104.—(1) Where the Bank of England determines that the condition in paragraph (3) is met, the Bank of England must immediately assess the impact of this condition on the resolvability of the undertaking.
(2) An assessment under paragraph (1) must consider the impact of a risk of breaching the creditor safeguards in Article 73 of the recovery and resolution directive when applying write-down and conversion powers to eligible liabilities.
(3) The condition referred to in paragraph (1) is that the combined total of the following liabilities comprises more than 10% of a relevant class of liabilities—
(a)liabilities in respect of which an undertaking has not included a term under regulation 97 because a determination under regulation 100(1) has been made; and
(b)liabilities which are excluded under section 48B(8) of the Act or which the Bank of England considers to be likely to be excluded under section 48B(10) of the Act from the exercise of a power to make special bail-in provision.
(4) A class of liabilities is relevant for the purposes of paragraph (3) if it contains eligible liabilities.
(5) In this regulation, “eligible liabilities” has the meaning given by section 3A(4A) of the Act.