The Building Society Insolvency Rules (Northern Ireland) 2014

Apply rule 4.218 of the 1991 Rules.

Accounting

169

Apply rule 4.219 of the 1986 Rule.

Termination of appointment

170

Apply rule 4.220 of the 1991 Rules.

PART 16 — ORDER OF PAYMENT AS TO COSTS, ETC. OUT OF ASSETS

General rule as to priority

171

• (1) Apply rule 4.228[^f00019] of the 1991 Rules.

• (2) In paragraph (3)—

• (a) omit sub-paragraphs (a)(iii) and (iv), (b), and (d);

• (b) in sub-paragraph (c), omit the words from “or Article 361A” to “regulations”; and

• (c) in sub-paragraph (la), omit the words from “in any case” to “examination”.

Litigation expenses and property subject to a floating charge-general provisions

172

Apply rule 4.228A[^f00020] of the 1991 Rules.

Litigation expenses and property subject to a floating charge-requirement for approval or authorisation

173

Apply rule 4.228B of the 1991 Rules.

Litigation expenses and property subject to a floating charge-request for approval or authorisation

174

Apply rule 4.228C of the 1991 Rules.

Litigation expenses and property subject to a floating charge-grant of approval or authorisation

175

Apply rule 4.228D of the 1991 Rules.

Litigation expenses and property subject to a floating charge-application to court by the building society liquidator

176

Apply rule 4.228E of the 1991 Rules.

Saving for powers of the court

177

Apply rule 4.230 of the 1991 Rules.

PART 17 — MISCELLANEOUS RULES

SECTION A — RETURN OF CAPITAL

Application to court for order authorising return of capital

178

Apply rule 4.231 of the 1991 Rules.

Procedure for return of capital

179

Apply rule 4.232 of the 1991 Rules.

SECTION B — CONCLUSION OF BUILDING SOCIETY INSOLVENCY

Appropriate regulator’s directions under section 116 of the Banking Act

180

Where the appropriate regulator gives a direction under section 116 of the Banking Act (application by an interested person for postponement of dissolution) the appropriate regulator shall send a copy of the direction to that applicant[^f00021].

Procedure following appeal under section 116 of the Banking Act

181

Following an appeal under section 116(2) of the Banking Act (against a decision of the appropriate regulator under that section) the court shall send two sealed copies of its order to the person in whose favour the appeal was determined and that person shall send one of the copies to the regulator in question.

PART 18 — COURT PROCEDURE AND PRACTICE

CHAPTER 1 — APPLICATIONS (GENERAL)

Preliminary

182

This Part applies to any application made to the court under Part 2 of the Banking Act or these Rules except an application under section 95 of the Banking Act for a building society insolvency order.

Interpretation

183

Apply rule 7.06 of the 1991 Rules.

Form and contents of application

184

Apply rule 7.07 of the 1991 Rules

Application under Article 150A(5) to disapply Article 150A

185

• (1) Apply rule 7.07A[^f00022] of the 1991 Rules.

• (2) In paragraph (1), omit “administrator or receiver”.

• (3) Omit paragraph (2)(a).

Filing and service of application

186

Apply rule 7.08 of the 1991 Rules.

Notice of application under Article 150A(5)

187

• (1) Apply rule 7.08A[^f00023] of the 1991 Rules.

• (2) Omit from “save that notice” to “State liquidator”.

Other hearings without notice

188

Apply rule 7.09 of the 1991 Rules.

Hearing of application

189

Apply rule 7.03 of the 1991 Rules.

Use of affidavit evidence

190

Apply rule 7.10 of the 1991 Rules.

Filing and service of affidavits

191

Apply rule 7.11 of the 1991 Rules.

Use of reports

192

• (1) Unless the application involves other parties, or the court orders otherwise, a report may be filed in court instead of an affidavit by—

• (a) the building society liquidator,

• (b) the provisional building society liquidator, or

• (c) the special manager.

• (2) In any case where a report is filed instead of an affidavit, the report shall be treated for the purposes of rule 191 and any hearing before the court as if it were an affidavit.

Adjournment of hearing: directions

193

• (1) Apply rule 7.13 of the 1991 Rules.

• (2) In paragraph (2)(c)(iii), for “rule 7.12(1)(b)” substitute “rule 192(1) of the 2014 Rules”.

CHAPTER 3 — SHORTHAND WRITERS

Nomination and appointment of shorthand writers

194

• (1) Apply rule 7.14 of the 1991 Rules.

• (2) In paragraph (2) omit “113” and “263 or 337”.

• (3) Omit paragraph (3).

Remuneration

195

Apply rule 7.16 of the 1991 Rules.

CHAPTER 4 — ENFORCEMENT PROCEDURES

Enforcement of court orders

196

Apply rule 7.19 of the 1991 Rules.

Orders enforcing compliance with the Rules

197

• (1) The court may on application of the building society liquidator, or the provisional building society liquidator as the case may be, make such orders as it thinks necessary for the enforcement of obligations falling on any person in accordance with—

• (a) Article 121(2) of the 1989 Order (“General functions in winding up by the High Court”); or

• (b) Article 199 of the 1989 Order (“Duty to cooperate with office holder”).

• (2) An order of the court under this rule may provide that all the costs of and incidental to the application for it shall be borne by the person against whom the order is made.

Warrants (general provisions)

198

• (1) A warrant issued by the court under any provision of the 1989 Order shall be addressed to such officer of the court as the warrant specifies, or to any constable.

• (2) In this Chapter references to property include books, papers and records.

Warrants under Article 200

199

• (1) Apply rule 7.22 of the 1991 Rules.

• (2) In paragraph (1), omit “or 337 (the equivalent in bankruptcy),”.

CHAPTER 5 — COURT RECORDS AND RETURNS

Title of proceedings

200

Every proceeding under Part 2 of the Banking Act shall, with any necessary additions, be titled “IN THE MATTER OF ………. (naming the building society to which the proceedings relate) AND IN THE MATTER OF THE BANKING ACT 2009”.

Court records

201

Apply rule 7.24 of the 1991 Rules.

Inspection of records

202

Apply rule 7.25 of the 1991 Rules.

File of court proceedings and inspection

203

• (1) The Court shall open and maintain a file for each building society insolvency and (subject to the direction of the Master) all documents relating to that building society insolvency shall be placed on that file.

• (2) Where a file has been opened under paragraph (1), the following have the right, at all reasonable times, to inspect that file—

• (a) the building society liquidator;

• (b) any person stating in writing that they are a creditor of the society to which the building society insolvency relates;

• (c) a member of the society;

• (d) any person who is, or at any time has been, a director or officer of the society to which the building society insolvency relates;

• (e) any person who is a contributory of the society to which the building society insolvency relates;

• (f) the Bank of England;

• (g) the appropriate regulator; and

• (h) the FSCS.

• (3) The right of inspection conferred on any person by paragraph (2) may be exercised on their behalf by a person properly authorised by them.

• (4) Any person may, with permission of the court, inspect the file.

• (5) The right of inspection conferred by this rule is not exercisable in respect of documents, or parts of documents, which the court has directed (either generally or specially) are not to be open to inspection without the court’s permission.

• (6) An application for a direction of the court under paragraph (5) may be made by the building society liquidator or by any party appearing to the court to have an interest in the building society insolvency.

• (7) If for the purposes of powers conferred by the 1989 Order, the Banking Act or these Rules the Department wishes to inspect the file on a building society insolvency and requests the court to transmit the file to it, the court shall comply with the request or, if the file is for the time being in use for the court’s own purposes, as soon as the file is no longer in such use.

• (8) Rule 202 applies in respect of the court’s records on any building society insolvency as it applies in respect of court records of general insolvency proceedings.

CHAPTER 6 — COSTS AND TAXATION

Application of Rules of the Court of Judicature

204

Apply rule 7.29 of the 1991 Rules.

Requirement to tax costs

205

• (1) Apply rule 7.30 of the 1991 Rules[^f00024].

• (2) In paragraph (1) for sub-paragraphs (a) and (b) substitute—

in relation to, or as an expense of a building society insolvency,

• (3) In paragraph (2) omit “or creditors’”;

• (4) In paragraph (5) for “trustee in bankruptcy or a liquidator” substitute “building society liquidator”;

• (5) Omit paragraph (6).

Measurement of remuneration by Taxing Master

206

• (1) —Apply rule 7.31 of the 1991 Rules.

• (2) In paragraph (1), for “insolvency proceedings”, substitute “a building society insolvency”.

• (3) Omit paragraph (9)

Procedure where taxation required

207

Apply rule 7.32 of the 1991 Rules.

Costs paid otherwise than out of the insolvent estate

208

Apply rule 7.34 of the 1991 Rules.

Award of costs against responsible insolvency practitioner

209

• (1) Apply rule 7.35 of the 1991 Rules.

• (2) For “Without prejudice” to “the official receiver or” substitute “Where”.

Application for costs

210

• (1) Apply rule 7.36 of the 1991 Rules.

• (2) In paragraph (1) for “insolvency” substitute “building society insolvency”.

• (3) In paragraph (2), omit “, and, in a winding up by the court or bankruptcy, on the official receiver”;

• (4) In paragraph (3), omit “and, where appropriate, the official receiver”.

Costs and expenses of witnesses

211

• (1) Apply rule 7.37 of the 1991 Rules.

• (2) In paragraph (1), omit “the bankrupt or”.

• (3) Omit paragraph (2).

Certificate of taxation

212

Order 62, rule 22 of the Rules of the Court of Judicature (Northern Ireland) 1980[^f00025] applies in respect of the certification of such measurement as it applies in respect of the issue of a certificate of taxation, with the necessary modifications.

CHAPTER 7 — PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS

Introductory

213

Apply rule 7.38 of the 1991 Rules.

Appointment of another person to act

214

• (1) Apply rule 7.39 of the 1991 Rules.

• (2) Omit paragraph (3)(c).

Affidavit in support of application

215

• (1) Apply rule 7.40 of the 1991 Rules.

• (2) In paragraph (1) omit from the beginning to “receiver”.

• (3) Omit paragraph (2).

Service of notices following appointment

216

Apply rule 7.41 of the 1991 Rules.

CHAPTER 8 — APPEALS IN BUILDING SOCIETY INSOLVENCY PROCEEDINGS

Appeals and review of court orders

217

• (1) The High Court may review, rescind or vary any order made by it in the exercise of its jurisdiction under Part 2 of the Banking Act.

• (2) An appeal from a decision of a Master of the High Court lies, with the permission of the Master or a judge of the High Court, to a single judge of the High Court, and a second appeal lies, with the permission of the Court of Appeal to the Court of Appeal.

• (3) An appeal of a decision of first instance of a judge of the High Court lies, with the permission of the judge or the Court of Appeal, to the Court of Appeal.

Procedure on appeal

218

Apply rule 7.42 of the 1991 Rules.

Appeal against a decision of the Department

219

• (1) Apply rule 7.44 of the 1991 Rules.

• (2) Omit paragraph (2).

CHAPTER 9 — GENERAL

Principal court Rules and practice to apply

220

The Rules of the Court of Judicature (Northern Ireland) 1980[^f00026] and the practice and procedure of the High Court (including any practice direction) apply to building society insolvency proceedings in the High Court, with any necessary modifications, except so far as is inconsistent with these Rules.

Right of attendance

221

• (1) Apply rule 7.47 of the 1991 Rules.

• (2) For “company” substitute “building society”.

Restriction on concurrent proceedings and remedies

222

Where in a building society insolvency, the court makes an order staying any action, execution or legal process against the property of the society, service of the order may be effected by delivering a sealed copy to the address for service of the plaintiff or other person having the carriage of the proceedings to be stayed.

Security in court

223

Apply rule 7.53 of the 1991 Rules.

Payment into court

224

Order 22 of the Rules of the Court of Judicature (Northern Ireland) 1980 applies.

Discovery

225

• (1) Apply rule 7.54 of the 1991 Rules.

• (2) After paragraph (2) insert—

(3) Before the passing of a full payment resolution the court shall only grant an order on an application under paragraph (1) if satisfied that granting the order is unlikely to prejudice the achievement of Objective 1.

Office copies of documents

226

Apply rule 7.55 of the 1991 Rules.

PART 19 — PROXIES AND COMPANY REPRESENTATION

Definition of “proxy”

227

• (1) Apply rule 8.1 of the 1991 Rules.

• (2) In paragraph (2) omit “, company”.

• (3) In paragraph (4), for “chairman of the meeting” to “official receiver” substitute: “chair of the meeting or the building society liquidator”.

Issue and use of forms

228

Apply rule 8.2 of the 1991 Rules.

Use of proxies at meetings

229

• (1) Apply rule 8.3 of the 1991 Rules.

• (2) Omit paragraph (2).

Retention of proxies

230

Apply rule 8.4 of the 1991 Rules.

Right of inspection

231

• (1) Apply rule 8.5 of the 1991 Rules.

• (2) In paragraph (1)(b) for “a company’s members or” substitute “the building society’s” and for “company or of its” substitute “building society’s”.

• (3) For paragraph (2) substitute—

(2) The reference in paragraph (1) to creditors is to those creditors who have proved their debts but does not include a person whose proof has been wholly rejected for purposes of voting, dividend or otherwise.

• (4) Omit paragraph (3)(b).

Proxy-holder with financial interest

232

Apply rule 8.6 of the 1991 Rules.

PART 20 — EXAMINATION OF PERSONS CONCERNED IN BUILDING SOCIETY INSOLVENCY

Preliminary

233

• (1) The rules in this Part relate to applications to the court for an order under Article 200 of the 1989 Order (“Inquiry into company’s dealings, etc.”).

• (2) The following definitions apply—

• (a) the person in respect of whom an order is applied for is “the respondent”;

• (b) “the applicable Article” is Article 200 of the 1989 Order; and

• (c) the building society is “the insolvent”.

Form and contents of application

234

Apply rule 9.2 of the 1991 Rules.

Order for examination, etc

235

Apply rule 9.3 of the 1991 Rules.

Procedure for examination

236

Apply rule 9.4 of the 1991 Rules.

Record of examination

237

Apply rule 9.5 of the 1991 Rules.

Cost of proceedings

238

• (1) Apply rule 9.6 of the 1991 Rules.

• (2) In paragraph (2)(a) omit “or 338(1)” and in paragraph (2)(b) omit “or 338(2)”.

• (3) Omit sub-paragraph (3)(b).

• (4) Omit paragraph (5).

PART 21 — DECLARATION AND PAYMENT OF DIVIDEND

Preliminary

239

• (1) The rules in this Part relate to the declaration and payment of dividends in a building society insolvency.

• (2) In this Part—

• “creditors” means those creditors of the society of whom the building society liquidator is aware, or who are identified in the society’s statement of affairs, and

• “the insolvent” means the building society.

Notice of intended dividend

240

• (1) Apply rule 11.02 of the 1991 Rules.

• (2) Omit paragraph (1)(b) .

Final admission/rejection of proofs

241

• (1) Apply rule 11.03 of the 1991 Rules.

• (2) Omit paragraph (4).

Postponement or cancellation of dividend

242

Apply rule 11.04 of the 1991 Rules.

Decision to declare dividend

243

Apply rule 11.05 of the 1991 Rules.

Notice of declaration

244

• (1) Apply rule 11.06 of the 1991 Rules.

• (2) Omit paragraph (1)(b).

• (3) In paragraph (2), after (b) add—

(ba) expenses incurred by the building society liquidator in the achievement of Objective 1 under section 99 of the Banking Act;

Notice of no, or no further, dividend

245

Apply rule 11.07 of the 1991 Rules.

Proof altered after payment of dividend

246

Apply rule 11.08 of the 1991 Rules.

Secured creditors

247

Apply rule 11.09 of the 1991 Rules.

Disqualification from dividend

248

Apply rule 11.10 of the 1991 Rules.

Assignment of right to dividend

249

Apply rule 11.11 of the 1991 Rules.

Preferential creditors

250

Apply rule 11.12 of the 1991 Rules.

Debt payable at future time

251

• (1) Apply rule 11.13 of the 1991 Rules.

• (2) For paragraph (3) substitute—

(3) In paragraph (2) “relevant date” means the date of the commencement of the building society insolvency.

PART 22 — MISCELLANEOUS AND GENERAL

Power of Department to regulate certain matters

252

• (1) As provided for in Article 359 of and paragraph 27 of Schedule 5 to the 1989 Order[^f00027], the Department or the Department of Finance and Personnel may, subject to that Order and to these Rules, make regulations with respect to any matter provided for in these Rules relating to the carrying out of the functions of a building society liquidator or provisional building society liquidator, including, without prejudice to the generality of the above, provision with respect to the following matters arising in building society insolvency—

• (a) the preparation and keeping by building society liquidators and provisional building society liquidators of books, accounts and other records, and their production to such persons as may be authorised or required to inspect them;

• (b) the auditing of building society liquidators’ accounts;

• (c) the manner in which building society liquidators are to act in relation to the society’s books, papers and other records, and the manner of their disposal by the building society liquidator or others;

• (d) the supply by the building society liquidator to creditors and contributories and to the liquidation committee of copies of documents relating to the building society insolvency and the affairs of the society (on payment, in such cases as may be specified in the regulations, of the appropriate fee);

• (e) the manner in which insolvent estates are to be distributed by the building society liquidator, including provision with respect to unclaimed funds and dividends;

• (f) the manner in which monies coming into the hands of the building society liquidator are to be handled and invested and the payment of interest on sums which, in pursuance of regulations made under this sub-paragraph, have been paid into the Insolvency Account.[^f00028]

• (2) Regulations made under paragraph (1) may—

• (a) confer a discretion on the court;

• (b) make non-compliance with any of the regulations a criminal offence;

• (c) make different provision for different cases, including different provision for different areas; and

• (d) contain such incidental, supplemental and transitional provisions as may appear to the Department or the Department of Finance and Personnel as necessary or expedient.

Costs, expenses, etc

253

• (1) All fees, costs, charges and other expenses incurred in the course of building society insolvency, except for any money paid by the FSCS to eligible depositors in pursuance of Objective 1, and any expense incurred by the FSCS in this process, are to be regarded as expenses of the building society insolvency.

• (2) The costs associated with the prescribed part (within the meaning of Article 150A of the 1989 Order) shall be paid out of that prescribed part.

Provable debts

254

• (1) Subject to paragraphs (2) and (3), in a building society insolvency all claims by creditors are provable as debts against the society, whether they are present or future, certain or contingent, ascertained or sounding only in damages.

• (2) Any obligation arising under a confiscation order made under Articles 4 or 5 of the Criminal Justice (Confiscation) (Northern Ireland) Order 1990[^f00029] or under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002[^f00030] is not provable.

• (3) The following are not provable except at a time when all other claims of creditors in the building society insolvency proceedings (other than any of a kind mentioned in this paragraph) have been paid in full with interest under Article 160(2) of the 1989 Order—

• (a) any claim arising by virtue of section 382(1)(a) of the Financial Services and Markets Act 2000, not being a claim arising by virtue of section 382(1)(b) of that Act; or

• (b) any claim which by virtue of the 1989 Order or any other enactment is a claim the payment of which in the building society insolvency is to be postponed.

• (4) Nothing in this rule prejudices any enactment or rule of law under which a particular kind of debt is not provable, whether on grounds of public policy or otherwise.

Notices

255

• (1) Apply rule 12.04 of the 1991 Rules.

• (2) Omit references to the official receiver.

Quorum at meeting of creditors or contributories

256

• (1) Apply rule 12.05 of the 1991 Rules.

• (2) For paragraph (3) substitute—

(3) For the purposes of this rule, the reference to the creditors or contributories necessary to constitute a quorum is to those persons present or represented by proxy by any person (including the chair).

Evidence of proceedings at meetings

257

Apply rule 12.06 of the 1991 Rules.

Documents issuing from the Department

258

Apply rule 12.07 of the 1991 Rules.

Insolvency practitioner’s security

259

• (1) Apply rule 12.09 of the 1991 Rules.

• (2) For paragraph (2) substitute—

(2) It is the duty of the liquidation committee in a building society insolvency to review from time to time the adequacy of the building society liquidator’s security.

Time

260

Apply rule 12.10 of the 1991 Rules as regards time for anything required or authorised to be done by these Rules.

Service by post

261

Apply rule 12.11 of the 1991 Rules.

General provisions as to service

262

Order 65 of the Rules of the Court of Judicature (Northern Ireland) 1980 (service of documents) applies as regards any matter relating to the service of documents and the giving of notice in building society insolvency proceedings except in cases where a rule makes provision as to the service of a document or the giving of a notice.

Service outside the jurisdiction

263

Apply rule 12.13 of the 1991 Rules.

Confidentiality of documents

264

• (1) Apply rule 12.14 of the 1991 Rules.

• (2) In paragraph (2) omit “or a creditors’ committee”.

Notices sent simultaneously to the same person

265

Apply rule 12.15 of the 1991 Rules.

Right to copy documents

266

Apply rule 12.16 of the 1991 Rules.

Charge for copy documents

267

Apply rule 12.17 of the 1991 Rules.

Non-receipt of notice of meeting

268

Apply rule 12.18 of the 1991 Rules.

Right to have list of creditors

269

• (1) Where one or more creditors have the right under these Rules to inspect documents on the court file, they may require the building society liquidator to send them a list of the society’s creditors and the amounts of their respective debts.

• (2) Paragraph (1) does not apply if a statement of the society’s affairs has been filed in court or filed with the appropriate regulator.

• (3) The building society liquidator must respond to the request in paragraph (1) but may charge the appropriate fee for doing so.

False claim of status as creditor, etc.

270

Apply rule 12.20 of the 1991 Rules.

The Gazette

271

Apply rule 12.21 of the 1991 Rules.

Punishment of offences

272

Apply rule 12.22 of the 1991 Rules.

Notice of order under Article 150A(5)

273

• (1) Apply rule 12.23 of the 1991 Rules.

• (2) In paragraphs (2), (3) and (5) for “liquidator, administrator or receiver, as the case may be”, substitute “building society liquidator”.

• (3) In paragraph (6), for “The liquidator, administrator or receiver” substitute “The building society liquidator”.

PART 23 — INTERPRETATION

Introductory

274

This Part of the Rules has effect for their interpretation and application; and any definition given in this Part (and in any provision of the 1991 Rules applied by this Part) applies except, and in so far as, the context requires otherwise.

Expressions used generally

275

• (1) Apply rule 0.2 of the 1991 Rules.

• (2) For the definition “insolvency proceedings” after “Order” insert “, the Banking Act 2009”.

“Give notice”, etc.

276

• (1) Apply rule 0.3 of the 1991 Rules.

• (2) In paragraph (3) after “personal service of a document”, add “which means the same as service by hand”.

Notice, etc to solicitors

277

Apply rule 0.4 of the 1991 Rules.

Notice to joint building society liquidators

278

Where two or more persons are acting jointly as the building society liquidator, delivery of a document to one of them is to be treated as delivery to them all.

“Insolvent estate”

279

References to “the insolvent estate” are to the assets of the building society.

“Responsible insolvency practitioner”, etc.

280

In relation to a building society insolvency, “the responsible insolvency practitioner” means the person acting in the building society insolvency as building society liquidator or provisional building society liquidator.

“The appropriate fee”

281

”The appropriate fee” means 15 pence per A4 or A5 page, and 30 pence per A3 page.

The Schedule

282

The Schedule which applies relevant schedules to the 1991 Rules to these Rules, with modifications, has effect.

SCHEDULE

The following Schedules to the 1991 Rules are applied to these Rules.

• (a) Schedule 1—

• (i) Omit all references to Rule 4.078.

• (ii) For paragraph 1 substitute—

(1) This Schedule applies where a building society insolvency order (see section 90C of the Building Societies Act 1986) has been made in respect of a building society.

• (b) Schedule 2;

• (c) Schedule 3; and

• (d) Schedule 4.

Signed

Sealed with the Official Seal of the Department of Justice on 13th February 2014

David Ford — Minister of Justice

I concur

Declan Morgan — The Lord Chief Justice of Northern Ireland

The Department of Finance and Personnel concurs

Sealed with the Official Seal of the Department of Finance and Personnel on 13th February 2014

John McKibbin — A senior officer of the Department of Finance and Personnel

Explanatory note

(This note is not part of the Rules)

EXPLANATORY NOTE

1 These Rules set out the procedure for the building society insolvency process under Part 2 of the Banking Act 2009 (c. 1).

The main features of building society insolvency are that, in the event of a building society becoming insolvent, it enables those depositors who are eligible for compensation under the Financial Services Compensation Scheme (FSCS) to either receive compensation for their unpaid deposits as soon as possible after the society goes into building society.

This is the first objective of the insolvency process.

The procedure can only be initiated by the Bank of England or the Financial Conduct Authority or the Prudential Regulation Authority (the appropriate regulator) 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 comprising the appropriate regulator, 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 society so as to achieve the best results for the creditors as a whole.

The Rules are based on the Insolvency Rules (Northern Ireland) 1991 (S.R.1991 No. 364) (“the 1991 Rules”) and certain provisions of the 1991 Rules are applied to these Rules, subject to a number of general and specific modifications.

Part 1 contains general provisions.

Part 2 sets out the application process for a building society insolvency order.

Part 3 sets out the procedure for appointing a provisional building society liquidator.

Parts 4 to 8 set out the procedure concerning the statement of affairs, creditors and contributories.

Part 9 sets out provisions concerning the building society liquidator.

Part 10 sets out provisions concerning the liquidation committee.

Parts 11 to 17 set out provisions relating to the building society’s assets and other miscellaneous provisions.

Part 18 sets out court procedure and practice.

Part 19 sets out provisions on proxies.

Part 20 sets out provisions concerning the examination of persons concerned in building society insolvency.

Part 21 sets out provisions relating to the declaration and payment of dividend.

Parts 22 and 23 set out miscellaneous and general and interpretative provisions relating to the procedure.

An Impact Assessment relating to the rules for building society insolvency and special administration 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

[^f00001]: S.I. 1989/2405 (N.I. 19). Article 359 was amended by the Banking Act 2009 (c.1), section 125, as applied by section 134, and by the Northern Ireland Act 1998 (Devolution of Policing and Justice Functions) Order 2010 (S.I. 2010/976), Article 15(1) and Schedule 18, paragraph 142. Paragraph 3(A) was inserted by S.I. 2009/805.

[^f00002]: S.I. 2009/805, amended by S.I. 2010/1189 and S.I. 2013/496.

[^f00003]: 2009 c.1.

[^f00004]: 1986 c.53; section 90C was inserted by Article 2 of the Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805).

[^f00005]: S.R. 1991 No. 364, as amended by S.R. 1994 No. 26, S.R. 1995 No. 291, S.R. 2000 No. 247, S.R. 2002 No. 261, S.R. 2003 No. 549, S.R. 2006 No. 47, S.R. 2008 No. 118, S.R. 2009 No. 404, S.R. 2011 No. 151, S.I. 2004/355 and S.R. 2013 No.278.

[^f00006]: S.R. 2013 No. 278.

[^f00007]: 2000 c 8.

[^f00008]: 1971 c.80.

[^f00009]: Formerly the Department of Economic Development, see the Departments (Northern Ireland) Order 1999 (S.I. 1999/283 (N.I. 1)).

[^f00010]: S.R. 1980 No. 346, as amended by the Constitutional Reform Act 2005 (c.4), section 59 and Schedule 11.

[^f00011]: 1986 c.53; section 90D was inserted by Article 6 of the Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805) and amended by S.I. 2013/496.

[^f00012]: Rule 4.031 was amended by S.R. 2008 No. 118.

[^f00013]: Rule 4.033 was amended by S.R. 2008 No. 118.

[^f00014]: Paragraph (9) was amended by S.R. 2008 No. 118.

[^f00015]: Rule 4.041 was amended by S.R. 2008 No. 118.

[^f00016]: Paragraph (6) was amended by S.R. 2008 No. 118.

[^f00017]: Article 150A was inserted by the Insolvency (Northern Ireland) Order 1989 (Prescribed Part) Order (S.R. 2006 No. 25).

[^f00018]: Rule 4.132A was inserted by S.R. 2006 No. 47.

[^f00019]: Rule 4.228 was amended by S.R. 2008 No. 118.

[^f00020]: Rules 4.228A to E were inserted by S.R. 2008 No. 118.

[^f00021]: The Building Societies (Insolvency and Special Administration) Order 2009 (S.I. 2009/805) modifies the application of section 116.

[^f00022]: Rule 7.07A was inserted by S.R. 2006 No. 47.

[^f00023]: Rule 7.08A was inserted by S.R. 2006 No. 47.

[^f00024]: Rule 7.30(1) was amended by S.R. 2008 No. 118.

[^f00025]: S.R. 1980 No. 346, as amended by the Constitutional Reform Act 2005 (c.4), section 59 and Schedule 11.

[^f00026]: S.R. 1980 No. 346, as amended by the Constitutional Reform Act 2005 (c.4), section 59 and Schedule 11.

[^f00027]: Article 359 of the 1989 Order (S.I. 1989/2405 (N.I. 19)), which introduces Schedule 5, was amended by sections 125 and 134 of the Banking Act 2009 to extend the powers in the Schedule to Rules made under Part 2 of that Act.

[^f00028]: The Insolvency Account is referred to at Article 358 of the Insolvency (Northern Ireland) Order 1989.

[^f00029]: S.I. 1990/2588 (N.I. 17).

[^f00030]: 2002 c. 29.