The Credit Institutions (Protection of Depositors)Regulations 1995

Duty of Bank or Commission to declare that deposits are no longer available

17.—(1) Where a UK institution or building society which is or has been a participating institution has become insolvent, it shall be the duty of the relevant authority—

(a) to make a declaration that deposits held by the institution or society are no longer available; and

(b) to send a copy of the declaration to the authority responsible for each scheme which is or has been a host State scheme in relation to the institution or society.

(2) Where a UK institution or building society which is or has been a participating institution has ceased to be insolvent, it shall be the duty of the relevant authority—

(a) to withdraw the declaration made by it under paragraph (1) above; and

(b) to notify the withdrawal to each authority to which it has sent a copy of that declaration.

(3) In this regulation—

(a) references to a participating institution are references to an institution which is participating in a host State scheme; and

(b) references to becoming or ceasing to be insolvent shall be construed in accordance with the relevant enactment.

(4) In this regulation “the relevant authority” and “the relevant enactment” mean respectively—

(a) in relation to a UK institution, the Bank and section 59 of the 1987 Act;

(b) in relation to a building society, the Commission and section 25A of the 1986 Act.