Explanatory note

(This note is not part of the Rules)

These Rules set out the procedure for the bank administration process under Part 3 of the Banking Act 2009 in Scotland.

The main features of bank administration are that:

(a)

it is used where part of the business of a bank is sold to a commercial purchaser or transferred to a bridge bank in accordance with section 12 of the Banking Act;

(b)

the court appoints a bank administrator on the application of the Bank of England;

(c)

the bank administrator ensures that the non-sold or non-transferred part of the bank provides services or facilities to enable the commercial purchaser or bridge bank to operate effectively;

(d)

the bank administrator has two objectives (Objective 1 – supporting the private purchaser or bridge bank; and Objective 2 – normal administration); and

(e)

in other respects the process is the same as for normal administration under the Insolvency Act 1986, subject to specified modifications.

Part 2 of the Rules sets out special provisions about applications for bank administration.

Part 3 of the Rules sets out special provisions about the bank administration process.

Part 4 of the Rules applies specified provisions of the Insolvency (Scotland) Rules 1986 for general purposes in connection with bank administration, subject to a number of general and specific modifications.