Part 2Bank Insolvency

Bank insolvency order

96Grounds for applying

(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)

F1... the F2PRA is satisfied that F3Condition 1 in section 7 is met, and

(b)

the Bank of England is satisfied—

F4(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 F2PRA may apply for a bank insolvency order only if—

(a)

the Bank of England F5is satisfied that Condition 2 in section 7 is met, and

(b)

the F2PRA is satisfied—

(i)

that F6Condition 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).