Credit Institutions (Stabilisation) Act 2010


Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010

REVISED

Updated to 23 April 2018


This Revised Act is an administrative consolidation of the Credit Institutions (Stabilisation) Act 2010. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including Telecommunications Services (Ducting and Cables) Act 2018 (4/2017), enacted 4 April 2018, and all statutory instruments up to and including European Union (Detailed Technical Measures Designation) Regulations 2018 (S.I. No. 130 of 2017), made 23 April 2018, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.


Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010

REVISED

Updated to 23 April 2018


Introduction

This Revised Act presents the text of the Act as it has been amended since enactment, and preserves the format in which it was passed.

Related legislation

This Act is not collectively cited with any other Act.

Annotations

This Revised Act is annotated and includes textual and non-textual amendments, statutory instruments made pursuant to the Act and previous affecting provisions.

An explanation of how to read annotations is available at

www.lawreform.ie/annotations

Material not updated in this revision

Where other legislation is amended by this Act, those amendments may have been superseded by other amendments in other legislation, or the amended legislation may have been repealed or revoked. This information is not represented in this revision but will be reflected in a revision of the amended legislation if one is available.

Where legislation or a fragment of legislation is referred to in annotations, changes to this legislation or fragment may not be reflected in this revision but will be reflected in a revision of the legislation referred to if one is available.

A list of legislative changes to any Act, and to statutory instruments from 1988, may be found linked from the page of the Act or statutory instrument at

www.irishstatutebook.ie.

Acts which affect or previously affected this revision

National Treasury Management Agency (Amendment) Act 2014 (23/2014)

Central Bank (Supervision and Enforcement) Act 2013 (26/2013)

Central Bank and Credit Institutions (Resolution) Act 2011 (27/2011)

All Acts up to and including Telecommunications Services (Ducting and Cables) Act 2018 (4/2018), enacted 4 April 2018, were considered in the preparation of this revision.

Statutory instruments which affect or previously affected this revision

General Government Secured Borrowings Order 2018 (S.I. No. 118 of 2018)

General Government Secured Borrowings Order 2014 (S.I. No. 120 of 2014)

European Communities (Reorganisation and Winding-up of Credit Institutions) Regulations 2011 (S.I. No. 48 of 2011)

General Government Secured Borrowings Order 2011 (S.I. No. 40 of 2011)

Credit Institutions (Stabilisation) Act 2010 (Commencement) Order 2010 (S.I. No. 623 of 2010)

All statutory instruments up to and including European Union (Detailed Technical Measures Designation) Regulations 2018 (S.I. No. 130 of 2018), made 23 April 2018, were considered in the preparation of this revision.

Dáil and Seanad Resolutions which affect or previously affected this revision

• Motion of Dáil Éireann of 14 December 2012

• Motion of Seanad Éireann of 18 December 2012


Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010

REVISED

Updated to 23 April 2018


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.

5A. Minister and Bank to have regard to European Union law.

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.

9A. Publication of 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.

14A. Publication of 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.

29A. Publication of 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.

33A. Relevant Institutions not to dispose of assets, liabilities.

34. Transfer orders.

34A. Publication of 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.

52A. Costs incurred in relation to making orders, etc.

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


Number 36 of 2010


CREDIT INSTITUTIONS (STABILISATION) ACT 2010

REVISED

Updated to 23 April 2018


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.

[21 st 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:

Annotations:

Editorial Notes:

E1

Act designated as relevant applicable enactment for purposes of European Communities (Reorganisation and Winding-up of Credit Institutions) Regulations 2011 (S.I. No. 48 of 2011) (4.02.2011) by European Communities (Reorganisation and Winding-up of Credit Institutions) Regulations 2011 (S.I. No. 48 of 2011), reg. 2(4).