Credit Institutions (Stabilisation) Act 2010 (No. 36)

AI Summary of Credit Institutions (Stabilisation) Act 2010 (No. 36)

The Credit Institutions (Stabilisation) Act 2010 establishes a legislative framework to restore the financial stability of specific credit institutions amid a significant economic crisis. It provides for the Minister for Finance to issue directives to relevant institutions requiring certain actions, including share disposals, restructuring, and financial support terms. The Act empowers the Courts to enforce these directives and facilitates the appointment of special managers to oversee such institutions, ensuring compliance with both national and EU directives.

Furthermore, the Act addresses liabilities of subordinated creditors and allows for transfers of assets and liabilities to safeguard the financial health of institutions involved. It grants the Minister broad powers to intervene in governance matters, including removing directors and modifying their duties, all while overriding conflicting provisions in existing legislation or agreements to protect public interests.

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Version status: In force | Document consolidation status: Updated to reflect all known changes

Published date: 21 December 2010

		Future version	Amendment requiring commencement	Draft proposed change
	Introductory Text
	Acts Referred to
	Part 1 Preliminary (ss. 1-6)
	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 (ss. 7-11)
	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 (ss. 12-27)
	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 (ss. 28-32)
	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 (ss. 33-43)
	33. Proposed transfer orders.
	33A. Relevant institution 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. (ss. 44-50)
	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 (ss. 51-70)
	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 (ss. 71-77)
	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
	Schedule 1, Part 1 Amendments of Building Societies Act 1989
	Schedule 1, Part 2 Amendment of Central Bank Act 1942
	Schedule 1, Part 3 Amendments of Central Bank Act 1971
	Schedule 1, Part 4 Amendments of Act of 2008
	Schedule 1, Part 5 Amendment of National Asset Management Agency Act 2009
	Schedule 2 Amendments of Regulations of 2004

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AI Summary of Credit Institutions (Stabilisation) Act 2010 (No. 36)