# The Investment Bank Special Administration (England and Wales) Rules 2011, Rule 134: Expenses to be paid out of the investment bank’s assets

Extent: E+W

(1) Subject to rule 135, the expenses of the administration to be paid out of the assets of the investment bank are payable in the following order of priority—
(a) expenses properly incurred by the administrator in performing the administrator’s functions in the special administration;
(b) the cost of any security provided by the administrator (and, in a special administration (bank insolvency) or a special administration (bank administration)), the cost of any security provided by a person appointed under rule 30 or 49 in accordance with the Regulations or the Rules;
(c) in a special administration (bank insolvency) or a special administration (bank administration), the remuneration of a person appointed under rule 30 or 49;
(d) in a special administration (bank insolvency) or a special administration (bank administration), any deposit lodged on the application for the appointment of a person appointed under rule 30 or 49;
(e) where an administration order was made, the costs of the applicant and any person appearing on the hearing of the application;
(f) any amount payable to a person employed or authorised, under Chapter 1 of Part 3 of the Rules, to assist in the preparation of a statement of affairs or statement of concurrence;
(g) any allowance made, by order of the court, towards costs on an application for release from the obligation to submit a statement of affairs or statement of concurrence;
(h) any necessary disbursements by the administrator in the course of the special administration (including any expenses incurred by members of the creditors’ committee or their representatives and allowed for by the administrator under rule 119, but not including any payment of corporation tax in circumstances referred to in sub-paragraph (k) below);
(i) the remuneration or emoluments of any person who has been employed by the administrator to perform any services for the investment bank, as required or authorised under the Regulations or the Rules;
(j) the administrator’s remuneration for services in pursuit of—
(i) Objective A in a special administration (bank insolvency),
(ii) Objective A in a special administration (bank administration), and
(iii) Objectives 2 and 3,
the basis of which has been fixed under rules 29 or 48 or Chapter 2 of Part 7 of these Rules, and
(iv) unpaid pre-administration costs approved under rule 136 for work done in pursuit of these objectives; and
(k) the amount of any corporation tax on chargeable gains accruing on the realisation of any asset of the investment bank (without regard to who the realisation is effected by).
(2) The priorities laid down by paragraph (1) of this rule are subject to the power of the court to make orders under paragraph (3) of this rule where the assets are insufficient to satisfy the liabilities.
(3) The court may, in the event of the assets being insufficient to satisfy the liabilities, make an order as to the payment out of the assets of the expenses incurred in the administration in such order of priority as the court thinks just.
(4) For the purposes of paragraph 99(3) and subject to rule 135, the former administrator’s remuneration and expenses shall comprise all those items set out in paragraph (1) of this rule.

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Source: https://www.legislation.gov.uk/uksi/2011/1301/rule/134 (the official version)
Page: https://openlegislation.uk/investment-bank-special-administration-england-and-wales-rules-2011/rule-134
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.