Section 103

A bank liquidator may do anything necessary or expedient for the pursuit of the Objectives in section 99. The following provisions of this section provide for— general powers and duties of bank liquidators (by application of provisions about liquidators), and the general process and effects of bank insolvency (by application of provisions about winding up). The provisions set out in the Table apply in relation to bank insolvency as in relation to winding up, with— the modifications set out in subsection (4), any other modification specified in the Table, and any other necessary modification. The modifications are that— a reference to the liquidator is a reference to the bank liquidator, a reference to winding up is a reference to bank insolvency, a reference to winding up by the court is a reference to the imposition of bank insolvency by order of the court, a reference to being wound up under Part IV or V of the Insolvency Act 1986 is a reference to being made the subject of a bank insolvency order, a reference to the commencement of winding up is a reference to the commencement of bank insolvency, a reference to going into liquidation is a reference to entering bank insolvency, a reference to a winding-up order is a reference to a bank insolvency order, and except where otherwise specified in the Table, a reference to a company is a reference to the bank. Powers conferred by this Act, by the Insolvency Act 1986 (as applied) and the Companies Acts are in addition to, and not in restriction of, any existing powers of instituting proceedings against a contributory or debtor of a bank, or the estate of any contributory or debtor, for the recovery of any call or other sum. A reference in an enactment or other document to anything done under a provision applied by this Part includes a reference to the provision as applied. In the Table “Schedule 9 to the 2015 Act” means Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (further amendments relating to the abolition of requirements to hold meetings: company insolvency). Treat references to the official receiver as references to the bank liquidator. A creditor or contributory of the bank is entitled to receive a copy of a statement under section 131 on request to the bank liquidator. Treat the reference to the presentation of a winding-up petition as a reference to the making of an application for a bank insolvency order. Subsection (2) applies in relation to England and Wales and Scotland (and subsection (3) does not apply). Ignore the reference to the official receiver. Only a person who is qualified to act as an insolvency practitioner in relation to the bank and who consents to act may be appointed. A provisional bank liquidator may not pay dividends to creditors. The appointment of a provisional bank liquidator lapses on the appointment of a bank liquidator. Ignore the amendment made by paragraph 36 of Schedule 9 to the 2015 Act. The application of section 141 is subject to— sections 100, 101 and 109 of this Act, rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 141 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and the omission of references to the official receiver. Ignore the amendments made by paragraph 37 of Schedule 9 to the 2015 Act. The application of section 142 is subject to— sections 100, 101 and 109 of this Act, rules under section 411 (as applied by section 125 of this Act) which may, in particular, adapt section 142 to reflect (i) the fact that the bank liquidator is appointed by the court and (ii) the possibility of calling creditors' meetings under other provisions, and the omission of references to the official receiver. Section 143(1) is subject to Objective 1 in section 99 above. Ignore section 143(2). Section 146 is not applied–but section 115 below makes similar provision. An application may be made only by— the bank liquidator, the PRA, the Bank of England, the FSCS, or a creditor or contributory (but only if the liquidation committee has passed a full payment resolution). By virtue of the Insolvency Rules the functions under this section are largely delegated to the liquidator–rules by virtue of section 125 may achieve a similar delegation to the bank liquidator. In making or considering whether to make an order under section 155 the court shall have regard to Objective 1 in section 99 above. Section 159 is not applied–but subsection (5) above makes similar provision. An appeal may be brought only if the liquidation committee has passed a full payment resolution. An application to the court may not be made under section 167(3) unless the liquidation committee has passed a full payment resolution (although a creditor or contributory may apply to the court with respect to any action (or inaction) of the liquidation committee, under section 101(3) above). In exercising or considering whether to exercise a power under Schedule 4 the bank liquidator shall have regard to Objective 1 in section 99. A reference to the liquidation committee is to the liquidation committee established by section 100. The power in paragraph 4 of Schedule 4 includes the power to submit matters to arbitration. Some additional general powers are conferred by section 104 below. Ignore the amendment made by paragraph 41 of Schedule 9 to the 2015 Act. A direction or request under section 168(2) has no effect unless the liquidation committee has passed a full payment resolution. Section 168(5) also applies in the case of the imposition of bank insolvency by order of the Court of Session. An application to the court may not be made under section 168(5) unless the liquidation committee has passed a full payment resolution (except as provided in section 100 or 102 above). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers of the bank liquidator by virtue of section 169(2) are subject to Objective 1 in section 99 above. The liquidation committee is added to the list of persons able to apply under section 170(2). Section 172 is not applied to a bank liquidator–but section 108 makes similar provision. Ignore the amendments made by paragraph 47 of Schedule 9 to the 2015 Act. The power to have regard to the wishes of creditors and contributories is subject to Objective 1 in section 99. (a) Treat the reference in subsection (2)(b) to entering insolvent administration as a reference to entering bank administration under Part 3 of this Act at a time when the bank’s assets are insufficient for the payment of its debts and other liabilities and the expenses of the administration. (b) Ignore subsection (6A). Ignore subsections (4) and (6). In subsection (3), treat the second reference to the official receiver as a reference to the Secretary of State. In subsection (5) treat the reference to subsection (4) as a reference to subsection (3). Having notice of the relevant proceedings means having notice of— an application by the Bank of England, the PRA or the Secretary of State for a bank insolvency order, or notice under section 120 below. (a) In section 390 treat references to acting as an insolvency practitioner as references to acting as a bank liquidator. (b) Read subsection (2) of that section (as so modified) as if after “authorised” there were inserted “to act as an insolvency practitioner”. (c) An order under section 391 has effect in relation to any provision applied for the purposes of bank insolvency. (d) In sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), in a reference to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies the reference to companies has effect without the modification in subsection (4)(h) of this section. (e) In sections 391Q(2)(b) and 391S(3)(e) the reference to a company has effect without the modification in subsection (4)(h) of this section.

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Source: legislation.gov.uk · retrieved 2026-09-04