- Latest available (Revised)
- Point in Time (08/12/2020)
- Original (As enacted)
Point in time view as at 08/12/2020.
Banking Act 2009, Cross Heading: Termination of process, &c. is up to date with all changes known to be in force on or before 12 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
(1)A bank liquidator may make a proposal in accordance with section 1 of the Insolvency Act 1986 (company voluntary arrangement).
(2)Before making a proposal the bank liquidator—
(a)shall present a final report on the bank liquidation to the liquidation committee,
(b)shall send a copy of the report to—
[F1(i)the PRA,
(ia)the FCA,]
(ii)the FSCS,
(iii)the Bank of England,
(iv)the Treasury, and
(v)the registrar of companies, and
(c)shall make the report available to members, creditors and contributories on request.
(3)A proposal may be made only with the consent of the liquidation committee.
(4)The liquidation committee may consent only if—
(a)it has passed a full payment resolution, and
(b)the bank liquidator is satisfied, as a result of arrangements made with the FSCS, that any depositor still eligible for compensation under the scheme will be dealt with in accordance with section 99(2)(a) or (b).
(5)The bank liquidator must be the nominee (see section 1(2) of the 1986 Act).
(6)Part 1 of the 1986 Act shall apply to a proposal made by a bank liquidator, with the following modifications.
(7)In section 3 (summoning of meetings) subsection (2) (and not (1)) applies.
(8)The action that may be taken by the court under section 5(3) (effect of approval) includes suspension of the bank insolvency order.
(9)On the termination of a company voluntary arrangement the bank liquidator may apply to the court to lift the suspension of the bank insolvency order.
Textual Amendments
F1S. 113(2)(b)(i)(ia) substituted for s. 113(2)(b)(i) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 41 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Commencement Information
I1S. 113 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2
(1)A bank liquidator who thinks that administration would achieve a better result for the bank's creditors as a whole than bank insolvency may apply to the court for an administration order (under paragraph 38 of Schedule B1 to the Insolvency Act 1986).
(2)An application may be made only if the following conditions are satisfied.
(3)Condition 1 is that the liquidation committee has passed a full payment resolution.
(4)Condition 2 is that the liquidation committee has resolved that moving to administration might enable the rescue of the bank as a going concern.
(5)Condition 3 is that the bank liquidator is satisfied, as a result of arrangements made with the FSCS, that any depositors still eligible for compensation under the scheme will receive their payments or have their accounts transferred during administration.
Commencement Information
I2S. 114 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2
(1)A bank liquidator who thinks that the winding up of the bank is for practical purposes complete shall summon a final meeting of the liquidation committee.
(2)The bank liquidator—
(a)shall present a final report on the bank insolvency to the meeting,
(b)shall send a copy of the report to—
[F2(i)the PRA,
(ia)the FCA,]
(ii)the FSCS,
(iii)the Bank of England,
(iv)the Treasury, and
(v)the registrar of companies, and
(c)shall make the report available to members, creditors and contributories on request.
(3)At the meeting the liquidation committee shall—
(a)consider the report, and
(b)decide whether to release the bank liquidator.
(4)If the liquidation committee decides to release the bank liquidator, the bank liquidator—
(a)shall notify the court and the registrar of companies, and
(b)vacates office, and has release, when the court is notified.
(5)If the liquidation committee decides not to release the bank liquidator, the bank liquidator may apply to the Secretary of State for release; if the application is granted, the bank liquidator—
(a)vacates office when the application is granted, and
(b)has release from a time determined by the Secretary of State.
(6)In the case of a bank liquidator in Scotland, a reference in subsection (5) to the Secretary of State is a reference to the Accountant of Court.
(7)On receipt of a notice under subsection (4)(a) the registrar of companies shall register it.
(8)At the end of the period of 3 months beginning with the day of the registration of the notice, the bank is dissolved (subject to deferral under section 116).
Textual Amendments
F2S. 115(2)(b)(i)(ia) substituted for s. 115(2)(b)(i) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 42 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Commencement Information
I3S. 115 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2
(1)The Secretary of State may by direction defer the date of dissolution under section 115, on the application of a person who appears to the Secretary of State to be interested.
(2)An appeal to the court lies from any decision of the Secretary of State on an application for a direction under subsection (1).
(3)Subsection (1) does not apply where the bank insolvency order was made by the court in Scotland; but the court may by direction defer the date of dissolution on an application by a person appearing to the court to have an interest.
(4)A person who obtains deferral under subsection (1) or (3) shall, within 7 days after the giving of the deferral direction, deliver a copy of the direction to the registrar of companies for registration.
(5)A person who without reasonable excuse fails to comply with subsection (4) is liable to a fine and, for continued contravention, to a daily default fine, in each case of the same amount as for a contravention of section 205(6) of the Insolvency Act 1986 (dissolution).
(6)The bank liquidator may give the notice summoning the final meeting under section 115 above at the same time as giving notice of any final distribution of the bank's property; but, if summoned for an earlier date the meeting shall be adjourned (and, if necessary, further adjourned) until a date on which the bank liquidator is able to report to the meeting that the winding up of the bank is for practical purposes complete.
(7)A bank liquidator must retain sufficient sums to cover the expenses of the final meeting under section 115 above.
Commencement Information
I4S. 116 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: