SCHEDULEThe Bradford & Bingley plc Compensation Scheme

PART 2Determination of amount of compensation

Modification of interests, rights and liabilities in relevant instruments5

1

Subject to sub-paragraph (4), the amount of any compensation payable by the Treasury to persons whose rights were extinguished by virtue of the provision made in article 6 or 7 of the Transfer Order (referred to in this paragraph as “consequential rights”) shall be determined in accordance with this paragraph.

2

The amount of compensation payable to a person shall be such compensation as may be just in respect of that person’s consequential rights.

3

The determination of any compensation in respect of consequential rights shall take into account—

a

any diminution in the value of property; or

b

any increase in the burden of any liability,

which is attributable to the consequences specified in article 7(3) of the Transfer Order not arising.

4

Compensation is payable in respect of a person’s consequential rights only if such compensation is required to be paid to comply with the Convention rights (within the meaning given by section 1 of the Human Rights Act 19984).