The Building Society Insolvency Rules (Northern Ireland) 2014

PART 3 PROVISIONAL BUILDING SOCIETY LIQUIDATOR

Appointment of provisional building society liquidator

20.—(1) An application to the court for the appointment of a provisional building society liquidator under Article 115 of the 1989 Order may be made—

(a) by the Bank of England,

(b) by the appropriate regulator, (with the consent of the Bank of England).

(2) The application shall be supported by an affidavit stating—

(a) the grounds upon which it is proposed that the provisional building society liquidator should be appointed;

(b) that the person to be appointed has consented to act;

(c) that the person to be appointed is qualified to act as an insolvency practitioner;

(d) whether to the applicant’s knowledge—

(i) there has been proposed or is in force for the society a voluntary arrangement under Part II of the 1989 Order, or

(ii) an administrative receiver is acting in relation to the society;

(e) the applicant’s estimate of the value of the assets in respect of which the provisional building society liquidator is to be appointed; and

(f) the functions the applicant wishes to be carried out by the provisional building society liquidator in relation to the society’s affairs.

(3) The court may on the application, if satisfied that sufficient grounds are shown for the appointment, make it on such terms as it thinks fit.

Notice of appointment

21.—(1) Where a provisional building society liquidator has been appointed, the court shall notify the applicant and the person appointed.

(2) Unless the court otherwise directs, on receipt of the notification under paragraph (1), the provisional liquidator shall give notice of that appointment as soon as reasonably practicable.

(3) The notice in paragraph (2)—

(a) shall be gazetted; and

(b) may be advertised in such other manner as the provisional liquidator thinks fit.

Order of appointment

22.—(1) The order of appointment shall specify the functions to be carried out by the provisional building society liquidator in relation to the society’s affairs.

(2) The court shall, immediately after the order is made, send four sealed copies of the order (or such larger number as the provisional building society liquidator may have requested), to the provisional building society liquidator.

(3) The court shall also, if practicable, immediately send a copy of the order to the provisional building society liquidator electronically.

(4) The provisional building society liquidator shall serve a sealed copy of the order on the society at its principal office and, where the provisional building society liquidator knows the society’s email address, shall send an electronic copy to the society.

(5) The provisional building society liquidator shall send two copies of the order to—

(a) the Bank of England;

(b) the appropriate regulator;

(c) the FSCS;

(d) if there is in force for the society a voluntary arrangement under Part II of the 1989 Order, the supervisor of that arrangement; and

(e) if an administrative receiver has been appointed in relation to the society, that administrative receiver;

in accordance with paragraph (6).

(6) One copy shall be sent electronically as soon as practicable and the other (a sealed copy) shall be sent by first class post on the business day on which the order is served on the society.

Security

23.  Apply rule 4.031 of the 1991 Rules(1).

Failure to give or keep up security

24.  Apply rule 4.032 of the 1991 Rules.

Remuneration

25.—(1) Apply rule 4.033 of the 1991 Rules(2).

(2) Omit paragraph (5).

Termination of appointment

26.—(1) Apply rule 4.034 of the 1991 Rules.

(2) After paragraph (2) insert—

“(3) On the making of a building society insolvency order the appointment of the provisional building society liquidator shall terminate.”.

(1)

Rule 4.031 was amended by S.R. 2008 No. 118.

(2)

Rule 4.033 was amended by S.R. 2008 No. 118.