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The Bank Insolvency (England and Wales) Rules 2009

S.I. 2009/356 · Made 23 February 2009 · Extends to England and Wales

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

Banks And Banking England And Wales

Insolvency

Made 23rd February 2009

Laid before Parliament 24th February 2009

Coming into force 25th February 2009

The Lord Chancellor makes the following Rules in exercise of his powers under section 411(1A)(a), (2), (2C) and (3) of the Insolvency Act 1986f1.

The Treasury concur in the making of the Rules.

The Chancellor of the High Court (by the authority of the Lord Chief Justice under section 411(7) of the Insolvency Act 1986) concurs in the making of the Rules in so far as they affect court procedure.

The Lord Chancellor has not consulted the Committee existing for the purposes of section 413 of the Insolvency Act 1986: this is the first set of rules made in reliance on section 125 of the Banking Act 2009f2, 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

Footnotes

f1

1986 c.45. Section 411 was amended by the Constitutional Reform Act 2005 (2005 c.4), section 15 and Schedule 4, paragraphs 185 and 188, by S.I. 2002/1037and by the Banking Act 2009 (c.1), section 125.

f2

2009 c. 1.

Contents

  1. Part 1: INTRODUCTORY PROVISIONS
  2. 1Citation and commencement
  3. 2Extent
  4. 3Application of rules, construction and interpretation
  5. 4Overview
  6. 5Forms
  7. 6Time limits
  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. 51Chair 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 witness statement
  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. Chapter 1: 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. Chapter 2: RESIGNATION AND REMOVAL
  99. 87Creditors’ meeting to be notified of the 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. Chapter 3: RELEASE ON COMPLETION OF WINDING UP
  109. 96Final meeting
  110. 97Rule as to reporting
  111. Chapter 4: 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. Chapter 5: 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 Secretary of State
  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 s 178(5)
  168. 150Interest in property to be declared on request
  169. 151Disclaimer presumed valid and effective
  170. 152Application for exercise of court’s powers under s 181
  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 bank 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. Chapter 1: RETURN OF CAPITAL
  201. 177Application to court for order authorising return of capital
  202. 178Procedure for return of capital
  203. Chapter 2: CONCLUSION OF BANK INSOLVENCY
  204. 179Secretary of State’s directions under section 116 of the 2009 Act
  205. 180Procedure following appeal under section 116 of the 2009 Act
  206. Chapter 3: LEAVE TO ACT AS DIRECTOR, ETC. OF BANK WITH PROHIBITED NAME
  207. 181Preliminary
  208. 182Application for leave under s 216(3) before passing of full payment resolution
  209. 183Consideration of application for leave under s 216(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 section 176A(5) to disapply section 176A
  220. 192Filing and service of application
  221. 193Notice of application under section 176A(5)
  222. 194Other hearings without notice
  223. 195Hearing of application
  224. 196Use of evidence
  225. 197Filing and service of witness statements
  226. 198Use of reports
  227. 199Adjournment of hearings: 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 section 236
  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 Repealed
  242. Chapter 6: COSTS AND DETAILED ASSESSMENT
  243. 211Application of the CPR
  244. 212Requirement to assess costs by the detailed procedure
  245. 213Procedure where detailed assessment required
  246. 214Costs 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. 219Final costs certificate
  252. Chapter 7: PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS
  253. 220Introductory
  254. 221Appointment of another person to act
  255. 222Witness statement in support of application
  256. 223Service of notices following appointment
  257. Chapter 8: APPEALS IN BANK INSOLVENCY PROCEEDINGS
  258. 224Appeals and review of court orders
  259. 225Procedure on appeal
  260. 226Appeal against a decision of the Secretary of State
  261. Chapter 9: GENERAL
  262. 227Principal court rules and practice to apply
  263. 228Right of attendance
  264. 229Restriction on concurrent proceedings and remedies
  265. 230Security in court
  266. 231Payment into court
  267. 232Further information and disclosure
  268. 233Office copies of documents
  269. Part 19: PROXIES AND COMPANY REPRESENTATION
  270. 234Definition of “proxy”
  271. 235Issue and use of forms
  272. 236Use of proxies at meetings
  273. 237Retention of proxies
  274. 238Right of inspection
  275. 239Proxy–holder with financial interest
  276. 240Company representation
  277. Part 20: EXAMINATION OF PERSONS CONCERNED IN BANK INSOLVENCY
  278. 241Preliminary
  279. 242Form and contents of application
  280. 243Order for examination, etc.
  281. 244Procedure for examination
  282. 245Record of examination
  283. 246Costs of proceedings
  284. Part 21: DECLARATION AND PAYMENT OF DIVIDEND
  285. 247Preliminary
  286. 248Notice of intended dividend
  287. 249Final admission/rejection of proofs
  288. 250Postponement or cancellation of dividend
  289. 251Decision to declare dividend
  290. 252Notice of declaration
  291. 253Notice of no, or no further, dividend
  292. 254Proof altered after payment of dividend
  293. 255Secured creditors
  294. 256Disqualification from dividend
  295. 257Assignment of right to dividend
  296. 258Preferential creditors
  297. 259Debt payable at future time
  298. Part 22: MISCELLANEOUS AND GENERAL
  299. 260Power of Secretary of State or Treasury to regulate certain matters
  300. 261Costs, expenses, etc.
  301. 262Provable debts
  302. 263Notices
  303. 264Quorum at meeting of creditors or contributories
  304. 265Evidence of proceedings at meetings
  305. 266Documents issuing from Secretary of State
  306. 267Insolvency practitioner’s security
  307. 268Time limits
  308. 269Service by post
  309. 270General provisions as to service
  310. 271Service outside the jurisdiction
  311. 272Confidentiality of documents
  312. 273Notices sent simultaneously to the same person
  313. 274Right to copy documents
  314. 275Charge for copy documents
  315. 276Non–receipt of notice of meeting
  316. 277Right to have list of creditors
  317. 278False claim of status as creditor, etc
  318. 279Execution overtaken by judgement debtor’s insolvency
  319. 280The Gazette
  320. 281Punishment of offences
  321. 282Notice of order under section 176A(5)
  322. Part 23: INTERPRETATION
  323. 283Introductory
  324. 284“The court”; “the registrar”
  325. 285“Give notice”, etc.
  326. 286Notice, etc. to solicitors
  327. 287Notice to joint bank liquidators
  328. 288“Insolvent estate”
  329. 289“Responsible insolvency practitioner”, etc.
  330. 290“The appropriate fee”
  331. 291“Debt”, “liability”
  332. 292Expressions used generally
  333. 293The Schedule
  334. Signature
  335. Schedule
  336. 1Paragraph 1
  337. Explanatory note