The Building Society Special Administration (England and Wales) Rules 2010

PART 2 Application for Building Society Special Administration Order

Introduction

8.  This Part makes specific provision for a number of aspects of applications for building society special administration orders; Part 5 applies a number of provisions of the Insolvency Rules 1986 to applications for building society special administration orders (with specified modifications).

Content of application

9.  An application by the Bank of England for a building society special administration order in respect of a building society must specify—

(a) the registered name of the building society,

(b) any other trading names,

(c) the address of the society’s principal office,

(d) an email address for the society,

(e) the address of the Bank of England, and

(f) the identity of the person (or persons) nominated for appointment as building society special administrator.

10.  If the building society has notified the Bank of England of an address for service which is, because of special circumstances, to be used in place of the principal office, that address shall be specified under Rule 9(c).

Statement of proposed building society special administrator

11.  An application must be accompanied by a statement by the proposed building society special administrator—

(a) specifying the name and address of the person (or of each person) proposed to be appointed,

(b) giving that person’s (or each person’s) consent to act,

(c) giving details of the person’s (or each person’s) qualification to act as an insolvency practitioner, and

(d) giving details of any prior professional relationship that the person (or any of them) has had with the building society.

Bank of England witness statement

12.—(1) An application for a building society special administration order in respect of a building society must be accompanied by a witness statement made on behalf of the Bank of England—

(a) certifying that the conditions for applying for a building society special administration order, set out in section 143 of the Banking Act 2009, are met in respect of the society,

(b) stating the society’s current financial position to the best of the Bank of England’s knowledge and belief (including actual, contingent and prospective assets and liabilities),

(c) specifying any security which the Bank of England knows or believes to be held by a creditor of the building society,

(d) specifying whether any security confers power to appoint an administrative receiver (and whether an administrative receiver has been appointed),

(e) specifying any insolvency proceedings which have been instituted in respect of the society (including any process notified to the FSA under section 90D of the Building Societies Act 1986(1)),

(f) giving details of the property transfer instrument which the Bank of England has made or intends to make in respect of the society,

(g) where the property transfer instrument has not yet been made, explaining what effect it is likely to have on the society’s financial position,

(h) specifying how functions are to be apportioned where more than one person is to be appointed as building society special administrator (stating, in particular, whether functions are to be exercisable jointly or concurrently), and

(i) including any other material which the Bank of England thinks may help the court to decide whether to make the special administration order.

(2) The statement must identify the person making the statement and must include the capacity in which that person makes the statement and the basis for that person’s knowledge of the matters set out in the statement.

Filing

13.  The application, and its accompanying documents, must be filed with the court, together with enough copies of the application and accompanying documents for service under Rule 15.

14.  Each filed copy—

(a) shall have the seal of the court applied to it,

(b) shall be endorsed with the date and time of filing,

(c) shall be endorsed with the venue for the hearing of the application (fixed by the court under Rule 21), and

(d) shall be issued to the Bank of England.

Service

15.  The Bank of England shall serve the application—

(a) on the building society,

(b) on the person (or each of the persons) nominated for appointment as building society special administrator,

(c) on any person whom the Bank of England knows to be entitled to appoint an administrative receiver,

(d) on any person who has given notice to the FSA in respect of the building society under section 90D of the Building Societies Act 1986 (notice to the Authority of preliminary steps), and

(e) if the property transfer instrument was made or is to be made under section 11(2)(b) of the Banking Act 2009 (transfer to commercial purchaser), on each transferee.

16.  Service under Rule 15 must be service of a sealed and endorsed copy of the application and its accompanying documents issued under Rule 14.

17.  Service must be effected as soon as is reasonably practicable, having regard in particular to the need to give the building society’s representatives a reasonable opportunity to attend the hearing.

18.—(1) Service must be effected—

(a) by personal service to an address that the person has notified to the Bank of England as an address for service,

(b) by personal service to the person’s registered office or principal office (where no address for service has been notified),

(c) by personal service to the person’s usual or last known principal place of business in England and Wales (where there is no registered office or principal office and no address for service has been notified), or

(d) in such other manner and at such a place as the court may direct.

(2) If the Bank of England knows of an email address that is habitually used for business purposes by a person on whom service is required, the Bank must (in addition to personal service) as soon as is reasonably practicable send by email an electronic copy of a sealed and endorsed copy of the application and its accompanying documents.

19.—(1) Service of the application shall be verified by a witness statement specifying the date on which, and the manner in which, service was effected.

(2) The witness statement, with a sealed copy of the application exhibited to it, shall be filed with the court—

(a) as soon as is reasonably practicable, and

(b) in any event, before the hearing of the application.

Other notification

20.  As soon as is reasonably practicable after filing the application the Bank of England must notify—

(a) any enforcement officer or other officer whom the Bank of England knows to be charged with effecting an execution or other legal process against the building society or its property,

(b) any person whom the Bank of England knows to have distrained against the building society or its property, and

(c) the FSA.

Venue

21.—(1) The court shall fix the venue for the hearing when the application is filed.

(2) In fixing the venue the court shall have regard to—

(a) the desirability of the application being heard as soon as is reasonably practicable, and

(b) the need to give the building society a reasonable opportunity to attend.

Hearing

22.  At the hearing of the application, any of the following may appear or be represented—

(a) the Bank of England,

(b) the FSA,

(c) the building society,

(d) a director of the building society,

(e) the person (or a person) nominated for appointment as building society special administrator,

(f) any person who has given notice to the FSA in respect of the building society under section 90D of the Building Societies Act 1986 (notice to the Authority of preliminary steps), and

(g) with the permission of the court, any other person who appears to have an interest.

The order

23.  A building society special administration order must be in the form specified in Rule 2.12(2) of the Insolvency Rules 1986, with such variations, if any, as the circumstances may require.

Notice of order

24.  If the court makes a building society special administration order, it shall send four sealed copies to the Bank of England.

25.  The Bank of England shall as soon as is reasonably practicable send—

(a) one sealed copy to the building society special administrator,

(b) one sealed copy to the FSA, and

(c) one sealed copy to the FSCS.

Costs

26.  If the court makes a building society special administration order, the following are payable as an expense of the building society special administration—

(a) the Bank of England’s costs of making the application, and

(b) any other costs allowed by the court.

(1)

Section 90D was inserted by S.I. 2009/805.