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Credit Institutions (Stabilisation) Act 2010

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Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010


ARRANGEMENT OF SECTIONS

PART 1

Preliminary

Section

1. Short title and commencement.

2. Interpretation.

3. Prescribed institutions.

4. Purposes of Act.

5. Independence of Bank and Governor not affected.

6. Relationship framework.

PART 2

Direction orders

7. Proposed direction orders.

8. Relevant institution may act in accordance with proposed direction order.

9. Direction orders.

10. Application to vary direction order.

11. Application to set aside direction order.

PART 3

Special management

12. Interpretation (Part 3).

13. Proposed special management orders.

14. Special management orders.

15. Application to vary special management order.

16. Application to set aside special management order.

17. Terms of appointment.

18. Remuneration, etc., of special managers.

19. Resignation and vacancy in office, etc.

20. Functions of special managers.

21. Performance of functions of special managers.

22. Effect of appointment of special manager.

23. Powers of special manager to remove officers, employees and others.

24. Relationship between special managers and directors.

25. Special manager not to be director, etc.

26. Extension of special management.

27. Termination of special management.

PART 4

Subordinated liabilities

28. Proposed subordinated liabilities orders.

29. Subordinated liabilities orders.

30. Application to vary subordinated liabilities order.

31. Application to set aside subordinated liabilities order.

32. Certain rights of subordinated creditors not exercisable.

PART 5

Transfer of assets and liabilities

33. Proposed transfer orders.

34. Transfer orders.

35. Application to vary transfer order.

36. Application to set aside transfer order.

37. Content of transfer order.

38. Financial incentive to transferee.

39. Effect of transfer order — general.

40. Effect of transfer order in relation to securities.

41. Transfer of foreign assets and liabilities.

42. Application of Bankers’ Books Evidence Act 1879.

43. Stamp duty.

PART 6

General matters in relation to companies, etc.

44. Minister’s powers in relation to removal of directors, etc.

45. Minister’s powers in relation to appointment of directors, etc.

46. No resolution required, etc.

47. Certain provisions may be included in orders.

48. Directors’ duties.

49. Minister not to be director, etc.

50. Minister’s powers to impose requirements on relevant institutions.

PART 7

Miscellaneous

51. Minister may impose certain conditions in relation to financial support.

52. Effect of CIWUD Directive.

53. Act, etc., to over-ride inconsistent provisions.

54. Application of laws in relation to transfers, etc., of credit institutions.

55. Orders in relation to particular relevant institutions.

56. Expression of intention in relation to exercise of powers in relation to particular relevant institutions.

57. Minister’s and Court’s powers under this Act not exclusive of other powers.

58. Minister’s power to take certain proceedings in other jurisdictions.

59. Proposed orders to be kept in confidence.

60. Confidentiality of proceedings.

61. Effect of orders on certain other obligations.

62. Limitation of operation of section 61.

63. Limitation of judicial review.

64. Limitation of certain rights of appeal to the Supreme Court.

65. Application of laws in relation to netting agreements, etc.

66. Saving of legal proceedings, etc.

67. Prohibition of certain secured borrowings.

68. Regulations.

69. Cessation of effect of Act.

70. Disapplication of section 7 of Official Languages Act 2003.

PART 8

Amendment of other enactments

71. Amendment of Building Societies Act 1989.

72. Amendment of Central Bank Act 1942.

73. Amendment of Central Bank Act 1971.

74. Amendment of Act of 2008.

75. Amendment of National Asset Management Agency Act 2009.

76. Amendment of National Pensions Reserve Fund Act 2000.

77. Amendment of Regulations of 2004.

SCHEDULE 1

Amendments of Acts

PART 1

Amendments of Building Societies Act 1989

PART 2

Amendment of Central Bank Act 1942

PART 3

Amendments of Central Bank Act 1971

PART 4

Amendments of Act of 2008

PART 5

Amendment of National Asset Management Agency Act 2009

SCHEDULE 2

Amendments of Regulations of 2004


Acts Referred to

Agricultural Co-operative Societies (Debentures) Act 1934

1934, No. 39

Agricultural Credit Act 1978

1978, No. 2

Anglo Irish Bank Corporation Act 2009

2009, No. 1

Asset Covered Securities Act 2001

2001, No. 47

Bankers’ Books Evidence Act 1879

42 & 43 Vict. c. 11

Bills of Sale (Ireland) Acts 1879 and 1883

Building Societies Act 1989

1989, No. 17

Central Bank Act 1942

1942, No. 22

Central Bank Act 1971

1971, No. 24

Central Bank Act 1997

1997, No. 8

Central Bank Reform Act 2010

2010, No. 23

Companies (Amendment) Act 1990

1990, No. 27

Companies Act 1963

1963, No. 33

Companies Act 1990

1990, No. 33

Companies Acts

Competition Act 2002

2002, No. 14

Credit Institutions (Financial Support) Act 2008

2008, No. 18

Credit Union Act 1997

1997, No. 15

European Communities Act 1972

1972, No. 27

Finance Act 1970

1970, No. 14

Local Government Act 2001

2001, No. 37

National Asset Management Agency Act 2009

2009, No. 34

National Pensions Reserve Fund Act 2000

2000, No. 33

Netting of Financial Contracts Act 1995

1995, No. 25

Official Languages Act 2003

2003, No. 32

Patents Act 1992

1992, No. 1

Registration of Deeds and Title Acts 1964 and 2006

Registration of Title Act 1964

1964, No. 16

Statutory Instruments Act 1947

1947, No. 44

Taxes Consolidation Act 1997

1997, No. 39

Trade Marks Act 1996

1996, No. 6

Trustee Savings Bank Act 1989

1989, No. 21

Unfair Dismissals Acts 1977 to 2007

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Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010


AN ACT TO MAKE PROVISION, IN THE CONTEXT OF THE NATIONAL RECOVERY PLAN 2011 - 2014 AND THE EUROPEAN UNION/INTERNATIONAL MONETARY FUND PROGRAMME OF FINANCIAL SUPPORT FOR IRELAND, IN RELATION TO THE STABILISATION, AND THE PRESERVATION OR RESTORATION OF THE FINANCIAL POSITION OF CERTAIN CREDIT INSTITUTIONS; TO AMEND THE BUILDING SOCIETIES ACT 1989 , THE CENTRAL BANK ACT 1971 AND THE CREDIT INSTITUTIONS (FINANCIAL SUPPORT) ACT 2008 FOR THOSE PURPOSES; TO AMEND THE NATIONAL PENSIONS RESERVE FUND ACT 2000 TO ALLOW THE MINISTER FOR FINANCE TO GIVE CERTAIN DIRECTIONS IN RELATION TO THE NATIONAL PENSIONS RESERVE FUND; TO MAKE CONSEQUENTIAL AMENDMENTS TO THE EUROPEAN COMMUNITIES (REORGANISATION AND WINDING-UP OF CREDIT INSTITUTIONS) REGULATIONS 2004 ( S.I. NO. 198 OF 2004 ); AND FOR RELATED PURPOSES.

[21st December, 2010]

WHEREAS THERE IS A SERIOUS DISTURBANCE IN THE ECONOMY OF THE STATE;

AND WHEREAS MEASURES ARE NECESSARY TO ADDRESS A UNIQUE AND UNPRECEDENTED ECONOMIC CRISIS WHICH HAS LED TO DIFFICULT ECONOMIC CIRCUMSTANCES AND SEVERE DISRUPTION TO THE ECONOMY;

AND WHEREAS THERE IS A CONTINUING SERIOUS THREAT TO THE STABILITY OF CERTAIN CREDIT INSTITUTIONS IN THE STATE, AND TO THE FINANCIAL SYSTEM GENERALLY;

AND WHEREAS IT IS NECESSARY, IN THE PUBLIC INTEREST, TO MAINTAIN THE STABILITY OF THOSE CREDIT INSTITUTIONS AND THE FINANCIAL SYSTEM IN THE STATE;

AND WHEREAS IT IS NECESSARY, IN THE INTERESTS OF THE COMMON GOOD, TO CONTINUE THE PROCESS OF REORGANISATION, PRESERVATION AND RESTORATION OF THE FINANCIAL POSITION OF ANGLO IRISH BANK CORPORATION LIMITED BEGUN WITH THE ANGLO IRISH BANK CORPORATION ACT 2009 ;

AND WHEREAS THE FUNCTIONS AND POWERS CONFERRED BY THIS ACT ARE NECESSARY TO SECURE FINANCIAL STABILITY AND TO EFFECT A REORGANISATION OF CERTAIN CREDIT INSTITUTIONS;

AND WHEREAS IT IS NECESSARY TO AMEND THE EUROPEAN COMMUNITIES (REORGANISATION AND WINDING-UP OF CREDIT INSTITUTIONS) REGULATIONS 2004 ( S.I. NO. 198 OF 2004 ) TO IMPLEMENT DIRECTIVE 2001/24/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 4 APRIL 2001 1 TO PRESERVE OR RESTORE THE FINANCIAL POSITION OF CERTAIN CREDIT INSTITUTIONS;

AND WHEREAS THE CONSIDERABLE FINANCIAL SUPPORT PROVIDED BY THE STATE TO CERTAIN CREDIT INSTITUTIONS HAS HELPED THOSE INSTITUTIONS TO MEET THEIR FINANCIAL AND REGULATORY OBLIGATIONS;

AND WHEREAS THE STATE WISHES TO PROVIDE FOR THE PERFORMANCE OF THE FUNCTIONS CONFERRED BY THIS ACT IN ORDER TO ACHIEVE THE FINANCIAL STABILISATION OF THOSE CREDIT INSTITUTIONS AND THEIR RESTRUCTURING (CONSISTENTLY WITH THE STATE AID RULES OF THE EUROPEAN UNION) IN THE CONTEXT OF THE NATIONAL RECOVERY PLAN 2011—2014 AND THE EUROPEAN UNION/INTERNATIONAL MONETARY FUND PROGRAMME OF FINANCIAL SUPPORT FOR IRELAND;

AND WHEREAS THE COMMON GOOD REQUIRES PERMANENT OR TEMPORARY INTERFERENCE WITH THE RIGHTS, INCLUDING PROPERTY RIGHTS, OF PERSONS WHO MAY BE AFFECTED BY THE PERFORMANCE OF THOSE FUNCTIONS;

AND WHEREAS THE URGENT REORGANISATION OF CERTAIN CREDIT INSTITUTIONS IS OF SYSTEMIC IMPORTANCE TO THE STATE;

AND WHEREAS IT IS NECESSARY TO MAINTAIN PUBLIC CONFIDENCE IN, AND ENHANCE, THE PROTECTION OF DEPOSITS IN CREDIT INSTITUTIONS GENERALLY;

AND WHEREAS IT IS DESIRABLE TO PROMOTE AND FACILITATE INVESTMENT BY PERSONS OTHER THAN THE STATE IN CREDIT INSTITUTIONS TO REDUCE THEIR RELIANCE UPON STATE SUPPORT;

AND WHEREAS BECAUSE CERTAIN CREDIT INSTITUTIONS IN THE STATE ARE PARTIES TO CONTRACTS AND OTHER ARRANGEMENTS GOVERNED BY THE LAW OF A STATE OTHER THAN THE STATE;

BE IT THEREFORE ENACTED BY THE OIREACHTAS AS FOLLOWS:

1 OJ No. L 125, 5.5.2001, p. 15.