S. 120(10)(d) and preceding word inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(c); S.I. 2014/3160, art. 2(1)(b)

S. 120(8A) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(b); S.I. 2014/3160, art. 2(1)(b)

S. 120(7)(b) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(3)(b)

Word in s. 120(10)(b) omitted (31.12.2014) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(c); S.I. 2014/3160, art. 2(1)(b)

Word in s. 120 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Pt. 2 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2

S. 120(11) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(d); S.I. 2014/3160, art. 2(1)(b)

Words in s. 120(10) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(4)(a)

Pt. 2 applied (with modifications) by 1986 c. 53, s. 90C (as inserted (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), art. 2)

Word in s. 120 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

S. 120 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2

Words in s. 120(6) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Words in s. 120(7)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(3)(a)

Words in s. 120(5) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(2)

Pt. 2 applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 1 paras. 6, 7

S. 120(10)(a) omitted (1.1.2015) by virtue of The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(4)(b)

Pt. 2 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 para. 1 (as amended (7.4.2010) by Building Societies (Insolvency and Special Administration) (Amendment) Order 2010 (S.I. 2010/1189), arts. 1(2), 2 and amended (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), 8)

http://www.legislation.gov.uk/ukpga/2009/1/section/120/2020-12-31Banking Act 2009An Act to make provision about banking.texttext/xmlenStatute Law Database2024-05-18Expert Participation2020-12-31Part 2Bank InsolvencyOther processes
120Notice to PRA of preliminary steps1

An application for an administration order in respect of a bank may not be determined unless the conditions below are satisfied.

2

A petition for a winding up order in respect of a bank may not be determined unless the conditions below are satisfied.

3

A resolution for voluntary winding up of a bank may not be made unless the conditions below are satisfied.

4

An administrator of a bank may not be appointed unless the conditions below are satisfied.

5

Condition 1 is that the the PRA and the Bank of England have been notified—

a

by the applicant for an administration order, that the application has been made,

b

by the petitioner for a winding up order, that the petition has been presented,

c

by the bank, that a resolution for voluntary winding up may be made, or

d

by the person proposing to appoint an administrator, of the proposed appointment.

6

Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court (and made available for public inspection by the court).

7

Condition 3 is that—

a

the period of 7 days, beginning with the day on which the notice is received, has ended, or

b

both—

i

the Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable), and

ii

each of the PRA and the Bank of England has informed the person who gave the notice that it does not intend to apply for a bank insolvency order.

8

Condition 4 is that no application for a bank insolvency order is pending.

8A

Condition 5—

a

applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and

b

is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.

9

Arranging for the giving of notice in order to satisfy Condition 1 can be a step with a view to minimising the potential loss to a bank's creditors for the purpose of section 214 of the Insolvency Act 1986 (wrongful trading).

10

Where notice has been given under Condition 1

a

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

b

the PRA shall inform the person who gave the notice, within the period in Condition 3(a), whether it intends to apply for a bank insolvency order, ...

c

if the Bank of England decides to apply for a bank insolvency order or to exercise a stabilisation power under Part 1, the Bank shall inform the person who gave the notice, within the period in Condition 3(a), and

d

if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.

11

References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).

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<note class="commentary F" eId="key-060631fd9e72e3be21f6651ddc1a79e3">
<p>
S. 120(10)(d) and preceding word inserted (31.12.2014) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33">Financial Services (Banking Reform) Act 2013 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/section/148/5">s. 148(5)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/schedule/2/paragraph/10/c">Sch. 2 para. 10(c)</ref>
;
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160">S.I. 2014/3160</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160/article/2/1/b">art. 2(1)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-1c8647907125c81a8d2d784c2c7f4745">
<p>
S. 120(8A) inserted (31.12.2014) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33">Financial Services (Banking Reform) Act 2013 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/section/148/5">s. 148(5)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/schedule/2/paragraph/10/b">Sch. 2 para. 10(b)</ref>
;
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160">S.I. 2014/3160</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160/article/2/1/b">art. 2(1)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-2748d2be4cee538371dcbef3206faa0f">
<p>
S. 120(7)(b) substituted (1.1.2015) by
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329">The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/105/3/b">105(3)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-50f71c9151a1418f2443340135b21eb5">
<p>
Word in s. 120(10)(b) omitted (31.12.2014) by virtue of
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33">Financial Services (Banking Reform) Act 2013 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/section/148/5">s. 148(5)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/schedule/2/paragraph/10/c">Sch. 2 para. 10(c)</ref>
;
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160">S.I. 2014/3160</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160/article/2/1/b">art. 2(1)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-55748180b435d021d928046d9b111945">
<p>
Word in s. 120 substituted (1.4.2013) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21">Financial Services Act 2012 (c. 21)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/section/122/3">s. 122(3)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/17/paragraph/44/2">Sch. 17 para. 44(2)</ref>
(with
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/20">Sch. 20</ref>
);
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423">S.I. 2013/423</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/article/3">art. 3</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/schedule">Sch.</ref>
</p>
</note>
<note class="commentary C" eId="key-93f77ccf21d13fc3369d9cbadfb5b82c">
<p>
Pt. 2 restricted (7.1.2010) by
<ref href="http://www.legislation.gov.uk/id/uksi/2010/35">Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2010/35/article/1">arts. 1</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2010/35/article/2">2</ref>
</p>
</note>
<note class="commentary F" eId="key-9f2b70c53bd7150b683243e702d21dba">
<p>
S. 120(11) inserted (31.12.2014) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33">Financial Services (Banking Reform) Act 2013 (c. 33)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/section/148/5">s. 148(5)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2013/33/schedule/2/paragraph/10/d">Sch. 2 para. 10(d)</ref>
;
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160">S.I. 2014/3160</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3160/article/2/1/b">art. 2(1)(b)</ref>
</p>
</note>
<note class="commentary F" eId="key-ae83e6d22af00100993a23d7eaa92c78">
<p>
Words in s. 120(10) substituted (1.1.2015) by
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329">The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/105/4/a">105(4)(a)</ref>
</p>
</note>
<note class="commentary C" eId="key-b51e6c0382ca7cdcdc0e8125e497ae0e">
<p>
Pt. 2 applied (with modifications) by 1986 c. 53, s. 90C (as inserted (29.3.2009) by
<ref href="http://www.legislation.gov.uk/id/uksi/2009/805">Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2009/805/article/2">art. 2</ref>
)
</p>
</note>
<note class="commentary F" eId="key-c12b523a26272140f9a3626268bd5161">
<p>
Word in s. 120 heading substituted (1.4.2013) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21">Financial Services Act 2012 (c. 21)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/section/122/3">s. 122(3)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/17/paragraph/44/2">Sch. 17 para. 44(2)</ref>
(with
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/20">Sch. 20</ref>
);
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423">S.I. 2013/423</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/article/3">art. 3</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/schedule">Sch.</ref>
</p>
</note>
<note class="commentary I" eId="key-c9779167496f2f124f01129f86aa9f85">
<p>
S. 120 in force at 21.2.2009 by
<ref href="http://www.legislation.gov.uk/id/uksi/2009/296">S.I. 2009/296</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2009/296/article/3">art. 3</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2009/296/schedule/paragraph/2">Sch. para. 2</ref>
</p>
</note>
<note class="commentary F" eId="key-ca36262d5701bb88f687542eb4a1d81f">
<p>
Words in s. 120(6) inserted (1.4.2013) by
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21">Financial Services Act 2012 (c. 21)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/section/122/3">s. 122(3)</ref>
,
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/17/paragraph/44/3">Sch. 17 para. 44(3)</ref>
(with
<ref href="http://www.legislation.gov.uk/id/ukpga/2012/21/schedule/20">Sch. 20</ref>
);
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423">S.I. 2013/423</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/article/3">art. 3</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2013/423/schedule">Sch.</ref>
</p>
</note>
<note class="commentary F" eId="key-d66c689e5552b43c3c4075044533e15e">
<p>
Words in s. 120(7)(a) substituted (1.1.2015) by
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329">The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/105/3/a">105(3)(a)</ref>
</p>
</note>
<note class="commentary F" eId="key-de5e690dd7020b4df1f66b14b77f6df6">
<p>
Words in s. 120(5) substituted (1.1.2015) by
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329">The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/105/2">105(2)</ref>
</p>
</note>
<note class="commentary C" eId="key-e5768b47ba00346b2c20a25d13f59326">
<p>
Pt. 2 applied (with modifications) (8.2.2011) by
<ref href="http://www.legislation.gov.uk/id/uksi/2011/245">The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2011/245/regulation/1">reg. 1</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2011/245/schedule/1/paragraph/6">Sch. 1 paras. 6</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2011/245/schedule/1/paragraph/7">7</ref>
</p>
</note>
<note class="commentary F" eId="key-f7ba2e26dfa36f89792e0256257789fa">
<p>
S. 120(10)(a) omitted (1.1.2015) by virtue of
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329">The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2014/3329/article/105/4/b">105(4)(b)</ref>
</p>
</note>
<note class="commentary C" eId="M_C_9d1f591a-5422-4003-a5ba-31adaef60d3d">
<p>
Pt. 2 modified (29.3.2009) by
<ref href="http://www.legislation.gov.uk/id/uksi/2009/805">Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2009/805/schedule/1/paragraph/1">Sch. 1 para. 1</ref>
(as amended (7.4.2010) by
<ref href="http://www.legislation.gov.uk/id/uksi/2010/1189">Building Societies (Insolvency and Special Administration) (Amendment) Order 2010 (S.I. 2010/1189)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2010/1189/article/1/2">arts. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2010/1189/article/2">2</ref>
and amended (7.4.2017) by
<ref href="http://www.legislation.gov.uk/id/uksi/2017/400">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)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2017/400/regulation/1/2">regs. 1(2)</ref>
,
<ref href="http://www.legislation.gov.uk/id/uksi/2017/400/regulation/8">8</ref>
)
</p>
</note>
</notes>
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<num>
<noteRef href="#key-b51e6c0382ca7cdcdc0e8125e497ae0e" marker="C2" class="commentary C"/>
<noteRef href="#M_C_9d1f591a-5422-4003-a5ba-31adaef60d3d" marker="C4" class="commentary C"/>
<noteRef href="#key-93f77ccf21d13fc3369d9cbadfb5b82c" marker="C1" class="commentary C"/>
<noteRef href="#key-e5768b47ba00346b2c20a25d13f59326" marker="C3" class="commentary C"/>
<strong>Part 2</strong>
</num>
<heading>Bank Insolvency</heading>
<hcontainer name="crossheading" eId="part-2-crossheading-other-processes" period="#period2">
<heading>
<em>Other processes</em>
</heading>
<section eId="section-120" period="#period1">
<num>
<noteRef href="#key-c9779167496f2f124f01129f86aa9f85" marker="I1" class="commentary I"/>
120
</num>
<heading>
Notice to
<ins class="substitution key-c12b523a26272140f9a3626268bd5161-1474287993927 first last">
<noteRef href="#key-c12b523a26272140f9a3626268bd5161" marker="F8" class="commentary attribute F"/>
PRA
</ins>
of preliminary steps
</heading>
<subsection eId="section-120-1">
<num>1</num>
<content>
<p>An application for an administration order in respect of a bank may not be determined unless the conditions below are satisfied.</p>
</content>
</subsection>
<subsection eId="section-120-2">
<num>2</num>
<content>
<p>A petition for a winding up order in respect of a bank may not be determined unless the conditions below are satisfied.</p>
</content>
</subsection>
<subsection eId="section-120-3">
<num>3</num>
<content>
<p>A resolution for voluntary winding up of a bank may not be made unless the conditions below are satisfied.</p>
</content>
</subsection>
<subsection eId="section-120-4">
<num>4</num>
<content>
<p>An administrator of a bank may not be appointed unless the conditions below are satisfied.</p>
</content>
</subsection>
<subsection eId="section-120-5">
<num>5</num>
<intro>
<p>
Condition 1 is that the
<ins class="substitution key-de5e690dd7020b4df1f66b14b77f6df6-1582821784911 first last">
<noteRef href="#key-de5e690dd7020b4df1f66b14b77f6df6" marker="F11" class="commentary attribute F"/>
the PRA and the Bank of England have
</ins>
been notified—
</p>
</intro>
<paragraph eId="section-120-5-a">
<num>a</num>
<content>
<p>by the applicant for an administration order, that the application has been made,</p>
</content>
</paragraph>
<paragraph eId="section-120-5-b">
<num>b</num>
<content>
<p>by the petitioner for a winding up order, that the petition has been presented,</p>
</content>
</paragraph>
<paragraph eId="section-120-5-c">
<num>c</num>
<content>
<p>by the bank, that a resolution for voluntary winding up may be made, or</p>
</content>
</paragraph>
<paragraph eId="section-120-5-d">
<num>d</num>
<content>
<p>by the person proposing to appoint an administrator, of the proposed appointment.</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-120-6">
<num>6</num>
<content>
<p>
Condition 2 is that a copy of the notice complying with Condition 1 has been filed
<ins class="key-ca36262d5701bb88f687542eb4a1d81f-1474314853523 first last">
<noteRef href="#key-ca36262d5701bb88f687542eb4a1d81f" marker="F9" class="commentary attribute F"/>
(in Scotland, lodged)
</ins>
with the court (and made available for public inspection by the court).
</p>
</content>
</subsection>
<subsection eId="section-120-7">
<num>7</num>
<intro>
<p>Condition 3 is that—</p>
</intro>
<paragraph eId="section-120-7-a">
<num>a</num>
<content>
<p>
the period of
<ins class="substitution key-d66c689e5552b43c3c4075044533e15e-1582821740981 first last">
<noteRef href="#key-d66c689e5552b43c3c4075044533e15e" marker="F10" class="commentary attribute F"/>
7 days
</ins>
, beginning with the day on which the notice is received, has ended, or
</p>
</content>
</paragraph>
<paragraph eId="section-120-7-b">
<num>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732 first">
<noteRef href="#key-2748d2be4cee538371dcbef3206faa0f" marker="F3" class="commentary attribute F"/>
b
</ins>
</num>
<intro>
<p>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732">both—</ins>
</p>
</intro>
<subparagraph eId="section-120-7-b-i">
<num>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732">i</ins>
</num>
<content>
<p>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732">the Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable), and</ins>
</p>
</content>
</subparagraph>
<subparagraph eId="section-120-7-b-ii">
<num>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732">ii</ins>
</num>
<content>
<p>
<ins class="substitution key-2748d2be4cee538371dcbef3206faa0f-1582821692732 last">each of the PRA and the Bank of England has informed the person who gave the notice that it does not intend to apply for a bank insolvency order.</ins>
</p>
</content>
</subparagraph>
</paragraph>
</subsection>
<subsection eId="section-120-8">
<num>8</num>
<content>
<p>Condition 4 is that no application for a bank insolvency order is pending.</p>
</content>
</subsection>
<subsection eId="section-120-8A">
<num>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757 first">
<noteRef href="#key-1c8647907125c81a8d2d784c2c7f4745" marker="F2" class="commentary attribute F"/>
8A
</ins>
</num>
<intro>
<p>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757">Condition 5—</ins>
</p>
</intro>
<paragraph eId="section-120-8A-a">
<num>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757">a</ins>
</num>
<content>
<p>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757">applies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, and</ins>
</p>
</content>
</paragraph>
<paragraph eId="section-120-8A-b">
<num>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757">b</ins>
</num>
<content>
<p>
<ins class="key-1c8647907125c81a8d2d784c2c7f4745-1582717946757 last">is that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.</ins>
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-120-9">
<num>9</num>
<content>
<p>Arranging for the giving of notice in order to satisfy Condition 1 can be a step with a view to minimising the potential loss to a bank's creditors for the purpose of section 214 of the Insolvency Act 1986 (wrongful trading).</p>
</content>
</subsection>
<subsection eId="section-120-10">
<num>10</num>
<intro>
<p>
<ins class="substitution key-ae83e6d22af00100993a23d7eaa92c78-1582821660868 first last">
<noteRef href="#key-ae83e6d22af00100993a23d7eaa92c78" marker="F7" class="commentary attribute F"/>
Where notice has been given under Condition 1
</ins>
</p>
</intro>
<paragraph eId="section-120-10-a">
<num>
<noteRef href="#key-f7ba2e26dfa36f89792e0256257789fa" marker="F12" class="commentary F"/>
a
</num>
<content>
<p>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</p>
</content>
</paragraph>
<paragraph eId="section-120-10-b">
<num>b</num>
<content>
<p>
the
<ins class="substitution key-55748180b435d021d928046d9b111945-1474314813894 first last">
<noteRef href="#key-55748180b435d021d928046d9b111945" marker="F5" class="commentary attribute F"/>
PRA
</ins>
shall inform the person who gave the notice, within the period in Condition 3(a), whether it intends to apply for a bank insolvency order,
<noteRef href="#key-50f71c9151a1418f2443340135b21eb5" marker="F4" class="commentary F"/>
...
</p>
</content>
</paragraph>
<paragraph eId="section-120-10-c">
<num>c</num>
<content>
<p>
if the Bank of England decides to apply for a bank insolvency order or to exercise a stabilisation power under Part 1, the Bank shall inform the person who gave the notice, within the period in Condition 3(a)
<ins class="key-060631fd9e72e3be21f6651ddc1a79e3-1582718010187 first">
<noteRef href="#key-060631fd9e72e3be21f6651ddc1a79e3" marker="F1" class="commentary attribute F"/>
, and
</ins>
</p>
</content>
</paragraph>
<paragraph eId="section-120-10-d">
<num>
<ins class="key-060631fd9e72e3be21f6651ddc1a79e3-1582718010187">d</ins>
</num>
<content>
<p>
<ins class="key-060631fd9e72e3be21f6651ddc1a79e3-1582718010187 last">if Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.</ins>
</p>
</content>
</paragraph>
</subsection>
<subsection eId="section-120-11">
<num>
<ins class="key-9f2b70c53bd7150b683243e702d21dba-1582717974291 first">
<noteRef href="#key-9f2b70c53bd7150b683243e702d21dba" marker="F6" class="commentary attribute F"/>
11
</ins>
</num>
<content>
<p>
<ins class="key-9f2b70c53bd7150b683243e702d21dba-1582717974291 last">References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).</ins>
</p>
</content>
</subsection>
</section>
</hcontainer>
</part>
</portionBody>
</portion>
</akomaNtoso>