Part 13Other special types of company etc
Chapter 6Banks etc in compulsory liquidation
635Application of Chapter
1
This Chapter applies if—
a
a company is being or has been wound up by the court in the United Kingdom, and
b
conditions A, B and C are met.
2
Condition A is that the company was, at any time within the period mentioned in subsection (5), lawfully carrying on a business of accepting deposits as—
a
a person of the kind mentioned in paragraph (b) of the definition of “bank” in section 1120(2) (persons with permission under Part 4 of FISMA 2000 to accept deposits), or
b
a permitted EEA credit institution.
3
Condition B is that the company has permanently ceased to carry on the trade that included the business of accepting deposits (the “deposit-taking trade”).
4
Condition C is that the company is insolvent and—
a
was so when the winding up proceedings started, or
b
became so at any time in the period of 12 months following the day on which those proceedings started.
5
The period referred to in subsection (2) is the period of 12 months ending with the earlier of—
a
the day on which the winding up proceedings started, and
b
the day on which the company permanently ceased to carry on the deposit-taking trade.
6
In subsection (2)(b) a “permitted EEA credit institution” means an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to FISMA 2000 (credit institutions authorised by home state regulator) which has permission to accept deposits under paragraph 15 of that Schedule.