The Building Societies (Insolvency and Special Administration) Order 2009

Process

27.—(1) In section 145, table 1 (Schedule B1 to the Insolvency Act 1986) applies with the modifications set out in this paragraph.

(2) For the entries for paras. 59 to 64, see paragraph 29 below;

(3) For the entry for para. 65, substitute—

“Para. 65

Distribution

(a) In sub para. (1) the reference to a creditors includes a reference to a shareholding member. (b) In the case of building society special administration following transfer to a bridge bank, until the Bank of England has given an Objective 1 Achievement Notice a bank administrator may make a distribution only with the Bank of England’s consent. (c) Ignore sub para. (3).”.

(4) For the entry for para. 75, substitute—

“Para. 75

Misfeasance

(a) In addition to applications that may anyway be made under para. 75, an application may be made by the building society special administrator or the Bank of England. (b) An application may not be made by a borrowing member.”.

(5) For the entry for para. 80 (termination: successful rescue) substitute—

“Para. 80

Termination: successful rescue

See section 153 (a) In sub-paragraph (4) the reference to every creditor of whose claim and address he is aware includes a reference to every shareholding member. (b) In sub-paragraph (5) the reference to a creditor includes a reference to a shareholding member.”.

(6) Ignore the entry for para. 84 (termination: no more assets for distribution): paragraph 30 below makes equivalent provision;

(7) For the entry for para. 111 (interpretation) substitute—

“Para. 111

Interpretation

Ignore sub-paragraphs (1A) and (1B)”.