Section 96 Grounds for applyingI1

United Kingdom

(1)

In this section—

(a)

Ground A is that a bank is unable, or likely to become unable, to pay its debts,

(b)

Ground B is that the winding up of a bank would be in the public interest, and

(c)

Ground C is that the winding up of a bank would be fair.

(2)

The Bank of England may apply for a bank insolvency order only if—

(a)

F1... the F2PRA is satisfied that F3Condition 1 in section 7 is met, and

(b)

the Bank of England is satisfied—

(ai)

F4that Condition 2 in section 7 is met,

(i)

that the bank has eligible depositors, and

(ii)

that Ground A or C applies.

(3)

The PRA may apply for a bank insolvency order only if—

(a)

the Bank of England F5is satisfied that Condition 2 in section 7 is met, and

(b)

the PRA is satisfied—

(i)

that F6Condition 1 in section 7 is met,

(ii)

that the bank has eligible depositors, and

(iii)

that Ground A or C applies.

(4)

The Secretary of State may apply for a bank insolvency order only if satisfied—

(a)

that the bank has eligible depositors, and

(b)

that Ground B applies.

(5)

The sources of information on the basis of which the Secretary of State may be satisfied of the matters specified in subsection (4) include those listed in section 124A(1) of the Insolvency Act 1986 (petition for winding up on grounds of public interest).

Annotations

Textual amendments

F1: Words in s. 96(2)(a) omitted (1.3.2017) by virtue of Bank of England and Financial Services Act 2016 (c. 14), s. 41(3), Sch. 2 para. 56(2) (with Sch. 3); S.I. 2017/43, reg. 2(g)
F2: Word in s. 96 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 33 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F3: Words in s. 96(2)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(2)(i)
F4: S. 96(2)(b)(ai) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(2)(ii)
F5: Words in s. 96(3)(a) substituted (1.3.2017) by Bank of England and Financial Services Act 2016 (c. 14), s. 41(3), Sch. 2 para. 56(3) (with Sch. 3); S.I. 2017/43, reg. 2(g)
F6: Words in s. 96(3)(b)(i) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(3)(b)

Commencement

I1: S. 96 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2