120Notice to [F1PRA] of preliminary stepsU.K.
(1)An application for an administration order in respect of a bank may not be determined unless the conditions below are satisfied.
(2)A petition for a winding up order in respect of a bank may not be determined unless the conditions below are satisfied.
(3)A resolution for voluntary winding up of a bank may not be made unless the conditions below are satisfied.
(4)An administrator of a bank may not be appointed unless the conditions below are satisfied.
(5)Condition 1 is that the [F2PRA] has been notified—
(a)by the applicant for an administration order, that the application has been made,
(b)by the petitioner for a winding up order, that the petition has been presented,
(c)by the bank, that a resolution for voluntary winding up may be made, or
(d)by the person proposing to appoint an administrator, of the proposed appointment.
(6)Condition 2 is that a copy of the notice complying with Condition 1 has been filed [F3(in Scotland, lodged)] with the court (and made available for public inspection by the court).
(7)Condition 3 is that—
(a)the period of 2 weeks, beginning with the day on which the notice is received, has ended, or
(b)both—
(i)the [F2PRA] has informed the person who gave the notice that it does not intend to apply for a bank insolvency order, and
(ii)the Bank of England has informed the person who gave the notice that it does not intend to apply for a bank insolvency order or to exercise a stabilisation power under Part 1.
(8)Condition 4 is that no application for a bank insolvency order is pending.
(9)Arranging for the giving of notice in order to satisfy Condition 1 can be a step with a view to minimising the potential loss to a bank's creditors for the purpose of section 214 of the Insolvency Act 1986 (wrongful trading).
(10)Where the [F2PRA] receives notice under Condition 1—
(a)the [F2PRA] shall inform the Bank of England [F4and the FCA],
(b)the [F2PRA] shall inform the person who gave the notice, within the period in Condition 3(a), whether it intends to apply for a bank insolvency order, and
(c)if the Bank of England decides to apply for a bank insolvency order or to exercise a stabilisation power under Part 1, the Bank shall inform the person who gave the notice, within the period in Condition 3(a).
Textual Amendments
F1Word in s. 120 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F2Word in s. 120 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F3Words in s. 120(6) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F4Words in s. 120(10)(a) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(4) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Commencement Information
I1S. 120 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2