LegalizeThe Building Society Insolvency (Scotland) Rules 2010
These Rules set out the procedure for the building society insolvency process under Part 2 of the Banking Act 2009 (as applied to building societies by the Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805, amended by S.I. 2010/1189).
Rule 43 in force at 15.11.2010, see rule 1
Rule 44 in force at 15.11.2010, see rule 1
Rule 45 in force at 15.11.2010, see rule 1
Rule 46 in force at 15.11.2010, see rule 1
Rule 47 in force at 15.11.2010, see rule 1
Rule 48 in force at 15.11.2010, see rule 1
Rule 49 in force at 15.11.2010, see rule 1
Rule 50 in force at 15.11.2010, see rule 1
Rule 51 in force at 15.11.2010, see rule 1
Rule 52 in force at 15.11.2010, see rule 1
Rule 53 in force at 15.11.2010, see rule 1
Rule 54 in force at 15.11.2010, see rule 1
Rule 55 in force at 15.11.2010, see rule 1
Rule 56 in force at 15.11.2010, see rule 1
Rule 57 in force at 15.11.2010, see rule 1
Rule 58 in force at 15.11.2010, see rule 1
Rule 59 in force at 15.11.2010, see rule 1
Rule 60 in force at 15.11.2010, see rule 1
Rule 61 in force at 15.11.2010, see rule 1
Rule 62 in force at 15.11.2010, see rule 1
Rule 63 in force at 15.11.2010, see rule 1
Rule 64 in force at 15.11.2010, see rule 1
Rule 65 in force at 15.11.2010, see rule 1
Rule 66 in force at 15.11.2010, see rule 1
Rule 67 in force at 15.11.2010, see rule 1
Rule 68 in force at 15.11.2010, see rule 1
Rule 69 in force at 15.11.2010, see rule 1
Rule 70 in force at 15.11.2010, see rule 1
Rule 71 in force at 15.11.2010, see rule 1
Rule 72 in force at 15.11.2010, see rule 1
Rule 73 in force at 15.11.2010, see rule 1
Rule 74 in force at 15.11.2010, see rule 1
Rule 75 in force at 15.11.2010, see rule 1
Rule 76 in force at 15.11.2010, see rule 1
Rule 77 in force at 15.11.2010, see rule 1
Rule 78 in force at 15.11.2010, see rule 1
Rule 79 in force at 15.11.2010, see rule 1
Rule 80 in force at 15.11.2010, see rule 1
Rule 81 in force at 15.11.2010, see rule 1
Rule 82 in force at 15.11.2010, see rule 1
Rule 83 in force at 15.11.2010, see rule 1
Rule 84 in force at 15.11.2010, see rule 1
Rule 85 in force at 15.11.2010, see rule 1
Rule 86 in force at 15.11.2010, see rule 1
Rule 87 in force at 15.11.2010, see rule 1
Rule 88 in force at 15.11.2010, see rule 1
Rule 89 in force at 15.11.2010, see rule 1
Rule 90 in force at 15.11.2010, see rule 1
Rule 91 in force at 15.11.2010, see rule 1
Rule 92 in force at 15.11.2010, see rule 1
Rule 93 in force at 15.11.2010, see rule 1
Rule 94 in force at 15.11.2010, see rule 1
Rule 95 in force at 15.11.2010, see rule 1
Rule 96 in force at 15.11.2010, see rule 1
Rule 97 in force at 15.11.2010, see rule 1
Rule 98 in force at 15.11.2010, see rule 1
Rule 99 in force at 15.11.2010, see rule 1
Rule 100 in force at 15.11.2010, see rule 1
Rule 101 in force at 15.11.2010, see rule 1
Rule 102 in force at 15.11.2010, see rule 1
Rule 103 in force at 15.11.2010, see rule 1
Rule 104 in force at 15.11.2010, see rule 1
Rule 105 in force at 15.11.2010, see rule 1
Rule 106 in force at 15.11.2010, see rule 1
Rule 107 in force at 15.11.2010, see rule 1
Rule 108 in force at 15.11.2010, see rule 1
Rule 109 in force at 15.11.2010, see rule 1
Rule 110 in force at 15.11.2010, see rule 1
Rule 111 in force at 15.11.2010, see rule 1
Rule 112 in force at 15.11.2010, see rule 1
Rule 113 in force at 15.11.2010, see rule 1
Rule 114 in force at 15.11.2010, see rule 1
Rule 115 in force at 15.11.2010, see rule 1
Rule 116 in force at 15.11.2010, see rule 1
Rule 117 in force at 15.11.2010, see rule 1
Rule 118 in force at 15.11.2010, see rule 1
Rule 119 in force at 15.11.2010, see rule 1
Rule 120 in force at 15.11.2010, see rule 1
Rule 121 in force at 15.11.2010, see rule 1
Rule 122 in force at 15.11.2010, see rule 1
Rule 123 in force at 15.11.2010, see rule 1
Rule 124 in force at 15.11.2010, see rule 1
Rule 125 in force at 15.11.2010, see rule 1
Explanatory note
(This note is not part of the Rules)
EXPLANATORY NOTE
These Rules set out the procedure for the building society insolvency process under Part 2 of the Banking Act 2009 (as applied to building societies by the Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805, amended by S.I. 2010/1189).
The main features of building society insolvency are as follows. In the event of a building society becoming insolvent, it enables those depositors who are eligible for compensation under the Financial Services Compensation Scheme (“the FSCS”) to either—
- (a) receive compensation for their lost deposits as soon as possible after the building society goes into building society insolvency; or
- (b) have their account transferred to a different building society.
This is the first objective of the building society insolvency process.
The procedure can only be initiated by the Bank of England or the Financial Services Authority (“the FSA”) by application to the court. The court then makes a building society insolvency order, appointing a building society liquidator. In the initial stages, the building society liquidator is accountable to a liquidation committee formed of the FSA, the Bank of England and the FSCS.
Once the building society liquidator considers that the first objective is achieved, the liquidation committee will pass a resolution to that effect and the building society insolvency will move to the second objective which is to wind up the affairs of the building society so as to achieve the best results for the creditors as a whole.
The Rules are based on the Insolvency (Scotland) Rules 1986 and certain provisions of the 1986 Rules are applied to these Rules, subject to a number of general and specific modifications.
Part 1 contains introductory provisions.
Part 2 of these Rules sets out the application process for a building society insolvency order.
Part 3 sets out the procedure for appointing a provisional bank liquidator.
Part 4 sets out provisions relating to the statement of affairs.
Part 5 makes provision in relation to creditors and contributories.
Part 6 sets out the procedure concerning meetings of contributories.
Part 7 sets out procedure concerning claims.
Part 8 sets out provisions relating to the liquidator.
Part 9 sets out provisions concerning the liquidation committee.
Part 10 set out provisions relating to the distribution of building society assets.
Part 11 set out provisions concerning the special manager.
Part 12 set out miscellaneous provisions.
Part 13 sets out provisions relating to meetings.
Part 14 contains general provisions.
An Impact Assessment relating to the rules for building society insolvency and special administration has been prepared and may be obtained from the Financial Regulatory Strategy Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. It is also available on HM Treasury’s website (www.hm-treasury.gov.uk).
Footnotes
1986 c.45. Section 411 was amended by the Banking Act 2009 (c.1), section 125. Subsection (3A) was inserted by the Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805).
1986 c.53. Section 90C was inserted by S.I. 2009/805.
S.I.2009/805. S.I. 2009/805 was amended by S.I. 2010/1189.
S.I. 1994/1443, last amended by S.S.I. 2010/205.
Section 390 was amended by paragraph 16(1) and (2) of Schedule 4(II) to the Insolvency Act 2000 (c.39); paragraph 18 of Schedule 5 to the Adults with Incapacity (Scotland) Act 2000 (asp 4); paragraph 4 of Schedule 21 to the Enterprise Act 2002 (c.40); paragraph 31(3)(c) of Schedule 6 and paragraph 1 of Schedule 7 to the Mental Capacity Act 2005 (c.9); paragraph18(3) of Schedule 1 to S.S.I. 2005/465; paragraph 3(3) of Schedule 1 to S.I. 2005/2078; paragraphs 1, 6(1),(2) and (3) of Schedule 20, Part 1, to the Tribunal, Courts and Enforcement Act 2007; and S.I. 2009/1941, art.2(1).
Rule 4.5 was amended by paragraph 10 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.6(1) was amended by rule 13(b) of S.I. 2006/734.
Rule 4.6(2) was amended by paragraph 11 of Schedule 1(I) to S.I. 1987/1921.
Section 176A was inserted by section 252 of the Enterprise Act 2002 (c.40).
Rule 4.11 was amended by paragraph 13 of Schedule 1(I) to S.I. 1987/1921, and paragraph 141(6) of Schedule 2(II) to S.I.1999/1820.
Rule 4.15 was amended by regulation 27(1) of S.I. 2003/2109.
Rule 4.16 was amended by paragraph 15 of Schedule 1(I) to S.I. 1987/1921, and rule 3 of S.S.I. 2008/393.
Rule 4.17 was amended by rule 4 of S.S.I. 2008/393.
Section 390 was amended by paragraph 16(1) and (2) of Schedule 4(II) to the Insolvency Act 2000 (c.39); paragraph 18 of Schedule 5 to the Adults with Incapacity (Scotland) Act 2000 (asp 4); paragraph 4 of Schedule 21 to the Enterprise Act 2002 (c.40); paragraph 31(3)(c) of Schedule 6 and paragraph 1 of Schedule 7 to the Mental Capacity Act 2005 (c.9); paragraph18(3) of Schedule 1 to S.S.I. 2005/465; paragraph 3(3) of Schedule 1 to S.I. 2005/2078; paragraphs 1, 6(1),(2) and (3) of Schedule 20, Part 1, to the Tribunal, Courts and Enforcement Act 2007; and S.I. 2009/1941, art.2(1).
Rule 4.22 was inserted by paragraph 19 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.24 was amended by paragraph 19 of Schedule 1(I) to S.I. 1987/1921, and paragraph 141(9) of Schedule 2(II) to S.I.1999/1820.
Rule 4.19 was amended by paragraph 17(1) of Schedule 1(I) to S.I. 1987/1921.
Rule 4.34 was amended by paragraph 22 of Schedule 1(I) to S.I. 1987/1921.
Section 390 was amended by paragraph 16(1) and (2) of Schedule 4(II) to the Insolvency Act 2000 (c.39); paragraph 18 of Schedule 5 to the Adults with Incapacity (Scotland) Act 2000 (asp 4); paragraph 4 of Schedule 21 to the Enterprise Act 2002 (c.40); paragraph 31(3)(c) of Schedule 6 and paragraph 1 of Schedule 7 to the Mental Capacity Act 2005 (c.9); paragraph18(3) of Schedule 1 to S.S.I. 2005/465; paragraph 3(3) of Schedule 1 to S.I. 2005/2078; paragraphs 1, 6(1),(2) and (3) of Schedule 20, Part 1, to the Tribunal, Courts and Enforcement Act 2007; and S.I. 2009/1941, art.2(1) .
Rule 4.36 was amended by paragraph 141(15) of Schedule 2(II) to S.I. 1999/1820.
Rule 4.37(2) was amended by paragraph 141(16) of Schedule 2(II) to S.I. 1999/1820.
Rule 4.41 was amended by paragraph 23 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.42 was amended by paragraph 24 of Schedule 1(I) to S.I. 1987/1921, and paragraph 141(17) of Schedule 2(II) to S.I.1999/1820. Rule 4.42(3) refers to section 375 of the Companies Act 1985 (c.6). That section was replaced by section 323 of the Companies Act 2006 (c.46) with effect from 1stOctober 2007.
Rule 4.43 was amended by paragraph 25 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.48 was amended by paragraph 26 of Schedule 1(I) to S.I. 1987/1921. Rule 4.48 of the 1986 Rules refers to section 375 of the Companies Act 1985 (c.6). That section was replaced by section 323 of the Companies Act 2006 (c.46) with effect from 1st October 2007.
Rule 4.53 was amended by paragraph 27 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.55 was amended by paragraph 28 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.59 was amended by paragraph 141(18) of Schedule 2(II) to S.I. 1999/1820.
Rule 4.59A was inserted by paragraph 29 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.66 was amended by paragraph 31 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.67 was amended by paragraph 32 of Schedule 1(I) to S.I. 1987/1921.
Rule 4.68 was amended by regulation 27(2) of S.I. 2003/2109.
S.I. 2009/805, amended by S.I.2010/1189, modifies the application of section 116.
Rule 7.3 was amended by paragraph 35 of Schedule 1(I) to S.I. 1987/1921, paragraph 7 of Schedule 2 to S.I. 2003/2111 and rules 12 and 13 of S.I. 2009/662(S.1).
Rule 7.6 was amended by paragraph 38 of Schedule 1(I) to S.I. 1987/1921, and paragraph 8 of Schedule 2(1) to S.I. 2003/2111.
Rule 7.7 was amended by paragraph 39 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.8 was amended by paragraph 40 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.9 was amended by paragraph 9 of Schedule 2 to S.I. 2003/2111.
Rule 7.10 was amended by paragraph 17 of Schedule 1(2) to S.I. 2002/2709.
Rule 7.12 was amended by paragraph 41 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.14 was amended by paragraph 42 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.16 was amended by paragraph 43 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.18 was amended by paragraph 44 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.19 was amended by paragraph 45 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.21 was amended by paragraph 47 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.22 was amended by paragraph 48 of Schedule 1(I) to S.I. 1987/1921.
Rule 7.26 was amended by paragraph 49 of Schedule 1(I) to S.I. 1987/1921, and regulation 28(2) of Part II of S.I. 2003/2109.
Rule 7.27 was amended by paragraph 50 of Schedule 1(I) to S.I. 1987/1921.
Schedule 5 was amended by rules 14 and 15 of S.I. 2009/662(S.1).
Rule 7.31 was amended by article 8 of Part 1 of S.I. 2003/2108.
Rule 7.33 was amended by paragraph 51 of Schedule 1(I) to S.I. 1987/1921, and paragraph 10 of Schedule 2(1) to S.I.2003/2111.
Rule 7.34 was amended by paragraph 52 of Schedule 1(I) to S.I. 1987/1921, and rule 14 of S.I. 2006/734.
Rule 7.36 was inserted by rule 5 of S.S.I. 2008/393.
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