Regulation 3 Payment of interestI1

Northern Ireland

(1)

Where the Department makes a repayment it shall pay or credit (according to whether the repayment is repaid or credited) an additional amount by way of interest on the repayment determined in accordance with paragraph (2).

(2)

The additional amount payable by way of interest under paragraph (1) shall be determined on a day to day basis between–

(a)

the date on which the Department received the amount which is repaid or, if later, 31^st March 2007; and

(b)

the date on which the Department repays that amount,

and the annual rate of interest shall be one percentage point less than the standard rate.

(3)

For the purposes of paragraph (2)–

(a)

the standard rate, in relation to a year or part of a year, is the base rate quoted by the reference banks and effective on 15^th March (or, if that day is not a business day, the next business day) of the preceding year; or, if different base rates are quoted and so effective, the rate which, when the base rate quoted by each bank is ranked in a descending sequence of seven, is fourth in the sequence;

(b)

the reference banks, in relation to any 15^th March, are the seven largest persons who–

(i)

have permission under Part 4 of the Financial Services and Markets Act 2000^f1 to accept deposits,

(ii)

are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and

(iii)

quote a base rate in sterling effective as mentioned in sub-paragraph (a); and

(c)

the size of a person is to be determined by reference to its total consolidated gross assets denominated in sterling, as shown in its audited end-year accounts last published before the relevant 15^th March.

(4)

In paragraph (3)(c), the reference to the consolidated gross assets of a person is a reference to the gross assets of that institution together with any subsidiary (within the meaning of section 736 of the Companies Act 1985^f2 or, as the case may be, Article 4 of the Companies (Northern Ireland) Order 1986^f3).

(5)

Paragraph (3)(b) must be read with–

(a)

section 22 of the Financial Services and Markets Act 2000;

(b)

any relevant order under that section; and

(c)

Schedule 2 to that Act.

Annotations

Commencement

I1: Reg. 3 in operation at 1.4.2007, see reg. 1

Footnotes

f1: 2000c.8
f2: 1985 c.6; section 736 was substituted by section 144(1) of the Companies Act 1989, 1989c.40
f3: S.I. 1986/1032 (N.I.6); Article 4 was substituted by Article 62(1) of the Companies (No.2) (Northern Ireland) Order 1990, S.I. 1990/1504 (N.I. 10)