Paragraph 8

(1)

Section 135 of the Insolvency Act is applied with the following modifications where an application is made for a special administration (bank insolvency) order—

(a)

in subsection (1), the reference to the presentation of a winding up petition is to an application for a special administration (bank insolvency) order;

(b)

in subsection (2)—

(i)

the reference to England and Wales includes Scotland,

(ii)

the reference to a winding up order is to a special administration order,

(iii)

“other fit person” means a person qualified to act as an insolvency practitioner F1in relation to the investment bank and who consents to act, and

(iv)

ignore the reference to the official receiver; and

(c)

subsection (3) is not applied.

(2)

A person appointed under section 135 (as applied by this paragraph)—

(a)

must not pay dividends to creditors;

(b)

may only be removed by order of the court; and

(c)

shall vacate office if they cease to be qualified to act as a insolvency practitioner F2in relation to the investment bank.

(3)

The appointment of the person appointed under section 135 (as applied by this paragraph) lapses on the appointment of an administrator under a special administration (bank insolvency) order.

Annotations

Textual amendments

F1: Words in Sch. 1 para. 8(1)(b)(iii) inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 10(7)
F2: Words in Sch. 1 para. 8(2)(c) inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 10(7)