Made | 20th June 2005 | ||
Laid before Parliament | 21st June 2005 | ||
Coming into force | 1st October 2005 |
Modification of Part III of the 1989 Order in relation to insurers
2.
Part III of the 1989 Order (administration orders) applies in relation to insurers with the modifications specified in the Schedule to this Order, and accordingly Article 21(5)(a)[3] of that Order does not preclude the making of an administration order in relation to an insurer.
Modification of the Insolvency Rules (Northern Ireland) 1991 in relation to insurers
3.
The Insolvency Rules (Northern Ireland) 1991[4], so far as they give effect to Part III of the 1989 Order, have effect in relation to insurers with the modification that in Rule 2. 10(1) of those Rules (the hearing) there is inserted after sub-paragraph (a) the following sub-paragraph—
Mutual credit and set-off
4.
Where an insurer, in relation to which an administration order has been made, subsequently goes into liquidation, sums due from the insurer to another party are not to be included in the account of mutual dealings rendered under Rule 4.096 of the Insolvency Rules (Northern Ireland) 1991 (mutual credit and set-off) if, at the time they become due, a petition has been presented to the court under Article 22 of the 1989 Order (application for an administration order) in relation to the insurer.
Tom Watson,
Gillian Merron
Two of the Lords Commissioners of Her Majesty's Treasury
20th June 2005
I consent
Paul Murphy
One of Her Majesty's Principal Secretaries of State
Northern Ireland Office
7th June 2005
2.
In paragraph (1) of Article 30 (discharge or variation of administration order), after "company" insert "or the Financial Services Authority".
3.
In paragraph (1)(a) of Article 35 (statement of proposals), after "registrar" insert ", the Financial Services Authority".
4.
In paragraph (4) of Article 36 (consideration of proposals by creditors' meeting), after "registrar" insert ", the Financial Services Authority".
5.
In paragraph (2)(a) of Article 37 (approval of substantial revisions), after "addresses)" insert "and the Financial Services Authority".
6.
—(1) The powers of the administrator referred to in Schedule 1 to the 1989 Order (powers of administrator or administrative receiver) include the power to make—
(2) Any payments to a creditor made pursuant to sub-paragraph (1) must not exceed, in aggregate, the amount which the administrator reasonably considers that the creditor would be entitled to receive on a distribution of the insurer's assets in a winding up.
(3) The powers conferred by sub-paragraph (1) may be exercised until an Article 35 meeting but may only be exercised thereafter—
(b) with the consent of the High Court.
(4) The information referred to in sub-paragraph (3)(a) is an estimate of the aggregate amount of—
including any assumptions which the administrator has made in calculating that estimate.
[2] S.I. 1989/2405 (N.I. 19).back
[3] Article 21(5) was inserted by S.I. 2001/3649, article 401.back
[5] Articles 26, 35 and 37 were amended, in relation to companies which are authorised institutions or former authorised institutions under the Banking Act 1987, by S.R. (N.I.) 1991/295 as amended by S.I. 2001/3649, article 414 and S.I. 2004/355, article 16.back