The Bank Insolvency (England and Wales) (Amendment) Rules 2010

• Citation: S.I. 2010/2579
• Sections: 84

Section 1 Citation, commencement, extent and interpretation

These Rules may be cited as the Bank Insolvency (England and Wales) (Amendment) Rules 2010, shall come into force on 15th November 2010 and extend to England and Wales only.

Section 2 Citation, commencement, extent and interpretation

In these Rules, “the 1986 Rules” means the Insolvency Rules 1986 .

Section 3 Amendments to the Bank Insolvency (England and Wales) Rules 2009

The Bank Insolvency (England and Wales) Rules 2009 are amended as follows.

Section 4 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 3—

(a) in paragraph (2)—

(i) in the definition of “the 1986 Rules”, after “1986” insert “including all the amendments to them up to and including those made by the Insolvency (Amendment) (No. 2) Rules 2009 ”, and

(ii) at the end of the definition of “sealed”, for the colon, substitute a semi colon;

(b) in paragraph (8), for “a reference to Rule C as applied to Rule B”, substitute “a reference to Rule C as applied by Rule B”;

(c) in paragraph (9), after the first “to”, insert “be”, and for “by these Rules” substitute “pursuant to these Rules”; and

(d) in paragraph (10), for “the rules”, substitute “these Rules”.

Section 5 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 5, in paragraph (1)—

(a) for “Rule” substitute “rule”; and

(b) for “the Insolvency Rules 1986”, substitute “the 1986 Rules”.

Section 6 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In the heading to rule 6, for “Limits”, substitute “limits”.

Section 7 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 7, in paragraph (2)(c), for “those” substitute “the”.

Section 8 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 10—

(a) in paragraph (1)—

(i) for “send a sealed copy”, substitute “send 2 copies”, and

(ii) in sub-paragraph (e), omit “on”; and

(b) in paragraph (2), for “1” substitute “one” and after “the other”, insert “(a sealed copy)”.

Section 9 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 11, in paragraph (3), for “should” substitute “shall” in each place where it occurs.

Section 10 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 13, in paragraph (3), for “a copy of the advertisement”, substitute “a copy or”.

Section 11 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 15—

(a) in paragraph (1), omit “or a director of the bank”; and

(b) for paragraph (5), substitute—

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

Section 12 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 16—

(a) in paragraph (3), for “sealed copy ”, substitute “copy”;

(b) in paragraph (5)—

(i) for “a sealed copy”, substitute “2 copies”,

(ii) at the end of sub-paragraph (a) omit “(electronically or otherwise), and”, and

(iii) at the end of sub-paragraph (b), substitute a semicolon for the full stop and add—

(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);

(c) after paragraph (5), insert—

(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.

(d) for paragraph (6) substitute—

(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.

Section 13 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 18, in paragraphs (1), (3) and (4), for “will” substitute “shall”.

Section 14 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 20, omit paragraph (1).

Section 15 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 21, make the existing provision paragraph (1) and after it insert—

(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.

Section 16 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 22—

(a) in paragraph (3), for “sealed copy”, substitute “copy”;

(b) in paragraph (5)—

(i) for “a sealed copy ”, substitute “2 copies”,

(ii) in sub-paragraph (a), omit “(electronically or otherwise), and”,

(iii) at the end of sub-paragraph (b), omit “and”, and

(iv) at the end of sub-paragraph (c) substitute a semicolon for the full stop and add “and”; and

(v) after sub-paragraph (c), add—

(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).

(c) after paragraph (5), insert—

(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.

Section 17 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 27—

(a) in paragraph (1), for “Bank of England”, substitute “bank liquidator”; and

(b) omit paragraph (2).

Section 18 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 28, after “1986 Rules.”, insert “For “official receiver” substitute “bank liquidator””.

Section 19 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 29, in paragraph (1) and in inserted paragraph (1A) to rule 4.35 of the 1986 Rules, for “Bank of England” substitute “bank liquidator”.

Section 20 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 31, for “Bank of England” substitute “bank liquidator”.

Section 21 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 32, for “Bank of England” substitute “bank liquidator”.

Section 22 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 33, for “Bank of England” substitute “bank liquidator”.

Section 23 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 34—

(a) in paragraph (2), after “website”, insert “and the bank liquidator shall send a copy of it to any creditor or contributory on request . ”; and

(b) in paragraph (3)—

(i) in sub-paragraph (g)(i), for “debts of the creditors”, substitute “debts owed to the creditors”, and

(ii) in sub-paragraph (l), for “purpose of the bank liquidation”, substitute “objectives of the bank liquidator”.

Section 24 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 36, for “Bank of England” substitute “bank liquidator”.

Section 25 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 37, after “1986 Rules.” insert “In paragraphs (2) and (3), for “official receiver” substitute “bank liquidator”.”.

Section 26 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 38—

(a) in paragraph (1), after “1986 Rules.” add “For “official receiver” substitute “bank liquidator”.”; and

(b) omit paragraphs (2) and (3).

Section 27 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 39—

(a) in paragraph (1), after “1986 Rules.” add “For “official receiver” substitute “bank liquidator”.”; and

(b) omit paragraphs (2) and (3).

Section 28 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 40—

(a) after paragraph (2)(d), omit “and shall advertise” to the end; and

(b) insert—

(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.

Section 29 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 45—

(a) in paragraph (1)(a), for “re establish” substitute “re-establish”; and

(b) in paragraph (2), for “on the request” substitute “at the request”.

Section 30 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In the heading to rule 60, for “affidavit”, substitute “witness statement”.

Section 31 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 72—

(a) make the opening sentence into paragraph (1) and renumber the rest of the rule accordingly;

(b) in renumbered paragraph (3), for “1”, substitute “one”;

(c) in renumbered paragraph (4), for “paragraph (2)” substitute “paragraph 3”;

(d) in renumbered paragraph (5), for “of this Rule” substitute “of this rule”; and

(e) in renumbered paragraph (6), for “Rule” substitute “rule”.

Section 32 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 73—

(a) for paragraph (2), substitute—

(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.

(b) in paragraph (3)—

(i) for “Where paragraph (2)(a) applies,” substitute “Where this paragraph applies”, and

(ii) omit “eligible”;

(c) in paragraph (4)—

(i) for “Where paragraph (2)(b) applies,” substitute “Where this paragraph applies”;

(ii) in sub-paragraph (a), for “that total” substitute “the total of sums due to the depositor”, and

(iii) in paragraph (b)—

(aa) for “eligible depositor” where it first occurs, insert “the depositor in respect of the protected deposits”, and

(bb) for sub-paragraphs (i) and (ii), substitute—

(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.

(d) in paragraph (5)—

(i) for “set off”, substitute “set-off”, and

(ii) at the end insert “in so far as they relate to protected deposits.”; and

(e) for paragraph (6) substitute—

(6) In this rule—

“ eligible depositor ” has the meaning given by section 93(3) of the 2009 Act;

“FSA Rules” means the FSA’s Compensation Sourcebook, as amended from time to time, made under section 213 of the Financial Services and Markets Act 2000 ; and

“ protected deposit ” means a protected deposit within the meaning given by FSA Rules.

Section 33 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 83(1)(b), for “41 rules 44 and 45”, insert “41, 44 or 45”.

Section 34 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 86, for paragraph (2) substitute—

(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.

Section 35 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 87, in paragraph (2), in new paragraph (1B), after “in” insert “paragraph”.

Section 36 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 88—

(a) in each of paragraphs (2), (4) and (5), for “will” substitute “shall”; and

(b) for paragraph (3), substitute—

(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.

(c) in paragraph (5), for “his” substitute “that”.

Section 37 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 90—

(1) in paragraph (4)—

(a) for “In paragraph (4)”, substitute “For paragraph (4)”, and

(b) in the substituted paragraph (4) to rule 4.113 of the 1986 Rules, for “will” in each place substitute “shall”.

(2) In paragraph (5), in the substituted paragraph (5) to rule 4.113, for “his”, substitute “that”.

Section 38 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 92, in the substituted paragraph (3) to rule 4.116 of the 1986 Rules, omit “, if a new” to the end, and substitute “to any new bank liquidator appointed”.

Section 39 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 94, in paragraph (2), renumber the inserted paragraph (2A) to rule 4.119 of the 1986 Rules as paragraph (1A).

Section 40 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 95, in paragraph (3), for “Bank Insolvency Rules 2009” substitute “2009 Rules”.

Section 41 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 96, for paragraph (4), substitute—

(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.

Section 42 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 97, for “Ignore the reference to rule 4.124” substitute “For “Rule 4.124 or 4.125” substitute “Rule 96 of the 2009 Rules””.

Section 43 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 98, in paragraph (3), in the substituted paragraph (5) to rule 4.127 of the 1986 Rules, for “the remuneration of the bank liquidator fixed,” substitute “the terms on which the bank liquidator is to be remunerated determined”.

Section 44 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 99, in paragraph (3), for “Schedule 1 to the Bank Insolvency Rules 2009” substitute “the Schedule to the 2009 Rules”.

Section 45 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 100, in paragraph (3), for “Schedule 1 to the Bank Insolvency Rules 2009” substitute “the Schedule to the 2009 Rules”.

Section 46 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 106—

(a) for paragraph (2), substitute—

(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.

(b) in paragraph (3), for “the appointment document”, substitute “the certificate of appointment”;

(c) in paragraph (4), for “appointment document” substitute “certificate of appointment”; and

(d) omit paragraph (5).

Section 47 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 114, omit “under rule 41”.

Section 48 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 115, in paragraph (2), for the substituted paragraph (1) of rule 4.152 of the 1986 Rules, 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.

Section 49 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 116, omit the second sentence.

Section 50 Amendments to the Bank Insolvency (England and Wales) Rules 2009

In rule 117, in the substituted paragraph (1) of rule 4.154 of the 1986 Rules, omit “Bank Insolvency”.