Part 3

Bank Administration

Introduction

Overview
136
1
This Part provides for a procedure to be known as bank administration.
2
The main features of bank administration are that—
a
it is used where part of the business of a bank is sold to a commercial purchaser in accordance with section 11 or transferred to a resolution company in accordance with section 12 or 12ZA (and it can also be used in certain cases of multiple transfers under Part 1),
b
the court appoints a bank administrator on the application of the Bank of England,
c
the bank administrator is able and required to ensure that the non-sold or non-transferred part of the bank (“the residual bank”) provides services or facilities required to enable the commercial purchaser (“the private sector purchaser”) or the transferee (“the resolution company ”) to operate effectively, and
d
in other respects the process is the same as for normal administration under the Insolvency Act 1986, subject to specified modifications.
3
The Table describes the provisions of this Part.
Sections | Topic
Sections 136 to 140 | Introduction
Sections 141 to 148 | Process
Sections 149 to 152A | Multiple transfers
Sections 153 and 154 | Termination
Sections 155 to 168 | Miscellaneous
Pt. 3 modified (21.2.2009) by The Banking Act 2009 (Bank Administration) (Modification for Application to Banks in Temporary Public Ownership) Regulations 2009 (S.I. 2009/312), regs. 1(1), 2-4, Sch.
Pt. 3 modified (21.2.2009) by Banking Act 2009 (Bank Administration) (Modification for Application to Multiple Transfers) Regulations 2009 (S.I. 2009/313), regs. 1(1), 2, 3, Sch. 1
S. 136 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3
Pt. 3 applied (with modifications) by Building Societies Act 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. 3 applied (with modifications) (8.2.2011) by The Investment Bank Special Administration Regulations 2011 (S.I. 2011/245), reg. 1, Sch. 2 para. 6 (as amended (1.4.2013) by S.I. 2013/472, Sch. 2 para. 198(q)(ii) (with Sch. 2 para. 213))
Word in s. 136(3) substituted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 28; S.I. 2014/3160, art. 2(1)(b)
Words in s. 136(2) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(2)(a)
Words in s. 136(2)(a) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(2)(b)
Pt. 3 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 Pts. 1, 3 (as amended (7.4.2010) by 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)