PART 4Reorganisation or Winding up of UK Credit Institutions...

Application of this Part: F1certain assets excluded from insolvent estate of UK credit institution20.

(1)

For the purposes of this Part, the insolvent estate of a UK credit institution shall not include any assets which at the commencement date are subject to F2a relevant compromise or arrangement.

(2)

In this regulation—

(a)

“assets” has the same meaning as “property” in section 436 of the 1986 Act or Article 2(2) of the 1989 Order;

(b)

“commencement date” means the date when a UK credit institution goes into liquidation within the meaning given by section 247(2) of the 1986 Act or Article 6(2) of the 1989 Order;

(c)

“insolvent estate” has the meaning given by F3rule 1.2 of the Insolvency Rules or Rule 0.2 of the Insolvency Rules (Northern Ireland) and in Scotland means the company’s assets;

F4(d)

“relevant compromise or arrangement” means—

(i)

a compromise or arrangement sanctioned by the court before 5th May 2004 under—

(aa)

section 425 of the Companies Act 1985 (excluding a compromise or arrangement falling within section 427 or 427A of that Act), or

(bb)

Article 418 of the Companies (Northern Ireland) Order 1986 (excluding a compromise or arrangement falling within Article 420 or 420A of that Order); or

(ii)

any subsequent compromise or arrangement sanctioned by the court to amend or replace a compromise or arrangement of a kind mentioned in paragraph (i) which is—

(aa)

itself of a kind mentioned in sub-paragraph (aa) or (bb) of paragraph (i) (whether sanctioned before, on or after 5th May 2004), or

(bb)

a section 899 compromise or arrangement.