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The Bank Administration (England and Wales) Rules 2009

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Table of applications and specific modifications

This section has no associated Explanatory Memorandum

61.  This Rule contains the Table of applied provisions of the Insolvency Rules 1986(1).

RuleSubjectSpecific modifications
Preparatory steps
2.27Notification and advertisement of administrator’s appointmentIn paragraph (1), ignore “and once in such newspaper”. Ignore paragraph (2)(a) and (b).
2.28Notice requiring statement of affairs
2.29Verification and filing
2.30Limited disclosure

On an application for disclosure under paragraph (4) any of the following may appear and be heard, or make written representations—

(a)

the bank administrator,

(b)

the Bank of England, and

(c)

the FSA.

2.31Release from duty to submit statement of affairs; extension of time

On an application under paragraph (2) for release or extension of time any of the following may appear and be heard, or make written representations—

(a)

the bank administrator,

(b)

the Bank of England, and

(c)

the FSA.

2.32Expenses of statement of affairs
Bank administrator’s proposals and creditors’ meetings
2.33Administrator’s proposalsRule 2.33 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.34Meetings to consider administrator’s proposals
(1)

Rule 2.34 applies in the Objective 2 Stage.

(2)

The FSA and the FSCS are added to the list in paragraph (2) of persons entitled to notice.

2.35Creditors’ meetings generallyThe FSA and the FSCS are added to the list in paragraph (3) of persons to whose convenience the bank administrator is to have regard.
2.36Chairman at meetings
2.37Meeting requisitioned by creditorsTreat the reference to the administrator’s statement of proposals as a reference to the bank administrator’s statement of proposals in accordance with Rule 29 above.
2.38Entitlement to vote
2.39Admission and rejection of claims
2.40Secured creditors
2.41Holders of negotiable instruments
2.42Hire-purchase, conditional sale and chattel leasing agreements
2.43Resolutions
2.44Minutes
2.45Revision of the administrator’s proposalsIn paragraph (2)(c) ignore the reference to the person making the appointment.
2.46Notice to creditors
2.47Reports to creditorsRule 2.47 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.48Correspondence instead of creditors’ meetings
2.49Venue and conduct of company meeting
Creditors’ committee
2.50Constitution of committee(A creditors’ committee cannot be established until the Objective 2 Stage – see the modifications for the application of paragraphs 50 to 58 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)
2.51Formalities of establishment
2.52Functions and meetings of the committee
2.53The chairman at meetings
2.54Quorum
2.55Committee-members’ representatives
2.56

Resignation

2.57Termination of membership
2.58Removal
2.59Vacancies
2.60Procedure at meetings
2.61Resolutions of creditors’ committee by post
2.62Information from administrator
2.63Expenses of members
2.64Members dealing with the company

In respect of any application to set aside a transaction under paragraph (2)—

(a)

notice of the application must be given to the FSA, and

(b)

the FSA may appear and be heard.

2.65Formal defects
Process of administration
2.66Application to court to dispose of charged property

If an application is made during the Objective 1 Stage, then in addition to the requirements of Rule 2.66—

(a)

the bank administrator must notify the Bank of England of the time and place of the hearing,

(b)

the Bank of England may appear, and

(c)

if an order is made the bank administrator must send a copy to the Bank of England as soon as is reasonably practicable.

2.67Priority of expenses of administration

In addition to the matters listed in Rule 2.67(1), expenses in connection with provisional bank administration are payable in the following order of priority—

(a)

the cost of any security provided by the provisional bank administrator takes priority equally with security provided by the bank administrator, and

(b)

the remuneration of the provisional bank administrator ranks next, and

(c)

any deposit lodged on an application for the appointment of a provisional bank administrator ranks next.

2.68Distributions to creditors: introduction(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)
2.69Debts of insolvent company to rank equally
2.70Dividends: supplementary
2.71Division of unsold assets
2.72Proving a debt
2.73Claim established by witness statement
2.74Costs of proving
2.75Administrator to allow inspection of proofs
2.76New administrator: transfer of proofs
2.77Admission and rejection of proofs for dividend
2.78Appeal against decision on proof

In respect of any application under Rule 2.78(1) or (2)—

(a)

notice of the application must be given to the FSA and, during the Objective 1 Stage, the Bank of England, and

(b)

the FSA, and the Bank of England during the Objective 1 Stage, may appear and be heard.

2.79Withdrawal or variation of proof
2.80Expunging of proof by the court

In respect of any application under Rule 2.80(1)(b)—

(a)

notice of the application must be given to the FSA and, during the Objective 1 Stage, the Bank of England, and

(b)

the FSA, and the Bank of England during the Objective 1 Stage, may appear and be heard.

2.81Estimate of quantum of claims
2.82Negotiable instruments etc.
2.83Secured creditors
2.84Discounts
2.85Mutual credit and set-off
2.86Debt in foreign currency
2.87Periodical payments
2.88Interest
2.89Debt payable in future
2.90Value of security
2.91Surrender for non-disclosure
2.92Redemption by administrator
2.93Test of security’s value
2.94Realisation of security by creditor
2.95Notice of proposed distribution

The following are added to the list of those entitled to receive notice under Rule 2.95(2)—

(a)

the FSA,

(b)

the FSCS, and

(c)

during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009, the Bank of England.

2.96Admission or rejection of proofs
2.97Declaration of dividend
2.98Notice of declaration of dividend
(1)

The following are added to the list of those entitled to receive notice under Rule 2.98(1)—

(a)

the FSA,

(b)

the FSCS, and

(c)

during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009, the Bank of England.

(2)

In the case of bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 and during the Objective 1 Stage, the particulars required by rule 2.98(2) include details of any payment made from a scheme under a resolution fund order.

2.99Payment of dividends etc.
2.100Notice of no dividend or no further dividend

The bank administrator must copy any notice under Rule 2.100 to—

(a)

the FSA,

(b)

the FSCS, and

(c)

the Bank of England, in a case where it consented to a distribution under Rule 2.68 (as applied above).

2.101Proof altered after payment of dividend
2.102Secured creditors
2.103Disqualification from dividend

In respect of any application for disqualification under Rule 2.103—

(a)

notice of the application must be given to the FSA, and

(b)

the FSA may appear and be heard.

2.104Assignment of right to dividend
2.105Debt payable in futureThe “relevant date” is the date of the bank administration order.
The bank administrator
2.106Fixing of remuneration
(1)

In the Objective 1 Stage the Bank of England shall fix the bank administrator’s remuneration in accordance with Rule 2.106(2)(a) or (b).

(2)

In the Objective 2 Stage, Rule 2.106 applies (but pending action under paragraphs (3) or (5) arrangements established by the Bank of England in the Objective 1 Stage shall continue to apply).

2.107Recourse to meeting of creditors
2.108Recourse to the court
(1)

In respect of remuneration fixed by the Bank of England—

(a)

Rule 2.108 applies as if references to the creditors’ committee were references to the Bank of England, and

(b)

the court shall have regard to Objective 1.

(2)

In respect of any application under Rule 2.108—

(a)

notice of the application must be given to the FSA, and

(b)

the FSA may appear and be heard.

2.109Creditors’ claim that remuneration is excessiveRule 2.109 applies only during the Objective 2 Stage.

4.127B and

Schedule 6

Remuneration where assets realised on behalf of chargeholder
Ending administration
2.110Final progress report
(1)

The reference to Rule 2.47 is to be treated as a reference to Rule 35 above.

(2)

In the case of bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 the final progress report—

(a)

must not be made until the bank administrator is satisfied that any payment likely to be made to the bank from a scheme under a resolution fund order has been made, and

(b)

must state whether any payment has been received and, if so, its amount.

2.113Notice of end of administrationRule 2.113 is not applied – but equivalent provision is made by Part 3 of these Rules.
2.114Application to court by administratorThe reference to an application to the court under paragraph 79 of Schedule B1 to the Insolvency Act 1986 is to be treated as a reference to a notice under paragraph 80 (as applied by section 153(2) of the Banking Act 2009).
2.118Moving from administration to dissolutionRule 2.118 is not applied – but equivalent provision is made by Part 3 of these Rules.
Replacing bank administrator
2.119Grounds for resignationDuring the Objective 1 Stage the Bank of England’s consent, as well as the court’s permission, is required for resignation under paragraph (2).
2.120Notice of intention to resignThe Bank of England and the FSA are added to the list of those entitled to notice under paragraph (1).
2.121Notice of resignation
2.122Application to court to remove administrator

(An application may be made during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of paragraph 88 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009.)

(1)

An application must state either—

(a)

that the Bank of England has consented to its being made, or

(b)

that the Objective 1 Stage has ended.

(2)

The FSA is added to the list of those entitled to notice under paragraph (2).

2.123Notice of vacation of office on ceasing to be qualified
2.124Death of administrator
2.125Application to replace

Rule 2.125 is applied during the Objective 2 Stage only (and ignoring references to paragraph 95 of Schedule B1).

(For equivalent provision about application for removal by the Bank of England during the Objective 1 Stage (in accordance with the modifications for the application of paragraph 91 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the Banking Act 2009) see Part 3 of these Rules.

2.126Notification and advertisement of replacement
2.127Notification and advertisement of appointment of joint administrator
2.128Notice to registrar of companies of replacement or addition
2.129Duties on vacating office
Provisional bank administrator (see application of section 135 of the Insolvency Act 1986 in Table 2 in section 145 of the Banking Act 2009)
4.25AppointmentRule 4.25 is not applied – but equivalent provision is made by Part 3 of these Rules.
4.25ANotice of appointmentRule 4.25A is not applied – but equivalent provision is made by Part 3 of these Rules.
4.26Order of appointmentRule 4.26 is not applied – but equivalent provision is made by Part 3 of these Rules.
4.28Security
4.29Failure to give or keep up security
4.30RemunerationIgnore paragraph (4).
4.31Termination of appointment
(1)

An application for termination may be made by—

(a)

the provisional bank administrator, or

(b)

the Bank of England.

(2)

A provisional bank administrator’s appointment terminates on the making of a bank administration order.

Disclaimer
4.187Notice of disclaimer(In the case of bank administration following transfer to a bridge bank under section 12(2) of the Banking Act 2009 notice may be given during the Objective 1 Stage only with the Bank of England’s consent – see the modifications for the application of section 178 of the Insolvency Act 1986 in Table 2 in section 145 of the Banking Act 2009.)
4.188Communication to interested persons
4.189Additional notices
4.190Duty to keep court informed
4.191Application by interested party
4.192Interest in property to be declared on request
4.193Disclaimer presumed valid and effective
4.194Application for exercise of court’s powers under section 181 of the Insolvency Act 1986(Section 181 is applied by Table 2 in section 145 of the Banking Act 2009.)
Court procedure and practice
7.1Application of Chapter 1 of Part 7Chapter 1 does not apply to an application for a bank administration order (which is addressed in Part 2 of these Rules).
7.2Interpretation
7.3Form and contents of application
7.3AApplication to disapply section 176A of the Insolvency Act 1986
7.4Filing and service of application
7.4ANotice of application under section 176A of the Insolvency Act 1986
7.5Other hearings ex parte
7.6Hearing of application
7.7Use of witness statement evidence
7.8Filing and service of witness statements
7.9Use of reports
7.10Adjournment of hearings; directions
7.16Nomination and appointment of shorthand writers
7.17Remuneration of shorthand writers
7.19Enforcement of court orders
7.20Orders enforcing compliance with Rules
7.21Warrants
7.23Warrants under section 236
7.27Court records
7.28Inspection of records
7.30File of court proceedings
7.31Right to inspect court fileRule 7.31 is not applied – but equivalent provision is made in Part 4 of these Rules.
7.32Filing of Gazette notices and advertisements
7.33Costs: application of the Civil Proceedings Rules
7.34Requirement to assess costs by the detailed procedure
7.35Procedure where detailed assessment required
7.36Costs of execution or other process
7.38Costs paid otherwise than out of the insolvent estate
7.39Award of costs against responsible insolvency practitioner
7.40Application for costs
7.41Costs and expenses of witnesses
7.42Final costs certificate
7.43Persons who lack capacity to manage their affairs: introductory
7.44Appointment of another person to act
7.45Witness statement in support of application
7.46Services of notices following appointment
7.47Appeals and reviews of court orders(Rule 7.47 is not applied so as to permit an appeal against the making of a bank administration order.)
7.49Procedure on appeal
7.51Principal court rules and practice to apply(The reference to the CPR, the practice and procedure of the High Court and of the county court is to be treated as a reference to the CPR (Part 52).)
7.53Right of attendance
7.54Insolvency practitioner’s solicitor
7.55Formal defects
7.56Restriction on concurrent proceedings and remedies
7.58Security in court
7.59Payment into court
7.60Further information and disclosure
7.61Office copies of documents
Proxies
8.1Definition of proxy
8.2Issue and use of forms
8.3Use of proxies at meetings
8.4Retention of proxies
8.5Right of inspection of proxies
8.6Proxy-holder with financial interest
8.7Company representation(The reference to section 375 of the Companies Act 1985 becomes a reference to section 323 of the Companies Act 2006.)
Examination of persons
9.1Preliminary
1.

Part 9 applies to applications under section 236 of the Insolvency Act 1986 (inquiry into company’s dealings) as applied by Table 2 in section 145 of the Banking Act 2009.

2.

Treat a reference to “the insolvent” as a reference to the bank.

9.2Form and contents of application
9.3Order for examination
9.4Procedure for examination
9.5Record of examination
9.6Costs of proceedings
Declaration and payment of dividend
11.1Preliminary
11.2Notice of intended dividend
11.3Final admission or rejection of proofs
11.4Postponement or cancellation of dividend
11.5Decision to declare dividend
11.6Notice of declaration
11.7Notice of no dividend or no further dividend
11.8Proof altered after payment of dividend
11.9Secured creditors
11.10Disqualification from dividend
11.11Assignment of right to dividend
11.12Preferential creditors
11.13Debt payable in futureThe “relevant date” is the date of the bank administration order.
Miscellaneous and general
12.1Regulation of specified administrative mattersA reference to the Secretary of State includes a reference to the Treasury.
12.2Costs and expenses
12.3Provable debts
12.4Notices
12.4AQuorum at meetings(The reference to section 375 of the Companies Act 1985 becomes a reference to section 323 of the Companies Act 2006.)
12.5Evidence of proceedings at meeting
12.6Documents issued by Secretary of State
12.8Insolvency practitioner’s security
12.9Time-limits
12.10Service by post(Rule 12.10 applies subject to express provision about service made in these Rules.)
12.11Service and notice: generalPart 6 of the CPR applies subject to any provision of these rules.
12.12Service outside jurisdiction

Part 6 of the CPR applies with regard to service in Scotland or Northern Ireland, subject to any provision of these rules.

Where service is to take place outside the United Kingdom, where these rules provide for service, the court may direct how that service is to be effect. With regard to service otherwise, Part 6 of the CPR applies.

12.13Confidentiality of documents
12.14Notices sent simultaneously to same person
12.15Right to copy documents
12.15ACharge for copy documents
12.16Non-receipt of notice of meeting
12.17Right to have list of creditors
12.18False claim of status as creditor
12.20Gazette
12.21 and Schedule 5Punishment of offences
12.22Notice of order under section 176A of the Insolvency Act 1986
13.1 to 13.13Interpretation and application
(1)

Relevant amendments are made by the Insolvency (Amendment) Rules 1987 (S.I. 1987/1919), the Insolvency (Amendment) Rules 1993 (S.I. 1993/602), the Insolvency (Amendment) (No. 2) Rules 1999 (S.I. 1999/1022), the Insolvency (Amendment) Rules 2001 (S.I. 2001/763), the Insolvency (Amendment) Rules 2002 (S.I. 2002/1307), the Insolvency (Amendment) (No. 2) Rules 2002 (S.I. 2002/2712), the Insolvency (Amendment) Rules 2003 (S.I. 2003/1730), the Insolvency (Amendment) Rules 2004 (S.I. 2004/584), the Insolvency (Amendment) Rules 2005 (S.I. 2005/527), the Insolvency (Amendment) Rules 2006 (S.I. 2006/1272) and the Insolvency (Amendment) Rules 2008 (S.I. 2008/737).

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