The Building Society Insolvency (England and Wales) Rules 2010

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 building society liquidator’s appointment

   12. 18. Initial duties of building society liquidation committee

   13. 19. Expenses of voluntary arrangement

4. PART 3 PROVISIONAL BUILDING SOCIETY LIQUIDATOR

   1. 20. Appointment of provisional building society 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 building society 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. Building society insolvency stayed

7. PART 6 MEETINGS OF CREDITORS AND CONTRIBUTORIES

   1. 40. Meaning of “contributories”

   2. 41. First meeting

   3. 42. Business at first meetings of creditors and contributories

   4. 43. General power to call meetings

   5. 44. The chair at meetings

   6. 45. Requisitioned meetings: general

   7. 46. Requisitioned meetings: reforming the liquidation committee

   8. 47. Attendance at meetings of building society’s personnel

   9. 48. Notice of meetings by advertisement only

   10. 49. Venue

   11. 50. Expenses of summoning meetings

   12. 51. Resolutions

   13. 52. Chair of meeting as proxy–holder

   14. 53. Suspension and adjournment

   15. 54. Entitlement to vote (creditors)

   16. 55. Entitlement to vote (contributories)

   17. 56. Admission and rejection of proof (creditors’ meetings)

   18. 57. Record of proceedings

8. PART 7 PROOF OF DEBTS

   1. 58. Meaning of “prove”

   2. 59. Supply of forms

   3. 60. Contents of proof

   4. 61. Claim established by witness statement

   5. 62. Cost of proving

   6. 63. Building society liquidator to allow inspection of proofs

   7. 64. New building society liquidator appointed

   8. 65. Admission and rejection of proofs for dividend

   9. 66. Appeal against decision on proof

   10. 67. Withdrawal or variation of proof

   11. 68. Expunging of proof by the court

   12. 69. Estimate of quantum

   13. 70. Negotiable instruments, etc.

   14. 71. Secured creditors

   15. 72. Discounts

   16. 73. Mutual credits and set–off

   17. 74. Disapplication of set-off for eligible depositors

   18. 75. Debt in foreign currency

   19. 76. Payments of a periodical nature

   20. 77. Interest

   21. 78. Debt payable at future time

9. PART 8 SECURED CREDITORS

   1. 79. Value of security

   2. 80. Surrender for non–disclosure

   3. 81. Redemption by liquidator

   4. 82. Test of security’s value

   5. 83. Realisation of security by creditor

10. PART 9 THE BUILDING SOCIETY LIQUIDATOR

    1. CHAPTER 1 GENERAL

       1. 84. Remuneration of building society liquidator

       2. 85. Replacement of building society liquidator by creditors

       3. 86. Authentication of building society liquidator’s appointment

       4. 87. Appointment to be advertised and registered

    2. CHAPTER 2 RESIGNATION AND REMOVAL

       1. 88. Creditors’ meeting to be notified of the building society liquidator’s resignation

       2. 89. Action following acceptance of resignation

       3. 90. Advertisement of resignation

       4. 91. Meeting of creditors to remove building society liquidator

       5. 92. Court’s power to regulate meetings under rule 89

       6. 93. Procedure on removal

       7. 94. Advertisement of removal

       8. 95. Removal of building society liquidator by the court

       9. 96. Release of resigning or removed building society liquidator

    3. CHAPTER 3 RELEASE ON COMPLETION OF WINDING UP

       1. 97. Final meeting

       2. 98. Rule as to reporting

    4. CHAPTER 4 REMUNERATION

       1. 99. Fixing of remuneration

       2. 100. Building society liquidator’s entitlement to remuneration where it is not fixed under rule 99

       3. 101. Building society liquidator’s remuneration where he realises assets on behalf of chargeholder

       4. 102. Other matters affecting remuneration

       5. 103. Recourse of building society liquidator to meeting of creditors

       6. 104. Recourse to the court

       7. 105. Creditors’ claim that remuneration is excessive

       8. 106. Primacy of Objective 1

    5. CHAPTER 5 SUPPLEMENTARY PROVISIONS

       1. 107. Replacement building society liquidator

       2. 108. Building society liquidator deceased

       3. 109. Loss of qualification as insolvency practitioner

       4. 110. Resignation of the building society liquidator

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

       6. 112. Building society liquidator’s duties on vacating office

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

       8. 114. Rule against solicitation

11. PART 10 THE LIQUIDATION COMMITTEE

    1. 115. Application of rules in this Part

    2. 116. Membership of committee

    3. 117. Formalities of establishment

    4. 118. Committee established by contributories

    5. 119. Obligations of liquidator to committee

    6. 120. Meetings of the committee

    7. 121. The chair at meetings

    8. 122. Quorum

    9. 123. Committee–members’ representatives

    10. 124. Resignation

    11. 125. Termination of membership

    12. 126. Removal

    13. 127. Vacancy (creditor members)

    14. 128. Vacancy (contributory members)

    15. 129. Voting rights and resolutions

    16. 130. Resolutions by post

    17. 131. Liquidator’s reports

    18. 132. Expenses of members, etc.

    19. 133. Dealings by committee–members and others

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

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

    22. 136. Formal defects

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

    1. 137. General duties of building society liquidator

    2. 138. General qualification on powers

    3. 139. Manner of distributing assets

    4. 140. Debts of insolvent building society to rank equally

    5. 141. Supplementary provisions as to dividend

    6. 142. Division of unsold assets

    7. 143. General powers of the liquidator

    8. 144. Enforced delivery up of building society’s property

    9. 145. Final distribution

13. PART 12 DISCLAIMER

    1. 146. Liquidator’s notice of disclaimer

    2. 147. Communication of disclaimer to persons interested

    3. 148. Additional notices

    4. 149. Duty to keep court informed

    5. 150. Application by interested party under section 178(5)

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

    7. 152. Disclaimer presumed valid and effective

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

14. PART 13 SETTLEMENT OF LIST OF CONTRIBUTORIES

    1. 154. Preliminary

    2. 155. Primacy of Objective 1

    3. 156. Duty of liquidator to settle list

    4. 157. Form of list

    5. 158. Procedure for settling list

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

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

    8. 161. Costs not to fall on building society liquidator

15. PART 14 CALLS

    1. 162. Calls by building society liquidator

    2. 163. Control by building society liquidation committee

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

    4. 165. Making and enforcement of the call

16. PART 15 SPECIAL MANAGER

    1. 166. Appointment and remuneration

    2. 167. Security

    3. 168. Failure to give or keep up security

    4. 169. Accounting

    5. 170. Termination of appointment

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

    1. 171. General rule as to priority

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

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

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

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

    6. 176. Litigation expenses and property subject to a floating charge–application to court by the building society liquidator

    7. 177. Saving for powers of the court

18. PART 17 MISCELLANEOUS RULES

    1. CHAPTER 1 RETURN OF CAPITAL

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

       2. 179. Procedure for return of capital

    2. CHAPTER 2 CONCLUSION OF BUILDING SOCIETY INSOLVENCY

       1. 180. FSA’s directions under section 116 of the Banking Act

       2. 181. Procedure following appeal under section 116 of the Banking Act

19. PART 18 COURT PROCEDURE AND PRACTICE

    1. CHAPTER 1 APPLICATIONS (GENERAL)

       1. 182. Preliminary

       2. 183. Interpretation

       3. 184. Form and contents of application

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

       5. 186. Filing and service of application

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

       7. 188. Other hearings without notice

       8. 189. Hearing of application

       9. 190. Use of evidence

       10. 191. Filing and service of witness statements

       11. 192. Use of reports

       12. 193. Adjournment of hearings: directions

    2. CHAPTER 2 SHORTHAND WRITERS

       1. 194. Nomination and appointment of shorthand writers

       2. 195. Remuneration

    3. CHAPTER 3 ENFORCEMENT PROCEDURES

       1. 196. Enforcement of court orders

       2. 197. Orders enforcing compliance with the Rules

       3. 198. Warrants (general provisions)

       4. 199. Warrants under section 236

    4. CHAPTER 4 COURT RECORDS AND RETURNS

       1. 200. Title of proceedings

       2. 201. Court records

       3. 202. Inspection of records

       4. 203. File of court proceedings and inspection

    5. CHAPTER 5 COSTS AND DETAILED ASSESSMENT

       1. 204. Application of the CPR

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

       3. 206. Procedure where detailed assessment required

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

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

       6. 209. Award of costs against responsible insolvency practitioner

       7. 210. Application for costs

       8. 211. Costs and expenses of witnesses

       9. 212. Final costs certificate

    6. CHAPTER 6 PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS

       1. 213. Introductory

       2. 214. Appointment of another person to act

       3. 215. Witness statement in support of application

       4. 216. Service of notices following appointment

    7. CHAPTER 7 APPEALS IN BUILDING SOCIETY INSOLVENCY PROCEEDINGS

       1. 217. Appeals and review of court orders

       2. 218. Procedure on appeal

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

    8. CHAPTER 8 GENERAL

       1. 220. Principal court rules and practice to apply

       2. 221. Right of attendance

       3. 222. Restriction on concurrent proceedings and remedies

       4. 223. Security in court

       5. 224. Payment into court

       6. 225. Further information and disclosure

       7. 226. Office copies of documents

20. PART 19 PROXIES

    1. 227. Definition of “proxy”

    2. 228. Issue and use of forms

    3. 229. Use of proxies at meetings

    4. 230. Retention of proxies

    5. 231. Right of inspection

    6. 232. Proxy–holder with financial interest

21. PART 20 EXAMINATION OF PERSONS CONCERNED IN BUILDING SOCIETY INSOLVENCY

    1. 233. Preliminary

    2. 234. Form and contents of application

    3. 235. Order for examination, etc.

    4. 236. Procedure for examination

    5. 237. Record of examination

    6. 238. Costs of proceedings

22. PART 21 DECLARATION AND PAYMENT OF DIVIDEND

    1. 239. Preliminary

    2. 240. Notice of intended dividend

    3. 241. Final admission/rejection of proofs

    4. 242. Postponement or cancellation of dividend

    5. 243. Decision to declare dividend

    6. 244. Notice of declaration

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

    8. 246. Proof altered after payment of dividend

    9. 247. Secured creditors

    10. 248. Disqualification from dividend

    11. 249. Assignment of right to dividend

    12. 250. Preferential creditors

    13. 251. Debt payable at future time

23. PART 22 MISCELLANEOUS AND GENERAL

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

    2. 253. Costs, expenses, etc.

    3. 254. Provable debts

    4. 255. Notices

    5. 256. Quorum at meeting of creditors or contributories

    6. 257. Evidence of proceedings at meetings

    7. 258. Documents issuing from Secretary of State

    8. 259. Insolvency practitioner’s security

    9. 260. Time limits

    10. 261. Service by post

    11. 262. General provisions as to service

    12. 263. Service outside the jurisdiction

    13. 264. Confidentiality of documents

    14. 265. Notices sent simultaneously to the same person

    15. 266. Right to copy documents

    16. 267. Charge for copy documents

    17. 268. Non–receipt of notice of meeting

    18. 269. Right to have list of creditors

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

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

    21. 272. The Gazette

    22. 273. Punishment of offences

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

24. PART 23 INTERPRETATION

    1. 275. Introductory

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

    3. 277. “Give notice”, etc.

    4. 278. Notice, etc. to solicitors

    5. 279. Notice to joint building society liquidators

    6. 280. “Insolvent estate”

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

    8. 282. “The appropriate fee”

    9. 283. “Debt”, “liability”

    10. 284. Expressions used generally

    11. 285. The Schedule

25. Signature

26. 1. SCHEDULE

27. Explanatory Note