The Bank Administration (Scotland) Rules 2009

Table of applications and specific modifications

42.  This rule contains the Table of applied 1986 Rules.

Rule	Subject	Specific Modifications
2.19	Notification and advertisement of administrator’s appointment	Ignore paragraphs 2(a), (b), and (c).
2.20(1)	Notice requiring statement of affairs
2.21	Statements of affairs and statements of concurrence
2.22	Limited disclosure	On an application for disclosure under paragraph (4) any of the following may appear and be heard, or make representations:—
		(a) the bank administrator; (b) the Bank of England; (c) the FSA.
2.23	Release from duty to submit statement of affairs; extension of time	On an application under paragraph (2) for release or extension of time any of the following may appear and be heard, or make written representations:—
		(a) the bank administrator; (b) the Bank of England; (c) the FSA.
2.24	Expenses of statement of affairs
2.25(2)	Administrator’s proposals	Rule 2.25 is not applied. Equivalent provision is made in Part 3 of these Rules.
2.26	General (Meetings)	In the application of paragraph (1) of rule 7.2, the FSA and the FSCS shall be treated as entitled to attend the meeting.
		Ignore the application of rules 7.1 and 7.4.
2.27	Meetings to consider administrator’s proposals	(1) Rule 2.27 applies in the Objective 2 Stage. (2) The bank administrator shall give the FSA and the FSCS at least 14 days notice of any meeting referred to in paragraph (1) of rule 2.27.
2.28	Correspondence instead of creditors meetings
2.29	Applicable law
2.31	Meetings requisitioned by creditors	Treat the reference to the administrator’s statement of proposals as a reference to the bank administrator’s statement of proposals in accordance with rule 24 above.
2.33	Hire-purchase, conditional sale and hiring agreements
2.34	Revision of administrator’s proposals	In paragraph 1(c) ignore the reference to the person making the appointment.
2.35	Notices to creditors
2.36	Application of provisions in Part 3 (Receivers)	(A creditors’ committee cannot be established until the Objective 2 Stage - see the modifications for the application of paragraphs 50 to 58 of Schedule B1 of the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act).
		In the application of paragraph (2) of rule 3.8—
		(a) notice of the application must be given to the FSA and the FSCS; and (b) the FSA and the FSCS may appear and be heard.
2.37	Disposal of secured property, etc.	If an application is made during the Objective 1 Stage, then in addition to the requirements of rule 2.37—
		(a) the bank administrator must notify the Bank of England of the time and place of the hearing; (b) the Bank of England may appear; and (c) if an order is made the bank administrator must send a copy of the order to the Bank of England as soon as reasonably practicable.
2.38	Progress reports	Rule 2.38 is not applied. Equivalent provision is made in Part 3 of these Rules.
2.39(3)	Determination of outlays and remuneration	(1) In the Objective 1 Stage the Bank of England shall fix the bank administrators’ remuneration in accordance with rule 2.39(4). (2) In the Objective 2 Stage, rule 2.39 shall apply (but pending action under paragraphs (2), (3) and (6) arrangements established by the Bank of England in the Objective 1 Stage shall continue to apply).
2.39A(4)	Appeal against fixing of remuneration	(1) In respect of remuneration fixed by the Bank of England— (a) Rule 2.39A applies as if references to the creditors’ committee and creditors were references to the Bank of England; and (b) the court shall have regard to Objective 1. (2) In respect of any application under rule 2.39A— (a) notice of the application must be given to the FSA; and (b) the FSA may appear and be heard.
		Rule 2.39A (5), (6) and (7) applies only during the Objective 2 Stage.
2.39B(5)	Expenses of the administration	In addition to the matters listed in rule 2.39B, expenses in connection with a provisional bank administration are payable in the following order of priority—
		(a) the cost of any security provided by the provisional bank administrator takes priority equally with security provided by the bank administrator; (b) the remuneration of the provisional bank administrator ranks next; and (c) any deposit lodged on an application for the appointment of a provisional bank administrator ranks next.
2.40	Distributions to creditors	(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.)
2.41(6)	Distributions to creditors	(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.)
		(1) In respect of an application under s.49(6) of the Bankruptcy (Scotland) Act 1985(7) (as applied)— (a) notice of the application must be given to the FSA and the FSCS and, during the Objective 1 Stage, the Bank of England; and (b) the FSA, the FSCS and the Bank of England during the Objective 1 Stage, may appear and be heard. (2) The bank administrator shall give 28 days notice of any proposed payment of distribution or dividend and notice of any payment of distribution or dividend to— (a) the FSA and the FSCS; and (b) during the Objective 1 Stage of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act, the Bank of England. (3) In the case of notice of any payment of distribution or dividend in a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage, the notice shall include details of any payment made from a scheme under a resolution fund order. (4) If the bank administrator is unable to declare any dividend or any further dividend, the bank administrator must, in addition to notifying the creditors of this fact, notify— (a) the FSA; (b) the FSCS; and (c) the Bank of England; in a case where it consented to a distribution under these Rules.
2.41A	Payments of Dividends	(Distributions in the case of bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act and during the Objective 1 Stage require the Bank of England’s consent – see the modification for the application of paragraph 65 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act).
2.42	Final progress report	In the case of a bank administration following transfer to a bridge bank under section 12(2) of the 2009 Act the final progress report—
		(1) must not be made until the bank administrator is satisfied that any payment to be made to the bank from a scheme under a resolution fund order has been made; and (2) must state whether any payment has been received and, if so, its amount.
2.45	Notice of end of administration	Rule 2.45 is not applied. Equivalent provision is made by Part 3 of these Rules.
2.46	Application to court	The references to paragraph 79 are to be treated as references to paragraph 80 of Schedule B1 to the 1986 Act (as applied by section 153(2) of the 2009 Act).
2.48	Moving from administration to dissolution	Rule 2.48 is not applied. Equivalent provision is made by Part 3 of these Rules.
2.49	Grounds for resignation	During the Objective 1 Stage the Bank of England’s consent, as well as the court’s leave, is required for resignation under paragraph (2).
2.50	Notice of intention to resign	The Bank of England and the FSA are added to the list of those entitled to notice under paragraph (1).
2.51	Notice of resignation
2.52	Administrator deceased
2.53	Application to replace	Rule 2.53 is applied during the Objective 2 Stage only (and ignoring references to paragraph 95 of Schedule B1). (For equivalent provisions about application for removal by the Bank of England during the Objective 1 Stage (in accordance with the modifications for the application of paragraph 91 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act) see Part 3 of these Rules.
2.54	Application to replace
2.55	Joint or concurrent appointments
2.56	Application to court to remove administrator from office	An application may be made during the Objective 1 Stage only with the consent of the Bank of England – see the modifications for the application of paragraph 88 of Schedule B1 to the Insolvency Act 1986 in Table 1 in section 145 of the 2009 Act.
		(1) An application must state either— (a) that the Bank of England has consented to its being made; or (b) that the Objective 1 Stage has ended. (2) The FSA is added to the list of those on whom an application under paragraph (1) must be served.
4.1(8)	Appointment of provisional liquidator	Rule 4.1 is not applied. Equivalent provision is made by Part VII of Chapter 74 of Schedule 2 to the Act of Sederunt (Rules of the Court of Session 1994)1994(9).
4.2(10)	Order of Appointment	Rule 4.2 is not applied. Equivalent provision is made by Part 3 of these Rules.
4.3	Caution
4.4	Failure to find or to maintain caution
4.5(11)	Remuneration
4.6(12)	Termination of Appointment	An application for termination may be made by— the provisional bank administrator, or the Bank of England only.
7.13A	Application under section 176A(5) to disapply section 176A
7.13B	Notice of order under section 176A(5)
7.14 to 7.20(13)	Proxies	(In rule 7.20, the reference to section 375 of the Companies Act 1985(14) is now a reference to section 323 of the Companies Act 2006(15)) For rule 7.20(2), substitute— “The copy resolution must be signed or subscribed by or on behalf of the bank in accordance with the provisions of the Requirements of Writing (Scotland) Act 1995(16) or certified by the secretary or director of the bank to be a true copy.”
7.21(17)	Giving of notices, etc.
7.22(18)	Sending by post	Rule 7.22 applies subject to express provision about service made in these Rules.
7.23	Certificate of giving notice, etc.
7.24	Validity of proceedings
7.25	Evidence of proceedings at meetings
7.26(19)	Right to list of creditors and copy documents	(1) The following have the right, at all reasonable times, to inspect documents in respect of bank administration proceedings:— (a) a person who is or was a director or officer of the bank; (b) a member of the bank; (c) any person stating himself in writing to be a creditor of the bank; (d) any person stating himself in writing to be a contributor in respect of the bank; (e) the Bank of England, and (f) the FSA; and (g) the FSCS. (2) A right of inspection may be exercised on a person’s behalf by anyone authorised by him in writing. (3) A right of inspection in terms of paragraph 1 is not exercisable in the case of documents, or parts of documents, as to which the court directs (either generally or specifically) that they are not to be made open to inspection without the court’s leave; and an application for such leave may be made by— (a) the bank administrator(s) or provisional bank administrator(s); or (b) any party appearing to the court to have an interest. (4) References to “a creditor who has a right to inspect documents” in rule 7.26(2) shall include a reference to the persons listed in paragraph (1) above.
7.27(20)	Confidentiality of documents
7.28	Insolvency practitioner’s caution
7.29 and Schedule 4 of the Insolvency Act 1986	Punishment of offences
7.31(21)	Fees, expenses, etc.
7.32	Power of court to cure defects in procedure
7.33(22)	Sederunt book
7.34(23)	Disposal of company’s books, papers and other records
7.35(24)	Information about time spent on a case-administration and company voluntary arrangements

(1)

Rule 2.20 was amended by paragraph 6(3) of Schedule 1(I) to S.I. 1987/1921.

(2)

Rule 2.25 was amended by rule 6 of S.I. 2006/734.

(3)

Rule 2.39 was amended by rule 8(1) of S.I. 2006/734.

(4)

Rule 2.39A was amended by rule 8(1) of S.I. 2006/734.

(5)

Rule 2.39B was inserted by rule 5 of S.I. 2008/662.

(6)

Rule 2.41 was amended by rule 9(1) of S.I. 2006/734, and rule 6 of S.I. 2008/662.

(7)

1985 c.66. Section 49(6) was amended by section 31 of Part 1 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3).

(8)

Rule 4.1 was amended by paragraph 9 of Schedule 1(I) to S.I. 1987/1921.

(9)

S.I. 1994/1443. Part VIII of Chapter 74 was inserted by rule 3 of S.S.I. 2009/63.

(10)

Rule 4.2 was amended by paragraph 141(5) of Schedule 2(II) to S.I. 1999/1820.

(11)

Rule 4.5 was amended by paragraph 10 of Schedule 1(I) to S.I. 1987/1921.

(12)

Rule 4.6 was amended by paragraph 11 of Schedule 1(I) to S.I. 1987/1921, and rule 13(b) of S.I. 2006/734.

(13)

Rules 7.14 to 7.20 were amended by paragraphs 42 to 46 of Schedule 1(I) to S.I. 1987/1921.

(14)

1985 c.6. Section 375 was repealed by paragraph 1 of Schedule 16 to the Companies Act 2006 c.46.

(15)

2006 c.46.

(16)

1995 c.7.

(17)

Rule 7.21 was amended by paragraph 47 of Schedule 1(I) to S.I. 1987/1921.

(18)

Rule 7.22 was amended by paragraph 48 of Schedule 1(I) to S.I. 1987/1921.

(19)

Rule 7.26 was amended by paragraph 49 of Schedule 1(I) to S.I. 1987/1921, and regulation 28(2) of S.I. 2003/2109.

(20)

Rule 7.27 was amended by paragraph 50 of Schedule 1(I) to S.I. 1987/1921.

(21)

Rule 7.31 was amended by article 8 of S.I. 2003/2108.

(22)

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.

(23)

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.

(24)

Rule 7.35 was inserted by rule 15 of S.I. 2006/734.