The Bank Insolvency (England and Wales) Rules 2009

  1. Introductory Text

  2. PART 1 INTRODUCTORY PROVISIONS

    1. 1.Citation and commencement

    2. 2.Extent

    3. 3.Application of rules, construction and interpretation

    4. 4.Overview

    5. 5.Forms

    6. 6.Time Limits

  3. PART 2 APPLICATION FOR ORDER

    1. 7.Filing of application

    2. 8.Service of application

    3. 9.Proof of service

    4. 10.Other persons to receive copy of application

    5. 11.Verification of application

    6. 12.Persons entitled to copy of application

    7. 13.Certificate of compliance

    8. 14.Leave for the applicant to withdraw

    9. 15.Witness statement in opposition

    10. 16.Making, transmission and advertisement of order

    11. 17.Authentication of bank liquidator’s appointment

    12. 18.Initial duties of bank liquidation committee

    13. 19.Expenses of voluntary arrangement

  4. PART 3 PROVISIONAL BANK LIQUIDATOR

    1. 20.Appointment of provisional bank liquidator

    2. 21.Notice of appointment

    3. 22.Order of appointment

    4. 23.Security

    5. 24.Failure to give or keep up security

    6. 25.Remuneration

    7. 26.Termination of appointment

  5. PART 4 STATEMENT OF AFFAIRS AND OTHER INFORMATION

    1. 27.Notice requiring statement of affairs

    2. 28.Verification and filing

    3. 29.Limited disclosure

    4. 30.Release from duty to submit statement of affairs; extension of time

    5. 31.Expenses of statement of affairs

    6. 32.Submission of accounts

    7. 33.Further disclosure

  6. PART 5 INFORMATION TO CREDITORS AND CONTRIBUTORIES

    1. 34.Report by bank liquidator

    2. 35.Meaning of “creditors”

    3. 36.Report where statement of affairs lodged

    4. 37.Statement of affairs dispensed with

    5. 38.General rule as to reporting

    6. 39.Bank insolvency stayed

  7. PART 6 MEETINGS OF CREDITORS AND CONTRIBUTORIES

    1. RULES OF GENERAL APPLICATION

      1. 40.First meeting

      2. 41.Business at first meetings of creditors and contributories

      3. 42.General power to call meetings

      4. 43.The chair at meetings

      5. 44.Requisitioned meetings: general

      6. 45.Requisitioned meetings: reforming the liquidation committee

      7. 46.Attendance at meetings of bank’s personnel

      8. 47.Notice of meetings by advertisement only

      9. 48.Venue

      10. 49.Expenses of summoning meetings

      11. 50.Resolutions

      12. 51.Chair of meeting as proxy–holder

      13. 52.Suspension and adjournment

      14. 53.Entitlement to vote (creditors)

      15. 54.Entitlement to vote (contributories)

      16. 55.Admission and rejection of proof (creditors’ meetings)

      17. 56.Record of proceedings

  8. PART 7 PROOF OF DEBTS

    1. 57.Meaning of “prove”

    2. 58.Supply of forms

    3. 59.Contents of proof

    4. 60.Claim established by affidavit

    5. 61.Cost of proving

    6. 62.Bank liquidator to allow inspection of proofs

    7. 63.New bank liquidator appointed

    8. 64.Admission and rejection of proofs for dividend

    9. 65.Appeal against decision on proof

    10. 66.Withdrawal or variation of proof

    11. 67.Expunging of proof by the court

    12. 68.Estimate of quantum

    13. 69.Negotiable instruments, etc.

    14. 70.Secured creditors

    15. 71.Discounts

    16. 72.Mutual credits and set–off

    17. 73.Disapplication of set off for eligible depositors

    18. 74.Debt in foreign currency

    19. 75.Payments of a periodical nature

    20. 76.Interest

    21. 77.Debt payable at future time

  9. PART 8 SECURED CREDITORS

    1. 78.Value of security

    2. 79.Surrender for non–disclosure

    3. 80.Redemption by liquidator

    4. 81.Test of security’s value

    5. 82.Realisation of security by creditor

  10. PART 9 THE BANK LIQUIDATOR

    1. CHAPTER 1 GENERAL

      1. 83.Remuneration of bank liquidator

      2. 84.Replacement of bank liquidator by creditors

      3. 85.Authentication of bank liquidator’s appointment

      4. 86.Appointment to be advertised and registered

    2. CHAPTER 2 RESIGNATION AND REMOVAL

      1. 87.Creditors’ meeting to be notified of the bank liquidator’s resignation

      2. 88.Action following acceptance of resignation

      3. 89.Advertisement of resignation

      4. 90.Meeting of creditors to remove bank liquidator

      5. 91.Court’s power to regulate meetings under rule 90

      6. 92.Procedure on removal

      7. 93.Advertisement of removal

      8. 94.Removal of bank liquidator by the court

      9. 95.Release of resigning or removed bank liquidator

    3. CHAPTER 3 RELEASE ON COMPLETION OF WINDING UP

      1. 96.Final meeting

      2. 97.Rule as to reporting

    4. CHAPTER 4 REMUNERATION

      1. 98.Fixing of remuneration

      2. 99.Bank liquidator’s entitlement to remuneration where it is not fixed under rule 98

      3. 100.Bank liquidator’s remuneration where he realises assets on behalf of chargeholder

      4. 101.Other matters affecting remuneration

      5. 102.Recourse of bank liquidator to meeting of creditors

      6. 103.Recourse to the court

      7. 104.Creditors’ claim that remuneration is excessive

      8. 105.Primacy of Objective 1

    5. CHAPTER 5 SUPPLEMENTARY PROVISIONS

      1. 106.Replacement Bank liquidator

      2. 107.Bank liquidator deceased

      3. 108.Loss of qualification as insolvency practitioner

      4. 109.Resignation of the bank liquidator

      5. 110.Notice to Bank of England of intention to vacate office

      6. 111.Bank liquidator’s duties on vacating office

      7. 112.Power of court to set aside certain transactions

      8. 113.Rule against solicitation

  11. PART 10 THE LIQUIDATION COMMITTEE

    1. 114.Application of rules in this Part

    2. 115.Membership of committee

    3. 116.Formalities of establishment

    4. 117.Committee established by contributories

    5. 118.Obligations of liquidator to committee

    6. 119.Meetings of the committee

    7. 120.The chair at meetings

    8. 121.Quorum

    9. 122.Committee–members’ representatives

    10. 123.Resignation

    11. 124.Termination of membership

    12. 125.Removal

    13. 126.Vacancy (creditor members)

    14. 127.Vacancy (contributory members)

    15. 128.Voting rights and resolutions

    16. 129.Resolutions by post

    17. 130.Liquidator’s reports

    18. 131.Expenses of members, etc.

    19. 132.Dealings by committee–members and others

    20. 133.Composition of committee when creditors paid in full

    21. 134.Committee’s functions vested in the Secretary of State

    22. 135.Formal defects

  12. PART 11 COLLECTION AND DISTRIBUTION OF BANK’S ASSETS BY BANK LIQUIDATOR

    1. 136.General duties of bank liquidator

    2. 137.General qualification on powers

    3. 138.Manner of distributing assets

    4. 139.Debts of insolvent company to rank equally

    5. 140.Supplementary provisions as to dividend

    6. 141.Division of unsold assets

    7. 142.General powers of the liquidator

    8. 143.Enforced delivery up of company’s property

    9. 144.Final distribution

  13. PART 12 DISCLAIMER

    1. 145.Liquidator’s notice of disclaimer

    2. 146.Communication of disclaimer to persons interested

    3. 147.Additional notices

    4. 148.Duty to keep court informed

    5. 149.Application by interested party under s 178(5)

    6. 150.Interest in property to be declared on request

    7. 151.Disclaimer presumed valid and effective

    8. 152.Application for exercise of court’s powers under s 181

  14. PART 13 SETTLEMENT OF LIST OF CONTRIBUTORIES

    1. 153.Preliminary

    2. 154.Primacy of Objective 1

    3. 155.Duty of liquidator to settle list

    4. 156.Form of list

    5. 157.Procedure for settling list

    6. 158.Application to court for variation of the list

    7. 159.Variation of, or addition to, the list

    8. 160.Costs not to fall on bank liquidator

  15. PART 14 CALLS

    1. 161.Calls by liquidator

    2. 162.Control by bank liquidation committee

    3. 163.Application to court for leave to make a call

    4. 164.Making and enforcement of the call

  16. PART 15 SPECIAL MANAGER

    1. 165.Appointment and remuneration

    2. 166.Security

    3. 167.Failure to give or keep up security

    4. 168.Accounting

    5. 169.Termination of appointment

  17. PART 16 ORDER OF PAYMENT AS TO COSTS, ETC. OUT OF ASSETS

    1. 170.General rule as to priority

    2. 171.Litigation expenses and property subject to a floating charge–general application

    3. 172.Litigation expenses and property subject to a floating charge–requirement for approval or authorisation

    4. 173.Litigation expenses and property subject to a floating charge–request for approval or authorisation

    5. 174.Litigation expenses and property subject to a floating charge–grant of approval or authorisation

    6. 175.Litigation expenses and property subject to a floating charge–application to court by the bank liquidator

    7. 176.Saving for powers of the court

  18. PART 17 MISCELLANEOUS RULES

    1. CHAPTER 1 RETURN OF CAPITAL

      1. 177.Application to court for order authorising return of capital

      2. 178.Procedure for return of capital

    2. CHAPTER 2 CONCLUSION OF BANK INSOLVENCY

      1. 179.Secretary of State’s directions under s 116 of the 2009 Act

      2. 180.Procedure following appeal under s 116 of the 2009 Act

    3. CHAPTER 3 LEAVE TO ACT AS DIRECTOR, ETC. OF BANK WITH PROHIBITED NAME

      1. 181.Preliminary

      2. 182.Application for leave under s 216(3) before passing of full payment resolution

      3. 183.Consideration of application for leave under s 216(3)

      4. 184.First excepted case

      5. 185.Second excepted case

      6. 186.Third excepted case

      7. 187.Further exception

  19. PART 18 COURT PROCEDURE AND PRACTICE

    1. CHAPTER 1 APPLICATIONS (GENERAL)

      1. 188.Preliminary

      2. 189.Interpretation

      3. 190.Form and contents of application

      4. 191.Application under section 176A(5) to disapply section 176A

      5. 192.Filing and service of application

      6. 193.Notice of application under section 176A(5)

      7. 194.Other hearings without notice

      8. 195.Hearing of application

      9. 196.Use of evidence

      10. 197.Filing and service of witness statements

      11. 198.Use of reports

      12. 199.Adjournment of hearings: directions

    2. CHAPTER 3 SHORTHAND WRITERS

      1. 200.Nomination and appointment of shorthand writers

      2. 201.Remuneration

    3. CHAPTER 4 ENFORCEMENT PROCEDURES

      1. 202.Enforcement of court orders

      2. 203.Orders enforcing compliance with the rules

      3. 204.Warrants (general provisions)

      4. 205.Warrants under section 236

    4. CHAPTER 5 COURT RECORDS AND RETURNS

      1. 206.Title of proceedings

      2. 207.Court records

      3. 208.Inspection of records

      4. 209.File of court proceedings and inspection

      5. 210.Filing of Gazette notices and advertisements

    5. CHAPTER 6 COSTS AND DETAILED ASSESSMENT

      1. 211.Application of the CPR

      2. 212.Requirement to assess costs by the detailed procedure

      3. 213.Procedure where detailed assessment required

      4. 214.Costs of officers charged with executions of writs or other process

      5. 215.Costs paid otherwise than out of the insolvent estate

      6. 216.Award of costs against responsible insolvency practitioner

      7. 217.Application for costs

      8. 218.Costs and expenses of witnesses

      9. 219.Final costs certificate

    6. CHAPTER 7 PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS

      1. 220.Introductory

      2. 221.Appointment of another person to act

      3. 222.Witness statement in support of application

      4. 223.Service of notices following appointment

    7. CHAPTER 8 APPEALS IN BANK INSOLVENCY PROCEEDINGS

      1. 224.Appeals and review of court orders

      2. 225.Procedure on appeal

      3. 226.Appeal against a decision of the Secretary of State

    8. CHAPTER 9 GENERAL

      1. 227.Principal court rules and practice to apply

      2. 228.Right of attendance

      3. 229.Restriction on concurrent proceedings and remedies

      4. 230.Security in court

      5. 231.Payment into court

      6. 232.Further information and disclosure

      7. 233.Office copies of documents

  20. PART 19 PROXIES AND COMPANY REPRESENTATION

    1. 234.Definition of “proxy”

    2. 235.Issue and use of forms

    3. 236.Use of proxies at meetings

    4. 237.Retention of proxies

    5. 238.Right of inspection

    6. 239.Proxy–holder with financial interest

    7. 240.Company representation

  21. PART 20 EXAMINATION OF PERSONS CONCERNED IN BANK INSOLVENCY

    1. 241.Preliminary

    2. 242.Form and contents of application

    3. 243.Order for examination, etc.

    4. 244.Procedure for examination

    5. 245.Record of examination

    6. 246.Costs of proceedings

  22. PART 21 DECLARATION AND PAYMENT OF DIVIDEND

    1. 247.Preliminary

    2. 248.Notice of intended dividend

    3. 249.Final admission/rejection of proofs

    4. 250.Postponement or cancellation of dividend

    5. 251.Decision to declare dividend

    6. 252.Notice of declaration

    7. 253.Notice of no, or no further, dividend

    8. 254.Proof altered after payment of dividend

    9. 255.Secured creditors

    10. 256.Disqualification from dividend

    11. 257.Assignment of right to dividend

    12. 258.Preferential creditors

    13. 259.Debt payable at future time

  23. PART 22 MISCELLANEOUS AND GENERAL

    1. 260.Power of Secretary of State or Treasury to regulate certain matters

    2. 261.Costs, expenses, etc.

    3. 262.Provable debts

    4. 263.Notices

    5. 264.Quorum at meeting of creditors or contributories

    6. 265.Evidence of proceedings at meetings

    7. 266.Documents issuing from Secretary of State

    8. 267.Insolvency practitioner’s security

    9. 268.Time limits

    10. 269.Service by post

    11. 270.General provisions as to service

    12. 271.Service outside the jurisdiction

    13. 272.Confidentiality of documents

    14. 273.Notices sent simultaneously to the same person

    15. 274.Right to copy documents

    16. 275.Charge for copy documents

    17. 276.Non–receipt of notice of meeting

    18. 277.Right to have list of creditors

    19. 278.False claim of status as creditor, etc

    20. 279.Execution overtaken by judgement debtor’s insolvency

    21. 280.The Gazette

    22. 281.Punishment of offences

    23. 282.Notice of order under section 176A(5)

  24. PART 23 INTERPRETATION

    1. 283.Introductory

    2. 284.“The court”; “the registrar”

    3. 285.“Give notice”, etc.

    4. 286.Notice, etc. to solicitors

    5. 287.Notice to joint bank liquidators

    6. 288.“Insolvent estate”

    7. 289.“Responsible insolvency practitioner”, etc.

    8. 290.“The appropriate fee”

    9. 291.“Debt”, “liability”

    10. 292.Expressions used generally

    11. 293.The Schedule

  25. Signature

    1. SCHEDULE

      1. 1.The following schedules to the 1986 Rules are applied to...

  27. Explanatory Note