PART 2Subsidy control requirements

CHAPTER 2Prohibitions and other requirements

Ailing or insolvent enterprises

I1I224Meaning of “ailing or insolvent”

1

For the purposes of sections 19 to 23, a deposit taker, insurance company or other enterprise is “ailing or insolvent” if—

a

it would almost certainly go out of business in the short to medium term without subsidies,

b

it is unable to pay its debts as they fall due, or

c

the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

2

The Secretary of State may by regulations make provision as to when a deposit taker, insurance company or other enterprise is, or is not, to be regarded as meeting the condition in paragraph (a) of subsection (1).

3

Regulations under subsection (2) are subject to the affirmative procedure.