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Clause 58

Volume 115: debated on Thursday 7 May 1987

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Compensation Payments To Depositors

Lords amendment: No. 24, in page 44, line 7, leave out

"end of the deposit's original term to maturity"

and insert

"deposit is or becomes due and payable under the terms on which it was made".

I beg to move, That this House doth agree with the Lords in the said amendment.

With this it will be convenient to take Lords amendments Nos. 25, 26, and 28 to 34.

The amendments relate to clauses 58 and 60, dealing with technical aspects of the administrator procedure. That procedure was introduced by the Insolvency Act 1985. It has recently come into force for the generality of companies, but as yet does not apply to banks. It will do so in due course when secondary legislation under the Insolvency Act is laid.

The Bill, with a view to that order being made in due course, provides for the deposit protection arrangements to apply in respect of deposits with an institution, subject to an administration order. The amendments relate to the way in which calculations are made with regard to deposits and the amount of compensation payable in an administered institution. The amendments were accepted unopposed in another place. They are a useful piece of forward planning in relation to the application of the Insolvency Act provisions and the administration procedure in the case of banks.

Question put and agreed to.

Lords amendments Nos. 25 and 26 agreed to.