The Bank Insolvency Rules (Northern Ireland) 2009

PART 1INTRODUCTORY PROVISIONS

1Citation and commencement

3Application of rules, construction and interpretation

PART 2APPLICATION FOR ORDER

7Filing of application

8Service of application

9Proof of service

10Other persons to receive copy of application

11Verification of application

12Persons entitled to copy of application

13Certificate of compliance

14Leave for the applicant to withdraw

15Witness Statement in opposition

16Making, transmission and advertisement of order

17Authentication of bank liquidator’s appointment

18Initial duties of bank liquidation committee

19Expenses of voluntary arrangement

PART 3PROVISIONAL BANK LIQUIDATOR

20Appointment of provisional bank liquidator

21Notice of appointment

22Order of appointment

24Failure to give or keep up security

26Termination of appointment

PART 4STATEMENT OF AFFAIRS AND OTHER INFORMATION

27Notice requiring statement of affairs

28Verification and filing

29Limited disclosure

30Release from duty to submit statement of affairs; extension of time

31Expenses of statement of affairs

32Submission of accounts

33Further disclosure

PART 5INFORMATION TO CREDITORS AND CONTRIBUTORIES

34Report by bank liquidator

35Meaning of “creditors”

36Report where statement of affairs lodged

37Statement of affairs dispensed with

38General rule as to reporting

39Bank insolvency stayed

PART 6MEETINGS OF CREDITORS AND CONTRIBUTORIES

RULES OF GENERAL APPLICATION

40First meeting

41Business at first meetings of creditors and contributories

42General power to call meetings

43The chair at meetings

44Requisitioned meetings general

45Requisitioned meetings reforming the liquidation committee

46Attendance at meetings of bank’s personnel

47Notice of meetings by advertisement only

49Expenses of summoning meetings

51Chairman of meeting as proxy-holder

52Suspension and adjournment

53Entitlement to vote (creditors)

54Entitlement to vote (contributories)

55Admission and rejection of proof (creditors' meetings)

56Record of proceedings

PART 7PROOF OF DEBTS

57Meaning of “prove”

58Supply of forms

59Contents of proof

60Claim established by affidavit

61Cost of proving

62Bank Liquidator to allow inspection of proofs

63New bank liquidator appointed

64Admission and rejection of proofs for dividend

65Appeal against decision on proof

66Withdrawal or variation of proof

67Expunging of proof by the court

68Estimate of quantum

69Negotiable instruments, etc.

70Secured creditors

72Mutual credits and set-off

73Disapplication of set off for eligible depositors

74Debt in foreign Currency

75Payments of a periodical nature

77Debt payable at future time

PART 8SECURED CREDITORS

78Value of security

79Surrender for non-disclosure

80Redemption by liquidator

81Test of security’s value

82Realisation of security by creditor

PART 9THE BANK LIQUIDATOR

SECTION AGENERAL

83Remuneration of bank liquidator

84Replacement of bank liquidator by creditors

85Authentication of bank liquidator’s appointment

86Appointment to be advertised and registered

SECTION BRESIGNATION AND REMOVAL

87Creditors' meeting to be notified of bank liquidator’s resignation

88Action following acceptance of resignation

89Advertisement of resignation

90Meeting of creditors to remove bank liquidator

91Court’s power to regulate meetings under rule 83

92Procedure on removal

93Advertisement of removal

94Removal of bank liquidator by the court

95Release of resigning or removed bank liquidator

SECTION CRELEASE ON COMPLETION OF WINDING UP

96Final meeting

97Rule as to reporting

SECTION DREMUNERATION

98Fixing of remuneration

99Bank liquidator’s entitlement to remuneration where it is not fixed under rule 98

100Bank liquidator’s remuneration where he realises assets on behalf of chargeholder

101Other matters affecting remuneration

102Recourse of bank liquidator to meeting of creditors

103Recourse to the court

104Creditors' claim that remuneration is excessive

105Primacy of Objective 1

SECTION ESUPPLEMENTARY PROVISIONS

106Replacement Bank liquidator

107Bank liquidator deceased

108Loss of qualification as insolvency practitioner

109Resignation of the bank liquidator

110Notice to Bank of England of intention to vacate office

111Bank liquidator’s duties on vacating office

112Power of court to set aside certain transactions

113Rule against solicitation

PART 10THE LIQUIDATION COMMITTEE

114Application of rules in this Part

115Membership of committee

116Formalities of establishment

117Committee established by contributories

118Obligations of liquidator to committee

119Meetings of the committee

120The Chair at meetings

122Committee-members' representatives

124Termination of membership

126Vacancy (creditor members)

127Vacancy (contributory members)

128Voting rights and resolutions

129Resolutions by post

130Liquidator’s reports

131Expenses of members etc.

132Dealings by committee-members and others

133Composition of committee when creditors paid in full

134Committee’s functions vested in the Department

135Formal defects

PART 11COLLECTION AND DISTRIBUTION OF BANK'S ASSETS BY BANK LIQUIDATOR

136General duties of bank liquidator

137General qualification on powers

138Manner of distributing assets

139Debts of insolvent company to rank equally

140Supplementary provisions as to dividend

141Division of unsold assets

142General powers of the liquidator

143Enforced delivery up of company’s property

144Final distribution

PART 12DISCLAIMER

145Liquidator’s notice of disclaimer

146Communication of disclaimer to persons interested

147Additional notices

148Duty to keep court informed

149Application by interested party under Article 152(4)

150Interest in property to be declared on request

151Disclaimer presumed valid and effective

152Application for exercise of court’s powers under Article 155

PART 13SETTLEMENT OF LIST OF CONTRIBUTORIES

154Primacy of Objective 1

155Duty of liquidator to settle list

156Form of list

157Procedure for settling list

158Application to court for variation of the list

159Variation of, or addition to, the list

160Costs not to fall on bank liquidator

161Calls by liquidator

162Control by bank liquidation committee

163Application to court for leave to make a call

164Making and enforcement of the call

PART 15SPECIAL MANAGER

165Appointment and remuneration

167Failure to give or keep up security

169Termination of appointment

PART 16ORDER OF PAYMENT AS TO COSTS, ETC. OUT OF ASSETS

170General rule as to priority

171Litigation expenses and property subject to a floating charge-general application

172Litigation expenses and property subject to a floating charge-requirement for approval or authorisation

173Litigation expenses and property subject to a floating charge-request for approval or authorisation

174Litigation expenses and property subject to a floating charge-grant of approval or authorisation

175Litigation expenses and property subject to a floating charge-application to court by the bank liquidator

176Saving for powers of the court

PART 17MISCELLANEOUS RULES

SECTION ARETURN OF CAPITAL

177Application to court for order authorising return of capital

178Procedure for return of capital

SECTION BCONCLUSION OF BANK INSOLVENCY

179Department’s directions under section 116 of the 2009 Act

180Procedure following appeal under section 116 of the 2009 Act

SECTION CLEAVE TO ACT AS DIRECTOR, ETC. OF BANK WITH PROHIBITED NAME (ARTICLE 180 OF THE ORDER)

182Application for leave under Article 180(3) before passing of full payment resolution

183Consideration of application for leave under Article 180(3)

184First excepted case

185Second excepted case

186Third excepted case

187Further exception

PART 18COURT PROCEDURE AND PRACTICE

CHAPTER 1APPLICATIONS (GENERAL)

189Interpretation

190Form and contents of application

191Application under Article 150A(5) to disapply Article 150A

192Filing and service of application

193Notice of application under section Article 150A(5)

194Other hearings without notice

195Hearing of application

196Use of affidavit evidence

197Filing and service of affidavits

198Use of reports

199Adjournment of hearing: directions

CHAPTER 3SHORTHAND WRITERS

200Nomination and appointment of shorthand writers

201Remuneration

CHAPTER 4ENFORCEMENT PROCEDURES

202Enforcement of court orders

203Orders enforcing compliance with the rules

204Warrants (general provisions)

205Warrants under Article 200

CHAPTER 5COURT RECORDS AND RETURNS

206Title of proceedings

207Court records

208Inspection of records

209File of court proceedings and inspection

210Filing of Gazette notices and advertisements

CHAPTER 6COSTS AND DETAILED ASSESSMENT

211Application of the Supreme Court Rules

212Requirement to assess costs by the detailed procedure

213Procedure where detailed assessment required

214Cost of officers charged with executions of writs or other process

215Costs paid otherwise than out of the insolvent estate

216Award of costs against responsible insolvency practitioner

217Application for costs

218Costs and expenses of witnesses

CHAPTER 7PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS

219Introductory

220Appointment of another person to act

221Affidavit in support of application

222Service of notices following appointment

CHAPTER 8APPEALS IN BANK INSOLVENCY PROCEEDINGS

223Appeals and review of court orders

224Procedure on appeal

225Appeal against a decision of the Department

CHAPTER 9GENERAL

226Principal court rules and practice to apply

227Right of attendance

228Restriction on concurrent proceedings and remedies

229Security in court

230Further information and disclosure

231Office copies of documents

PART 19PROXIES AND COMPANY REPRESENTATION

232Definition of “proxy”

233Issue and use of forms

234Use of proxies at meetings

235Retention of proxies

236Right of inspection

237Proxy-holder with financial interest

238Company representation

PART 20EXAMINATION OF PERSONS CONCERNED IN BANK INSOLVENCY

240Form and contents of application

241Order for examination, etc

242Procedure for examination

243Record of examination

244Cost of proceedings

PART 21DECLARATION AND PAYMENT OF DIVIDEND

246Notice of intended dividend

247Final admission/rejection of proofs

248Postponement or cancellation of dividend

249Decision to declare dividend

250Notice of declaration

251Notice of no, or no further, dividend

252Proof altered after payment of dividend

253Secured creditors

254Disqualification from dividend

255Assignment of right to dividend

256Preferential creditors

257Debt payable at future time

PART 22MISCELLANEOUS AND GENERAL

258Power of Department to regulate certain matters

259Costs, expenses, etc

260Provable debts

262Quorum at meeting of creditors or contributories

263Evidence of proceedings at meetings

264Documents issuing from the Department

265Insolvency practitioner’s security

267Service by post

268General provisions as to service

269Service outside the jurisdiction

270Confidentiality of documents

271Notices sent simultaneously to the same person

272Right to copy documents

273Charge for copy documents

274Non-receipt of notice of meeting

275Right to have list of creditors

276False claim of status as creditors

277Execution overtaken by judgement debtor’s insolvency

279Punishment of offences

280Notice of order under Article 150A(5)

PART 23INTERPRETATION

281Introductory

282Expressions used generally

283“Give notice”, etc

284Notice, etc to solicitors

285Notice to joint bank liquidators

286“Insolvent estate”

287“Responsible insolvency practitioner”, etc

288The Schedule

1The following schedules of the 1991 Rules are applied to...

2009 No. 64

BANKING

BANK INSOLVENCY

The Bank Insolvency Rules (Northern Ireland) 2009

Made18th February 2009

To be laid before Parliament

Coming into operation25th February 2009

The Lord Chancellor makes the following Rules in exercise of the powers under Article 359 of the Insolvency (Northern Ireland) Order 19891.

The Treasury concur in the making of the Rules.

The Lord Chief Justice of Northern Ireland under Article 359 (1A) of the Insolvency (Northern Ireland) Order 1989 concurs in the making of the Rules in so far as they affect court procedure.

The Lord Chancellor has not consulted the Committee existing for the purposes of Article 360 of the Order: this is the first set of rules made in reliance on section 125 of the Banking Act 2009 (“the 2009 Act”)2 and the duty to consult does not therefore apply to these rules by virtue of section 125 (8) of that Act.