PART 21DECLARATION AND PAYMENT OF DIVIDEND

Preliminary245

1

The rules in this Part relate to the declaration and payment of dividends in a bank insolvency.

2

In this part—

a

“creditors” means those creditors of the bank of whom the bank liquidator is aware, or who are identified in the bank’s statement of affairs,

b

“the insolvent” means the bank.

Notice of intended dividend246

Apply rule 11.02 of the 1991 Rules. Delete paragraph (1)(b) .

Final admission/rejection of proofs247

Apply rule 11.03 of the 1991 Rules. Delete paragraph (4).

Postponement or cancellation of dividend248

Apply rule 11.04 of the 1991 Rules.

Decision to declare dividend249

Apply rule 11.05 of the 1991 Rules.

Notice of declaration250

1

Apply rule 11.06 of the 1991 Rules.

2

Delete paragraph (1)(b).

3

In paragraph (2), after (b) add—

ba

expenses incurred by the bank liquidator in the achievement of objective 1 under section 99 of the Banking Act 2009;

Notice of no, or no further, dividend251

Apply rule 11.07 of the 1991 Rules.

Proof altered after payment of dividend252

Apply rule 11.08 of the 1991 Rules.

Secured creditors253

Apply rule 11.09 of the 1991 Rules.

Disqualification from dividend254

Apply rule 11.10 of the 1991 Rules. For “the Order” substitute “the Order as applied by the 2009 Act”.

Assignment of right to dividend255

Apply rule 11.11 of the 1991 Rules.

Preferential creditors256

Apply rule 11.12 of the 1991 Rules.

Debt payable at future time257

1

Apply rule 11.13 of the 1991 Rules.

2

For paragraph (3) substitute—

3

In paragraph (2) “relevant date” means the date of the commencement of the bank insolvency.