http://www.legislation.gov.uk/ukpga/2009/1/section/120Banking Act 2009An Act to make provision about banking.texttext/xmlenStatute Law Database2026-02-20Expert Participation2026-01-19 Banking Act 2009s. 4(8A) (8B)Financial Services Act 2012s. 96(3)Sch. 20s. 122(3)Banking Act 2009s. 8(2)(d) and wordFinancial Services Act 2012s. 96(4)(b)Sch. 20s. 122(3) Part 21201An application for an administration order in respect of a bank may not be determined unless the conditions below are satisfied.2A petition for a winding up order in respect of a bank may not be determined unless the conditions below are satisfied.3A resolution for voluntary winding up of a bank may not be made unless the conditions below are satisfied.4An administrator of a bank may not be appointed unless the conditions below are satisfied.5Condition 1 is that the the PRA and the Bank of England have been notified—aby the applicant for an administration order, that the application has been made,bby the petitioner for a winding up order, that the petition has been presented,cby the bank, that a resolution for voluntary winding up may be made, ordby the person proposing to appoint an administrator, of the proposed appointment.6Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court (and made available for public inspection by the court).7Condition 3 is that—athe period of 7 days, beginning with the day on which the notice is received, has ended, orbboth—ithe Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable), andiieach of the PRA and the Bank of England has informed the person who gave the notice that it does not intend to apply for a bank insolvency order.8Condition 4 is that no application for a bank insolvency order is pending.8ACondition 5—aapplies only if a resolution instrument has been made under section 12A with respect to the bank in the 3 months ending with the date on which the PRA receives the notification under Condition 1, andbis that the Bank of England has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead.9Arranging for the giving of notice in order to satisfy Condition 1 can be a step with a view to minimising the potential loss to a bank's creditors for the purpose of section 214 of the Insolvency Act 1986 (wrongful trading).10 Where notice has been given under Condition 1 —a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .bthe PRA shall inform the person who gave the notice, within the period in Condition 3(a), whether it intends to apply for a bank insolvency order, ...cif the Bank of England decides to apply for a bank insolvency order or to exercise a stabilisation power under Part 1, the Bank shall inform the person who gave the notice, within the period in Condition 3(a), anddif Condition 5 applies, the Bank of England must, within the period in Condition 3(a), inform the person who gave the notice whether or not it consents to the insolvency procedure to which the notice relates going ahead.11References in this section to the insolvency procedure to which the notice relates are to the procedure for the determination, resolution or appointment in question (see subsections (1) to (4)).S. 120 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2Pt. 2 applied (with modifications) by 1986 c. 53, s. 90C (as inserted (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), art. 2)Pt. 2 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2Pt. 2 applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 1 paras. 6, 7Word in s. 120 heading substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.Word in s. 120 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.Words in s. 120(6) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 44(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.S. 120(8A) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(b); S.I. 2014/3160, art. 2(1)(b)S. 120(11) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(d); S.I. 2014/3160, art. 2(1)(b)S. 120(10)(d) and preceding word inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(c); S.I. 2014/3160, art. 2(1)(b)Word in s. 120(10)(b) omitted (31.12.2014) by virtue of Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 10(c); S.I. 2014/3160, art. 2(1)(b)S. 120(10)(a) omitted (1.1.2015) by virtue of The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(4)(b)Words in s. 120(10) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(4)(a)S. 120(7)(b) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(3)(b)Words in s. 120(7)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(3)(a)Words in s. 120(5) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 105(2)Pt. 2 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 para. 1 (as amended (7.4.2010) by Building Societies (Insolvency and Special Administration) (Amendment) Order 2010 (S.I. 2010/1189), arts. 1(2), 2 and amended (7.4.2017) by The Deregulation Act 2015, the Small Business, Enterprise and Employment Act 2015 and the Insolvency (Amendment) Act (Northern Ireland) 2016 (Consequential Amendments and Transitional Provisions) Regulations 2017 (S.I. 2017/400), regs. 1(2), 8)