Source: http://www.legislation.gov.uk/ukpga/2009/1/part/2/crossheading/process-of-bank-liquidation
Timestamp: 2013-05-23 13:51:47
Document Index: 306289955

Matched Legal Cases: ['art. 2', 'art. 2', 'art. 2', 'art. 2', 'art.\n101', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art.104']

Process of bank liquidationTable of ContentsContentExplanatory NotesMore ResourcesPrevious: CrossheadingNext: CrossheadingPlain ViewPrint Options
Status:This version of this cross heading contains provisions that are prospective.StatusThe term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section. A version of a provision is prospective either:where the provision (Part, Chapter or section) has never come into force or;where the text of the provision is subject to change, but no date has yet been appointed by the appropriate person or body for those changes to come into force.Commencement Orders listed in the ‘Changes to Legislation’ box as not yet applied may bring this prospective version into force.Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Banking Act 2009. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to the whole Act, associated Parts and Chapters:Changes and effectsThis section lists the changes and effects yet to be applied to the whole Act, associated Parts and Chapters where applicable. This includes any insertions of whole new Parts, Chapters or provisions yet to be inserted into this Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing.Whole provisions yet to be inserted into this Act (including any effects on those provisions):s. 48A inserted by 2010 c. 28 s. 21(2)s. 206A inserted by 2010 c. 28 s. 20Commencement Orders yet to be applied to the Banking Act 2009:Commencement OrdersThis section lists the commencement orders yet to be applied to the whole Act. These effects are included in this view as they may be (but won’t necessarily be) relevant to the specific provision that you are viewing. Where applicable the commencement orders are listed under two headings, firstly those that bring some part of the Act you are viewing into force and secondly, those that bring into force legislation that affects some part of the legislation you are viewing. If you are viewing a prospective version or there is a prospective version available there may be commencement orders listed here that are relevant to the provision you are viewing.Commencement Orders bringing provisions within this Act into force:S.I. 2009/296 art. 2 3 Sch. commences (2009 c. 1)S.I. 2009/1296 art. 2 Sch. commences (2009 c. 1)S.I. 2009/2038 art. 2 Sch. commences (2009 c. 1)S.I. 2009/3000 art. 2-4 commences (2009 c. 1)ProspectiveProcess of bank liquidationE+W+S+N.I.99ObjectivesE+W+S+N.I.(1)A bank liquidator has two objectives.
100Liquidation committeeE+W+S+N.I.(1)Following a bank insolvency order a liquidation committee must be established, for the purpose of ensuring that the bank liquidator properly exercises the functions under this Part.
101Liquidation committee: supplementalE+W+S+N.I.(1)A meeting of the liquidation committee may be summoned—
102Objective 1: (a) or (b)?E+W+S+N.I.(1)As soon as is reasonably practicable, a liquidation committee must recommend the bank liquidator to pursue—
103General powers, duties and effectE+W+S+N.I.(1)A bank liquidator may do anything necessary or expedient for the pursuit of the Objectives in section 99.
TABLE OF APPLIED PROVISIONSProvision of Insolvency Act 1986SubjectModification or commentSection 127Avoidance of property dispositionsIgnore section 127(2).Section 128Avoidance of attachment, &c.Section 130Consequences of winding-up orderIgnore section 130(4).Section 131Company's statement of affairs(a)Treat references to the official receiver as references to the bank liquidator.
Section 135Provisional appointment(a)Treat the reference to the presentation of a winding-up petition as a reference to the making of an application for a bank insolvency order.
Section 141Liquidation Committee (England and Wales)The application of section 141 is subject to—
(a)sections 100, 101 and 109 of this Act,
(b)rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 141 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and
(c)the omission of references to the official receiver.
Section 142Liquidation Committee (Scotland)The application of section 142 is subject to—
(b)rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 142 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and
Section 143General functions of liquidator(a)Section 143(1) is subject to Objective 1 in section 99 above.
Section 144Custody of propertySection 145Vesting of propertySection 146Duty to summon final meetingSection 146 is not applied–but section 115 below makes similar provision.
Section 147Power to stay or sist proceedingsAn application may be made only by—
(d)the FSCS, or
(e)a creditor or contributory (but only if the liquidation committee has passed a full payment resolution).
Section 148List of contributories and application of assetsBy virtue of the Insolvency Rules the functions under this section are largely delegated to the liquidator–rules by virtue of section 125 may achieve a similar delegation to the bank liquidator.
Section 149Debts due from contributoriesSection 150Power to make callsSection 152Order on contributory: evidenceSection 153Exclusion of creditorsSection 154Adjustment of rights of contributoriesSection 155Inspection of books by creditorsIn making or considering whether to make an order under section 155 the court shall have regard to Objective 1 in section 99 above.
Section 156Payment of expenses of winding upSection 157Attendance at company meetings (Scotland)Section 158Power to arrest absconding contributorySection 159Powers to be cumulativeSection 159 is not applied–but subsection (5) above makes similar provision.
Section 160Delegation of powers to liquidator (England and Wales)Section 161Orders for calls on contributories (Scotland)Section 162Appeals from orders (Scotland)An appeal may be brought only if the liquidation committee has passed a full payment resolution.
Section 167 and Schedule 4General powers of liquidator(a)An application to the court may not be made under section 167(3) unless the liquidation committee has passed a full payment resolution (although a creditor or contributory may apply to the court with respect to any action (or inaction) of the liquidation committee, under section 101(3) above).
(b)In exercising or considering whether to exercise a power under Schedule 4 the bank liquidator shall have regard to Objective 1 in section 99.
(c)A reference to the liquidation committee is to the liquidation committee established by section 100.
(d)The power in paragraph 4 of Schedule 4 includes the power to submit matters to arbitration.
Section 168Supplementary powers of liquidator(a)A direction or request under section 168(2) has no effect unless the liquidation committee has passed a full payment resolution.
Section 169Supplementary powers (Scotland)(a)Ignore section 169(1).
Section 170Liquidator's duty to make returnsThe liquidation committee is added to the list of persons able to apply under section 170(2).
Section 172Removal of liquidatorSection 172 is not applied to a bank liquidator–but section 108 makes similar provision.
Section 172(1), (2) and (5) are applied to a provisional bank liquidator.Section 174Release of liquidatorSection 174 is not applied–but section 115 makes similar provision.Section 175Preferential debtsSection 176Preferential charge on goods restrainedSection 176ZAExpenses of winding upSection 176AShare of assets for unsecured creditorsSection 177Appointment of special managerSection 178Power to disclaim onerous propertySection 179Disclaimer of leaseholdsSection 180Land subject to rentchargeSection 181Disclaimer: powers of courtSection 182LeaseholdsSection 183Effect of execution or attachment (England and Wales)Section 184Execution of writs (England and Wales)Section 185Effect of diligence (Scotland)In the application of section 37(1) of the Bankruptcy (Scotland) Act 1985 the reference to an order of the court awarding winding up is a reference to the making of the bank insolvency order.Section 186Rescission of contracts by courtSection 187Transfer of assets to employeesSection 188PublicitySection 189Interest on debtsSection 190Exemption from stamp dutySection 191Company's books as evidenceSection 192Information about pending liquidationsSection 193Unclaimed dividends (Scotland)Section 194Resolutions passed at adjourned meetingsSection 195Meetings to ascertain wishes of creditors or contributoriesThe power to have regard to the wishes of creditors and contributories is subject to Objective 1 in section 99.Section 196Judicial notice of court documentsSection 197Commission for receiving evidenceSection 198Court order for examination of persons (Scotland)Section 199Costs of application for leave to proceed (Scotland)Section 200AffidavitsSection 206Fraud in anticipation of winding upSection 207Transactions in fraud of creditorsSection 208Misconduct in course of winding upSection 209Falsification of company's booksSection 210Material omissionsSection 211False representations to creditorsSection 212Summary remedy against directors, &c.Section 213Fraudulent tradingSection 214Wrongful tradingSection 215Sections 213 & 214: procedureSection 216Restriction on re-use of company namesSection 217Personal liability for debtsSection 218Prosecution of officers and members of company(a)Ignore subsections (4) and (6).
Section 219Obligations under section 218Section 231Appointment of 2 or more personsSection 232Validity of actsSection 233UtilitiesSection 234Getting in company's propertySection 235Co-operation with liquidatorIgnore references to the official receiverSection 236Inquiry into company's dealingsIgnore references to the official receiverSection 237Section 236: enforcement by courtSection 238Transactions at undervalue (England and Wales)Anything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a transaction at an undervalue for the purposes of section 238.Section 239Preferences (England and Wales)Action taken by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act does not amount to giving a preference for the purpose of section 239.Section 240Sections 238 & 239: relevant timeSection 241Orders under sections 238 & 239Having notice of the relevant proceedings means having notice of—
(a)an application by the Bank of England, the FSA or the Secretary of State for a bank insolvency order, or
(b)notice under section 120 below.
Section 242Gratuitous alienations (Scotland)Anything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a gratuitous alienation for the purpose of section 242 or any other rule of law.Section 243Unfair preferences (Scotland)Action taken by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act does not amount to an unfair preference for the purpose of section 243 or any other rule of law.Section 244Extortionate credit transactionsSection 245Avoidance of floating chargesSection 246Unenforceability of liensSections 386 & 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)Preferential debtsSection 389Offence of acting without being qualifiedTreat references to acting as an insolvency practitioner as references to acting as a bank liquidator.Section 390Persons not qualified to actTreat references to acting as an insolvency practitioner as references to acting as a bank liquidator.Section 391Recognised professional bodiesAn order under section 391 has effect in relation to any provision applied for the purposes of bank insolvency.Sections 423–425Transactions defrauding creditorsAnything done by the bank in connection with the exercise of a stabilisation power under Part 1 of this Act is not a transaction at an undervalue for the purposes of section 423. Sections 430 to 432and Schedule 10OffencesSection 433Statements: admissibilityFor section 433(1)(a) and (b) substitute a reference to a statement prepared for the purposes of a provision of this Part.104Additional general powersE+W+S+N.I.(1)A bank liquidator has the following powers.
105Status of bank liquidatorE+W+S+N.I.A bank liquidator is an officer of the court.
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