The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020

Amendment of the Insolvency (Northern Ireland) Order 1989

Introduction

115.  The Insolvency (Northern Ireland) Order 1989 is modified in accordance with regulations 116 to 120.

Non-preferential debts in company voluntary arrangements

116.  Article 17 (decisions of meetings)(1) applies as if in paragraph (4)(d) for “or (3)” there were substituted “, (3) or (3A)”.

Non-preferential debts in winding up of companies

117.  Article 150ZZA (non-preferential debts of financial institutions)(2) applies as if after paragraph (3) there were inserted—

“(3A) The company’s tertiary non-preferential debts are to be paid in priority to its quaternary non-preferential debts.”.

Non-preferential debts in bankruptcy proceedings

118.  Article 300 (priority of debts)(3) applies as if in paragraph (3A)—

(a) in sub-paragraph (c), “and” were omitted;

(b) after sub-paragraph (d) there were inserted—

“and

(e) the bankrupt’s tertiary non-preferential debts are to be paid in priority to the bankrupt’s quaternary non-preferential debts.”.

Interpretation

119.  Article 347A (financial institutions and their non-preferential debts)(4) applies as if in paragraph (3)—

(a) in paragraph (a), for “neither secondary non-preferential debts nor tertiary non-preferential debts” there were substituted “not secondary non-preferential debts, tertiary non-preferential debts or quaternary non-preferential debts”;

(b) in sub-paragraph (b)(iii), the final “and” were omitted;

(c) for sub-paragraph (c) there were substituted—

“(c) “tertiary non-preferential debts” means subordinated debts that are not quaternary non-preferential debts, and

(d) “quaternary non-preferential debts” means debts under instruments the whole or part of which constitute Common Equity Tier 1 instruments, Additional Tier 1 instruments or Tier 2 instruments (all within the meaning of Part 1 of the Banking Act 2009).”.

Administration

120.  Schedule B1 (administration)(5) applies as if in paragraph 74(1)(e) (protection for priority creditor) for “or (3)” there were substituted “, (3) or (3A)”.

(1)

Article 17(4)(d) was inserted by S.I. 2018/1244 Pt 5 art. 23(c).

(2)

Article 150ZZA was inserted by S.I. 2018/1244 Pt 5 art. 24.

(3)

Article 300(3A) was inserted by S.I. 2018/1244 Pt 5 art. 26.

(4)

Article 347A was inserted by S.I. 2018/1244 Pt 5 art.29.

(5)

Schedule B1 was inserted by S.I. 2005/1455 (N.I.10), Schedule 1, paragraph 1. Paragraph 74(1)(e) was inserted by S.I. 2018/1244, Pt 5 art.31(3)(c).