PART 7Further Amendments relating to Parts 2 to 6
Housing Act 1996I139
1
In section 44 of the Housing Act 1996 (proposals as to ownership and management of landlord’s land)49, subsection (4) is amended as follows.
2
In paragraph (b), omit the final “or”.
3
After paragraph (c), insert—
or
d
if the landlord is a relevant financial institution—
i
an ordinary non-preferential debt of the landlord is to be paid otherwise than in priority to any secondary non-preferential debts of the landlord,
ii
a secondary non-preferential debt of the landlord is to be paid otherwise than in priority to any tertiary non-preferential debts of the landlord, or
iii
a secondary non-preferential creditor is to be paid a smaller proportion of a secondary non-preferential debt of the landlord than another secondary non-preferential creditor, except with the concurrence of the creditor concerned.
4
In the final sentence, after “secondary preferential debts” insert “, ordinary non-preferential debts, secondary non-preferential debts, tertiary non-preferential debts, relevant financial institution”.
Housing and Regeneration Act 2008I240
1
The Housing and Regeneration Act 200850 is amended as follows.
2
In section 152 (proposals)51, in subsection (4)—
a
in paragraph (b), omit the final “or”;
b
after paragraph (c), insert—
or
d
if the registered provider is a relevant financial institution—
i
an ordinary non-preferential debt being paid otherwise than in priority to a secondary non-preferential debt,
ii
a secondary non-preferential debt being paid otherwise than in priority to a tertiary non-preferential debt, or
iii
a secondary non-preferential creditor (Creditor 1) being paid a smaller proportion of a secondary non-preferential debt than another secondary non-preferential creditor (Creditor 2) (unless Creditor 1 consents).
3
In section 275 (general)52, for “and “secondary preferential debt”” substitute “, “ordinary non-preferential debt”, “secondary preferential debt”, “secondary non-preferential debt”, “tertiary non-preferential debt” and “relevant financial institution””.
4
In section 276 (index of defined terms)53, in the table, insert the following entries at the appropriate places—
Ordinary non-preferential debt
Section 275
Relevant financial institution
Section 275
Secondary non-preferential debt
Section 275
Tertiary non-preferential debt
Section 275
Housing (Scotland) Act 2010I341
In section 80 of the Housing (Scotland) Act 2010 (proposals: formulation)54—
a
in subsection (5)—
i
omit the “or” after paragraph (b), and
ii
after paragraph (c), insert—
or
d
where the debtor is a relevant financial institution—
i
secondary non-preferential debts being paid before ordinary non-preferential debts,
ii
tertiary non-preferential debts being paid before secondary non-preferential debts, or
iii
creditors being paid different proportions of secondary non-preferential debts (except where affected creditors agree to be paid a smaller proportion).
b
after subsection (5) insert—
6
In this section—
“ordinary non-preferential debts” has the meaning given by section 129(1)(g) of the Bankruptcy (Scotland) Act 2016;
“secondary non-preferential debts” and “tertiary non-preferential debts” have the meanings given by section 129A of the Bankruptcy (Scotland) Act 2016.
Bankruptcy (Scotland) Act 2016I442
The Bankruptcy (Scotland) Act 2016 is amended in accordance with articles 43 to 45.
I543
1
Section 129 (priority in distribution)55 is amended as follows.
2
In subsection (1)—
a
in paragraph (g), after “ordinary” insert “non-preferential”,
b
after paragraph (g) insert—
ga
secondary non-preferential debts,
gb
tertiary non-preferential debts,
c
in paragraph (h)—
i
omit the “and” after sub-paragraph (ii),
ii
in sub-paragraph (iii), after “ordinary” insert “non-preferential”, and
iii
after sub-paragraph (iii) insert—
iv
the secondary non-preferential debts, and
v
the tertiary non-preferential debts.
3
After subsection (3) insert—
3A
In subsection (1), “secondary non-preferential debts” and “tertiary non-preferential debts” have the meanings given by section 129A.
I644
After section 129 insert—
129ASection 129: interpretation
1
In this Act, “secondary non-preferential debts” means non-preferential debts issued by a relevant financial institution under an instrument where—
a
the original contractual maturity of the instrument is of at least one year,
b
the instrument is not a derivative and contains no embedded derivative, and
c
the relevant contractual documentation and where applicable the prospectus related to the issue of the debts explain the priority of the debts under this Act.
2
In subsection (1)(b), “derivative” has the same meaning as in Article 2(5) of Regulation (EU) No 648/201256.
3
For the purposes of subsection (1)(b) an instrument does not contain an embedded derivative merely because—
a
it provides for a variable interest rate derived from a broadly used reference rate, or
b
it is not denominated in the domestic currency of the person issuing the debt (provided that the principal, repayment and interest are denominated in the same currency).
4
In this Act, “tertiary non-preferential debts” means all subordinated debts, including (but not limited to) debts under Common Equity Tier 1 instruments, Additional Tier 1 instruments and Tier 2 instruments (all within the meaning of Part 1 of the Banking Act 2009).
5
In this section, “relevant financial institution” means any of the following—
a
a credit institution,
b
an investment firm,
c
a financial holding company,
d
a mixed financial holding company,
e
a financial institution which is—
i
a subsidiary of an entity referred to in sub-paragraphs (a) to (d), and
ii
covered by the supervision of that entity on a consolidated basis in accordance with Articles 6 to 17 of Regulation (EU) No 575/201357, or
f
a mixed-activity holding company.
6
The definitions in Article 4 of Regulation (EU) No. 575/201358 apply for the purposes of subsection (5).
I745
In section 228 (interpretation)59, in subsection (1), omit the definition of “ordinary debt”.
Amendment of the Investment Bank Special Administration Regulations 2011I846
In the table in Schedule 5 (Table of enactments referred to in these Regulations together with the equivalent enactment having effect in relation to Northern Ireland) of the Investment Bank Special Administration Regulations 201160, insert the following entries at the appropriate places—
Section 176AZA
Article 150ZZA
Section 387A
Article 347A