The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009
| Year | 2009 |
2009 No. 317
Banks And Banking
The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009
Made 19th February 2009
Laid before Parliament 20th February 2009
Coming into force 21th February 2009
The Treasury, in exercise of the powers conferred by sections 135 and 168 of the Banking Act 20091, make the following Order.
The powers in sections 135 and 168 of the Banking Act 2009 are being exercised for the first time and the Treasury is satisfied, in accordance with section 259(4) of that Act, that it is necessary to exercise it without laying a draft for approval.
PART 1
Introduction
Citation and commencement
1. This Order may be cited as the Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 and comes into force on 21st February 2009.
Interpretation
2. In this Order—
“the 2009 Act” means the Banking Act 2009.
PART 2
General Modifications to Legislation
3.—(1) So far as the enactments set out in the Schedule (“the listed enactments”) apply in relation to liquidation and administration, they apply with the modifications set out in paragraphs (2) to (4).
(2) The modifications relating to bank insolvency under Part 2 of the 2009 Act are that references to—
(a)
(a) “liquidator” include a reference to a bank liquidator under Part 2 of the 2009 Act;
(b)
(b) “provisional liquidator” include a reference to a provisional bank liquidator under Part 2 of the 2009 Act;
(c)
(c) “liquidation” or “insolvent liquidation” include a reference to bank insolvency under Part 2 of the 2009 Act;
(d)
(d) “winding up” or “winding up by the court” include a reference to bank insolvency under Part 2 of the 2009 Act (and a reference to the “commencement of winding up” in this context is to the commencement of bank insolvency);
(e)
(e) “winding up order” include a reference to a bank insolvency order under Part 2 of the 2009 Act;
(f)
(f) “wound up” include a reference to a bank having been put into bank insolvency under Part 2 of the 2009 Act; and
(g)
(g) “winding up petition” or “petition to wind up” include an application for bank insolvency under Part 2 of the 2009 Act.
(3) The modifications relating to bank administration under Part 3 of the 2009 Act are that references to—
(a)
(a) “administrator” include a reference to a bank administrator under Part 3 of the 2009 Act;
(b)
(b) “administration” or “insolvent administration” include a reference to a bank administration under Part 3 of the 2009 Act;
(c)
(c) “administration order” include a reference to a bank administration order under Part 3 of the 2009 Act; and
(d)
(d) “provisional liquidator” include a reference to a provisional bank administrator under Part 3 of the 2009 Act.
(4) The modifications relating to bank insolvency or bank administration under Parts 2 and 3 of the 2009 Act are that references to—
(a)
(a) “insolvency legislation” or “the law of insolvency” include Parts 2 and 3 of the 2009 Act and the provisions of the Insolvency Act 19862and the Insolvency (Northern Ireland) Order 19893as applied by those Parts;
(b)
(b) a person acting as an “insolvency practitioner” (as defined in section 388 of the Insolvency Act 1986) include a person acting as a bank liquidator or bank administrator under Parts 2 and 3 of the 2009 Act;
(c)
(c) the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989, in the context of bank insolvency or bank administration, shall be read to include those provisions as applied and modified by sections 103 and 145 of the 2009 Act; and
(d)
(d) the provisions of the Insolvency Rules 19864, the Insolvency Rules (Northern Ireland) 19915and the Insolvency (Scotland) Rules 19866, in the context of bank insolvency or bank administration, shall be read to include those provisions as applied and modified by rules made under section 411(1A)7of the Insolvency Act 1986 in relation to bank insolvency, and under section 411(1B)8of the Insolvency Act 1986 in relation to bank administration.
PART 3
Specific Modifications and Amendments to Legislation
Finance (No 2) Act 1992
4.—(1) The following provision of the Finance (No 2) Act 19929applies with the modification set out in this article.
(2) Paragraph 2 of Schedule 12 (Banks etc. in Compulsory Liquidation) is to be read as if it included the following—
“3A Where the company is a bank (as defined in section 91 of the Banking Act 2009), bank insolvency proceedings shall be taken to have commenced against the bank when the application for a bank insolvency order is made to the court under section 95 of the Banking Act 2009.”.
Financial Services and Markets Act 2000
5.—(1) The following provisions of the Financial Services and Markets Act 200010apply with the modifications set out in this article.
(2) In section 215 (Rights of the scheme in relevant person’s insolvency)—
(a)
(a) in subsection (3)11, the reference to making an administration application is to be read as including making an application for a bank administration order under section 142 of the 2009 Act, and
(b)
(b) subsection (4) is to be read as if it read the following—
“4 In the case of a bank insolvency (as defined in Part 2 of the Banking Act 2009), if the scheme manager decides, pursuant to section 100(6)(d) of that Act, not to remain on the liquidation committee, the scheme manager shall retain the rights it usually enjoys in respect of the winding up of a relevant person under section 371(3) and (4).”.
(3) In section 355 (Interpretation of Part 24), the definition of “court” is to be read as if “, unless otherwise provided,” were inserted after the word “means”.
(4) In section 36112(Administrator’s duty to report to Authority), references to—
(a)
(a) “administration” are to be read as including a reference to bank administration under Part 3 of the 2009 Act; and
(b)
(b) “the administrator” are to be read as including the bank administrator under Part 3 of the 2009 Act.
(5) In section 362 (Authority’s powers to participate in proceedings)—
(a)
(a) references to “court”—
(i) in the context of a bank administration under Part 3 of the 2009 Act in England, Wales or Northern Ireland, are to be read as meaning the High Court, and
(ii) in the context of a bank administration under Part 3 of the 2009 Act in Scotland, are to be read as meaning the Court of Session,
(b)
(b) in subsection (1), the reference to making an administration application is to be read as including making an application for a bank administration order under section 142 of the 2009 Act, and
(c)
(c) in subsections (4)13and (4A)14, references to paragraph 74 of Schedule B1 to the Insolvency Act 1986 and paragraph 75 of Schedule B1 to the Insolvency (Northern Ireland) Order 1989 are to be read as including references to those provisions as applied and modified by section 145 of the 2009 Act.
(6) In section 370 (Liquidator’s duty to report to Authority), references to “liquidator” are to be read as including a reference to a bank liquidator under Part 2 of the 2009 Act.
(7) In section 375 (Authority’s right to apply for an order), references to the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including references to those provisions as applied and modified by section 103 and section 134 of the 2009 Act.
6.—(1) The following provisions of the Companies Act 200615apply with the modifications set out in this article.
(2) In section 461 (permitted disclosure of information obtained under compulsory powers)—
(a)
(a) subsection (4)(c) is to be read so as to include the 2009 Act in the list of enactments in that subsection;
(b)
(b) in subsection (4)(g) is to be read so as to include the 2009 Act in the list of enactments in that subsection.
(3) Any references in Part 35 (the registrar of companies) to the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including a reference to Parts 2 and 3 of the 2009 Act.
(4) Where an application is made to the court for—
(a)
(a) a bank insolvency order under Part 2 of the 2009 Act,
(b)
(b) the appointment of a provisional bank liquidator under section 135 of the Insolvency Act 1986 or article 115 of the Insolvency (Northern Ireland) Order 1989, as applied by section 103 of the 2009 Act,
(c)
(c) a bank administration order under Part 3 of the 2009 Act, or
(d)
(d) the appointment of a provisional bank administrator under section 135 of the Insolvency Act 1986 or article 115 of the Insolvency (Northern Ireland) Order 1989, as applied by section 145 of the 2009 Act,
sections 1139 and 1140 (service of documents on company, directors, secretaries and others) have effect subject to the provisions for service set out in Parts 2 or 3 of the 2009 Act and in rules made under section 411 of the Insolvency Act 1986 in respect of those Parts.
(5) In Part 2 of Schedule 2 (Specified Descriptions of Disclosures)—
(a)
(a) paragraph 25 is to be read so as to include the 2009 Act in the list of enactments in that paragraph, and
(b)
(b) paragraph 46 is to be read so as to include the 2009 Act in the list of enactments in that paragraph.
(6) In Part 216of Schedule 11A (Specified Descriptions of Disclosures)—
(a)
(a) paragraph 30 is to be read so as to include the 2009 Act in the list of enactments in that paragraph, and
(b)
(b) paragraph 52 is to be read so as to include the 2009 Act in the list of enactments in that paragraph.
Dormant Bank and Building Society Accounts Act 2008
7.—(1) This article applies to a reclaim fund established under the Dormant Bank and Building Society Accounts Act 200817if, under sections 1 or 2 of...
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