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Paragraph 23 Replacement of Bank’s provisional valuationI1I2

United Kingdom

(1)

Where the Bank has carried out a provisional valuation under paragraph 22 before exercising a stabilisation power, the Bank must arrange for the appointment of an independent valuer in accordance with paragraph 24 to carry out a full valuation in accordance with this paragraph as soon as reasonably practicable.

(2)

The purpose of the valuation carried out under sub-paragraph (1) is to—

(a)

ensure the full extent of any losses on the assets of the CCP is recognised in the accounting records of the CCP, and

(b)

inform a decision by the Bank as to whether—

(i)

additional consideration should be paid by a bridge central counterparty for any property, rights or liabilities transferred by a property transfer instrument, or securities transferred by a share transfer instrument, or

(ii)

the Bank should exercise the power under paragraph 26 to increase or reinstate any liability which has been reduced, cancelled or deferred by a write-down instrument.

(3)

A valuation carried out under sub-paragraph (1) must comply with sub-paragraph (5) of paragraph 22 and be accompanied by the information required in sub-paragraph (7) of that paragraph.

Annotations

Commencement

I1

Sch. 11 para. 23 not in force at Royal Assent, see s. 86(3)

I2

Sch. 11 para. 23 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)