7. The Treasury shall create accounts of—
(a)notional net expenditure (“the notional account”), and
(b)actual net expenditure (“the actual account”),
of the scheme manager in respect of the banking institution.
8. The Treasury shall date the accounts as from the time when the scheme manager would have first, or has for the first time, incurred expenses or made recoveries.
9. At the time when—
(a)the scheme manager would have incurred expenses (as determined by the scheme manager under section 214D(2) of the Act), those amounts shall be added to the notional account;
(b)the valuer determined that the scheme would have made recoveries under section 214D(3), those amounts shall be subtracted from the notional account.
10. At the time when the scheme manager—
(a)incurred actual expenditure in respect of the banking institution, those amounts shall be added to the actual account;
(b)made recoveries in respect of the actual expenditure, those amounts shall be subtracted from the actual account.
11. In the notional account, the Treasury shall account for interest at the notified rate on the outstanding balance as if it had accrued daily and had been added to the account on each anniversary of the relevant time.
12. In the actual account, interest at the notified rate shall accrue daily on the outstanding balance and shall be added to the account on each anniversary of the relevant time.
13. In paragraphs 11 and 12, where the final notification is made on a date falling after an anniversary date, then all accrued interest not yet added shall be added to the account on the date of the final notification.
14. The scheme manager’s limit is the outstanding balance in the notional account less the outstanding balance in the actual account on the date of the final notification.