# Finance Act 2011, Paragraph 15T


(1) Paragraph 15U also applies if—
(a) the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups),
(b) the relevant entity (“M”) is a UK resident entity,
(c) M has liabilities to another entity (“M’s liabilities”),
(d) M recognises, as assets, amounts due from that other entity (“N”) to M (“N’s liabilities”),
(e) there is in place an agreement between M and N which makes net settlement provision, and
(f) that provision is legally effective and enforceable.
(2) In sub-paragraph (1)(e), “net settlement provision” means provision for there to be a single net settlement—
(a) if a netting event occurs, or
(b) at the option of M or N, if a netting event occurs.
(3) The reference in sub-paragraph (2) to a “single net settlement” is a reference to a single net settlement of—
(a) all M’s liabilities (so far as covered by the provision mentioned in sub-paragraph (1)(e)), and
(b) all N’s liabilities (so far as covered by that provision).
(4) But a provision for there to be single net settlement—
(a) at the option of M, but not at the option of N, if a netting event occurs, or
(b) at the option of N, but not at the option of M, if a netting event occurs,
is not to be treated as a net settlement provision for the purposes of sub-paragraph (1)(e).
(5) For the purposes of sub-paragraph (1)—
(a) “agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,
(b) references to amounts due from N include securities provided by M to N as collateral, but only where M recognises those securities in its balance sheet or statement of financial position, and
(c) “a netting event occurs”—
(i) in relation to M, if the insolvency or bankruptcy of M gives rise to the termination of any arrangements under which any liability covered by the provision mentioned in sub-paragraph (1)(e) arises, or
(ii) in relation to N, if the insolvency or bankruptcy of N gives rise to the termination of any arrangements under which such a liability arises.

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Source: https://www.legislation.gov.uk/ukpga/2011/11/schedule/19/paragraph/15T (the official version)
Page: https://openlegislation.uk/finance-act-2011/schedule-19/paragraph-15T
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.