The Bank Administration (Scotland) Rules 2009

PART 2 Application for Bank Administration Order

Introduction

8.  This Part makes specific provision for a number of aspects of applications for bank administration orders. Part 4 applies a number of provisions of the 1986 Rules to applications for bank administration orders (with specified modifications).

Content of application

9.  An application by the Bank of England for a bank administration order in respect of a bank must specify—

(a) the full name of the bank;

(b) any other trading names of the bank;

(c) the address of the bank’s registered office;

(d) an email address for the bank;

(e) the address of the Bank of England; and

(f) the identity of the person (or persons) nominated for appointment as bank administrator.

10.  If the bank has notified the Bank of England of an address for service which is, because of special circumstances, to be used in place of the registered office, that address shall be specified under rule 9(c).

Statement of proposed bank administrator

11.  An application must be accompanied by a statement by each proposed bank administrator—

(a) specifying the name and address of the person proposed to be appointed;

(b) giving that person’s consent to act;

(c) giving details of that person’s qualification to act as an insolvency practitioner; and

(d) giving details of any prior professional relationship that person (or any other proposed bank administrator) has had with the bank.

Lodging

12.  The application, and its accompanying documents, must be lodged with the court.

Service

13.  The Bank of England shall serve the application—

(a) on the bank;

(b) on the person (or each of the persons) nominated for appointment as bank administrator;

(c) on any person whom the Bank of England knows to be entitled to appoint an administrator under paragraph 14 of Schedule B1 to the 1986 Act or a receiver of the whole (or substantially the whole) of the bank’s property;

(d) on any person who has given notice to the FSA in respect of the bank under section 120 of the 2009 Act (bank insolvency: notice of preliminary steps of other insolvency procedures); and

(e) if a property transfer instrument was made or is to be made under section 11(2)(b) of the 2009 Act (transfer to commercial purchaser), on each transferee as referred to in that instrument.

14.  Service must be effected as soon as is reasonably practicable, having regard in particular to the need to give the bank’s representatives a reasonable opportunity to attend the hearing of the application.

Other notification

15.  As soon as is reasonably practicable after lodging the application the Bank of England must notify—

(a) any enforcement officer or other officer whom the Bank of England knows to be charged with effecting an execution, any diligence or other legal process against the bank or its property;

(b) any person whom the Bank of England knows to have executed diligence against the bank or its property; and

(c) the FSA.

Notice of order

16.  If the court makes a bank administration order, it shall send four certified copies of it to the Bank of England.

17.  The Bank of England shall as soon as is reasonably practicable send—

(a) one certified copy to the bank administrator;

(b) one certified copy to the FSA; and

(c) one certified copy to the FSCS.

Expenses

18.  If the court makes a bank administration order, the following are payable as an expense of the bank administration:—

(a) the Bank of England’s expenses of making the application and complying with the requirements of these Rules; and

(b) any other expenses allowed by the court.