The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020

Amendment of the Insolvency Act 1986 U.K.

Introduction U.K.

109.  The Insolvency Act 1986 is modified in accordance with regulations 110 to 114.

Commencement Information

I1 Reg. 109 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Non-preferential debts in company voluntary arrangements U.K.

110.  Section 4 (decisions of the company and its creditors) M1 applies as if in subsection (4)(d) for “or (3)” there were substituted “ , (3) or (3A) ”.

Commencement Information

I2 Reg. 110 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Marginal Citations

M1 Section 4 was amended by the Insolvency Act 2000 (c.39), Schedule 2, paragraphs 1 and 4, the Deregulation Act 2015 (c. 20) Schedule 6(6) paragraph 20(2)(c), the Small Business, Enterprise and Employment Act 2015 (c. 26) Schedule 9(1) paragraph 4, S.I. 2014/3486 and S.I. 2018/1244.

Non-preferential debts in winding up of companies U.K.

111.  Section 176AZA (non-preferential debts of financial institutions) M2 applies as if after subsection (3) there were inserted—

“(3A) The company's tertiary non-preferential debts shall be paid in priority to its quaternary non-preferential debts.”.

Commencement Information

I3 Reg. 111 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Marginal Citations

M2 Section 176AZA was inserted by S.I. 2018/1244.

Non-preferential debts in bankruptcy proceedings U.K.

112.  Section 328 (priority of debts) M3 applies as if in subsection (3A)—

(a) in paragraph (c), the “and” were omitted;

(b) after paragraph (d), there were inserted—

“and

(e) the bankrupt's tertiary non-preferential debts shall be paid in priority to the bankrupt's quaternary non-preferential debts.”.

Commencement Information

I4 Reg. 112 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Marginal Citations

M3 Section 328 was amended by S.I. 2014/3486 and S.I. 2018/1244.

Interpretation U.K.

113.  Section 387A (financial institutions and their non-preferential debts) M4 applies as if in subsection (3)—

(a) in paragraph (a), for “neither secondary non-preferential debts nor tertiary non-preferential debts” there were substituted “ not secondary non-preferential debts, tertiary non-preferential debts or quaternary non-preferential debts ”;

(b) in paragraph (b), the final “and” were omitted;

(c) for paragraph (c) there were substituted—

“(c) “tertiary non-preferential debts” means subordinated debts that are not quaternary non-preferential debts, and

(d) “quaternary non-preferential debts” means debts under instruments the whole or part of which constitute Common Equity Tier 1 instruments, Additional Tier 1 instruments or Tier 2 instruments (all within the meaning of Part 1 of the Banking Act 2009).”.

Commencement Information

I5 Reg. 113 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Marginal Citations

M4 Section 387A was inserted by S.I. 2018/1244.

Administration U.K.

114.  Schedule B1 (administration) M5 applies as if in paragraph 73(1)(e) (protection for priority creditor) for “or (3)” there were substituted “ , (3) or (3A) ”.

Commencement Information

I6 Reg. 114 in force at 28.12.2020 but shall cease to have effect on IP completion day, see reg. 1(4)

Marginal Citations

M5 Schedule B1 was inserted by the Enterprise Act 2002 (c. 40) Schedule 16 paragraph 1; paragraph 73 was amended by S.I. 2014/3486 and S.I. 2018/1244; there are other amending instruments but none is relevant.