Central Bank Act, 1989.

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Statement of affairs and calculation of payments from deposit protection account, etc. on insolvency.

59.—(1) This section applies to the holder or former holder of a licence which is unable to pay its debts and is being wound up either voluntarily or by the Court.

(2) The liquidator shall deliver to the Bank within one month of the date of his appointment, or such extended period as the Court may order—

(a) a copy of the statement of the affairs of the holder or former holder made out and filed in accordance with section 224 of the Companies Act, 1963 , or, where the holder is being wound up voluntarily, a statement which would be so filed if the holder or former holder were being wound up by the Court,

(b) an estimate of the amount (excluding any amount in the deposit protection account) likely to be available for the payment of amounts due to persons maintaining deposits, and

(c) a statement of when he expects to be in a position to make those payments.

(3) (a) The amount payable out of the amount vesting in the liquidator in accordance with section 58 to each person maintaining eligible deposits with the holder or former holder concerned shall, subject to paragraph (b), be calculated in accordance with the formula—

where—

A is any amount of eligible deposits up to £5,000,

B is any excess of eligible deposits over £5,000 but not over £10,000,

C is any excess of eligible deposits over £10,000 but not over £15,000, and

D is the amount paid or to be paid to that person in respect of eligible deposits maintained by that person otherwise than out of funds so vesting.

(b) Where the aggregate amount so payable would be greater than the amount vesting in the liquidator in accordance with section 58 then the amount payable to each person concerned shall be calculated in accordance with the formula—

where A, B, C and D have respectively the same meanings as they have in paragraph (a) and—

X is the amount so vesting, and

Y is the said aggregate amount.

(c) Reference in this subsection or in section 60 to the amount vesting in the liquidator in accordance with section 58 shall be construed as the amount so vesting after the deduction for any remuneration or expenses permitted, by virtue of section 70 (2), to be paid out of the amount so vesting in the liquidator.

(4) Where the Bank has made a recommendation to the Minister in accordance with section 56 in respect of the monetary amounts represented by the letters A, B and C in subsection (3), the Minister may, where he is of the opinion that it would be in the interest of the orderly and proper regulation of banking or the provision of financial services generally, by order amend that subsection by altering those monetary amounts, whether or not previously amended by virtue of this subsection:

Provided that no such amendment shall have any effect in relation to a holder or former holder of a licence which, at the time the relevant provision in the order under this subsection comes into operation, is unable to pay its debts and is being wound up.