6.—(1) The provisions of Part 2 of the Act (bank insolvency) set out in the Table apply in relation to special administration (bank insolvency) with the following modifications—U.K.
(a)the modifications set out in sub-paragraph (2); and
(b)any other modification specified in the Table.
(2) The modifications are that a reference to—
(a)a bank is to a deposit-taking bank;
(b)bank insolvency is to special administration (bank insolvency);
(c)a bank insolvency order is to a special administration (bank insolvency) order;
(d)the bank liquidator is to the administrator;
(e)Objective 1 in section 99 of the Act or Objective 1 is to Objective A;
(f)the liquidation committee is to the Objective A committee;
(g)rules made under section 411 of the Insolvency Act 1986 is to insolvency rules; and
(h)section 168(5) of the Insolvency Act is to paragraph 74(2) of Schedule B1 (as applied by regulation 15).
| Provision of Part 2 of the Act | Subject | Modification or comment |
|---|---|---|
| Section 94(2) to (4) | The order | |
| Section 95 | Application | Subsection (1)(c) is not applied. |
| Section 96 | Grounds for applying | |
| Section 97 | Grounds for making | In making a special administration (bank insolvency) order, the court must also be satisfied that the company is an investment bank. |
| Section 98 | Commencement | |
| Section 100 | Liquidation committee | (a) This committee is established only for the purpose of ensuring that the administrator works towards the achievement of Objective A. (b) Subsections (6) and (7) are not applied. |
| Section 101 | Liquidation committee: supplemental | (a) In subsection (2) ignore the words from “While the liquidation” to “nominated replacements)”. (b) The references in subsection (5)(b) to sections 168(3) or 169(2) of the Insolvency Act are to paragraph 63 of Schedule B1 (as applied by regulation 15). (c) On the passing of the full payment resolution, the Objective A committee ceases to exist but the FSCS shall have the right to be a member of the creditors' committee. (d) Subsections (7) to (9) are not applied |
| Section 102 | Objective 1: (a) or (b) | (a) The references to “Objective 1 (a)” and to “Objective 1(b)” are to Objective A(a) and Objective A(b) respectively. (b) The reference to Objective 2 is a reference to the special administration objectives. |
| Section 123 | Role of the FSCS | Ignore subsection (3). |
| Section 124 | Transfer of accounts |