The Building Society Insolvency (Scotland) Rules 2010

PART 3 PROVISIONAL LIQUIDATION

Appointment of provisional building society liquidator

11.—(1) Apply rule 4.1 of the 1986 Rules.

(2) For rule 4.1(1) substitute—

“(1) An application to the court for the appointment of a provisional building society liquidator under section 135 of the Insolvency Act may be made—

(a) by the Bank of England; or

(b) by the FSA, with the consent of the Bank of England.”.

Order of appointment of provisional building society liquidator

12.—(1) The order of appointment of the provisional building society liquidator shall specify the functions to be carried out by the provisional building society liquidator in relation to the building society’s affairs.

(2) The applicant shall, immediately after the order is made, send a certified copy of the order to—

(a) the provisional building society liquidator;

(b) the Bank of England, if the Bank of England is not the applicant;

(c) the FSA, if the FSA is not the applicant; and

(d) the FSCS,

and may also send to those persons an electronic copy of the certified copy order.

(3) The provisional building society liquidator shall immediately after the order is made—

(a) serve a certified copy of it on the building society and each director of the building society;

(b) give notice of the appointment to the Accountant in Bankruptcy;

(c) give notice of the appointment to any receiver of the whole or any part of the property of the building society;

(d) if there is in force for the building society a voluntary arrangement under Part 1 of the Insolvency Act, give notice of the appointment to the supervisor of that arrangement; and

(e) advertise the appointment in accordance with the directions of the court.

(4) Service on a director may be effected electronically by sending it to the director’s work email address.

Caution

13.  Apply rule 4.3 of the 1986 Rules.

Failure to find or to maintain caution

14.  Apply rule 4.4 of the 1986 Rules.

Remuneration

15.  Apply rule 4.5 of the 1986 Rules(1).

Termination of appointment

16.—(1) Apply rule 4.6(1)(2) and (2)(3) of the 1986 Rules.

(2) In rule 4.6(1) ignore “Except in relation to winding up petitions under section 124A”.

(3) After rule 4.6(2) insert—

“(3) On the making of a building society insolvency order, the appointment of the provisional building society liquidator shall terminate.”.

(1)

Rule 4.5 was amended by paragraph 10 of Schedule 1(I) to S.I. 1987/1921.

(2)

Rule 4.6(1) was amended by rule 13(b) of S.I. 2006/734.

(3)

Rule 4.6(2) was amended by paragraph 11 of Schedule 1(I) to S.I. 1987/1921.