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Clause 101

Banking Bill – in a Public Bill Committee at 2:15 pm on 13th November 2008.

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Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury

I beg to move amendment No. 159, in clause 101, page 54, line 3, after ‘payments’ insert ‘or have their accounts transferred’.

Under objective 1 of the bank insolvency procedure, which is set out in clause 86(2), the bank liquidator must either work with the FSCS for rapid payout to eligible depositors through the scheme or transfer their accounts to another institution. The amendment is a tidying-up provision reflecting those two strands of objective 1. Under clause 101(5), the bank liquidator can put the bank into normal administration only if appropriate arrangements are in place to deal with depositors still eligible for compensation. The amendment allows those appropriate arrangements for either the payment of eligible depositors or the transfer of their account. It is a simple tidying-up provision.

Amendment agreed to.

Clause 101, as amended, ordered to stand part of the Bill.

Clauses 102 to 106 ordered to stand part of the Bill.