PART 21 DECLARATION AND PAYMENT OF DIVIDEND

239 Preliminary
1 The rules in this Part relate to the declaration and payment of dividends in a building society insolvency.
2 In this Part—
“creditors” means those creditors of the building society of whom the building society liquidator is aware, or who are identified in the building society’s statement of affairs, and
“the insolvent” means the building society.

240 Notice of intended dividend
Apply rule 11.2 of the 1986 Rules. Ignore paragraph (1)(b).
Rule 11.2 was amended by S.I. 2002/1307, S.I. 1987/1919 and S.I. 2009/642.

241 Final admission/rejection of proofs
Apply rule 11.3 of the 1986 Rules. Ignore paragraph (4).
Paragraphs (3) and (4) were added by S.I. 2002/1307.

242 Postponement or cancellation of dividend
Apply rule 11.4 of the 1986 Rules.

243 Decision to declare dividend
Apply rule 11.5 of the 1986 Rules.

244 Notice of declaration
1 Apply rule 11.6 of the 1986 Rules.
Paragraph (3)(b) was substituted by S.I. 2002/1307.
2 Ignore paragraph (1)(b).
Sub–paragraphs (a) and (b) of rule 11.6(1) were amended by S.I. 2002/1307.
3 In paragraph (2), after (b), add—

“(ba) expenses incurred by the building society liquidator in the achievement of Objective 1 under section 99 of the Banking Act.”

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245 Notice of no, or no further, dividend
Apply rule 11.7 of the 1986 Rules.

246 Proof altered after payment of dividend
Apply rule 11.8 of the 1986 Rules.

247 Secured creditors
Apply rule 11.9 of the 1986 Rules.

248 Disqualification from dividend
Apply rule 11.10 of the 1986 Rules.

249 Assignment of right to dividend
Apply rule 11.11 of the 1986 Rules.

250 Preferential creditors
Apply rule 11.12 of the 1986 Rules.
Paragraph (2) was amended by S.I. 1987/1919.

251 Debt payable at future time
Apply rule 11.13 of the 1986 Rules. For paragraph (3) substitute—

“3 In paragraph (2), “relevant date” means the date of the commencement of building society insolvency.”

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Paragraph (2) and (3) were substituted for the original paragraph (2) by S.I. 2005/527.