Banking Act 2009

154 Winding-up or voluntary arrangement

(1) This section applies if—

(a) the Bank of England has given an Objective 1 Achievement Notice, and

(b) the bank administrator pursues Objective 2(b) in section 140.

(2) The bank administrator may—

(a) give a notice under paragraph 84 of Schedule B1 to the Insolvency Act 1986 (no more assets for distribution), or

(b) make a proposal in accordance with section 1 of that Act (company voluntary arrangement).

(3) Part 1 of that Act shall apply to a proposal made by a bank administrator, with the following modifications.

(4) In section 3 (summoning of meetings) subsection (2) (and not (1)) applies.

(5) The action that may be taken by the court under section 5(3) (effect of approval) includes suspension of the bank administration order.

(6) On the termination of a company voluntary arrangement the bank administrator may apply to the court to lift the suspension of the bank administration order.

(7) The bank administrator may not act under subsection (2) above unless satisfied that the bank has received any funds it is likely to receive from any scheme under a resolution fund order under section 52.