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The Bank Insolvency (No. 2) Rules (Northern Ireland) 2009

S.R. 2009/122 · Made 18 March 2009 · Extends to Northern Ireland

Up to date with all changes known to legislation.gov.uk, revised to 1 April 2013.

This instrument has been made in consequence of defects in S.R. 2009 No. 64 and is being issued free of charge to all known recipients of that instrument.

Banking

Bank Insolvency

Made 18th March 2009

Coming into operation 1st April 2009

To be laid before Parliament

The Lord Chancellor makes the following Rules in exercise of the powers under Article 359 of the Insolvency (Northern Ireland) Order 1989f1.

The Treasury concur in the making of the Rules.

The Lord Chief Justice of Northern Ireland under Article 359(1A)f2 of the Insolvency (Northern Ireland) Order 1989 concurs in the making of the Rules in so far as they affect court procedure.C1

The Lord Chancellor has not consulted the Committee existing for the purposes of Article 360 of the Order: this is the first set of rules made in reliance on section 125 of the Banking Act 2009f3 and the duty to consult does not therefore apply to these rules by virtue of section 125(8) of that Act.

Annotations to the whole text

Modifications

C1

Rules applied (with modifications) (23.11.2009) by The Scottish and Northern Ireland Banknote Regulations 2009 (S.I. 2009/3056), reg. 1, Sch. 1 para. 8

Footnotes

f1

S.I. 1989/2405(N.I. 19), section 1282 of the Companies Act 2006 (c. 46) inserted a new Article 150ZA into the Insolvency (Northern Ireland) Order 1989 providing for the payment and priority of general expenses of a winding up subject to exceptions prescribed by rules made under Article 359 of the 1989 Order. Article 359 of the Insolvency (Northern Ireland) Order 1989 was amended by the Insolvency (Northern Ireland) 1989 (Amendment) Regulations (Northern Ireland) 2002 S.R. 2002 N. 223).

f2

Article 359(1A) was inserted by the Constitutional Reform Act 2005 (c. 4), Schedule 5, Part 1, paragraphs 80 and 81.

f3

2009 c.1. See also section 134.

Contents

  1. Part 1: INTRODUCTORY PROVISIONS
  2. 1Citation, commencement and revocation
  3. 2Extent
  4. 3Application of rules, construction and interpretation
  5. 4Overview
  6. 5Forms
  7. 6Time
  8. Part 2: APPLICATION FOR ORDER
  9. 7Filing of application
  10. 8Service of application
  11. 9Proof of service
  12. 10Other persons to receive copy of application
  13. 11Verification of application
  14. 12Persons entitled to copy of application
  15. 13Certificate of compliance
  16. 14Leave for the applicant to withdraw
  17. 15Witness Statement in opposition
  18. 16Making, transmission and advertisement of order
  19. 17Authentication of bank liquidator’s appointment
  20. 18Initial duties of bank liquidation committee
  21. 19Expenses of voluntary arrangement
  22. Part 3: PROVISIONAL BANK LIQUIDATOR
  23. 20Appointment of provisional bank liquidator
  24. 21Notice of appointment
  25. 22Order of appointment
  26. 23Security
  27. 24Failure to give or keep up security
  28. 25Remuneration
  29. 26Termination of appointment
  30. Part 4: STATEMENT OF AFFAIRS AND OTHER INFORMATION
  31. 27Notice requiring statement of affairs
  32. 28Verification and filing
  33. 29Limited disclosure
  34. 30Release from duty to submit statement of affairs; extension of time
  35. 31Expenses of statement of affairs
  36. 32Submission of accounts
  37. 33Further disclosure
  38. Part 5: INFORMATION TO CREDITORS AND CONTRIBUTORIES
  39. 34Report by bank liquidator
  40. 35Meaning of “creditors”
  41. 36Report where statement of affairs lodged
  42. 37Statement of affairs dispensed with
  43. 38General rule as to reporting
  44. 39Bank insolvency stayed
  45. Part 6: MEETINGS OF CREDITORS AND CONTRIBUTORIES
  46. Chapter: RULES OF GENERAL APPLICATION
  47. 40First meeting
  48. 41Business at first meetings of creditors and contributories
  49. 42General power to call meetings
  50. 43The chair at meetings
  51. 44Requisitioned meetings general
  52. 45Requisitioned meetings reforming the liquidation committee
  53. 46Attendance at meetings of bank’s personnel
  54. 47Notice of meetings by advertisement only
  55. 48Venue
  56. 49Expenses of summoning meetings
  57. 50Resolutions
  58. 51Chairman of meeting as proxy-holder
  59. 52Suspension and adjournment
  60. 53Entitlement to vote (creditors)
  61. 54Entitlement to vote (contributories)
  62. 55Admission and rejection of proof (creditors’ meetings)
  63. 56Record of proceedings
  64. Part 7: PROOF OF DEBTS
  65. 57Meaning of “prove”
  66. 58Supply of forms
  67. 59Contents of proof
  68. 60Claim established by affidavit
  69. 61Cost of proving
  70. 62Bank Liquidator to allow inspection of proofs
  71. 63New bank liquidator appointed
  72. 64Admission and rejection of proofs for dividend
  73. 65Appeal against decision on proof
  74. 66Withdrawal or variation of proof
  75. 67Expunging of proof by the court
  76. 68Estimate of quantum
  77. 69Negotiable instruments, etc.
  78. 70Secured creditors
  79. 71Discounts
  80. 72Mutual credits and set-off
  81. 73Disapplication of set off for eligible depositors
  82. 74Debt in foreign Currency
  83. 75Payments of a periodical nature
  84. 76Interest
  85. 77Debt payable at future time
  86. Part 8: SECURED CREDITORS
  87. 78Value of security
  88. 79Surrender for non-disclosure
  89. 80Redemption by liquidator
  90. 81Test of security’s value
  91. 82Realisation of security by creditor
  92. Part 9: THE BANK LIQUIDATOR
  93. GENERAL
  94. 83Remuneration of bank liquidator
  95. 84Replacement of bank liquidator by creditors
  96. 85Authentication of bank liquidator’s appointment
  97. 86Appointment to be advertised and registered
  98. RESIGNATION AND REMOVAL
  99. 87Creditors’ meeting to be notified of bank liquidator’s resignation
  100. 88Action following acceptance of resignation
  101. 89Advertisement of resignation
  102. 90Meeting of creditors to remove bank liquidator
  103. 91Court’s power to regulate meetings under rule 90
  104. 92Procedure on removal
  105. 93Advertisement of removal
  106. 94Removal of bank liquidator by the court
  107. 95Release of resigning or removed bank liquidator
  108. RELEASE ON COMPLETION OF WINDING UP
  109. 96Final meeting
  110. 97Rule as to reporting
  111. REMUNERATION
  112. 98Fixing of remuneration
  113. 99Bank liquidator’s entitlement to remuneration where it is not fixed under rule 98
  114. 100Bank liquidator’s remuneration where he realises assets on behalf of chargeholder
  115. 101Other matters affecting remuneration
  116. 102Recourse of bank liquidator to meeting of creditors
  117. 103Recourse to the court
  118. 104Creditors’ claim that remuneration is excessive
  119. 105Primacy of Objective 1
  120. SUPPLEMENTARY PROVISIONS
  121. 106Replacement Bank liquidator
  122. 107Bank liquidator deceased
  123. 108Loss of qualification as insolvency practitioner
  124. 109Resignation of the bank liquidator
  125. 110Notice to Bank of England of intention to vacate office
  126. 111Bank liquidator’s duties on vacating office
  127. 112Power of court to set aside certain transactions
  128. 113Rule against solicitation
  129. Part 10: THE LIQUIDATION COMMITTEE
  130. 114Application of rules in this Part
  131. 115Membership of committee
  132. 116Formalities of establishment
  133. 117Committee established by contributories
  134. 118Obligations of liquidator to committee
  135. 119Meetings of the committee
  136. 120The Chair at meetings
  137. 121Quorum
  138. 122Committee-members’ representatives
  139. 123Resignation
  140. 124Termination of membership
  141. 125Removal
  142. 126Vacancy (creditor members)
  143. 127Vacancy (contributory members)
  144. 128Voting rights and resolutions
  145. 129Resolutions by post
  146. 130Liquidator’s reports
  147. 131Expenses of members etc.
  148. 132Dealings by committee-members and others
  149. 133Composition of committee when creditors paid in full
  150. 134Committee’s functions vested in the Department
  151. 135Formal defects
  152. Part 11: COLLECTION AND DISTRIBUTION OF BANK’S ASSETS BY BANK LIQUIDATOR
  153. 136General duties of bank liquidator
  154. 137General qualification on powers
  155. 138Manner of distributing assets
  156. 139Debts of insolvent company to rank equally
  157. 140Supplementary provisions as to dividend
  158. 141Division of unsold assets
  159. 142General powers of the liquidator
  160. 143Enforced delivery up of company’s property
  161. 144Final distribution
  162. Part 12: DISCLAIMER
  163. 145Liquidator’s notice of disclaimer
  164. 146Communication of disclaimer to persons interested
  165. 147Additional notices
  166. 148Duty to keep court informed
  167. 149Application by interested party under Article 152(4)
  168. 150Interest in property to be declared on request
  169. 151Disclaimer presumed valid and effective
  170. 152Application for exercise of court’s powers under Article 155
  171. Part 13: SETTLEMENT OF LIST OF CONTRIBUTORIES
  172. 153Preliminary
  173. 154Primacy of Objective 1
  174. 155Duty of liquidator to settle list
  175. 156Form of list
  176. 157Procedure for settling list
  177. 158Application to court for variation of the list
  178. 159Variation of, or addition to, the list
  179. 160Costs not to fall on bank liquidator
  180. Part 14: CALLS
  181. 161Calls by liquidator
  182. 162Control by bank liquidation committee
  183. 163Application to court for leave to make a call
  184. 164Making and enforcement of the call
  185. Part 15: SPECIAL MANAGER
  186. 165Appointment and remuneration
  187. 166Security
  188. 167Failure to give or keep up security
  189. 168Accounting
  190. 169Termination of appointment
  191. Part 16: ORDER OF PAYMENT AS TO COSTS, ETC. OUT OF ASSETS
  192. 170General rule as to priority
  193. 171Litigation expenses and property subject to a floating charge-general application
  194. 172Litigation expenses and property subject to a floating charge-requirement for approval or authorisation
  195. 173Litigation expenses and property subject to a floating charge-request for approval or authorisation
  196. 174Litigation expenses and property subject to a floating charge-grant of approval or authorisation
  197. 175Litigation expenses and property subject to a floating charge-application to court by the bank liquidator
  198. 176Saving for powers of the court
  199. Part 17: MISCELLANEOUS RULES
  200. RETURN OF CAPITAL
  201. 177Application to court for order authorising return of capital
  202. 178Procedure for return of capital
  203. CONCLUSION OF BANK INSOLVENCY
  204. 179Department’s directions under section 116 of the 2009 Act
  205. 180Procedure following appeal under section 116 of the 2009 Act
  206. LEAVE TO ACT AS DIRECTOR, ETC. OF BANK WITH PROHIBITED NAME (ARTICLE 180 OF THE ORDER)
  207. 181Preliminary
  208. 182Application for leave under Article 180(3) before passing of full payment resolution
  209. 183Consideration of application for leave under Article 180(3)
  210. 184First excepted case
  211. 185Second excepted case
  212. 186Third excepted case
  213. 187Further exception
  214. Part 18: COURT PROCEDURE AND PRACTICE
  215. Chapter 1: APPLICATIONS (GENERAL)
  216. 188Preliminary
  217. 189Interpretation
  218. 190Form and contents of application
  219. 191Application under Article 150A(5) to disapply Article 150A
  220. 192Filing and service of application
  221. 193Notice of application under Article 150A(5)
  222. 194Other hearings without notice
  223. 195Hearing of application
  224. 196Use of affidavit evidence
  225. 197Filing and service of affidavits
  226. 198Use of reports
  227. 199Adjournment of hearing: directions
  228. Chapter 3: SHORTHAND WRITERS
  229. 200Nomination and appointment of shorthand writers
  230. 201Remuneration
  231. Chapter 4: ENFORCEMENT PROCEDURES
  232. 202Enforcement of court orders
  233. 203Orders enforcing compliance with the rules
  234. 204Warrants (general provisions)
  235. 205Warrants under Article 200
  236. Chapter 5: COURT RECORDS AND RETURNS
  237. 206Title of proceedings
  238. 207Court records
  239. 208Inspection of records
  240. 209File of court proceedings and inspection
  241. 210Filing of Gazette notices and advertisements
  242. Chapter 6: COSTS AND DETAILED ASSESSMENT
  243. 211Application of the Supreme Court Rules
  244. 212Requirement to assess costs by the detailed procedure
  245. 213Procedure where detailed assessment required
  246. 214Cost of officers charged with executions of writs or other process
  247. 215Costs paid otherwise than out of the insolvent estate
  248. 216Award of costs against responsible insolvency practitioner
  249. 217Application for costs
  250. 218Costs and expenses of witnesses
  251. Chapter 7: PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS
  252. 219Introductory
  253. 220Appointment of another person to act
  254. 221Affidavit in support of application
  255. 222Service of notices following appointment
  256. Chapter 8: APPEALS IN BANK INSOLVENCY PROCEEDINGS
  257. 223Appeals and review of court orders
  258. 224Procedure on appeal
  259. 225Appeal against a decision of the Department
  260. Chapter 9: GENERAL
  261. 226Principal court rules and practice to apply
  262. 227Right of attendance
  263. 228Restriction on concurrent proceedings and remedies
  264. 229Security in court
  265. 230Further information and disclosure
  266. 231Office copies of documents
  267. Part 19: PROXIES AND COMPANY REPRESENTATION
  268. 232Definition of “proxy”
  269. 233Issue and use of forms
  270. 234Use of proxies at meetings
  271. 235Retention of proxies
  272. 236Right of inspection
  273. 237Proxy-holder with financial interest
  274. 238Company representation
  275. Part 20: EXAMINATION OF PERSONS CONCERNED IN BANK INSOLVENCY
  276. 239Preliminary
  277. 240Form and contents of application
  278. 241Order for examination, etc
  279. 242Procedure for examination
  280. 243Record of examination
  281. 244Cost of proceedings
  282. Part 21: DECLARATION AND PAYMENT OF DIVIDEND
  283. 245Preliminary
  284. 246Notice of intended dividend
  285. 247Final admission/rejection of proofs
  286. 248Postponement or cancellation of dividend
  287. 249Decision to declare dividend
  288. 250Notice of declaration
  289. 251Notice of no, or no further, dividend
  290. 252Proof altered after payment of dividend
  291. 253Secured creditors
  292. 254Disqualification from dividend
  293. 255Assignment of right to dividend
  294. 256Preferential creditors
  295. 257Debt payable at future time
  296. Part 22: MISCELLANEOUS AND GENERAL
  297. 258Power of Department to regulate certain matters
  298. 259Costs, expenses, etc
  299. 260Provable debts
  300. 261Notices
  301. 262Quorum at meeting of creditors or contributories
  302. 263Evidence of proceedings at meetings
  303. 264Documents issuing from the Department
  304. 265Insolvency practitioner’s security
  305. 266Time
  306. 267Service by post
  307. 268General provisions as to service
  308. 269Service outside the jurisdiction
  309. 270Confidentiality of documents
  310. 271Notices sent simultaneously to the same person
  311. 272Right to copy documents
  312. 273Charge for copy documents
  313. 274Non-receipt of notice of meeting
  314. 275Right to have list of creditors
  315. 276False claim of status as creditors
  316. 277Execution overtaken by judgement debtor’s insolvency
  317. 278The Gazette
  318. 279Punishment of offences
  319. 280Notice of order under Article 150A(5)
  320. Part 23: INTERPRETATION
  321. 281Introductory
  322. 282Expressions used generally
  323. 283“Give notice”, etc
  324. 284Notice, etc to solicitors
  325. 285Notice to joint bank liquidators
  326. 286“Insolvent estate”
  327. 287“Responsible insolvency practitioner”, etc
  328. 288The Schedule
  329. Signature
  330. Schedule Schedule
  331. Explanatory note