SCHEDULEMODIFICATIONS TO PRIMARY AND SECONDARY LEGISLATION

Regulation 46

PART 1PRIMARY LEGISLATION

Modification of the Companies Act 19851

Section 196 (payment of debts out of assets subject to floating charge (England and Wales)) of the Companies Act 1985 shall not apply to an owner.

Modifications of the 1986 Act2

1

Sections 40 (payment of debts out of assets subject to floating charge) and 43 (power to dispose of charged property) of the 1986 Act shall not apply to an owner.

2

Section 107 of the 1986 Act (distribution of company's property) shall apply only after payment has been made of the claims of relevant persons.

3

Section 156 of the 1986 Act (payment of expenses of winding up) shall apply only after payment has been made of the expenses referred to in regulation 29.

4

Section 175 (preferential debts (general provision)) and 176A (share of assets for unsecured creditors) of the 1986 Act shall not apply to an owner.

5

Paragraphs 65(1) and 66 of Schedule B1 (distributions) to the 1986 Act shall apply only after payment has been made of the claims of relevant persons.

Modifications of the Act3

Section 165 (F5Regulator’s power to require information) of the Act is to apply for the purposes of these Regulations as it applies for the purposes of the Act but with the modification that for references to “an authorised person” there is substituted references to “ a person to whom the Regulated Covered Bonds Regulations 2008 apply ”>.

4

Section 166 (reports by skilled persons) of the Act is to apply for the purposes of these Regulations as it applies for the purposes of the Act but with the modification that for the reference in subsection (2)(a) to “an authorised person” there is substituted a reference to “ a person to whom the Regulated Covered Bond Regulations 2008 apply ”.

F44A

Section 166A (appointment of skilled person to collect and update information) of the Act is to apply for the purposes of these Regulations as it applies for the purposes of the Act but with the following modifications—

a

omit subsection (10);

b

for references in other subsections of section 166A to “authorised person” there is substituted references to “person to whom the Regulated Covered Bond Regulations 2008 apply.

F65

Paragraph 23 of Schedule 1ZA to the Act (fees) is to apply for the purposes of these Regulations as it applies for the purposes of the Act, but with the following modifications—

a

in sub-paragraph (1)—

i

for the reference to “this Act” there is substituted a reference to “the Regulated Covered Bonds Regulations 2008”;

ii

omit paragraphs (b) and (c);

b

for sub-paragraph (2) substitute—

2

The “qualifying functions” of the FCA are its functions under the Regulated Covered Bonds Regulations 2008.

c

omit sub-paragraphs (3), (4), (5) and (6);

d

for the reference in sub-paragraph (7) to “penalties imposed by it under this Act” there is substituted a reference to “penalties imposed by it under the Regulated Covered Bonds Regulations 2008.

Modification of the 2006 Act6

Where an owner is wound up, section 754 of the 2006 Act (priorities where debentures secured by floating charge) shall apply only after payment has been made of the claims of relevant persons.

PART 2SECONDARY LEGISLATION

Modifications of the F9Insolvency (England and Wales) Rules 20167

1

F7Rule 14.12 of the Insolvency (England and Wales) Rules 2016 (administration and winding up by the court: debts of insolvent company to rank equally), so far as it applies in a winding up by the court, shall apply only after payment has been made of the claims of relevant persons.

2

F8Rules 3.51, 6.42, 7.108 and 7.109 of the Insolvency (England and Wales) Rules 2016 (priority of expenses) shall apply to an owner subject to the provisions of regulation 29.

F10Modification of the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018F18

F11Rule 3.51 (order of priority) of the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018 and rule 7.28 (order of priority of expenses of liquidation) of the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 shall apply to an owner subject to the provisions of regulation 29.

Modifications of the 1989 Order9

1

Article 50 (payment of debts out of assets subject to floating charge) F3and article 53 (power to dispose of charged property) of the 1989 Order shall not apply to an owner.

F22

Article 93 of and paragraphs 66(1) and 67 of Schedule B1 to the 1989 Order (distribution of company’s property) shall apply only after payment has been made of the claims of relevant persons.

3

Article 134 of the 1989 Order (payment of expenses) shall apply only after payment has been made of the expenses referred to in regulation 29.

4

Articles 149 (preferential debts (general provision)) and 150A (share of assets for unsecured creditors) of the 1989 Order shall not apply to an owner.

Modifications of the Insolvency Rules (Northern Ireland) 199110

1

Rule 4.190(1) of the Insolvency Rules (Northern Ireland) 1991 M1 (debts of insolvent company to rank equally) shall apply only after payment has been made of the claims of relevant persons.

2

Rules 2.068, 4.228 and 4.229 of the Insolvency Rules (Northern Ireland) 1991 (priority of expenses) shall apply to an owner subject to the provisions of regulation 29.

Modification of the Cross-Border Insolvency Regulations 200611

The Cross-Border Insolvency Regulations 2006 M2 shall not apply to an owner.

Modification of the Cross-Border Insolvency (Northern Ireland) Regulations 200712

The Cross-Border Insolvency (Northern Ireland) Regulations 2007 M3 shall not apply to an owner.