Banking Act 1987

Supplementary provisions

64Borrowing powers

(1)If in the course of operating the Fund it appears to the Board desirable to do so, the Board may borrow up to a total outstanding at any time of £10 million or such larger sum as, after consultation with the Board, the Treasury may from time to time by order prescribe.

(2)An order under subsection (1) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3)Any amount borrowed by virtue of this section shall be disregarded in ascertaining the amount standing to the credit of the Fund for the purposes of sections 54 (1), 55 (2) and 63 (5) above.

65Power to obtain information

(1)If required to do so by a request in writing made by the Board, the Bank may by notice in writing served on a contributory institution require the institution, within such time and at such place as may be specified in the notice, to provide the Board with such information and to produce to it such documents, or documents of such a description, as the Board may reasonably require for the purpose of determining the contributions of the institution under this Part of this Act.

(2)Subsections (4), (5), (11) and (13) of section 39 above shall have effect in relation to any requirement imposed under subsection (1) above as they have effect in relation to a requirement imposed under that section.

(3)The Board may by notice in writing served on the liquidator of an insolvent institution or on the administrator of an institution under Part II of the [1986 c. 45.] Insolvency Act 1986 require him, at such time or times and at such place as may be specified in the notice—

(a)to provide the Board with such information; and

(b)to produce to the Board such documents specified in the notice,

as the Board may reasonably require to enable it to carry out its functions under this Part of this Act.

(4)Where, as a result of an institution having become insolvent, any documents have come into the possession of the Official Receiver or, in Northern Ireland, the Official Assignee for company liquidations or in bankruptcy, he shall permit any person duly authorised by the Board to inspect the documents for the purpose of establishing—

(a)the identity of those of the institution's depositors to whom the Board are liable to make a payment under section 58 above; and

(b)the amount of the protected deposit held by each of the depositors.

66Tax treatment of contributions and repayments

In computing for the purposes of the Tax Acts the profits or gains arising from the trade carried on by a contributory institution—

(a)to the extent that it would not be deductible apart from this section, any sum expended by the institution in paying a contribution to the Fund may be deducted as an allowable expense;

(b)any payment which is made to the institution by the Board under section 55 (2) above or pursuant to a scheme under section 63 (2) above shall be treated as a trading receipt.