Banking Act 2009

Process U.K.

141 Bank administration order U.K.

(1) A bank administration order is an order appointing a person as the bank administrator of a bank.

(2) A person is eligible for appointment as a bank administrator if qualified to act as an insolvency practitioner [F1 in relation to the bank].

(3) An appointment may be made only if the person has consented to act.

(4) A bank administration order takes effect in accordance with its terms; and—

(a) the process of a bank administration order having effect may be described as “bank administration” in relation to the bank, and

(b) while the order has effect the bank may be described as being “in bank administration”.

Textual Amendments

F1 Words in s. 141(2) inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(7)

Commencement Information

I1 S. 141 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

142 Application U.K.

(1) An application for a bank administration order may be made to the court by the Bank of England.

(2) An application must nominate a person to be appointed as the bank administrator.

(3) The bank must be given notice of an application, in accordance with rules under section 411 of the Insolvency Act 1986 (as applied by section 160 below).

Commencement Information

I2 S. 142 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

143 Grounds for applying U.K.

(1) The Bank of England may apply for a bank administration order in respect of a bank if the following conditions are met.

(2) Condition 1 is that the Bank of England has made or intends to make a property transfer instrument in respect of the bank in accordance with section 11(2) [F2 , 12(2) or 12ZA(3)].

(3) Condition 2 is that the Bank of England is satisfied that the residual bank—

(a) is unable to pay its debts, or

(b) is likely to become unable to pay its debts as a result of the property transfer instrument which the Bank intends to make.

Textual Amendments

F2 Words in s. 143(2) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(7)

Commencement Information

I3 S. 143 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

144 Grounds for making U.K.

(1) The court may make a bank administration order if satisfied that the conditions in section 143 were met.

(2) On an application for a bank administration order the court may—

(a) grant the application,

(b) adjourn the application (generally or to a specified date), or

(c) dismiss the application.

Commencement Information

I4 S. 144 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

145 General powers, duties and effect U.K.

(1) A bank administrator may do anything necessary or expedient for the pursuit of the Objectives in section 137.

(2) The following provisions of this section provide for—

(a) general powers and duties of bank administrators (by application of provisions about administrators), and

(b) the general process and effects of bank administration (by application of provisions about administration).

(3) The provisions set out in the Tables apply in relation to bank administration as in relation to administration, with—

(a) the modifications set out in subsection (4),

(b) any other modification specified in the Tables, and

(c) any other necessary modification.

(4) The modifications are that—

(a) a reference to the administrator is a reference to the bank administrator,

(b) a reference to administration is a reference to bank administration,

(c) a reference to an administration order is a reference to a bank administration order,

(d) [F3 except where otherwise specified in Table 2,] a reference to a company is a reference to the bank,

(e) a reference to the purpose of administration is a reference to the Objectives in section 137, and

(f) in relation to provisions of the Insolvency Act 1986 other than Schedule B1 [F4 and section 246ZB], the modifications in section 103 above apply (but converting references into references to bank administration or administrators rather than to bank insolvency or liquidators).

(5) Powers conferred by this Act, by the Insolvency Act 1986 (as applied) and the Companies Acts are in addition to, and not in restriction of, any existing powers of instituting proceedings against a contributory or debtor of a bank, or the estate of any contributory or debtor, for the recovery of any call or other sum.

(6) A reference in an enactment or other document to anything done under a provision applied by this Part includes a reference to the provision as applied.

[F5 (7) In the Tables “Schedule 9 to the 2015 Act” means Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (further amendments relating to the abolition of requirements to hold meetings: company insolvency).]

TABLE 1 OF APPLIED PROVISIONS

SCHEDULE B1 TO THE INSOLVENCY ACT 1986

Provision of Schedule B1	Subject	Modification or comment
Para. 40(1)(a)	Dismissal of pending winding-up petition
Para. 41	Dismissal of administrative or other receiver
Para. 42	Moratorium on insolvency proceedings	Ignore sub-paras. (4) and (5).
Para. 43	Moratorium on other legal process	(a) In the case of bank administration following transfer to a [F6 resolution company], unless the Bank of England has given an Objective 1 Achievement Notice consent of the bank administrator may not be given for the purposes of para. 43 without the approval of the Bank of England. (b) In the case of bank administration following transfer to a [F6 resolution company], unless the Bank of England has given an Objective 1 Achievement Notice, in considering whether to give permission under sub-para. (6) to a winding-up the court must have regard to the Objectives in section 137. (c) In considering whether to give permission for the purposes of para. 43 the court must have regard to the Objectives in section 137.
Para. 44(1)(a) and (5)	Interim moratorium
Para. 46	Announcement of appointment	Ignore sub-para. (6)(b) and (c).
Paras. 47 & 48	Statement of affairs
Para. 49	Administrator's proposals	(a) Para. 49 does not apply unless the Bank of England has given an Objective 1 Achievement Notice; for bank administrator's proposals before the Bank of England has given an Objective 1 Achievement Notice, see section 147. (b) Treat the reference in sub-para. (1) to the purpose of administration as a reference to Objective 2. (c) Before making proposals under sub-para. (1) in the case of bank administration following transfer to a [F6 resolution company], the bank administrator must consult the Bank of England about the chances of a payment to the residual bank from a scheme established by resolution fund order under section 49(3). (d) Treat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to Objective 2(a). (e) Ignore sub-para.(3)(b). [F7 (ea) Ignore the amendment made by paragraph 10(2) of Schedule 9 to the 2015 Act.] (f) Treat references in sub-para. (5) to the company's entering administration as references to satisfaction of the condition in para. (a) above.
Paras. 50–58	Creditors' meeting	[F8 (za) Ignore the repeal of Paras 50 and 58 by paragraph 10(3) and (22) of Schedule 9 to the 2015 Act. (zb) Ignore the amendments of Paras 51 to 57 made by paragraph 10(4) to (21) of Schedule 9 to the 2015 Act.] (a) Treat references in para. 51(2) to the company's entering administration as references to the giving of an Objective 1 Achievement Notice. (b) The bank administrator may comply with a request under para. 56(1)(a) only if satisfied that it will not prejudice pursuit of Objective 1 in section 137. (c) A creditors' meeting may not establish a creditors' committee in reliance on para. 57 until the Bank of England has given an Objective 1 Achievement Notice. (d) Until that time the Bank of England shall have the functions of the creditors' committee.
Para. 59	General powers	A bank administrator may not rely on para. 59 (or subsection (1) above) for the purpose of recovering property transferred by property transfer instrument.
Para. 60 and Schedule 1	General powers	(a) The exercise of powers under Schedule 1 is subject to section 137(2). (b) In the case of bank administration following transfer to a [F6 resolution company], until the Bank of England has given an Objective 1 Achievement Notice powers under the following paragraphs of Schedule 1 may be exercised only with the Bank of England's consent: 2, 3, 11, 14, 15, 16, 17, 18 and 21.
Para. 61	Directors
Para. 62	Power to call meetings of creditors	[F9 Ignore the amendment made by paragraph 10(23) of Schedule 9 to the 2015 Act.]
Para. 63	Application to court for directions	(a) Before the Bank of England has given an Objective 1 Achievement Notice, the bank administrator may apply for directions if unsure whether a proposed action would prejudice the pursuit of Objective 1; and before making an application in reliance on this paragraph the bank administrator must give notice to the Bank of England, which shall be entitled to participate in the proceedings. (b) In making directions the court must have regard to the Objectives in section 137.
Para. 64.	Management powers.
Para. 65	Distribution to creditors	(a) In the case of bank administration following transfer to a [F6 resolution company], 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. [F10 (b) Where paragraph (a) applies, ignore sub-para (3).]
Para. 66	Payments
Para. 67	Taking custody of property
Para. 68	Management	Before the approval of proposals under para. 53 a bank administrator shall manage the bank's affairs, business and property in accordance with principles agreed between the bank administrator and the Bank of England.
Para. 69	Agency
Para. 70	Floating charges	The bank administrator may take action only if satisfied that it will not prejudice pursuit of Objective 1 in section 137.
Para. 71	Fixed charges	The court may make an order only if satisfied that it will not prejudice pursuit of Objective 1 in section 137.
Para. 72	Hire-purchase property	In the case of administration following transfer to a [F6 resolution company], until the Bank of England has given an Objective 1 Achievement Notice an application may be made only with the Bank of England's consent.
Para. 73	Protection for secured and preferential creditors	(a) Treat a reference to proposals as including a reference to the principles specified in the modification of para. 68 set out above. (b) Para. 73(1)(a) does not apply until the Bank of England has given an Objective 1 Achievement Notice.
Para. 74	Challenge to administrator's conduct	[F11 (za) Ignore the amendment made by paragraph 10(24) of Schedule 9 to the 2015 Act.] (a) The Bank of England may make an application to the court, on any grounds, including grounds of insufficient pursuit of Objective 1 in section 137 (in addition to applications that may anyway be made under para. 74). (b) Until the Bank of England has given an Objective 1 Achievement Notice, an order may be made on the application of a creditor only if the court is satisfied that it would not prejudice pursuit of Objective 1 in section 137.
Para. 75	Misfeasance	In addition to applications that may anyway be made under para. 75, an application may be made by the bank administrator or the Bank of England.
[F12 Para. 79]	[F12 Termination: successful rescue]	[F12 (a) Ignore sub-para. (2). (b) See section 153.]
Para. 84	Termination: no more assets for distribution	See section 154.
Para. 85	Discharge of administration order
Para. 86	Notice to Companies Registrar of end of administration	See section 153.
Para. 87	Resignation	A bank administrator may resign only by notice in writing— (a) to the court, copied to the Bank of England, or (b) in the case of a bank administrator appointed by the creditors' committee under para. 90, to the creditors' committee.
Para. 88	Removal	Until the Bank of England has given an Objective 1 Achievement Notice, an application for an order may be made only with the Bank of England's consent.
Para. 89	Disqualification	The notice under sub-para. (2) must be given to the Bank of England.
Paras. 90 & 91	Replacement	(a) Until an Objective 1 Notice has been given, the Bank of England, and nobody else, may make an application under para. 91(1). (b) After that, either the Bank of England or a creditors' committee may apply. (c) Ignore para. 91(1)(b) to (e) and (2).
Para. 96	Substitution of floating charge-holder	Para. 96 applies to a bank administrator, but— (a) only after an Objective 1 Achievement Notice has been given, and (b) ignoring references to priority of charges.
Para. 98	Discharge	[F13 Ignore the amendments made by paragraph 10(36) to (38) of Schedule 9 to the 2015 Act.] Discharge takes effect— (a) where the person ceases to be bank administrator before an Objective 1 Achievement Notice has been given, at a time determined by the Bank of England, and (b) otherwise, at a time determined by resolution of the creditors' committee (for which purpose ignore sub-para. (3)).
Para. 99	Vacation of office: charges and liabilities	In the application of sub-para. (3), payments may be made only— (a) in accordance with directions of the Bank of England, and (b) if the Bank is satisfied that they will not prejudice Objective 1 in section 137.
Paras. 100-103	Joint administrators	Until an Objective 1 Achievement Notice has been given, an application under para. 103 may be made only by the Bank of England.
Para. 104	Validity
Para. 106 (and section 430 and Schedule 10)	Fines	[F14 Ignore the amendments made by paragraph 11 of Schedule 9 to the 2015 Act.]
Paras. 107–109	Extension of time limits	(a) Until an Objective 1 Achievement Notice has been given, an application under para. 107 may be made only with the Bank of England's consent. (b) In considering an application under para. 107 the court must have regard to Objective 1 in section 137. [F15 (ba) Ignore the amendments of Para 108 made by paragraph 10(39) to (43) of Schedule 9 to the 2015 Act.] (c) In para. 108(1) “consent” means consent of the Bank of England.
Para. 110	Amendment of provisions about time	An order under para. 110 may amend a provision of the Schedule as it applies by virtue of this section (whether or not in the same way as it amends the provision as it applies otherwise).
Para. 111	Interpretation	[F16 Ignore the amendment made by paragraph 10(44) of Schedule 9 to the 2015 Act.]
[F17 Paras 112 to 114	Scotland:miscellaneous
Para 115	Scotland: floating charges	(a) In Scotland, on the giving by the Bank of England of consent as provided for in Para 65 (as applied by this section), any floating charge granted by the bank attaches to the property which is subject to the charge, unless it has already so attached, but only if the distribution concerned is to be made to creditors of the residual bank who are neither secured creditors nor preferential creditors and otherwise than by virtue of section 176A(2)(a) (as applied by this section). (b) Where paragraph (a) applies, ignore sub-paras (1A) and (1B).
Para 116	Scotland: payment to holder of floating charge subject to rights]

TABLE 2 OF APPLIED PROVISIONS

OTHER PROVISIONS OF THE INSOLVENCY ACT 1986

Section	Subject	Modification or comment
Section 135	Provisional appointment	(a) Treat the reference to the presentation of a winding-up petition as a reference to the making of an application for a bank administration order. (b) Subsection (2) applies in relation to England and Wales and Scotland (and subsection (3) does not apply). (c) Ignore the reference to the official receiver. (d) Only a person who is qualified to act as an insolvency practitioner [F18 in relation to the bank] and who consents to act may be appointed. (e) The court may only confer on a provisional bank administrator functions in connection with the pursuance of Objective 1; and section 138(2)(a) does not apply before a bank administration order is made. (f) A provisional bank administrator may not pursue Objective 2. (g) The appointment of a provisional bank administrator lapses on the appointment of a bank administrator. (h) Section 172(1), (2) and (5) apply to a provisional bank administrator.
Section 168(4) (and para. 13 of Schedule 4)	Discretion in managing and distributing assets	In the case of bank administration following transfer to a [F19 resolution company], until the Bank of England has given an Objective 1 Achievement Notice distribution may be made only— (a) with the Bank of England's consent, or (b) out of assets which have been designated as realisable by agreement between the bank administrator and the Bank of England.
[F20 Section 176ZB	Application of proceeds of office-holder claims]
Section 176A	Unsecured creditors	In the case of bank administration following transfer to a [F19 resolution company], until the Bank of England has given an Objective 1 Achievement Notice distribution may be made in reliance on s. 176A only— (a) with the Bank of England's consent, or (b) out of assets which have been designated as realisable by agreement between the bank administrator and the Bank of England.
Section 178	Disclaimer of onerous property	In the case of bank administration following transfer to a [F19 resolution company], until the Bank of England has given an Objective 1 Achievement Notice notice of disclaimer may be given only with the Bank of England's consent.
Section 179	Disclaimer of leaseholds
Section 180	Land subject to rentcharge
Section 181	Disclaimer: powers of court
Section 182	Leaseholds
Section 188	Publicity
F21 . . .	F21 . . .
F21 . . .	F21 . . .	F21 . . .
Section 233	Utilities
[F22 Section 233A	Further protection of utilities]
Section 234	Getting in company's property
Section 235	Co-operation with liquidator
Section 236	Inquiry into company's dealings
Section 237	Section 236: enforcement by court
Section 238	Transactions at undervalue (England and Wales)
Section 239	Preferences (England and Wales)
Section 240	Ss. 238 & 239: relevant time
Section 241	Orders under ss. 238 & 239	(a) In considering making an order in reliance on section 241 the court must have regard to Objective 1 of section 137. (b) Ignore subsections (2A)(a) and (3) to (3C).
Section 242	Gratuitous alienations (Scotland)
Section 243	Unfair preferences (Scotland)	In considering the grant of a decree under subsection (5) the court must have regard to Objective 1 of section 137.
Section 244	Extortionate credit transactions
Section 245	Avoidance of floating charges
Section 246	Unenforceability of liens
[F23 Section 246ZA	Fraudulent trading: administration
Section 246ZB	Wrongful trading: administration	(a) Treat the reference in subsection (2)(b) to going into insolvent liquidation as a reference to entering bank insolvency under Part 2 of this Act at a time when the bank’s assets are insufficient for the payment of its debts and other liabilities and the expenses of the bank insolvency. (b) Ignore subsection (6)(b).
Section 246ZC	Proceedings under section 246ZA or 246ZB
Section 246ZD	Power to assign certain causes of action]
Sections 386 & 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)	Preferential debts
Section 389	Offence of acting without being qualified	Treat references to acting as an insolvency practitioner as references to acting as a bank administrator.
[F24 Sections 390 to 391T	Authorisation and regulation of insolvency practitioners	(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as a bank administrator. (b) Read subsection (2) of that section (as so modified) as if after “authorised” there were inserted “to act as an insolvency practitioner”. (c) An order under section 391 has effect in relation to any provision applied for the purposes of bank administration. (d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in subsection (4)(d) of this section. (e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in subsection (4)(d) of this section.]
Sections 423–425	Transactions defrauding creditors	(a) In considering granting leave under section 424(1) the court must have regard to Objective 1 of section 137. (b) In considering making an order in reliance on section 425 the court must have regard to Objective 1 of section 137.
Sections 430–432 & Schedule 10	Offences
Section 433	Statements: admissibility	For section 433(1)(a) and (b) substitute a reference to a statement prepared for the purposes of a provision of this Part.

Textual Amendments

F3 Words in s. 145(4)(d) inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(8)(a)

F4 Words in s. 145(4)(f) inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(8)(b)

F5 S. 145(7) inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(4)

F6 Words in s. 145 Table 1 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(8)(a)

F7 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(a)

F8 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(b)

F9 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(c)

F10 Words in s. 145 Table 1 substituted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(9)(a)

F11 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(d)

F12 Words in s. 145 Table 1inserted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 21(6), 26(1)(f)

F13 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(e)

F14 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(f)

F15 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(g)

F16 Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(h)

F17 Words in s. 145 Table 1 substituted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(9)(b)

F18 Words in s. 145 Table 2 inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(10)(a)

F19 Words in s. 145 Table 2 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(8)(b)

F20 Words in s. 145 Table 2 inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(10)(b)

F21 Words in s. 145 Table 2 omitted (7.4.2017) by virtue of The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(10)(c)

F22 Words in s. 145 Table 2 inserted (E.W.S.) (1.10.2015) by The Insolvency (Protection of Essential Supplies) Order 2015 (S.I. 2015/989), art. 1(1), Sch. para. 4

F23 Words in s. 145 Table 2 inserted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(10)(d)

F24 Words in s. 145 Table 2 substituted (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 5(10)(e) (with reg. 17)

Modifications etc. (not altering text)

C1 S. 145 applied (with modifications) (23.11.2009) by Scottish and Northern Ireland Banknote Regulations 2009 (S.I. 2009/3056), reg. 1, Sch. 1 para. 4

Commencement Information

I5 S. 145 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

F25 145A Power to direct bank administrator U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F25 S. 145A omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 1(3) (with Sch. 3)

146 Status of bank administrator U.K.

A bank administrator is an officer of the court.

Commencement Information

I6 S. 146 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

147 Administrator's proposals U.K.

(1) This section applies before the giving of an Objective 1 Achievement Notice (at which point paragraph 49 of Schedule B1 to the Insolvency Act 1986 applies in accordance with section 145).

(2) The bank administrator must as soon as is reasonably practicable after appointment make a statement setting out proposals for achieving the Objectives in section 137.

(3) The statement must say whether the bank administrator proposes to pursue Objective 2(a) or 2(b) in section 140.

(4) The statement must have been agreed with the Bank of England.

(5) But a bank administrator who is unable to agree a statement with the Bank of England may apply to the court for directions under paragraph 63 of Schedule B1 to the Insolvency Act 1986 (as applied by section 145); and the court may make any order, including dispensing with the need for the Bank of England's agreement.

(6) The bank administrator must send the statement to the [F26 PRA and a copy of it to the FCA].

(7) The bank administrator may revise the statement (and subsections (4) to (6) apply to a revised statement as to the original).

(8) The statement shall be treated in the same way (subject to this section) as a statement under paragraph 49 of Schedule B1 to the Insolvency Act 1986.

Textual Amendments

F26 Words in s. 147(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 47 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement Information

I7 S. 147 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3

148 Sharing information U.K.

(1) This section applies to bank administration following transfer to a [F27 resolution company].

(2) Within the period of 5 days beginning with the day on which the bank administrator is appointed, the Bank of England must give the bank administrator information about the financial positions of the residual bank and the [F27 resolution company].

(3) While the residual bank is in bank administration the [F27 resolution company] must give the bank administrator on request information about the financial position of the [F27 resolution company] that the bank administrator requires for the purposes of pursuing Objective 1 in section 137.

(4) Until the Bank of England has given an Objective 1 Achievement Notice, the bank administrator must—

(a) give the Bank of England information on request,

(b) allow the Bank of England access to records on request,

(c) give the [F27 resolution company] information on request,

(d) allow the [F27 resolution company] access to records on request,

(e) keep the Bank of England informed about, and allow the Bank to participate in, any discussions between the bank administrator and another person which relate to, or are likely to affect, pursuit of Objective 1 in section 137, and

(f) keep the [F27 resolution company] informed about, and allow the [F27 resolution company] to participate in, any discussions between the bank administrator and another person which relate to, or are likely to affect, pursuit of Objective 1 in section 137.

(5) The Treasury shall by regulations prescribe—

(a) the classes of information that must be provided under subsections (2) to (4), and

(b) the classes of record to which access must be allowed under subsection (4).

(6) Regulations under subsection (5)—

(a) shall be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Textual Amendments

F27 Words in s. 148(1)-(4) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(9)

Commencement Information

I8 S. 148 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 3

I9 S. 148 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 3