Banking Act 2009 (c. 1)

Part 2 U.K. Bank Insolvency

Modifications etc. (not altering text)

C1 Pt. 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)

C2 Pt. 2 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 para. 1

C3 Pt. 2 modified (29.3.2009) by Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805), Sch. 1 para. 6

C4 Pt. 2 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2

C5 Pt. 2: amendment to earlier affecting provision SI 2009/805, Sch. 1 (7.4.2010) by Building Societies (Insolvency and Special Administration) (Amendment) Order 2010 (S.I. 2010/1189), arts. 1(2), 2

C6 Pt. 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, 7

Bank insolvency order U.K.

96 Grounds for applying U.K.

(1) In this section—

(a) Ground A is that a bank is unable, or likely to become unable, to pay its debts,

(b) Ground B is that the winding up of a bank would be in the public interest, and

(c) Ground C is that the winding up of a bank would be fair.

(2) The Bank of England may apply for a bank insolvency order only if—

(a) the [F1 PRA] has informed the Bank of England that the [F1 PRA] is satisfied that [F2 Condition 1 in section 7 is met], and

(b) the Bank of England is satisfied—

[F3 (ai) that Condition 2 in section 7 is met,]

(i) that the bank has eligible depositors, and

(ii) that Ground A or C applies.

(3) The [F1 PRA] may apply for a bank insolvency order only if—

[F4 (a) the Bank of England has—

(i) informed the PRA that it is satisfied that Condition 2 in section 7 is met, and

(ii) has consented to the application,]

(b) the [F1 PRA] is satisfied—

(i) that [F5 Condition 1 in section 7 is met],

(ii) that the bank has eligible depositors, and

(iii) that Ground A or C applies.

(4) The Secretary of State may apply for a bank insolvency order only if satisfied—

(a) that the bank has eligible depositors, and

(b) that Ground B applies.

(5) The sources of information on the basis of which the Secretary of State may be satisfied of the matters specified in subsection (4) include those listed in section 124A(1) of the Insolvency Act 1986 (petition for winding up on grounds of public interest).

Textual Amendments

F1 Word in s. 96 substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 33 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F2 Words in s. 96(2)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(2)(i)

F3 S. 96(2)(b)(ai) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(2)(ii)

F4 S. 96(3)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(3)(a)

F5 Words in s. 96(3)(b)(i) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 104(3)(b)

Commencement Information

I1 S. 96 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 2