SCHEDULES

SCHEDULE 4COMMISSIONER: FURTHER PROVISION

Financial Prudence

6

1

The Commissioner shall, in relation to any liability which the Commission may be required to discharge under paragraph 4, 5 or 9(b) or (c), consult the Commission and must do so—

a

if reasonably practicable, before incurring the liability in question,

b

if not, as soon thereafter as is reasonably practicable.

2

The Commissioner's duty to consult the Commission under sub-paragraph (1) may be discharged in relation to a particular liability either—

a

by providing the Commission with particulars of the liability in question, or

b

by notifying the Commission that liabilities may be incurred of such description and maximum total amount as may be specified in the notification.

3

The Commissioner shall have regard to any representations which the Commission may make when consulted under sub-paragraph (1).