80Proposals: formulationS
(1)The Regulator may, during a moratorium, make proposals about the future ownership and management of the registered social landlord's land with a view to ensuring that land is managed properly in the future by a registered social landlord.
(2)Before making proposals, the Regulator must consult—
(a)the registered social landlord,
(b)all of the registered social landlord's secured creditors whom the Regulator can locate after making reasonable enquiries,
(c)the registered social landlord's tenants (so far as practicable),
(d)where the registered social landlord is a registered society, the [F1Financial Conduct Authority], and
(e)where the registered social landlord is a charity, the Office of the Scottish Charity Regulator.
(3)The Regulator must, when formulating proposals—
(a)have regard to the interests of the registered social landlord's creditors as a whole (both secured and unsecured), and
(b)so far as practicable, aim to avoid worsening the position of the registered social landlord's unsecured creditors.
(4)Proposals may provide for the appointment of a manager to implement the proposals (and proposals which do so must provide for the payment of the manager's remuneration and expenses).
(5)Proposals must not include anything which would result in—
(a)non-preferential debts being paid before preferential debts,
[F2(aa)secondary preferential debts being paid before ordinary preferential debts,]
(b)preferential creditors being paid different proportions of [F3ordinary] preferential debts (except where affected preferential creditors agree to be paid a smaller proportion)F4...
[F5(c)preferential creditors being paid different proportions of secondary preferential debts (except where affected preferential creditors agree to be paid a smaller proportion),][F6 or
(d)where the debtor is a relevant financial institution—
(i)secondary non-preferential debts being paid before ordinary non-preferential debts,
(ii)tertiary non-preferential debts being paid before secondary non-preferential debts, or
(iii)creditors being paid different proportions of secondary non-preferential debts (except where affected creditors agree to be paid a smaller proportion).]
“preferential debt[F7, ordinary preferential debt, secondary preferential debt]” and “preferential creditor” have the same meaning as in the Insolvency Act 1986 (c.45).
[F8(6)In this section—
“ordinary non-preferential debts” has the meaning given by section 129(1)(g) of the Bankruptcy (Scotland) Act 2016;
“secondary non-preferential debts” and “tertiary non-preferential debts” have the meanings given by section 129A of the Bankruptcy (Scotland) Act 2016.]
Textual Amendments
F1Words in s. 80(2)(d) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 11 para. 10(3)(4)(b) (with Sch. 12)
F2S. 80(5)(aa) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 31(2)(a) (with art. 3)
F3Word in s. 80(5)(b) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 31(2)(b) (with art. 3)
F4Word in s. 80(5) omitted (19.12.2018) by virtue of The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 41(a)(i) (with art. 3)
F5S. 80(5)(c) and word inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 31(2)(c) (with art. 3)
F6S. 80(5)(d) and preceding word inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 41(a)(ii) (with art. 3)
F7Words in s. 80(5) inserted (1.1.2015) by The Banks and Building Societies (Depositor Preference and Priorities) Order 2014 (S.I. 2014/3486), arts. 1(2), 31(2)(d) (with art. 3)
F8S. 80(6) inserted (19.12.2018) by The Banks and Building Societies (Priorities on Insolvency) Order 2018 (S.I. 2018/1244), arts. 1(2), 41(b) (with art. 3)
Modifications etc. (not altering text)
C1S. 80 modified (28.12.2020 until IP completion day when the amending provision ceases to have effect in accordance with reg. 1(4) of the amending S.I.) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(4), 125 (with reg. 108)
Commencement Information
I1S. 80 in force at 1.4.2012 by S.S.I. 2012/39, art. 2, Sch. 1 (with Sch. 2)