The Banks and Building Societies (Priorities on Insolvency) Order 2018

PART 6 U.K. Amendments of Insolvent Partnerships Order (Northern Ireland) 1995

Amendments to the Insolvent Partnerships Order (Northern Ireland) 1995 U.K.

32.  The Insolvent Partnerships Order (Northern Ireland) 1995(1) is amended in accordance with this Part.

Commencement Information

I1 Art. 32 in force at 19.12.2018, see art. 1(2)

33.  In paragraph (3) of Article 4 (voluntary arrangement of insolvent partnership)(2), after sub-paragraph (a) insert: U.K.

“(za) Article 150ZZA in Part 5,”.

Commencement Information

I2 Art. 33 in force at 19.12.2018, see art. 1(2)

34.  In paragraph (3) of Article 6 (administration in relation to insolvent partnership)(3), after sub-paragraph (a) insert: U.K.

“(za) Article 150ZZA in Part 5,”.

Commencement Information

I3 Art. 34 in force at 19.12.2018, see art. 1(2)

35.  In Schedule 1 (modified provisions of Part II of, and Schedule A1 to, the 1989 Order (company voluntary arrangements) as applied by Article 4)(4), in modified Article 17(4) (decisions of meetings)— U.K.

(a) in the words before paragraph (a), omit “preferential”;

(b) in paragraph (b) omit the final “or”;

(c) after paragraph (c) insert—

“or

(d) in the case of a company which is a relevant financial institution (see Article 347A), any non-preferential debt is to be paid otherwise than in accordance with the rules in Article 150ZZA(2) or (3).”.

Commencement Information

I4 Art. 35 in force at 19.12.2018, see art. 1(2)

36.—(1) Schedule 2 (modified provisions of Schedule B1 to the 1989 Order (administration) as applied by Article 6)(5), is amended as follows. U.K.

(2) In paragraph 31, in modified paragraph 66(2), for “Article 149(1) and (2)(a)” substitute “Article 149(1), (1A), (1B), and (3) and Article 150ZZA”.

(3) In paragraph 35, in modified Article 74(1)—

(a) in sub-paragraph (c) omit the final “or”;

(b) in sub-paragraph (d) at the end insert—

“or

(e) if the company is a relevant financial institution (see Article 347A), any non-preferential debt is to be paid otherwise than in accordance with the rules in Article 150ZZA(2) or (3).”.

Commencement Information

I5 Art. 36 in force at 19.12.2018, see art. 1(2)

37.—(1) Paragraph 23 of Schedule 4 (provisions of the 1989 Order which apply with modifications for the purposes of Article 8 to winding up of insolvent partnership on creditor’s petition where concurrent petitions are presented against one or more members)(6), is amended as follows. U.K.

(2) In the opening words, after “Articles 149” insert “, 150ZZA”.

(3) In modified Article 149A(2) (priority of debts in joint estate), for sub-paragraph (b) substitute—

“(b) the ordinary non-preferential debts;

(ba) the secondary non-preferential debts;

(bb) the tertiary non-preferential debts;”.

(4) In modified Article 149A(4), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.

(5) After modified Article149A(5) insert—

“(5A) Where the joint estate is not sufficient for the payment of the secondary non-preferential debts in accordance with sub-paragraph (ba) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which–

(a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and

(b) shall rank equally with the debts of the member referred to in Article 149B(1)(ba);

(5B) Where the joint estate is not sufficient for the payment of the tertiary non-preferential debts in accordance with sub-paragraph (bb) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and the aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which—

(a) shall be a debt payable by the responsible insolvency practitioner in each such estate, and

(b) shall rank as a debt of the member in accordance with Article 149B(1)(bc).”.

(6) In modified Article 149A(6), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (bb)”.

(7) In modified Article 149A(9), after “(5),” insert “(5A), (5B),”.

(8) In modified Article 149B(1) (priority of debts in separate estate), for sub-paragraph (b) substitute—

“(b) the ordinary non-preferential debts (including any debt referred to in Article 149A(5)(a));

(ba) the secondary non-preferential debts (including any debt referred to in Article 149A(5A)(a));

(bb) the tertiary non-preferential debts;

(bc) the debt referred to in Article 149A(5B)(a);”.

(9) In modified Article 149B(2), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.

(10) In modified Article 149C(3), after “149A(5)(a)” insert “, (5A)(a), (5B)(a)”.

(11) In modified Article 149C(4), for “debts which are neither preferential debts nor postponed debts” substitute “ordinary non-preferential debts, secondary non-preferential debts and tertiary non-preferential debts”.

(12) In modified Article149C(8)(b), after “149A(5),” insert “(5A), (5B),”.

Commencement Information

I6 Art. 37 in force at 19.12.2018, see art. 1(2)

38.—(1) Paragraph 21 of Schedule 7 (provisions of the 1989 Order which apply with modifications for the purposes of Article 11 where joint bankruptcy petition is presented by individual members without winding up partnership as unregistered company)(7), is amended as follows. U.K.

(2) In paragraph (2) of modified Article 300A (priority of debts in joint estate), for sub-paragraph (b) substitute—

“(b) the ordinary non-preferential debts;

(ba) the secondary non-preferential debts;

(bb) the tertiary non-preferential debts;”.

(3) In modified Article 300A(4), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.

(4) After modified Article 300A(5) insert—

“(5A) Where the joint estate is not sufficient for the payment of the secondary non-preferential debts in accordance with sub-paragraph (ba) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which–

(a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and

(b) shall rank equally with the debts of the member referred to in Article 300B(1)(ba).

(5B) Where the joint estate is not sufficient for the payment of the tertiary non-preferential debts in accordance with paragraph (bb) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which—

(a) shall be a debt provable by the responsible insolvency practitioner in each such estate, and

(b) shall rank as a debt of the member in accordance with Article 300B(1)(bc).”.

(5) In modified Article 300A(6), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (bb)”.

(6) In modified Article 300A(9), after “(5),” insert “(5A), (5B),”.

(7) In modified Article 300B(1) (priority of debts in separate estate), for paragraph (b) substitute—

“(b) the ordinary non-preferential debts (including any debt referred on in Article 300A(5)(a));

(ba) the secondary non-preferential debts (including any debt referred to in Article 300A(5A)(a));

(bb) the tertiary non-preferential debts;

(bc) the debt referred to in Article 300A(5B)(a);”.

(8) In modified Article 300B(2) for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.

(9) In modified Article 300C(3), after “300A(5)(a)” insert “, (5A)(a), (5B)(a),”.

(10) In modified Article 300C(4), for “debts which are neither preferential debts nor postponed debts” substitute “ordinary non-preferential debts, secondary non-preferential debts and tertiary non-preferential debts”.

(11) In modified Article 300C(8)(b), after “300A(5),” insert “(5A), (5B),”.

Commencement Information

I7 Art. 38 in force at 19.12.2018, see art. 1(2)

(1)

S.R. (N.I.) 1995 No.225.

(2)

partially substituted by Article 4 of Insolvent Partnerships (Amendment No. 3) Order (Northern Ireland) 2003/550

(3)

Article 6 was substituted by S.R. 2006 No.515.

(4)

Schedule 1 was substituted by S.R. 2003 No.550 and amended by S.I. 2014/3486.

(5)

Schedule 2 was substituted by S.R. 2006 and amended by S.R. 2006 No. 515 and S.I. 2014/3486.

(6)

Schedule 4 was amended by S.I. 2014/3486.

(7)

Schedule 7 was amended by S.I. 2014/3486.