- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made).
4.—(1) In calculating the amount of an eligible institution’s liabilities in respect of sterling deposits made with United Kingdom offices of the institution—
(a)except in a case where sub-paragraph (b) applies, the total credit balances on the relevant accounts of any customer with those offices shall be reduced by the total debit balances on those accounts;
(b)where the institution provides banking facilities to different undertakings within the same group, and compliance with any limit on the amount of those facilities is determined by reference to net amounts, the total credit balances on the relevant accounts of such undertakings with those offices shall be reduced by the total debit balances on those accounts; and
(c)any interest which has accrued but has not yet been credited to an account shall be ignored.
(2) For the purposes of paragraph (1), an account with an eligible institution is a relevant account if the following conditions are satisfied—
(a)the account is denominated in sterling;
(b)where the account is held in the name of an individual, that individual is resident in the United Kingdom;
(c)where the account is held in the name of an undertaking, the account is an account of a United Kingdom office of that undertaking;
(d)the account and all other accounts which the institution treats as netted with that account are managed and controlled on a net basis; and
(e)the institution has received a written opinion or, as the case may be, written opinions from its legal advisers that a legally enforceable right of set-off exists in respect of the account and all other accounts which the institution treats as netted with that account under the law of each jurisdiction whose law could affect the enforceability of such a right (including upon default, liquidation or bankruptcy or any analogous event under the law of such jurisdiction).
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include: