The Insolvency Regulations (Northern Ireland) 1996

Payments into and out of the Insolvency Account

Payments into the Insolvency Account

5.—(1) In the case of a winding up by the court, subject to regulation 6, the liquidator shall pay all money received by him in the course of carrying out his functions as such without any deduction into the Insolvency Account kept by the Department under Article 358 once every 14 days or forthwith if £5,000 or more has been received.

(2) Every payment of money into the Insolvency Account under paragraph (1) shall be sent direct to the bank where the Insolvency Account is kept by cheque drawn in favour of the “Insolvency Account” and crossed “A/c payee only” and the liquidator shall on request be given by the Department a receipt for the money so paid.

(3) Every payment of money into the Insolvency Account under paragraph (1) shall be accompanied by a form obtainable from the Department for that purpose.

(4) Where in a voluntary winding up a liquidator or former liquidator pays any unclaimed dividend into the Insolvency Account, he shall at the same time give notice to the Department, on a form obtainable from the Department, of the name and address of the person to whom the dividend is payable and the amount of the dividend.

[E.R. 5]

Local bank account and handling of funds not belonging to the company

6.—(1) This regulation does not apply in the case of a voluntary winding up.

(2) Where the liquidator intends to exercise his power to carry on the business of the company, he may apply to the Department for authorisation to open a local bank account, and the Department may authorise him to make his payments into and out of a specified bank, subject to a limit, instead of into and out of the Insolvency Account if satisfied that an administrative advantage will be derived from having such an account.

(3) Money received by the liquidator relating to the purpose for which the account was opened may be paid into the local bank account to the credit of the company to which the account relates.

(4) Where the liquidator opens a local bank account pursuant to an authorisation granted under paragraph (2), he shall open and maintain the account in the name of the company.

(5) Where money which is not an asset of the company is provided to the liquidator for a specific purpose, it shall be clearly identifiable in a separate account.

(6) The liquidator shall keep proper records, including documentary evidence of all money paid into and out of every local bank account opened and maintained under this regulation.

(7) The liquidator shall pay without deduction any surplus over any limit imposed by an authorisation granted under paragraph (2) into the Insolvency Account in accordance with regulation 5 as that regulation applies in the case of a winding up by the court.

(8) As soon as the liquidator ceases to carry on the business of the company or vacates office or an authorisation given in pursuance of an application under paragraph (2) is withdrawn, he shall close the account and pay any balance into the Insolvency Account in accordance with regulation 5 as that regulation applies in the case of a winding up by the court.

[E.R. 6]

Payment of disbursements etc. out of the Insolvency Account

7.—(1) This regulation does not apply in the case of a voluntary winding up.

(2) On application to the Department, the liquidator shall be repaid all necessary disbursements made by him, and expenses properly incurred by him, in the course of his administration to the date of his vacation of office out of any money standing to the credit of the company in the Insolvency Account.

(3) The liquidator shall on application to the Department obtain payment instruments to the order of the payee for sums which become payable on account of the company for delivery by the liquidator to the persons to whom the payments are to be made.

(4) Any application under this regulation shall be made by the liquidator on a form obtainable from the Department for the purpose.

(5) On the liquidator vacating office, he shall be repaid by any succeeding liquidator out of any funds available for the purpose any necessary disbursements made by him and any expenses properly incurred by him but not repaid before he vacates office.

[E.R. 7]