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Paragraph 2

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The increase of the rate of interest for the purposes of an issue of qualifying subordinated debt the issue terms whereof specify a stepped rate, is to be ascertained—

(a)

for the purposes of paragraph 1(c)(i) above, by deducting from the rate of interest specified for the period immediately after the increase the rate of interest specified for the period immediately before the increase;

(b)

for the purposes of paragraph 1(c)(ii) above, by deducting from the highest rate of interest specified for any part of any period of five years, the lowest rate of interest specified for any other part of that period;

(c)

for the purposes of paragraph 1(c)(iii) above, by deducting from the highest rate of interest specified for any period, the lowest rate of interest specified for any other period.

(2)

The increase of the margin for the purposes of an issue of qualifying subordinated debt the issue terms whereof specify a floating rate, being a market rate varied by a margin, is to be ascertained in the manner set out in subparagraph (1) above, save the references to the rate of interest specified shall be read as references to the margin specified.