Paragraph 1 F1

In this Schedule—

• “75% threshold” means 75% of the total gross amounts payable in a scheme year to an Independent Provider by the commissioning party in respect of a qualifying contract they have entered into;

• “approval application” is to be construed in accordance with paragraphs 13 to 23;

• “commissioning party” is a person who commissions services from an Independent Provider under a qualifying contract;

• “default notice” is to be construed in accordance with paragraphs 45 to 49;

• “Independent Provider” is to be construed in accordance with paragraph 2;

• “IP guarantee” means a guarantee, indemnity, bond or other form of assurance which the Secretary of State may require an Independent Provider to provide to guarantee payment to the Secretary of State of such of the Independent Provider’s liabilities or potential liabilities under this Section of the scheme as the Secretary of State specifies;

• “required level of cover” means a sum equal to 110% of 3/12ths of a reasonable estimate of the Independent Provider’s total annual contribution liability arising under regulations D1, D2, Q6, Q8, Q10 and Q11 in respect of the qualifying contract in respect of which it was granted employing authority status;

• “wholly or mainly condition” is to be construed in accordance with paragraph 3.