The Bank Insolvency (Scotland) Rules 2009

PART 2 APPLICATION FOR ORDER

Application for bank insolvency order

6.  An application for a bank insolvency order under section 95 of the 2009 Act shall be in accordance with Part 2 of these Rules and Part VII of Chapter 74 of the Rules of the Court of Session(1).

Persons entitled to copy of application

7.—(1) Every contributory or creditor of the bank is entitled to a copy of the application on request from the applicant.

(2) The applicant shall respond to any request for a copy of the application as soon as reasonably practicable after the application has been made on payment of the appropriate fee.

(3) In paragraph (2), “the appropriate fee” means 15 pence per A4 or A5 page, and 30 pence per A3 page.

Appointment of bank liquidator by the court

8.—(1) This rule applies where an application for a bank insolvency order is made to the court under section 95 of the 2009 Act.

(2) The court shall not make the order unless there is lodged in court a statement to the effect that–

(a) the person proposed to be appointed as the bank liquidator is qualified to act as an insolvency practitioner in accordance with section 390(2) of the 1986 Act; and

(b) that person consents so to act.

(3) When the bank insolvency order has been made the court shall immediately send a certified copy of the order to–

(a) the bank liquidator who shall also, where practicable, be sent an electronic copy of the certified copy order; and

(b) the applicant.

(4) The bank liquidator shall immediately–

(a) serve a copy of the order on the bank at its registered office and, where the bank liquidator has received an electronic copy of the order and knows the bank ‘s email address, send an electronic copy to the bank;

(b) give notice of the appointment to the Accountant in Bankruptcy;

(c) forward a copy of the order to the registrar of companies in accordance with section 130(1) of the 1986 Act (as applied by section 103 of the 2009 Act);

(d) advertise the appointment once in the Edinburgh Gazette and such newspaper as the bank liquidator may select or as the court may otherwise direct; and

(e) send (electronically or otherwise) a copy of the order to–

(i) the FSA, if it is not the applicant;

(ii) the Bank of England, if it is not the applicant; and

(iii) the FSCS.

Initial duties of bank liquidation committee

9.—(1) As soon as reasonably practicable after the making of a bank insolvency order the liquidation committee will meet the bank liquidator for the purpose of discussing which of the Objectives, or combination of Objectives, mentioned in section 102(1) of the 2009 Act the committee should recommend the bank liquidator pursue.

(2) If the bank liquidator and every individual on the liquidation committee agree, the meeting may be held by audio or video conference.

(3) The liquidation committee will make its recommendation to the bank liquidator at the meeting.

(4) The Bank of England will confirm the liquidation committee’s recommendation in writing as soon as reasonably practicable after the meeting.

(5) As soon as reasonably practicable after the making of a bank insolvency order, the liquidation committee shall also pass a resolution as to the terms on which, in accordance with rule 45 the bank liquidator is to be remunerated.

(6) Until a full payment resolution has been passed, the liquidation committee–

(a) shall take decisions and pass resolutions by a simple majority; and

(b) for the purpose of taking decisions and passing resolutions, may communicate by any means that its members consider convenient.

Authentication of bank liquidator’s appointment

10.  Apply rule 4.20 of the 1986 Rules.

(1)

S.I. 1994/1443. Part VII of Chapter 74 was inserted by rule 3 of S.S.I. 2009/63

(2)

Section 390 was amended by paragraph 16(1) and (2) of Schedule 4(II) to the Insolvency Act 2000 (c.39); paragraph 18 of Schedule 5 to the Adults with Incapacity (Scotland) Act 2000 (asp 4); paragraph 4 of Schedule 21 to the Enterprise Act 2002 (c.40); paragraph 31(3)(c) of Schedule 6 and paragraph 1 of Schedule 7 to the Mental Capacity Act 2005 (c.9); paragraph 18(3) of Schedule 1 to S.S.I. 2005/465; and paragraph 3(3) of Schedule 1 to S.I. 2005/2078.