 1 · Return of capital

177Application to court for order authorising return of capital#

Apply rule 4.221 of the 1986 Rules.

178Procedure for return of capital#

Apply rule 4.222 of the 1986 Rules.

Chapter 2 · Conclusion of bank insolvency

179Secretary of State’s directions under section 116 of the 2009 Act#

(1)Where the Secretary of State gives a direction under section 116 of the 2009 Act (application by an interested person for postponement of dissolution) the Secretary of State shall send 2 copies of the direction to that applicant.

(2)Of those copies, 1 shall be sent by the applicant to the registrar of companies to comply with section 116(4) of the 2009 Act.

180Procedure following appeal under section 116 of the 2009 Act#

Following an appeal under section 116 (2) of the 2009 Act (against a decision of the Secretary of State under that section) the court shall send 2 sealed copies of its order to the person in whose favour the appeal was determined, and that party shall send 1 of the copies to the registrar of companies.

Chapter 3 · Leave to act as director, etc. of bank with prohibited name

181Preliminary#

Apply rule 4.226 of the 1986 Rules. In paragraph (c), leave out the words from “whether” to the end.

182Application for leave under s 216(3) before passing of full payment resolution#

Where an application for leave under section 216 of the 1986 Act is made before a full payment resolution has been passed, it may only be made with the consent of the bank liquidator.

183Consideration of application for leave under s 216(3)#

Apply rule 4.227 of the 1986 Rules.

184First excepted case#

Apply rule 4.228 of the 1986 Rules. In paragraph (1)(b)(ii) ignore the reference to administrator.

185Second excepted case#

Apply rule 4.229 of the 1986 Rules. ^note...

186Third excepted case#

Apply rule 4.230 of the 1986 Rules. In paragraph (a), for “liquidating company went into liquidation” substitute “bank went into bank insolvency”.

187Further exception#

The court’s leave under section 216(3) of the Act is not required in respect of anything done by a person in connection with the exercise of a stabilisation power under Part 1 of the 2009 Act.

Part 18 · Court procedure and practice

Chapter 1 · Applications (general)

188Preliminary#

This Part applies to any application made to the court under Part 2 of the 2009 Act or these Rules except an application under section 95 of the 2009 Act for a bank insolvency order.

189Interpretation#

Apply rule 7.2 of the 1986 Rules. In paragraph (1), leave out from the second “and” to the end of the paragraph.

190Form and contents of application#

Apply rule 7.3 of the 1986 Rules.

191Application under section 176A(5) to disapply section 176A#

(1)Apply rule 7.3A of the 1986 Rules.

(2)In paragraph (1), ignore “administrator or receiver.”

(3)Ignore paragraph (2)(a).

192Filing and service of application#

Apply rule 7.4 of the 1986 Rules.

193Notice of application under section 176A(5)#

Apply rule 7.4A of the 1986 Rules. Leave out the words from “save that notice” to the end.

194Other hearings without notice#

Apply rule 7.5 of the 1986 Rules.

195Hearing of application#

Apply rule 7.6 of the 1986 Rules.

196Use of evidence#

Apply rule 7.7 of the 1986 Rules.

197Filing and service of witness statements#

Apply rule 7.8 of the 1986 Rules. Ignore paragraph (2).

198Use of reports#

(1)Unless the application involves other parties, or the court orders otherwise, a report may be filed in court instead of a witness statement by—

(a)the bank liquidator,

(b)the provisional bank liquidator, or

(c)the special manager.

(2)In any case where a report is filed instead of a witness statement, the report shall be treated for the purposes of rule 197, and any hearing before the court, as if it were a witness statement.

199Adjournment of hearings: directions#

Apply rule 7.10 of the 1986 Rules. In paragraph (2)(c)(iii), for “Rule 7.9(1)(b)” substitute “Rule 198(1) of the 2009 Rules”.

Chapter 3 · Shorthand writers

200Nomination and appointment of shorthand writers#

(1)Apply rule 7.16 of the 1986 Rules.

(2)In paragraph (1) leave out “and, in a county court, the registrar”.

(3)In paragraph (2) leave out “133” and “251N, 290 or 366”.

(4)Ignore paragraph (3).

201Remuneration#

Apply rule 7.17 of the 1986 Rules.

Chapter 4 · Enforcement procedures

202Enforcement of court orders#

(1)Apply rule 7.19 of the 1986 Rules.

(2)Ignore paragraph (2).

203Orders enforcing compliance with the rules#

(1)The court may, on the application of the bank liquidator (or the provisional bank liquidator as the case may be,) make such orders as it thinks necessary for the enforcement of obligations falling on any person in accordance with—

(a)section 143(2) (liquidator to furnish information, books, papers etc.) of the 1986 Act or

(b)section 235 (duty to cooperate with liquidator) of that Act.

(2)An order of the court under this rule may provide that all the costs of and incidental to the application for it shall be borne by the person against whom the order is made.

204Warrants (general provisions)#

(1)A warrant issued by the court under any provision of the 1986 Act shall be addressed to such officer of the High Court as the warrant specifies, or to any constable.

(2)The person described in section 236(5) of the 1986 Act as the prescribed officer of the court is the tipstaff and his assistants of the court.

(3)In this Chapter, references to property include books, papers and records.

205Warrants under section 236#

Apply rule 7.23 of the 1986 Rules. In paragraph (1), leave out “251N or 366 (the equivalent in bankruptcy)”.

Chapter 5 · Court records and returns

206Title of proceedings#

Every proceeding under Part 2 of the 2009 Act shall, with any necessary additions, be titled “IN THE MATTER OF …………….. (naming the bank to which the proceedings relate) AND IN THE MATTER OF THE BANKING ACT 2009”.

207Court records#

Apply rule 7.27 of the 1986 Rules.

208Inspection of records#

Apply rule 7.28 of the 1986 Rules.

209File of court proceedings and inspection#

(1)The Court shall open and maintain a file for each bank insolvency and (subject to the direction of the registrar) all documents relating to that bank insolvency shall be placed on that file.

(2)Where a file has been opened under paragraph (1), the following have the right, at all reasonable times, to inspect that file—

(a)the bank liquidator,

(b)any person stating in writing that they are a creditor of the bank to which the bank insolvency relates,

(c)a member of the bank,

(d)any person who is, or at any time has been, a director or officer of the bank to which the bank insolvency relates,

(e)any person who is a contributory of the bank to which the bank insolvency relates, and

(f)the Bank of England, the appropriate regulator and the FSCS.

(3)The right of inspection conferred on any person by paragraph (2) may be exercised on their behalf by a person properly authorised by them.

(4)Any person may, with permission of the court, inspect the file.

(5)The right of inspection conferred by this rule is not exercisable in respect of documents, or parts of documents, which the court has directed (either generally or specially) are not to be open to inspection without the court’s permission.

(6)An application for a direction of the court under paragraph (5) may be made by the bank liquidator or by any party appearing to the court to have an interest in the bank insolvency.

(7)If, for the purposes of powers conferred by the 1986 Act, the 2009 Act or these rules, the Secretary of State wishes to inspect the file on a bank insolvency and requests the court to transmit the file, the court shall comply with the request or, if the file is for the time being in use for the court’s own purposes, as soon as the file is no longer in such use.

(8)Rule 208 applies in respect of the file in any bank insolvency as it applies in respect of court records.

210Filing of Gazette notices and advertisements#

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chapter 6 · Costs and detailed assessment

211Application of the CPR#

Apply rule 7.33 of the 1986 Rules.

212Requirement to assess costs by the detailed procedure#

(1)Apply rule 7.34 of the 1986 Rules.

(2)In paragraph (1)—

(a)for “company insolvency” and “liquidation” substitute “bank insolvency”,

(b)ignore sub-paragraph (b), and

(c)for the words from “court to which” to the end substitute “High Court”.

(3)In paragraph (2), leave out “or creditors”.

(4)In paragraph (5), for “trustee in bankruptcy or a liquidator” substitute “bank liquidator.”

(5)Ignore paragraph (6).

213Procedure where detailed assessment required#

Apply rule 7.35 of the 1986 Rules. Ignore paragraph (6).

214Costs of officers charged with executions of writs or other process#

(1)Apply rule 7.36 of the 1986 Rules.

(2)In paragraph (1)(a), leave out “or 346(2)”.

(3)In paragraph (1)(b), leave out “or 346(3)”.

215Costs paid otherwise than out of the insolvent estate#

Apply rule 7.38 of the 1986 Rules.

216Award of costs against responsible insolvency practitioner#

(1)Apply rule 7.39 of the 1986 Rules.

(2)Leave out from the beginning to “expenses” and “the official receiver or”.

217Application for costs#

(1)Apply rule 7.40 of the 1986 Rules.

(2)In paragraph (1) for “insolvency” substitute “bank insolvency”.

(3)In paragraph (2), leave out the words from “, and, in winding up” to the end.

(4)In paragraph (3), leave out “and, where appropriate, the official receiver”.

(5)Ignore paragraph (3A).

218Costs and expenses of witnesses#

(1)Apply rule 7.41 of the 1986 Rules.

(2)In paragraph (1), leave out “the bankrupt or the debtor or”.

(3)Ignore paragraph (2).

219Final costs certificate#

Apply rule 7.42 of the 1986 Rules.

Chapter 7 · Persons incapable of managing their affairs

220Introductory#

Apply rule 7.43 of the 1986 Rules. In paragraph (1), for (a), substitute “ by reason of being a protected person within the meaning of Part 21 of the CPR or”.

221Appointment of another person to act#

Apply rule 7.44 of the 1986 Rules. Ignore paragraph (3)(c).

222Witness statement in support of application#

(1)Apply rule 7.45 of the 1986 Rules.

(2)In paragraph (1) leave out from the beginning to “receiver”.

(3)Ignore paragraph (2).

223Service of notices following appointment#

Apply rule 7.46 of the 1986 Rules.

Chapter 8 · Appeals in bank insolvency proceedings

224Appeals and review of court orders#

(1)The High Court may review, rescind or vary any order made by it in the exercise of its jurisdiction under Part 2 of the Banking Act 2009.

(2)An appeal from a decision of a registrar of the High Court lies, with the permission of the registrar or a judge of the High Court, to a single judge of the High Court, and a second appeal lies, with the permission of the Court of Appeal to the Court of Appeal.

(3)An appeal of a decision of first instance of a judge of the High Court lies, with the permission of the judge or the Court of Appeal, to the Court of Appeal.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

225Procedure on appeal#

Part 52 of the CPR applies with regard to the procedure for appeals.

226Appeal against a decision of the Secretary of State#

Apply rule 7.50 of the 1986 Rules. Ignore ^note... paragraph (2).

Chapter 9 · General

227Principal court rules and practice to apply#

(1)The CPR and the practice and procedure of the High Court (including any practice direction) apply to bank insolvency proceedings in the High Court, with any necessary modifications, except so far as inconsistent with these Rules.

(2)All bank insolvency proceedings shall be allocated to the multi–track for which CPR Part 29 makes provision ^note..., accordingly those provisions of the CPR which provide for allocation questionnaires and track allocation do not apply.

228Right of attendance#

Apply rule 7.53 of the 1986 Rules. In paragraph (1) for “company insolvency proceedings” substitute “bank insolvency proceedings”.

229Restriction on concurrent proceedings and remedies#

Where in a bank insolvency, the court makes an order staying any action, execution or legal process against the property of the bank, service of the order may be effected by delivering a sealed copy to the address for service of the claimant or other person having carriage of the proceedings to be stayed.

230Security in court#

Apply rule 7.58 of the 1986 Rules.

231Payment into court#

Apply rule 7.59 of the 1986 Rules.

232Further information and disclosure#

(1)Apply rule 7.60 of the 1986 Rules.

(2)After paragraph (2) insert—“3 Before the passing of a full payment resolution the court shall only grant an order on an application under paragraph (1)(b) if satisfied that granting the order is unlikely to prejudice the achievement of Objective 1.”

233Office copies of documents#

Apply rule 7.61 of the 1986 Rules.

Part 19 · Proxies and company representation

234Definition of “proxy”#

(1)Apply rule 8.1 of the 1986 Rules.

(2)In paragraph (2) leave out “company”.

(3)In paragraph (4), for “chairman of the meeting” to “official receiver” substitute “chair of the meeting or the bank liquidator.”

235Issue and use of forms#

Apply rule 8.2 of the 1986 Rules.

236Use of proxies at meetings#

Apply rule 8.3 of the 1986 Rules. Ignore paragraph (2).

237Retention of proxies#

Apply rule 8.4 of the 1986 Rules.

238Right of inspection#

(1)Apply rule 8.5 of the 1986 Rules.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For paragraph (2) substitute—“2 The reference in paragraph (1) to creditors is to those creditors who have proved their debts, but this does not include a person whose proof has been wholly rejected for purposes of voting, dividend or otherwise.”

(4)Ignore paragraph (3)(b).

239Proxy–holder with financial interest#

Apply rule 8.6 of the 1986 Rules.

240Company representation#

Apply rule 8.7 of the 1986 Rules. In paragraph (1) omit “of creditors or”.

Part 20 · Examination of persons concerned in bank insolvency

241Preliminary#

(1)The rules in this Part relate to applications to the court for an order under section 236 of the 1986 Act (inquiry into company’s dealings when it is, or is alleged to be, insolvent).

(2)The following definitions apply—

(a)the person in respect of whom an order is applied for is “the respondent”,

(b)“the applicable section” is section 236 of the 1986 Act, and

(c)the bank is “the insolvent”.

242Form and contents of application#

Apply rule 9.2 of the 1986 Rules.

243Order for examination, etc.#

Apply rule 9.3 of the 1986 Rules.

244Procedure for examination#

Apply rule 9.4 of the 1986 Rules. In paragraph (4), omit “or 366”.

245Record of examination#

Apply rule 9.5 of the 1986 Rules.

246Costs of proceedings#

(1)Apply rule 9.6 of the 1986 Rules.

(2)In paragraph (2)(a) leave out “or 367(1)” and in paragraph (2)(b) leave out “or 367(2)”.

(3)In paragraph (3)(a), for “company insolvency” substitute “bank insolvency”.

(4)Ignore paragraph (3)(b).

(5)Ignore paragraph (5).

Part 21 · Declaration and payment of dividend

247Preliminary#

(1)The rules in this Part relate to the declaration and payment of dividends in a bank insolvency.

(2)In this Part—• “creditors” means those creditors of the bank of whom the bank liquidator is aware, or who are identified in the bank’s statement of affairs and• “the insolvent” means the bank.

248Notice of intended dividend#

Apply rule 11.2 of the 1986 Rules. Ignore paragraph (1)(b).

249Final admission/rejection of proofs#

Apply rule 11.3 of the 1986 Rules. Ignore paragraph (4).

250Postponement or cancellation of dividend#

Apply rule 11.4 of the 1986 Rules.

251Decision to declare dividend#

Apply rule 11.5 of the 1986 Rules.

252Notice of declaration#

(1)Apply rule 11.6 of the 1986 Rules.

(2)Ignore paragraph (1)(b).

(3)In paragraph (2), after (b), add—“ba expenses incurred by the bank liquidator in the achievement of objective 1 under section 99 of the Banking Act 2009.”

253Notice of no, or no further, dividend#

Apply rule 11.7 of the 1986 Rules.

254Proof altered after payment of dividend#

Apply rule 11.8 of the 1986 Rules.

255Secured creditors#

Apply rule 11.9 of the 1986 Rules.

256Disqualification from dividend#

Apply rule 11.10 of the 1986 Rules.

257Assignment of right to dividend#

Apply rule 11.11 of the 1986 Rules.

258Preferential creditors#

Apply rule 11.12 of the 1986 Rules.

259Debt payable at future time#

Apply rule 11.13 of the 1986 Rules. For paragraph (3) substitute “In paragraph (2), “relevant date” means the date of the commencement of bank insolvency.”

Part 22 · Miscellaneous and general

260Power of Secretary of State or Treasury to regulate certain matters#

(1)As provided for in paragraph 27 of Schedule 8 to the 1986 Act, either the Secretary of State or the Treasury may, subject to the Act and to these Rules, make regulations with respect to any matter provided for in these Rules relating to the carrying out of the functions of a bank liquidator or provisional bank liquidator, including, without prejudice to the generality of the above, provision with respect to the following matters arising in bank insolvency—

(a)the preparation and keeping by bank liquidators and provisional bank liquidators of books, accounts and other records, and their production to such persons as may be authorised or required to inspect them;

(b)the auditing of bank liquidators’ accounts;

(c)the manner in which bank liquidators are to act in relation to the bank’s books, papers and other records, and the manner of their disposal by the bank liquidator or others;

(d)the supply by the bank liquidator to creditors and contributories and to the liquidation committee of copies of documents relating to the bank insolvency and the affairs of the bank (on payment, in such cases as may be specified in the regulations, of a fee.);

(e)the manner in which insolvent estates are to be distributed by the bank liquidator, including provision with respect to unclaimed funds and dividends;

(f)the manner in which monies coming into the hands of the bank liquidator are to be handled and invested and the payment of interest on sums which, in pursuance of regulations made under this sub-paragraph, have been paid into the Insolvency Services Account .

(2)Regulations made under paragraph (1) may—

(a)confer a discretion on the court,

(b)make non-compliance with any of the regulations a criminal offence,

(c)make different provision for different cases, including different provision for different areas, and

(d)contain such incidental, supplemental and transitional provisions as may appear to the Secretary of State or the Treasury as necessary or expedient.

261Costs, expenses, etc.#

(1)All fees, costs, charges and other expenses incurred in the course of bank insolvency, except for any money paid by the FSCS to eligible depositors in pursuance of Objective 1, and any expense incurred by the FSCS in this process, are to be regarded as expenses of the bank insolvency.

(2)The costs associated with the prescribed part shall be paid out of that prescribed part.

262Provable debts#

(1)Subject to paragraphs (2) and (3) in a bank insolvency all claims by creditors are provable as debts against the bank, whether they are present or future, certain or contingent, ascertained or sounding only in damages.

(2)Any obligation arising under a confiscation order made under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002 is not provable.

(3)The following are not provable except at a time when all other claims of creditors in the insolvency proceedings (other than any of a kind mentioned in this paragraph) have been paid in full with interest under section 189(2) of the 1986 Act—

(a)any claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000, not being a claim arising by virtue of section 382(1)(b) of that Act; or

(b)any claim which by virtue of the 1986 Act or any enactment is a claim the payment of which in the bank insolvency is to be postponed.

(4)Nothing in this rule prejudices any enactment or rule of law under which a particular kind of debt is not provable, whether on grounds of public policy or otherwise.

263Notices#

(1)Apply rule 12.4 of the 1986 Rules.

(2)Ignore references to the official receiver.

264Quorum at meeting of creditors or contributories#

(1)Apply rule 12.4A of the 1986 Rules.

(2)For paragraph (3) substitute—“3 For the purposes of this rule the reference to creditors or contributories necessary to constitute a quorum is to those persons present or represented by proxy by any person (including the chair) including, in the case of contributories, persons duly represented under section 323 of the 2006 Act.”

265Evidence of proceedings at meetings#

Apply rule 12.5 of the 1986 Rules.

266Documents issuing from Secretary of State#

Apply rule 12.6 of the 1986 Rules. ^note...

267Insolvency practitioner’s security#

(1)—Apply rule 12.8 of the 1986 Rules.

(2)For paragraph (2) substitute—“2 It is the duty of the liquidation committee in a bank insolvency to review from time to time the adequacy of the bank liquidator’s security.”

268Time limits#

Apply rule 12.9(1) of the 1986 Rules as regards time limits for anything required or authorised to be done by these Rules.

269Service by post#

Apply rule 12.10 of the 1986 Rules.

270General provisions as to service#

CPR Part 6 (service of documents) applies as regards any matter relating to the service of documents and the giving of notice in bank insolvency proceedings except in cases where a rule makes provision as to the service of a document or the giving of a notice.

271Service outside the jurisdiction#

(1)CPR Part 6 applies as regards any matter relating to the service of documents in Scotland and Northern Ireland except in cases where a rule makes provision as to the service of a document or the giving of a notice.

(2)Where for the purposes of bank insolvency proceedings any process or order of the court, or other document, is required to be served on a person who is not in the United Kingdom—

(a)with regard to the service of documents to which a rule makes provision, the court may order service to be effected within such time, on such person, at such place and in such manner as it thinks fit, and may also require such proof of service as it thinks fit,

(b)with regard to the service of documents otherwise, CPR Rules 6.40(3) to 6.46 apply.

(3)An application under paragraph (2)(a) shall be supported by a witness statement stating—

(a)the grounds on which the application is made, and

(b)in what place or country the person to be served is, or probably may be found.

272Confidentiality of documents#

(1)Apply rule 12.13 of the 1986 Rules.

(2)In paragraph (2) ignore the reference to a creditors’ committee.

273Notices sent simultaneously to the same person#

Apply rule 12.14 of the 1986 Rules.

274Right to copy documents#

Apply rule 12.15 of the 1986 Rules.

275Charge for copy documents#

Apply rule 12.15A of the 1986 Rules.

276Non–receipt of notice of meeting#

Apply rule 12.16 of the 1986 Rules.

277Right to have list of creditors#

(1)Where a creditor has the right under these Rules to inspect documents on the court file, the creditor may require the bank liquidator to send them a list of the bank’s creditors and the amounts of their respective debts.

(2)Paragraph (1) does not apply if a statement of the bank’s affairs has been filed in court or filed with the registrar of companies.

(3)The bank liquidator must respond to a request in paragraph (1) but may charge the appropriate fee for doing so.

278False claim of status as creditor, etc#

Apply rule 12.18 of the 1986 Rules.

279Execution overtaken by judgement debtor’s insolvency#

(1)This rule applies where execution has been taken out against property of a judgment debtor, and notice is given to the enforcement officer or other officer charged with the execution under section 184(1) of the 1986 Act (that a bank insolvency order has been made against the debtor, or that a provisional bank liquidator has been appointed).

(2)The notice shall be in writing and be delivered by personal service at, or sent by recorded delivery to, the office of the enforcement officer or (as the case may be) of the officer charged with the execution.

280The Gazette#

Apply rule 12.20 of the 1986 Rules.

281Punishment of offences#

Apply rule 12.21 of the 1986 Rules. ^note...

282Notice of order under section 176A(5)#

(1)Apply rule 12.22 of the 1986 Rules. For references to “the liquidator, administrator or receiver” read “bank liquidator”.

Part 23 · Interpretation

283Introductory#

This Part of the Rules has effect for their interpretation and application; and any definition given in this Part (and in any provision of the 1986 Rules applied by this Part) applies except, and in so far as, the context requires otherwise.

284“The court”; “the registrar”#

(1)Apply rule 13.2 of the 1986 Rules.

(2)Ignore paragraphs (3) and (5).

(3)In paragraph (4), for “company insolvency proceedings” substitute “bank insolvency proceedings.”

285“Give notice”, etc.#

Apply rule 13.3 of the 1986 Rules. In paragraph (3), leave out from “except” to the end of the paragraph.

286Notice, etc. to solicitors#

Apply rule 13.4 of the 1986 Rules.

287Notice to joint bank liquidators#

Where 2 or more persons are acting jointly as the bank liquidator, delivery of a document to 1 of them is to be treated as delivery to them all.

288“Insolvent estate”#

References to “the insolvent estate” are to the assets of the bank.

289“Responsible insolvency practitioner”, etc.#

In relation to a bank insolvency, “the responsible insolvency practitioner” means the person acting in the bank insolvency as the bank liquidator or provisional bank liquidator.

290“The appropriate fee”#

”The appropriate fee” means 15 pence per A4 or A5 page, and 30 pence per A3 page.

291“Debt”, “liability”#

(1)Apply rule 13.12 of the 1986 Rules.

(2)Ignore paragraph (5).

292Expressions used generally#

(1)Apply rule 13.13 of the 1986 Rules.

(2)In paragraph (1) for “Rules 1.7” to “6.23” substitute “rule 10 of the Bank Insolvency Rules 2009”.

(3)In paragraph (5), after “Secretary of State” insert “or the Treasury”.

(4)In paragraph (7), for “Chapter 20 of Part 4 of these Rules, or Chapter 23 of Part 6” substitute “Part 16 of the 2009 Rules”.

(5)Ignore paragraphs (8) to (14).

(6)In paragraph (15), after “section 176A(2)(a)” insert “as applied by section 103 of the Banking Act 2009”.

293The Schedule#

The Schedule, which applies relevant schedules to the 1986 Rules to these rules with modifications, has effect.

Schedule

(1)The following Schedules to the 1986 Rules are applied to these Rules—

(a)Schedule 1. Ignore all references to rule 4.72 and for paragraph (1) substitute—“1 This Schedule applies where a bank insolvency order (as defined under Part 2 of the Banking Act 2009) has been made in respect of a bank”

(b)Schedule 5; and

(c)Schedule 6.

Contains public sector information licensed under the Open Government Licence v3.0.

Connections

Defined terms · 22

Key facts

History · 3 versions

1Citation and commencement#

2Extent#

3Application of rules, construction and interpretation#

4Overview#

5Forms#

6Time limits#

7Filing of application#

8Service of application#

9Proof of service#

10Other persons to receive copy of application#

11Verification of application#

12Persons entitled to copy of application#

13Certificate of compliance#

14Leave for the applicant to withdraw#

15Witness statement in opposition#

16Making, transmission and advertisement of order#

17Authentication of bank liquidator’s appointment#

18Initial duties of bank liquidation committee#

19Expenses of voluntary arrangement#

20Appointment of provisional bank liquidator#

21Notice of appointment#

22Order of appointment#

23Security#

24Failure to give or keep up security#

25Remuneration#

26Termination of appointment#

27Notice requiring statement of affairs#

28Verification and filing#

29Limited disclosure#

30Release from duty to submit statement of affairs; extension of time#

31Expenses of statement of affairs#

32Submission of accounts#

33Further disclosure#

34Report by bank liquidator#

35Meaning of “creditors”#

36Report where statement of affairs lodged#

37Statement of affairs dispensed with#

38General rule as to reporting#

39Bank insolvency stayed#

40First meeting#

41Business at first meetings of creditors and contributories#

42General power to call meetings#

43The chair at meetings#

44Requisitioned meetings: general#

45Requisitioned meetings: reforming the liquidation committee#

46Attendance at meetings of bank’s personnel#

47Notice of meetings by advertisement only#

48Venue#

49Expenses of summoning meetings#

50Resolutions#

51Chair of meeting as proxy–holder#

52Suspension and adjournment#

53Entitlement to vote (creditors)#

54Entitlement to vote (contributories)#

55Admission and rejection of proof (creditors’ meetings)#

56Record of proceedings#

57Meaning of “prove”#

58Supply of forms#

59Contents of proof#

60Claim established by witness statement#

61Cost of proving#

62Bank liquidator to allow inspection of proofs#

63New bank liquidator appointed#

64Admission and rejection of proofs for dividend#

65Appeal against decision on proof#

66Withdrawal or variation of proof#

67Expunging of proof by the court#

68Estimate of quantum#

69Negotiable instruments, etc.#

70Secured creditors#

71Discounts#

72Mutual credits and set–off#

73Disapplication of set off for eligible depositors#

74Debt in foreign currency#

75Payments of a periodical nature#

76Interest#