Regulation 2 Amendment of the Bankruptcy (Scotland) Regulations 2016

Regulation 26 of the Bankruptcy (Scotland) Regulations 2016^f1 (interest on claims in sequestration) is amended as follows.

The existing text becomes paragraph (1).

In paragraph (1) (so formed), for “8 per centum per annum”, substitute “an annual rate of 2 percentage points above the Bank of England base rate that applies on the date of sequestration”^f2.

After paragraph (1), insert—

“(2)

In paragraph (1), “Bank of England base rate” means—

(a)

except where sub-paragraph (b) applies, the percentage rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short-term liquidity in the money markets, or

(b)

where an order under section 19 of the Bank of England Act 1998^f3 (reserve powers) is in force, any equivalent percentage rate determined by the Treasury under that section.”.