Paragraph 10 I1

United Kingdom

(1)

The powers of the administrator specified in Schedule 1 to the 1986 Act (powers of administrator or administrative receiver) include the power to make—

(a)

any payments due to a creditor; or

(b)

any payments on account of any sum which may become due to a creditor.

(2)

Any payments to a creditor made pursuant to sub-paragraph (1) must not exceed, in aggregate, the amount which the administrator reasonably considers that the creditor would be entitled to receive on a distribution of the insurer’s assets in a winding up.

F1(3)

The powers conferred by sub-paragraph (1) may be exercised until the initial decision date for the decision referred to in paragraph 51(1), but may only be exercised after that date—

(a)

if—

(i)

the administrator, when seeking the decision referred to in paragraph 3A(2), gave the creditors a statement containing the information specified in sub-paragraph (4); and

(ii)

a majority in number representing three-fourths in value of the creditors has consented to the exercise by the administrator of those powers; or

(b)

with the consent of the court.

(4)

The information referred to in sub-paragraph (3)(a)(i) is an estimate of the aggregate amount of—

(a)

the insurer’s assets and liabilities (whether actual, contingent or prospective); and

(b)

all payments which the administrator proposes to make to creditors pursuant to sub-paragraph (1);

including any assumptions which the administrator has made in calculating that estimate.

F2(5)

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Annotations

Textual amendments

F1: Sch. para. 10(3) substituted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 12(5)(a) (with reg. 22)
F2: Sch. para. 10(5) omitted (13.3.2018) by virtue of The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 12(5)(b) (with reg. 22)

Commencement

I1: Sch. para. 10 in force at 1.2.2011, see art. 1(1)