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Banking Act 1979

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This is the original version (as it was originally enacted).

18Winding up on petition from the Bank

(1)On a petition presented by the Bank by virtue of this section, the court having jurisdiction under the Companies Act 1948 may wind up a recognised bank or licensed institution under that Act if—

(a)the institution is unable to pay sums due and payable to its depositors or is able to pay such sums only by defaulting in its obligations to its other creditors; or

(b)the value of the institution's assets is less than the amount of its liabilities.

(2)If a petition is presented by the Bank by virtue of this section for the winding up of a recognised bank or licensed institution which, apart from this subsection, would be excluded from being an unregistered company for the purposes of Part IX of the Companies Act 1948 by virtue of—

(a)paragraph (c) of section 398 of that Act (exclusion of partnerships etc. having less than eight members), or

(b)paragraph (d) of that section (exclusion of limited partnerships registered in England and Wales or Northern Ireland),

the court shall have jurisdiction, and the Companies Act 1948 shall have effect, as if the institution concerned were an unregistered company within the meaning of Part IX of that Act

(3)If and so long as an institution which was formerly a recognised bank or licensed institution—

(a)is neither recognised nor licensed, but

(b)continues to have any liability in respect of any deposit for which it had a liability at a time when it was recognised or licensed,

the provisions of this section shall apply in relation to it as if it were a licensed institution.

(4)In its application to Northern Ireland, this section shall have effect—

(a)with the substitution of a reference to the Companies Act (Northern Ireland) 1960 for any reference to the Companies Act 1948;

(b)with the substitution of a reference to paragraph (d) of section 348 of the Companies Act (Northern Ireland) 1960 for the reference in paragraph (a) of subsection (2) above to paragraph (c) of section 398 of the Companies Act 1948; and

(c)with the omission of paragraph (b) of subsection (2) above.

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