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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 1 March 2017 - onwards
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96. Grounds for applying

(1) In this section -

(a) Ground A is that a bank is unable, or likely to become unable, to pay its debts,

(b) Ground B is that the winding up of a bank would be in the public interest, and

(c) Ground C is that the winding up of a bank would be fair.

(2) The Bank of England may apply for a bank insolvency order only if -

(a) the PRA is satisfied that Condition 1 in section 7 is met, and

(b) the Bank of England is satisfied -

(ai) that Condition 2 in section 7 is met,

(i) that the bank has eligible depositors, and

(ii) that Ground A or C applies.

(3) The PRA may apply for a bank insolvency order only if -

(a) the Bank of England is satisfied that Condition 2 in section 7 is met, and

(b) the PRA is satisfied -

(i) that Condition 1 in section 7 is met,

(ii) that the bank has eligible depositors, and

(iii) that Ground A or C applies.

(4) The Secretary of State may apply for a bank insolvency order only if satisfied -

(a) that the bank has eligible depositors, and

(b) that Ground B applies.

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