The Building Society Insolvency Rules (Northern Ireland) 2014

PART 22 MISCELLANEOUS AND GENERAL

Power of Department to regulate certain matters

252.—(1) As provided for in Article 359 of and paragraph 27 of Schedule 5 to the 1989 Order(1), the Department or the Department of Finance and Personnel may, subject to that Order and to these Rules, make regulations with respect to any matter provided for in these Rules relating to the carrying out of the functions of a building society liquidator or provisional building society liquidator, including, without prejudice to the generality of the above, provision with respect to the following matters arising in building society insolvency—

(a) the preparation and keeping by building society liquidators and provisional building society liquidators of books, accounts and other records, and their production to such persons as may be authorised or required to inspect them;

(b) the auditing of building society liquidators’ accounts;

(c) the manner in which building society liquidators are to act in relation to the society’s books, papers and other records, and the manner of their disposal by the building society liquidator or others;

(d) the supply by the building society liquidator to creditors and contributories and to the liquidation committee of copies of documents relating to the building society insolvency and the affairs of the society (on payment, in such cases as may be specified in the regulations, of the appropriate fee);

(e) the manner in which insolvent estates are to be distributed by the building society liquidator, including provision with respect to unclaimed funds and dividends;

(f) the manner in which monies coming into the hands of the building society liquidator are to be handled and invested and the payment of interest on sums which, in pursuance of regulations made under this sub-paragraph, have been paid into the Insolvency Account.(2)

(2) Regulations made under paragraph (1) may—

(a) confer a discretion on the court;

(b) make non-compliance with any of the regulations a criminal offence;

(c) make different provision for different cases, including different provision for different areas; and

(d) contain such incidental, supplemental and transitional provisions as may appear to the Department or the Department of Finance and Personnel as necessary or expedient.

Costs, expenses, etc

253.—(1) All fees, costs, charges and other expenses incurred in the course of building society insolvency, except for any money paid by the FSCS to eligible depositors in pursuance of Objective 1, and any expense incurred by the FSCS in this process, are to be regarded as expenses of the building society insolvency.

(2) The costs associated with the prescribed part (within the meaning of Article 150A of the 1989 Order) shall be paid out of that prescribed part.

Provable debts

254.—(1) Subject to paragraphs (2) and (3), in a building society insolvency all claims by creditors are provable as debts against the society, whether they are present or future, certain or contingent, ascertained or sounding only in damages.

(2) Any obligation arising under a confiscation order made under Articles 4 or 5 of the Criminal Justice (Confiscation) (Northern Ireland) Order 1990(3) or under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002(4) is not provable.

(3) The following are not provable except at a time when all other claims of creditors in the building society insolvency proceedings (other than any of a kind mentioned in this paragraph) have been paid in full with interest under Article 160(2) of the 1989 Order—

(a) any claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000, not being a claim arising by virtue of section 382(1)(b) of that Act; or

(b) any claim which by virtue of the 1989 Order or any other enactment is a claim the payment of which in the building society insolvency is to be postponed.

(4) Nothing in this rule prejudices any enactment or rule of law under which a particular kind of debt is not provable, whether on grounds of public policy or otherwise.

Notices

255.—(1) Apply rule 12.04 of the 1991 Rules.

(2) Omit references to the official receiver.

Quorum at meeting of creditors or contributories

256.—(1) Apply rule 12.05 of the 1991 Rules.

(2) For paragraph (3) substitute—

“(3) For the purposes of this rule, the reference to the creditors or contributories necessary to constitute a quorum is to those persons present or represented by proxy by any person (including the chair).”.

Evidence of proceedings at meetings

257.  Apply rule 12.06 of the 1991 Rules.

Documents issuing from the Department

258.  Apply rule 12.07 of the 1991 Rules.

Insolvency practitioner’s security

259.—(1) Apply rule 12.09 of the 1991 Rules.

(2) For paragraph (2) substitute—

“(2) It is the duty of the liquidation committee in a building society insolvency to review from time to time the adequacy of the building society liquidator’s security.”.

Time

260.  Apply rule 12.10 of the 1991 Rules as regards time for anything required or authorised to be done by these Rules.

Service by post

261.  Apply rule 12.11 of the 1991 Rules.

General provisions as to service

262.  Order 65 of the Rules of the Court of Judicature (Northern Ireland) 1980 (service of documents) applies as regards any matter relating to the service of documents and the giving of notice in building society insolvency proceedings except in cases where a rule makes provision as to the service of a document or the giving of a notice.

Service outside the jurisdiction

263.  Apply rule 12.13 of the 1991 Rules.

Confidentiality of documents

264.—(1) Apply rule 12.14 of the 1991 Rules.

(2) In paragraph (2) omit “or a creditors’ committee”.

Notices sent simultaneously to the same person

265.  Apply rule 12.15 of the 1991 Rules.

Right to copy documents

266.  Apply rule 12.16 of the 1991 Rules.

Charge for copy documents

267.  Apply rule 12.17 of the 1991 Rules.

Non-receipt of notice of meeting

268.  Apply rule 12.18 of the 1991 Rules.

Right to have list of creditors

269.—(1) Where one or more creditors have the right under these Rules to inspect documents on the court file, they may require the building society liquidator to send them a list of the society’s creditors and the amounts of their respective debts.

(2) Paragraph (1) does not apply if a statement of the society’s affairs has been filed in court or filed with the appropriate regulator.

(3) The building society liquidator must respond to the request in paragraph (1) but may charge the appropriate fee for doing so.

False claim of status as creditor, etc.

270.  Apply rule 12.20 of the 1991 Rules.

The Gazette

271.  Apply rule 12.21 of the 1991 Rules.

Punishment of offences

272.  Apply rule 12.22 of the 1991 Rules.

Notice of order under Article 150A(5)

273.—(1) Apply rule 12.23 of the 1991 Rules.

(2) In paragraphs (2), (3) and (5) for “liquidator, administrator or receiver, as the case may be”, substitute “building society liquidator”.

(3) In paragraph (6), for “The liquidator, administrator or receiver” substitute “The building society liquidator”.

(1)

Article 359 of the 1989 Order (S.I. 1989/2405 (N.I. 19)), which introduces Schedule 5, was amended by sections 125 and 134 of the Banking Act 2009 to extend the powers in the Schedule to Rules made under Part 2 of that Act.

(2)

The Insolvency Account is referred to at Article 358 of the Insolvency (Northern Ireland) Order 1989.

(3)

S.I. 1990/2588 (N.I. 17).

(4)

2002 c. 29.