Regulation 31 Payments from central funds

Unless otherwise agreed in writing between the Society, the reorganisation controller and the F1PRA, before making a payment from central funds during the period of the Lloyd's market reorganisation order, the Society must give 5 working days F2written notice to the reorganisation controller.

Notice under paragraph (1) must specify—

An agreement under paragraph (1) may in particular provide for payments—

to be made without the notice provided for in paragraph (1)

If before the end of the period of 5 working days from the date on which he receives the notice F3in writing under paragraph (1) the reorganisation controller considers that the payment should not be made, he must within that period—

and the Society must not make payment without the permission of the court.

The Society and the PRA may be heard at any hearing in connection with any such application.

Where the reorganisation controller makes an application under paragraph (4), the Society commits an offence if it makes a payment from central funds without the permission of the court.

If an offence under paragraph (6) is shown to have been committed with the consent or connivance of an officer of the Society, the officer as well as the Society is guilty of the offence.

A person guilty of an offence under this regulation is liable—

In this regulation “working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday under the Banking and Financial Dealings Act 1971 M1 in any part of the United Kingdom.

In paragraph (7), “officer”, in relation to the Society, means the Chairman of Lloyd's, a Deputy Chairman of Lloyd's, the Chairman of the Committee established by section 5 of Lloyd's Act 1982, a deputy Chairman of the Committee, or a member of the Council established by section 3 of that Act.