http://www.legislation.gov.uk/ukpga/2009/1/section/145Banking Act 2009An Act to make provision about banking.texttext/xmlenStatute Law Database2026-02-20Expert Participation2026-01-19 Part 3Bank Administration<Emphasis>Process</Emphasis>General powers, duties and effect1451A bank administrator may do anything necessary or expedient for the pursuit of the Objectives in section 137.2The following provisions of this section provide for—ageneral powers and duties of bank administrators (by application of provisions about administrators), andbthe general process and effects of bank administration (by application of provisions about administration).3The provisions set out in the Tables apply in relation to bank administration as in relation to administration, with—athe modifications set out in subsection (4),bany other modification specified in the Tables, andcany other necessary modification.4The modifications are that—aa reference to the administrator is a reference to the bank administrator,ba reference to administration is a reference to bank administration,ca reference to an administration order is a reference to a bank administration order,d except where otherwise specified in Table 2, a reference to a company is a reference to the bank,ea reference to the purpose of administration is a reference to the Objectives in section 137, andfin relation to provisions of the Insolvency Act 1986 other than Schedule B1 and section 246ZB, the modifications in section 103 above apply (but converting references into references to bank administration or administrators rather than to bank insolvency or liquidators).5Powers conferred by this Act, by the Insolvency Act 1986 (as applied) and the Companies Acts are in addition to, and not in restriction of, any existing powers of instituting proceedings against a contributory or debtor of a bank, or the estate of any contributory or debtor, for the recovery of any call or other sum.6A reference in an enactment or other document to anything done under a provision applied by this Part includes a reference to the provision as applied.7In the Tables “Schedule 9 to the 2015 Act” means Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (further amendments relating to the abolition of requirements to hold meetings: company insolvency).TABLE 1 OF APPLIED PROVISIONSSCHEDULE B1 TO THE INSOLVENCY ACT 1986Provision of Schedule B1SubjectModification or commentPara. 40(1)(a)Dismissal of pending winding-up petitionPara. 41Dismissal of administrative or other receiverPara. 42Moratorium on insolvency proceedingsIgnore sub-paras. (4) and (5).Para. 43Moratorium on other legal processaIn the case of bank administration following transfer to a resolution company, unless the Bank of England has given an Objective 1 Achievement Notice consent of the bank administrator may not be given for the purposes of para. 43 without the approval of the Bank of England.bIn the case of bank administration following transfer to a resolution company, unless the Bank of England has given an Objective 1 Achievement Notice, in considering whether to give permission under sub-para. (6) to a winding-up the court must have regard to the Objectives in section 137.cIn considering whether to give permission for the purposes of para. 43 the court must have regard to the Objectives in section 137. Para. 44(1)(a) and (5)Interim moratoriumPara. 46Announcement of appointmentIgnore sub-para. (6)(b) and (c).Paras. 47 & 48Statement of affairsPara. 49Administrator's proposalsaPara. 49 does not apply unless the Bank of England has given an Objective 1 Achievement Notice; for bank administrator's proposals before the Bank of England has given an Objective 1 Achievement Notice, see section 147.bTreat the reference in sub-para. (1) to the purpose of administration as a reference to Objective 2.cBefore making proposals under sub-para. (1) in the case of bank administration following transfer to a resolution company, the bank administrator must consult the Bank of England about the chances of a payment to the residual bank from a scheme established by resolution fund order under section 49(3).dTreat the reference in sub-para. (2)(b) to the objective mentioned in para. 3(1)(a) or (b) as a reference to Objective 2(a).eIgnore sub-para.(3)(b).eaIgnore the amendment made by paragraph 10(2) of Schedule 9 to the 2015 Act.fTreat references in sub-para. (5) to the company's entering administration as references to satisfaction of the condition in para. (a) above.Paras. 50–58Creditors' meetingzaIgnore the repeal of Paras 50 and 58 by paragraph 10(3) and (22) of Schedule 9 to the 2015 Act.zbIgnore the amendments of Paras 51 to 57 made by paragraph 10(4) to (21) of Schedule 9 to the 2015 Act.aTreat references in para. 51(2) to the company's entering administration as references to the giving of an Objective 1 Achievement Notice.bThe bank administrator may comply with a request under para. 56(1)(a) only if satisfied that it will not prejudice pursuit of Objective 1 in section 137.cA creditors' meeting may not establish a creditors' committee in reliance on para. 57 until the Bank of England has given an Objective 1 Achievement Notice.dUntil that time the Bank of England shall have the functions of the creditors' committee.Para. 59General powersA bank administrator may not rely on para. 59 (or subsection (1) above) for the purpose of recovering property transferred by property transfer instrument.Para. 60 and Schedule 1General powersaThe exercise of powers under Schedule 1 is subject to section 137(2).bIn the case of bank administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice powers under the following paragraphs of Schedule 1 may be exercised only with the Bank of England's consent: 2, 3, 11, 14, 15, 16, 17, 18 and 21.Para. 61DirectorsPara. 62Power to call meetings of creditors Ignore the amendment made by paragraph 10(23) of Schedule 9 to the 2015 Act. Para. 63Application to court for directionsaBefore the Bank of England has given an Objective 1 Achievement Notice, the bank administrator may apply for directions if unsure whether a proposed action would prejudice the pursuit of Objective 1; and before making an application in reliance on this paragraph the bank administrator must give notice to the Bank of England, which shall be entitled to participate in the proceedings.bIn making directions the court must have regard to the Objectives in section 137.Para. 64.Management powers.Para. 65Distribution to creditorsaIn the case of bank administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice a bank administrator may make a distribution only with the Bank of England's consent.b Where paragraph (a) applies, ignore sub-para (3). Para. 66PaymentsPara. 67Taking custody of propertyPara. 68ManagementBefore the approval of proposals under para. 53 a bank administrator shall manage the bank's affairs, business and property in accordance with principles agreed between the bank administrator and the Bank of England.Para. 69AgencyPara. 70Floating chargesThe bank administrator may take action only if satisfied that it will not prejudice pursuit of Objective 1 in section 137.Para. 71Fixed chargesThe court may make an order only if satisfied that it will not prejudice pursuit of Objective 1 in section 137.Para. 72Hire-purchase propertyIn the case of administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice an application may be made only with the Bank of England's consent.Para. 73Protection for secured and preferential creditorsaTreat a reference to proposals as including a reference to the principles specified in the modification of para. 68 set out above.bPara. 73(1)(a) does not apply until the Bank of England has given an Objective 1 Achievement Notice.Para. 74Challenge to administrator's conductzaIgnore the amendment made by paragraph 10(24) of Schedule 9 to the 2015 Act.aThe Bank of England may make an application to the court, on any grounds, including grounds of insufficient pursuit of Objective 1 in section 137 (in addition to applications that may anyway be made under para. 74).bUntil the Bank of England has given an Objective 1 Achievement Notice, an order may be made on the application of a creditor only if the court is satisfied that it would not prejudice pursuit of Objective 1 in section 137.Para. 75MisfeasanceIn addition to applications that may anyway be made under para. 75, an application may be made by the bank administrator or the Bank of England.Para. 79Termination: successful rescueaIgnore sub-para. (2).bSee section 153.Para. 84Termination: no more assets for distribution

See section 154.

Para. 85Discharge of administration orderPara. 86Notice to Companies Registrar of end of administration

See section 153.

Para. 87Resignation

A bank administrator may resign only by notice in writing—to the court, copied to the Bank of England, orin the case of a bank administrator appointed by the creditors' committee under para. 90, to the creditors' committee.

Para. 88RemovalUntil the Bank of England has given an Objective 1 Achievement Notice, an application for an order may be made only with the Bank of England's consent.Para. 89DisqualificationThe notice under sub-para. (2) must be given to the Bank of England.Paras. 90 & 91ReplacementaUntil an Objective 1 Notice has been given, the Bank of England, and nobody else, may make an application under para. 91(1).bAfter that, either the Bank of England or a creditors' committee may apply.cIgnore para. 91(1)(b) to (e) and (2).Para. 96Substitution of floating charge-holder

Para. 96 applies to a bank administrator, but—only after an Objective 1 Achievement Notice has been given, andignoring references to priority of charges.

Para. 98Discharge

Ignore the amendments made by paragraph 10(36) to (38) of Schedule 9 to the 2015 Act. Discharge takes effect—where the person ceases to be bank administrator before an Objective 1 Achievement Notice has been given, at a time determined by the Bank of England, andotherwise, at a time determined by resolution of the creditors' committee (for which purpose ignore sub-para. (3)).

Para. 99Vacation of office: charges and liabilities

In the application of sub-para. (3), payments may be made only—in accordance with directions of the Bank of England, andif the Bank is satisfied that they will not prejudice Objective 1 in section 137.

Paras. 100-103Joint administratorsUntil an Objective 1 Achievement Notice has been given, an application under para. 103 may be made only by the Bank of England.Para. 104ValidityPara. 106 (and section 430 and Schedule 10)Fines Ignore the amendments made by paragraph 11 of Schedule 9 to the 2015 Act. Paras. 107–109Extension of time limitsaUntil an Objective 1 Achievement Notice has been given, an application under para. 107 may be made only with the Bank of England's consent.bIn considering an application under para. 107 the court must have regard to Objective 1 in section 137.baIgnore the amendments of Para 108 made by paragraph 10(39) to (43) of Schedule 9 to the 2015 Act.cIn para. 108(1) “consent” means consent of the Bank of England. Para. 110Amendment of provisions about timeAn order under para. 110 may amend a provision of the Schedule as it applies by virtue of this section (whether or not in the same way as it amends the provision as it applies otherwise).Para. 111Interpretation Ignore the amendment made by paragraph 10(44) of Schedule 9 to the 2015 Act. Paras 112 to 114 Scotland:miscellaneousPara 115Scotland: floating charges(a) In Scotland, on the giving by the Bank of England of consent as provided for in Para 65 (as applied by this section), any floating charge granted by the bank attaches to the property which is subject to the charge, unless it has already so attached, but only if the distribution concerned is to be made to creditors of the residual bank who are neither secured creditors nor preferential creditors and otherwise than by virtue of section 176A(2)(a) (as applied by this section).(b) Where paragraph (a) applies, ignore sub-paras (1A) and (1B).Para 116Scotland: payment to holder of floating charge subject to rightsTABLE 2 OF APPLIED PROVISIONSOTHER PROVISIONS OF THE INSOLVENCY ACT 1986SectionSubjectModification or commentSection 135Provisional appointmentaTreat the reference to the presentation of a winding-up petition as a reference to the making of an application for a bank administration order.bSubsection (2) applies in relation to England and Wales and Scotland (and subsection (3) does not apply).cIgnore the reference to the official receiver.dOnly a person who is qualified to act as an insolvency practitioner in relation to the bank and who consents to act may be appointed.eThe court may only confer on a provisional bank administrator functions in connection with the pursuance of Objective 1; and section 138(2)(a) does not apply before a bank administration order is made.fA provisional bank administrator may not pursue Objective 2.gThe appointment of a provisional bank administrator lapses on the appointment of a bank administrator.hSection 172(1), (2) and (5) apply to a provisional bank administrator.Section 168(4) (and para. 13 of Schedule 4)Discretion in managing and distributing assets

In the case of bank administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice distribution may be made only—with the Bank of England's consent, orout of assets which have been designated as realisable by agreement between the bank administrator and the Bank of England.

 Section 176ZB Application of proceeds of office-holder claimsSection 176AUnsecured creditors

In the case of bank administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice distribution may be made in reliance on s. 176A only—with the Bank of England's consent, orout of assets which have been designated as realisable by agreement between the bank administrator and the Bank of England.

Section 178Disclaimer of onerous propertyIn the case of bank administration following transfer to a resolution company, until the Bank of England has given an Objective 1 Achievement Notice notice of disclaimer may be given only with the Bank of England's consent.Section 179Disclaimer of leaseholdsSection 180Land subject to rentchargeSection 181Disclaimer: powers of courtSection 182LeaseholdsSection 188Publicity. . .. . .. . .. . .. . .Section 233Utilities Section 233A Further protection of utilitiesSection 234Getting in company's propertySection 235Co-operation with liquidatorSection 236Inquiry into company's dealingsSection 237Section 236: enforcement by courtSection 238Transactions at undervalue (England and Wales)Section 239Preferences (England and Wales)Section 240Ss. 238 & 239: relevant timeSection 241Orders under ss. 238 & 239aIn considering making an order in reliance on section 241 the court must have regard to Objective 1 of section 137.bIgnore subsections (2A)(a) and (3) to (3C).Section 242Gratuitous alienations (Scotland)Section 243Unfair preferences (Scotland)In considering the grant of a decree under subsection (5) the court must have regard to Objective 1 of section 137.Section 244Extortionate credit transactionsSection 245Avoidance of floating chargesSection 246Unenforceability of liens Section 246ZA Fraudulent trading: administrationSection 246ZBWrongful trading: administration(a) Treat the reference in subsection (2)(b) to going into insolvent liquidation as a reference to entering bank insolvency under Part 2 of this Act at a time when the bank’s assets are insufficient for the payment of its debts and other liabilities and the expenses of the bank insolvency.(b) Ignore subsection (6)(b).Section 246ZCProceedings under section 246ZA or 246ZBSection 246ZDPower to assign certain causes of actionSections 386 & 387, and Schedule 6 (and Schedule 4 to the Pension Schemes Act 1993)Preferential debtsSection 389Offence of acting without being qualifiedTreat references to acting as an insolvency practitioner as references to acting as a bank administrator. Sections 390 to 391T Authorisation and regulation of insolvency practitioners(a) In section 390 treat references to acting as an insolvency practitioner as references to acting as a bank administrator.(b) Read subsection (2) of that section (as so modified) as if after “authorised” there were inserted “to act as an insolvency practitioner”.(c) An order under section 391 has effect in relation to any provision applied for the purposes of bank administration.(d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in subsection (4)(d) of this section.(e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in subsection (4)(d) of this section.Sections 423–425Transactions defrauding creditorsaIn considering granting leave under section 424(1) the court must have regard to Objective 1 of section 137.bIn considering making an order in reliance on section 425 the court must have regard to Objective 1 of section 137.Sections 430–432 & Schedule 10OffencesSection 433Statements: admissibilityFor section 433(1)(a) and (b) substitute a reference to a statement prepared for the purposes of a provision of this Part.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. 1S. 145 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 3Pt. 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)S. 145 applied (with modifications) (23.11.2009) by Scottish and Northern Ireland Banknote Regulations 2009 (S.I. 2009/3056), reg. 1, Sch. 1 para. 4Words in s. 145 Table 1inserted (8.4.2010) by Financial Services Act 2010 (c. 28), ss. 21(6), 26(1)(f)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))Words in s. 145 Table 2 inserted (E.W.S.) (1.10.2015) by The Insolvency (Protection of Essential Supplies) Order 2015 (S.I. 2015/989), art. 1(1), Sch. para. 4Words in s. 145 Table 1 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(8)(a)Words in s. 145 Table 2 substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 26(8)(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)Words in s. 145 Table 1 substituted (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), 5(9)(a)Words in s. 145 Table 1 substituted (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), 5(9)(b)Words in s. 145 Table 2 inserted (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), 5(10)(a)Words in s. 145 Table 2 inserted (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), 5(10)(b)Words in s. 145 Table 2 omitted (7.4.2017) by virtue of 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), 5(10)(c)Words in s. 145 Table 2 inserted (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), 5(10)(d)Words in s. 145 Table 2 substituted (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), 5(10)(e) (with reg. 17)Words in s. 145(4)(d) inserted (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), 5(8)(a)Words in s. 145(4)(f) inserted (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), 5(8)(b)S. 145(7) inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(4)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(a)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(b)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(c)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(d)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(e)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(f)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(g)Words in s. 145 Table inserted (13.3.2018) by The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018 (S.I. 2018/208), regs. 1(3), 5(5)(h)