Credit Institutions (Reorganisation and Winding-Up)

L.N. 149 of 2016

BANKING ACT

(CAP. 371)

Credit Institutions (Reorganisation and Winding-Up)

(Amendment) Regulations, 2016

IN exercise of the powers conferred by article 3(1) of the

Banking Act, the Minister for Finance, after consultation with the

Malta Financial Services Authority, has made the following

regulations:-

The title of these regulations is the Credit Institutions

(Reorganisation and Winding-Up) (Amendment) Regulations, 2016,

and these regulation shall be read and construed as one with the

Credit Institutions (Reorganisation and Winding-Up) Regulations,

hereinafter referred to as "the principal regulations".

Regulation 2 of the principal regulations shall be amended

as follows

(a) sub-regulation (6) thereof shall be renumbered as

sub-regulation (7); and

(b) immediately after sub-regulation (5) thereof, there

shall be added the following new sub-regulation

"(6) Where a credit institution is either

under resolution or where the conditions for

resolution have been determined by the

Resolution Committee to be met, normal

insolvency proceedings shall not be commenced

except at the initiative of the Resolution

Committee, and a decision placing a credit

institution into normal insolvency proceedings

shall be taken only with the consent of the

Resolution Committee as provided for in

regulation 86 of the Recovery and Resolution

Regulations made under the Malta Financial

Services Authority Act.".

Sub-regulation (1) of regulation 3 of the principal

regulations shall be amended as follows

(a) immediately after the definition "Member State",

there shall be added the following new definition

" "normal insolvency proceedings" means

collective insolvency proceedings which entail the partial

or total divestment of a debtor and the appointment of a

liquidator or an administrator normally applicable to credit

institutions under Maltese law and either specific to those

credit institutions or generally applicable to any natural or

legal person;"; and

(b) immediately after the definition "reorganisation

measures", there shall be added the following new definition

" "Resolution Committee" means the

committee appointed under article 7B of the

Malta Financial Services Authority Act;".

Regulation 37 of the principal regulations shall be Substitutes

regulation 37 of

substituted by the following

the principal

regulations.

" European

37. (1)

From the date of coming into

credit

force of these regulations, the Court may not, in

institutions or

relation to a European credit institution or any

branches of

European credit

branch of a European credit institution -

institutions

located in

(a)

make a winding-up order

Malta.

pursuant to article 224 of the Companies

Act; or

(b) adopt reorganisation measures

or perform any act ancillary to the adoption

of such measures in terms of Part VI of the

Companies Act.

(2) Sub-regulation (1)(a) does not

prevent -

(a)

the Court from making a

winding-up order after the coming into

force of these regulations in relation to a

European credit institution or any branch

of a European credit institution if -

(i) a

provisional

administrator was appointed in

relation to the European credit

institution or any branch of a

European credit institution before the

coming into force of these

regulations; and

(ii) the

appointment

continues in force until immediately

before that winding-up order is made;

B

(b) the winding-up of a European

credit institution or any branch of a

European credit institution after the

coming into force of these regulations

pursuant to a winding-up order which was

made, and has not been discharged, before

that date.

(3) Sub-regulation (1)(b) does not

prevent a provisional administrator of a

European credit institution appointed before the

coming into force of these regulations, from

acting in relation to such institution after that

date.".

€0.27