Amendment to article 72 (determining whether a relevant shortfall has occurred)3.
(1)
Article 72 is amended as follows.
(2)
For paragraph (3), substitute—
“(3)
A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.”.
(3)
After paragraph (3), insert—
“(4)
The mutualisation threshold for a relevant period is determined as 1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—
(i)
A is the total obligation for the relevant period determined under article 12;
(ii)
B is the buy-out price for the relevant period referred to in article 67(4).”.