Paragraph 26 Consequences of a replacement valuationI1I2
United Kingdom
Where the independent valuation carried out under paragraph 23(1) produces a higher valuation of the net asset value of the CCP than a provisional valuation carried out under paragraph 22(4), the Bank may—
modify any liability of the CCP which has been reduced, deferred or cancelled by a write-down instrument so as to increase or reinstate that liability, or
instruct a bridge central counterparty to pay additional consideration—
to the CCP for any property, rights or liabilities transferred to the bridge central counterparty by a property transfer instrument, or
to the previous holders of securities issued by the CCP for any securities transferred to the bridge central counterparty by a share transfer instrument.
The power in sub-paragraph (1)(a)—
may not be exercised so as to increase the value of the liability beyond the value it would have had if the write-down instrument which reduced, cancelled or deferred it had not been made, and
must be exercised by a resolution instrument (whether or not that instrument contains any other provision authorised by this Schedule).
Annotations
Commencement
- I1
Sch. 11 para. 26 not in force at Royal Assent, see s. 86(3)
- I2
Sch. 11 para. 26 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)