Rule 3 Application of rules, construction and interpretationI1

These Rules apply in relation to a building society undergoing the procedure in Part 2 of the Banking Act 2009^f1, as applied and modified by section 90C of the Building Societies Act 1986^f2 and by any order made under section 130 of the Banking Act, known as building society insolvency.

In these Rules

• “the 1986 Rules” means the Insolvency (Scotland) Rules 1986 as amended as at 1st October 2009^f3;

• “the 2009 Order” means the Building Societies (Insolvency and Special Administration) Order 2009^f4;

• “the 2010 Rules” means these Rules;

• F1“the appropriate regulator”, in relation to a building society, means—

  1. (a)

     if the building society is a PRA-authorised person (within the meaning of the Financial Services and Markets Act 2000), the Prudential Regulation Authority and the Financial Conduct Authority (except in rules 11(2), 40(2) and 87 where it means the Prudential Regulation Authority or the Financial Conduct Authority);

  2. (b)

     in any other case, the Financial Conduct Authority;

• “the Banking Act” means the Banking Act 2009;

• “Bankruptcy Act” means the Bankruptcy (Scotland) Act 1985^f5;

• “the Building Societies Act” means the Building Societies Act 1986^f6;

• “building society” means a building society incorporated under the Building Societies Act;

• “contributory”, in relation to a building society and subject as provided in rule 23—

  1. (a)

     means every person liable to contribute to the assets of the society in the event of its being wound up, and

  2. (b)

     for the purposes of all proceedings for determining, and all proceedings prior to the determination of, the persons who are deemed to be contributories, includes any person alleged to be a contributory, and

  3. (c)

     includes persons who are liable to pay or contribute to the payment of any debt or liability of the building society, or any sum for the adjustment of rights of members among themselves, or the expenses of the winding up,

     but does not include persons liable to contribute by virtue of a declaration by the court under section 213 (responsibility for fraudulent trading) or 214 (wrongful trading) of the Insolvency Act;

• “court” means the Court of Session;

• “eligible depositor” means a depositor who is eligible for compensation under the FSCS;

• F2...

• F3“appropriate regulator’s rules” means the rules, as amended from time to time, made under section 213 of the Financial Services and Markets Act 2000 by—

  1. (a)

     if the building society is a PRA-authorised person (within the meaning of that Act), the Prudential Regulation Authority or the Financial Conduct Authority; or

  2. (b)

     in any other case, the Financial Conduct Authority;

• “the FSCS” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000) or, where appropriate, the scheme manager of that scheme;

• “the Insolvency Act” means the Insolvency Act 1986^f7;

• “the liquidation committee” means the committee established pursuant to section 100 of the Banking Act;

• “Objective 1” has the same meaning as in Part 2 of the Banking Act (section 99(2));

• “principal office” means—

  1. (d)

     the place which is specified in the building society’s memorandum sent to the F4Financial Conduct Authority under paragraph 1(1)(c) of Schedule 2 to the Building Societies Act as the address of its principal office; or

  2. (e)

     if notice has been given by the building society to the Financial Conduct Authority under paragraph 11(2) of that Schedule (change of principal office), the place specified in that notice or, as the case may be, in the last such notice;

• “protected deposit” means a protected deposit within the meaning given by the F5appropriate regulator’s rules but does not include a share in the society held by an eligible depositor;

• “registered name” in relation to a building society means the name of the society which is for the time being registered with the F6Financial Conduct Authority;

• “release” and related expressions mean release within the meaning of section 111 of the Banking Act;

• “Rules of the Court of Session” means Schedule 2 to the Act of Sederunt (Rules of the Court of Session 1994) 1994^f8;

• “set-off” includes (without limitation) claims of compensation, rights of retention and rights of balancing accounts on insolvency; and

• “sums held by the building society” includes amounts due by the building society to the relevant eligible depositor.

Other expressions used in these Rules, where used in relation to building societies, have the same meaning as in the Building Societies Act.

In these Rules—

These Rules consist of—

The modifications are that where applicable, a reference to—

Expressions used—

have the same meaning as in Part 2 of the Banking Act.

Expressions used—

have the same meaning as in the Building Societies Act.

Where a rule applies a rule of the 1986 Rules and modifies that rule by inserting or substituting text—

Where a rule in the 1986 Rules (Rule A) contains a reference to another such rule (Rule B) and—

the reference in Rule A shall be treated, for the purpose of these Rules, as being, respectively, to the rule in these Rules that applies Rule B or the provision in these Rules that substantially repeats the provision in Rule B.

Where a rule (Rule A) refers to another rule (Rule B) and Rule B applies a rule of the 1986 Rules (Rule C) with or without modifications, the reference in Rule A includes a reference to Rule C as applied by Rule B.

Any notice or document sent electronically pursuant to these Rules shall be treated as having been sent to the person if—

The 1986 Rules apply to building society insolvency, to the extent that these Rules do not make express provision, but only so far as consistent with Part 2 of the Banking Act, these Rules, the Rules of the Court of Session, and any other rule of law relating to building society insolvency.