56.— (1) Subject to subsection (3), before making a proposed special management order in relation to an authorised credit institution, or a subsidiary or holding company of an authorised credit institution, the Bank shall—

(a) deliver a written notice to the authorised credit institution, subsidiary or holding company and, if the notice is delivered to a subsidiary or holding company, to the authorised credit institution concerned, describing the terms of the proposed special management order, accompanied by a summary of the reasons why the Bank believes that the intervention conditions are fulfilled,

(b) afford that credit institution and, if applicable, the authorised credit institution, 48 hours, or a shorter period on which the Bank and that credit institution agree, in which to make written submissions to the Bank, and

(c) consider any submissions made under paragraph (b).

(2) If the Bank proposes that any power of the special manager should be exercisable immediately, the Bank shall state, in the written notice, that fact and the reasons why the order should have that effect.

(3) Subsections (1) and (2) do not apply if—

(a) the Bank has consulted the authorised credit institution concerning the terms of the proposed special management order and that credit institution has consented to the making of a special management order in those terms, or

(b) exceptional circumstances (within the meaning of subsection (4)) exist.

(4) Exceptional circumstances for the purposes of subsection (3) exist if—

(a) there is an imminent threat to the financial stability of that credit institution and the Bank is of the opinion that compliance with subsection (1) would result in significant damage to the financial stability of that credit institution,

(b) there is an imminent threat to the stability of the financial system in the State and the Bank is of the opinion that compliance with that subsection would result in significant damage to the stability of that financial system, or

(c) the Bank has reasonable grounds for believing that—

(i) confidentiality in relation to the proposed special management order, or the possibility of the making of a special management order, would not be maintained, and

(ii) the breach of such confidentiality would have significant adverse consequences.

(5) If the Bank makes a proposed special management order in relation to an authorised credit institution and the intention of the proposed special management order or part of it is the preservation or restoration of the financial position of a credit institution, the Bank shall declare in the proposed special management order that the proposed special management order or part is made with that intention, in accordance with the CIWUD Directive.