Banks And Banking PART 1 General Citation and commencement 1 This Order may be cited as the Dunfermline Building Society Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009 and shall come into force on the day after the day on which it is made. Interpretation 2 In this Order— “Account Holder” has the meaning given in paragraph 1(2) of Schedule 1; “ the Act ” means the Banking Act 2009; “Bridge Bank” means DBS Bridge Bank Limited, a company with the registered number SC356970 whose registered office is Caledonia House, Carnegie Avenue, Dunfermline KY11 8PJ; “Bridge Bank business” means the property, rights and liabilities transferred from Dunfermline to the Bridge Bank by virtue of paragraph 12 of the Transfer Instrument and any property, rights and liabilities transferred from Dunfermline to the Bridge Bank by virtue of a supplemental property transfer instrument ; “Dunfermline” means Dunfermline Building Society, a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 and authorised and regulated by the Financial Services Authority (Reg no: 158765); “Dunfermline Resolution Account” means the account established in accordance with article 6(1); “Financial Services Compensation Scheme” means the scheme established under Part 15 of the Financial Services and Markets Act 2000 ; “financial year” means the twelve months ending with 31st March; “independent valuer” means the person appointed in accordance with article 5(2); “Nationwide business” means the property, rights and liabilities transferred from Dunfermline to Nationwide Building Society (incorporated under the Building Societies Act 1986 with registered number 355B) by virtue of paragraph 3 of the Transfer Instrument; “Transfer Instrument” means the Dunfermline Building Society Property Transfer Instrument 2009 . PART 2 Dunfermline Compensation Scheme Transfer of the Nationwide business: determination of amount of compensation 3 The amount of compensation payable to Dunfermline in respect of the Nationwide business is determined as nil. PART 3 Independent valuer Functions of the independent valuer 4 An independent valuer must be appointed to perform the functions specified in— a article 9 (third party compensation); b article 11 (assessment of recoveries by the Financial Services Compensation Scheme); c paragraph 7 of Schedule 1 (certification of costs of the Bank of England or the Treasury to be deducted from the Dunfermline Resolution Account). Appointment of the independent valuer 5 1 The Treasury must— a make arrangements to identify candidates for the office of independent valuer and must publish the details of those arrangements on their website ; b make arrangements for a panel to appoint the independent valuer (“the Appointment Panel”). 2 The Appointment Panel shall have the function of selecting and appointing an independent valuer from a list of the candidates identified by the Treasury in accordance with paragraph (1)(a). 3 The Treasury must ensure that the Appointment Panel comprises no fewer than four members, of which— a one member is the Chief Executive of the Institute of Chartered Accountants in England and Wales, who must be the chair of the Appointment Panel; and b one member is a representative of the Treasury, who shall be a non-voting member of the Appointment Panel. 4 The independent valuer is to hold and vacate office in accordance with the terms of his or her appointment. 5 The independent valuer may be removed from office only— a by the Appointment Panel, excluding the member who is a representative of the Treasury, and b on the grounds of incapacity or serious misconduct. 6 In the event of the death of the independent valuer, or if the independent valuer is removed from office or resigns, a new independent valuer must be appointed. 7 In the event that a member of the Appointment Panel is unable to sit on the Appointment Panel to perform the function in paragraph (5), the Treasury must appoint another member to replace that member of the first Appointment Panel. 8 The provisions of this Order apply to the replacement of the independent valuer as to the first independent valuer appointed. PART 4 Dunfermline Resolution Fund Transfer of the Bridge Bank business: resolution fund 6 1 The Treasury must establish an account to be known as the Dunfermline Resolution Account. 2 Part 1 of Schedule 1 makes provision for the arrangements for the Dunfermline Resolution Account. Payments into the resolution fund 7 Part 2 of Schedule 1 makes provision for the arrangements for paying money into the Dunfermline Resolution Account. Entitlement to the moneys in the resolution fund and payments out of the resolution fund 8 Part 3 of Schedule 1 makes provision in respect of— a entitlements to the moneys standing to the credit of the Dunfermline Resolution Account; and b the arrangements for making payments from the Dunfermline Resolution Account. PART 5 Third Party Compensation Third party compensation 9 1 Schedule 2 makes provision for the arrangements to be put in place for the assessment of any compensation payable to persons other than Dunfermline. 2 The independent valuer must determine, in accordance with Part 2 of Schedule 2, the amount of any compensation payable to any person who was affected by the application of section 38(6) of the Act (termination rights, &c.) (by virtue of paragraph 6 of the Transfer Instrument). 3 The independent valuer must determine, in accordance with Part 3 of Schedule 2, the amount of any compensation payable to pre-transfer creditors of Dunfermline . Payment of compensation 10 Any compensation determined by an independent valuer to be payable in accordance with this Order must be paid by the Treasury in accordance with paragraph 13 of Schedule 2. PART 6 Financial Services Compensation Scheme Assessment of recoveries 11 The independent valuer must perform the function in regulation 8(1) of the Financial Services and Markets Act 2000 (Contribution to Costs of Special Resolution Regime) Regulations 2009 in order to assess the amount that would have been likely to be recovered by the Financial Services Compensation Scheme from Dunfermline. Dave Watts Tony Cunningham Two of the Lords Commissioners of Her Majesty’s Treasury 6th July 2009