Article 42 Table of applications and specific modifications

Notification and advertisement of administrator’s appointment

Notice requiring statement of affairs

Statements of affairs and statements of concurrence

On an application for disclosure under paragraph (4) any of the following may appear and be heard, or make representations:—

1. (a)

   the bank administrator;

2. (b)

   the Bank of England;

3. (c)

   the FSA.

On an application under paragraph (2) for release or extension of time any of the following may appear and be heard, or make written representations:—

1. (a)

   the bank administrator;

2. (b)

   the Bank of England;

3. (c)

   the FSA.

Expenses of statement of affairs

Rule 2.25 is not applied. Equivalent provision is made in Part 3 of these Rules.

General (Meetings)

In the application of paragraph (1) of rule 7.2, the FSA and the FSCS shall be treated as entitled to attend the meeting.

Ignore the application of rules 7.1 and 7.4.

1. (1)

   Rule 2.27 applies in the Objective 2 Stage.

2. (2)

   The bank administrator shall give the FSA and the FSCS at least 14 days notice of any meeting referred to in paragraph (1) of rule 2.27.

Applicable law

Treat the reference to the administrator’s statement of proposals as a reference to the bank administrator’s statement of proposals in accordance with rule 24 above.

In paragraph 1(c) ignore the reference to the person making the appointment.

Notices to creditors

(A creditors’ committee cannot be established until the Objective 2 Stage - see the modifications for the application of paragraphs 50 to 58 of Schedule B1 of the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act).

In the application of paragraph (2) of rule 3.8—

1. (a)

   notice of the application must be given to the FSA and the FSCS; and

2. (b)

   the FSA and the FSCS may appear and be heard.

Disposal of secured property, etc.

If an application is made during the Objective 1 Stage, then in addition to the requirements of rule 2.37—

1. (a)

   the bank administrator must notify the Bank of England of the time and place of the hearing;

2. (b)

   the Bank of England may appear; and

3. (c)

   if an order is made the bank administrator must send a copy of the order to the Bank of England as soon as reasonably practicable.

Rule 2.38 is not applied. Equivalent provision is made in Part 3 of these Rules.

1. (1)

   In the Objective 1 Stage the Bank of England shall fix the bank administrators’ remuneration in accordance with rule 2.39(4).

2. (2)

   In the Objective 2 Stage, rule 2.39 shall apply (but pending action under paragraphs (2), (3) and (6) arrangements established by the Bank of England in the Objective 1 Stage shall continue to apply).

1. (1)

   In respect of remuneration fixed by the Bank of England—

   1. (a)

      Rule 2.39A applies as if references to the creditors’ committee and creditors were references to the Bank of England; and

   2. (b)

      the court shall have regard to Objective 1.

2. (2)

   In respect of any application under rule 2.39A—

   1. (a)

      notice of the application must be given to the FSA; and

   2. (b)

      the FSA may appear and be heard.

Rule 2.39A (5), (6) and (7) applies only during the Objective 2 Stage.

In addition to the matters listed in rule 2.39B, expenses in connection with a provisional bank administration are payable in the following order of priority—

1. (a)

   the cost of any security provided by the provisional bank administrator takes priority equally with security provided by the bank administrator;

2. (b)

   the remuneration of the provisional bank administrator ranks next; and

3. (c)

   any deposit lodged on an application for the appointment of a provisional bank administrator ranks next.

(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.)

(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.)

1. (1)

   In respect of an application under s.49(6) of the Bankruptcy (Scotland) Act 1985^f7 (as applied)—

   1. (a)

      notice of the application must be given to the FSA and the FSCS and, during the Objective 1 Stage, the Bank of England; and

   2. (b)

      the FSA, the FSCS and the Bank of England during the Objective 1 Stage, may appear and be heard.

2. (2)

   The bank administrator shall give 28 days notice of any proposed payment of distribution or dividend and notice of any payment of distribution or dividend to—

   1. (a)

      the FSA and the FSCS; and

   2. (b)

      during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act, the Bank of England.

3. (3)

   In the case of notice of any payment of distribution or dividend in a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage, the notice shall include details of any payment made from a scheme under a resolution fund order.

4. (4)

   If the bank administrator is unable to declare any dividend or any further dividend, the bank administrator must, in addition to notifying the creditors of this fact, notify—

   1. (a)

      the FSA;

   2. (b)

      the FSCS; and

   3. (c)

      the Bank of England; in a case where it consented to a distribution under these Rules.

(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act).

In the case of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act the final progress report—

1. (1)

   must not be made until the bank administrator is satisfied that any payment to be made to the bank from a scheme under a resolution fund order has been made; and

2. (2)

   must state whether any payment has been received and, if so, its amount.

Rule 2.45 is not applied. Equivalent provision is made by Part 3 of these Rules.

The references to paragraph 79 are to be treated as references to paragraph 80 of Schedule B1 to the 1986 Act (as applied by section 153(2) of the 2009 Act).

Rule 2.48 is not applied. Equivalent provision is made by Part 3 of these Rules.

During the Objective 1 Stage the Bank of England’s consent, as well as the court’s leave, is required for resignation under paragraph (2).

The Bank of England and the FSA are added to the list of those entitled to notice under paragraph (1).

Notice of resignation

Administrator deceased

Rule 2.53 is applied during the Objective 2 Stage only (and ignoring references to paragraph 95 of Schedule B1).

(For equivalent provisions about application for removal by the Bank of England during the Objective 1 Stage (in accordance with the modifications for the application of paragraph 91 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act) see Part 3 of these Rules.

Application to replace

Joint or concurrent appointments

An application may be made during the Objective 1 Stage only with the consent of the Bank of England – see the modifications for the application of paragraph 88 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.

1. (1)

   An application must state either—

   1. (a)

      that the Bank of England has consented to its being made; or

   2. (b)

      that the Objective 1 Stage has ended.

2. (2)

   The FSA is added to the list of those on whom an application under paragraph (1) must be served.

Rule 4.1 is not applied. Equivalent provision is made by Part VII of Chapter 74 of Schedule 2 to the Act of Sederunt (Rules of the Court of Session 1994)1994^f9.

Rule 4.2 is not applied. Equivalent provision is made by Part 3 of these Rules.

Caution

Failure to find or to maintain caution

Remuneration

An application for termination may be made by—

the provisional bank administrator, or

the Bank of England only.

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

Notice of order under section 176A(5)

(In rule 7.20, the reference to section 375 of the Companies Act 1985^f14 is now a reference to section 323 of the Companies Act 2006^f15)

For rule 7.20(2), substitute—

“The copy resolution must be signed or subscribed by or on behalf of the bank in accordance with the provisions of the Requirements of Writing (Scotland) Act 1995^f16 or certified by the secretary or director of the bank to be a true copy.”

Giving of notices, etc.

Rule 7.22 applies subject to express provision about service made in these Rules.

Certificate of giving notice, etc.

Validity of proceedings

Evidence of proceedings at meetings

1. (1)

   The following have the right, at all reasonable times, to inspect documents in respect of bank administration proceedings:—

   1. (a)

      a person who is or was a director or officer of the bank;

   2. (b)

      a member of the bank;

   3. (c)

      any person stating himself in writing to be a creditor of the bank;

   4. (d)

      any person stating himself in writing to be a contributor in respect of the bank;

   5. (e)

      the Bank of England, and

   6. (f)

      the FSA; and

   7. (g)

      the FSCS.

2. (2)

   A right of inspection may be exercised on a person’s behalf by anyone authorised by him in writing.

3. (3)

   A right of inspection in terms of paragraph 1 is not exercisable in the case of documents, or parts of documents, as to which the court directs (either generally or specifically) that they are not to be made open to inspection without the court’s leave; and an application for such leave may be made by—

   1. (a)

      the bank administrator(s) or provisional bank administrator(s); or

   2. (b)

      any party appearing to the court to have an interest.

4. (4)

   References to “a creditor who has a right to inspect documents” in rule 7.26(2) shall include a reference to the persons listed in paragraph (1) above.

Confidentiality of documents

Insolvency practitioner’s caution

7.29 and Schedule 4 of the Insolvency Act 1986

Fees, expenses, etc.

Power of court to cure defects in procedure

Sederunt book

Disposal of company’s books, papers and other records