Regulation 55 Draw down of credit coverI1

a scheme supplier (the “defaulting scheme supplier”) fails to pay the whole or any part of—

the Authority has served a notice under regulation 51(7) on a former scheme supplier (the “defaulting scheme supplier”) and the final quarterly levy payment specified in the notice is greater than £0.

where paragraph (1)(a) applies, the next working day after the day on which payment of the unpaid amount was due, or

where paragraph (1)(b) applies, the next wording day after the date specified in the notice in accordance with regulation 51(7A)(a) or (7C)(a) or (e) (as applicable).

regulation 51(7B) applies to the supplier, and

the defaulting scheme supplier has paid to the Authority by the date specified in the notice an amount required to discharge the defaulting scheme supplier’s final quarterly levy payment or, where regulation 51(7D)(c)(ii) applies, the in lieu amount.

the amount of the defaulting scheme supplier’s existing credit cover subject to the draw down, and

whether the draw down is against payments made, or a letter of credit provided, by the defaulting scheme supplier, or both.

the Authority must take steps to demand payment from the person who provided the letter of credit for the lesser of—

the amount which is paid to the Authority under that letter of credit is treated as a payment by the defaulting scheme supplier in respect of their quarterly levy payment F5, mutualisation payment, final quarterly levy payment or interest payment (as the case may be), made at the time that amount is received by the Authority.