2.—(1) The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008(1) is amended as follows with effect from the date on which this Order comes into force.
(2) In article 6, for paragraph (3) substitute—
“(3) The principal and interest due in respect of a dated subordinated note shall not become due and payable except to the extent that condition 1 or 2 (as specified in paragraphs (4) and (5)) is met and paragraph (6) applies.
(4) Condition 1 is that Bradford & Bingley notifies the holder of a dated subordinated note that the principal or interest (or any part of either) is to be due and payable (whereupon the payment is due on the date specified by Bradford & Bingley).
(5) Condition 2 is that Bradford & Bingley has satisfied in full its liability to the FSCS under article 30(1); that liability shall not be regarded as satisfied in full for the purposes of this paragraph if article 30(4) applies.
(6) Principal or interest in respect of a dated subordinated note shall become due or payable only to the extent that Bradford & Bingley could make the payment and continue to be solvent thereafter.
(7) Any interest in respect of a dated subordinated note which, by virtue of paragraph (3), has not become due and payable, shall bear interest calculated at the same rate and in the same manner as provided for in the dated subordinated note.
(8) In a winding-up of, or on a distribution by an administrator appointed in respect of, Bradford & Bingley there shall be payable in respect of each dated subordinated note such amount as would be payable to a holder of a preference share in Bradford & Bingley ranking ahead of all other issued shares of Bradford & Bingley (including any other preference shares or any notional shares), on the assumption that such preference share was entitled to an amount equal to the principal amount of such dated subordinated note together any interest which has accrued up to the date of repayment.
(9) For the purposes of paragraph (6), Bradford & Bingley is not solvent if it would be deemed unable to pay its debts within the meaning given by section 123 of the Insolvency Act 1986(2).”
(3) In article 33, for “2009” substitute “2008”.