The Bank Administration Rules (Northern Ireland) 2009

PART 2 N.I. Application for Bank Administration Order

Introduction N.I.

8.  This Part makes specific provision for a number of aspects of applications for bank administration orders; Part 5 applies a number of provisions of the 1991 Rules to applications for bank administration orders (with specified modifications).

Commencement Information

I1 Rule 8 in operation at 25.2.2009, see rule 2

Content of application N.I.

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

(a) the full name of the bank,

(b) any other trading names,

(c) the address of the bank’s registered office,

(d) an e-mail address for the bank,

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

(f) the identity of the person (or persons) nominated for appointment as bank administrator.

Commencement Information

I2 Rule 9 in operation at 25.2.2009, see rule 2

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

Commencement Information

I3 Rule 10 in operation at 25.2.2009, see rule 2

Statement of proposed bank administrator N.I.

11.  An application must be accompanied by a statement by the proposed bank 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 bank.

Commencement Information

I4 Rule 11 in operation at 25.2.2009, see rule 2

Bank of England witness statement N.I.

12.  An application for a bank administration order in respect of a bank must be accompanied by a witness statement sworn on behalf of the Bank of England—

(a) certifying that the conditions for applying for a bank administration order, set out in section 143 of the 2009 Act, are met in respect of the bank;

(b) stating the bank’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 bank;

(d) specifying whether any security confers power to appoint an administrator under paragraph 15 of Schedule B1 to the Order (holder of qualifying floating charge) or an administrative receiver (and whether an administrative receiver has been appointed);

(e) specifying any insolvency proceedings which have been instituted in respect of the bank (including any process notified to the [F1 Financial Conduct Authority or the Prudential Regulation Authority] under section 120 of the 2009 Act);

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

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

(h) specifying how functions are to be apportioned where more than one person is to be appointed as bank 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 bank administration order.

Textual Amendments

F1 Words in rule. 12(e) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(c)

Commencement Information

I5 Rule 12 in operation at 25.2.2009, see rule 2

Filing N.I.

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.

Commencement Information

I6 Rule 13 in operation at 25.2.2009, see rule 2

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.

Commencement Information

I7 Rule 14 in operation at 25.2.2009, see rule 2

Service N.I.

15.  The Bank of England shall serve the application—

(a) on the bank;

(b) on the person (or each of the persons) nominated for appointment as bank administrator;

(c) on any person whom the Bank of England knows to be entitled to appoint an administrator under paragraph 15 of Schedule B1 to the Order or an administrative receiver;

(d) on any person who has given notice to the [F2 Financial Conduct Authority or the Prudential Regulation Authority] in respect of the bank under section 120 of the 2009 Act (bank insolvency: notice of preliminary steps of other insolvency procedures); and

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

Textual Amendments

F2 Words in rule 15(d) inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(c)

Commencement Information

I8 Rule 15 in operation at 25.2.2009, see rule 2

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

Commencement Information

I9 Rule 16 in operation at 25.2.2009, see rule 2

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

Commencement Information

I10 Rule 17 in operation at 25.2.2009, see rule 2

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 (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 Northern Ireland (where there is no registered 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 service by hand) 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.

Commencement Information

I11 Rule 18 in operation at 25.2.2009, see rule 2

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 attached 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.

Commencement Information

I12 Rule 19 in operation at 25.2.2009, see rule 2

Other notification N.I.

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 bank or its property;

(b) any person whom the Bank of England knows to have distrained against the bank or its property; and

(c) the [F3 appropriate regulator] .

Textual Amendments

F3 Words in Rules substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(f)

Commencement Information

I13 Rule 20 in operation at 25.2.2009, see rule 2

Venue N.I.

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 for the bank’s representatives to be able to reach the venue in time for the hearing.

Commencement Information

I14 Rule 21 in operation at 25.2.2009, see rule 2

Hearing N.I.

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

(a) the Bank of England,

(b) the [F3 appropriate regulator],

(c) the bank,

(d) a director of the bank,

(e) the person (or a person) nominated for appointment as bank administrator,

(f) any person who has given notice to the [F4 Financial Conduct Authority or the Prudential Regulation Authority] in respect of the bank under section 120 of the 2009 Act (bank insolvency: notice of preliminary steps of other insolvency procedures), and

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

Textual Amendments

F3 Words in Rules substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(f)

F4 Words in rule 22(f) inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(c)

Commencement Information

I15 Rule 22 in operation at 25.2.2009, see rule 2

The order N.I.

23.  A bank administration order must be in Form 2.04B as specified in Rule 2.012(2) of the 1991 Rules.

Commencement Information

I16 Rule 23 in operation at 25.2.2009, see rule 2

Notice of order N.I.

24.  If the court makes a bank administration order, it shall send four [F5 or, if the bank is a PRA-authorised person (within the meaning of the Financial Services and Markets Act 2000), five] sealed copies to the Bank of England.

Textual Amendments

F5 Words in rule. 24 inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(d)

Commencement Information

I17 Rule 24 in operation at 25.2.2009, see rule 2

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

(a) one sealed copy to the bank administrator;

(b) one sealed copy to the [F3 appropriate regulator]; and

(c) one sealed copy to the FSCS.

Textual Amendments

F3 Words in Rules substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 153(f)

Commencement Information

I18 Rule 25 in operation at 25.2.2009, see rule 2

Costs N.I.

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

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

(b) any other costs allowed by the court.

Commencement Information

I19 Rule 26 in operation at 25.2.2009, see rule 2