The Building Societies (Insolvency and Special Administration) Order 2009

Process

28.—(1) In section 145, table 2 (other provisions of the Insolvency Act 1986) applies with the modifications set out in this paragraph.

(2) For the entry for section 168(4) (and para. 13 of Schedule 4) substitute—

“Section 168(4) (and para. 13 of Schedule 4)

Discretion in managing and distributing assets

(a) In the case of building society special administration following transfer to a bridge bank, until the Bank of England has given an Objective 1 Achievement Notice distribution may be made only (i) with the Bank of England’s consent or (ii) out of assets which have been designated as realisable by agreement between the bank administrator and the Bank of England. (b) In subsection (4) the references to creditors includes a reference to shareholding members.”.

(3) For the entry for sections 423 – 425 substitute—

“Section 423 – 425

Transactions defrauding creditors

(a) Sections 423-425 apply only where a building society special administration order is made. (b) In considering granting leave under section 424(1) the court must have regard to Objective 1 of section 137. (c) In considering making an order in reliance on section 425 the court must have regard to Objective 1 of section 137.”.