Textual Amendments
F1Sch. 19 paras. 15-15Z5 and cross-headings substituted for Sch. 19 paras. 15-23 (with effect in accordance with Sch. 9 para. 35 of the amending Act) by Finance Act 2018 (c. 3), Sch. 9 para. 2
15T(1)Paragraph 15U also applies if—U.K.
(a)the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups),
(b)the relevant entity (“M”) is a UK resident entity,
(c)M has liabilities to another entity (“M’s liabilities”),
(d)M recognises, as assets, amounts due from that other entity (“N”) to M (“N’s liabilities”),
(e)there is in place an agreement between M and N which makes net settlement provision, and
(f)that provision is legally effective and enforceable.
(2)In sub-paragraph (1)(e), “net settlement provision” means provision for there to be a single net settlement—
(a)if a netting event occurs, or
(b)at the option of M or N, if a netting event occurs.
(3)The reference in sub-paragraph (2) to a “single net settlement” is a reference to a single net settlement of—
(a)all M’s liabilities (so far as covered by the provision mentioned in sub-paragraph (1)(e)), and
(b)all N’s liabilities (so far as covered by that provision).
(4)But a provision for there to be single net settlement—
(a)at the option of M, but not at the option of N, if a netting event occurs, or
(b)at the option of N, but not at the option of M, if a netting event occurs,
is not to be treated as a net settlement provision for the purposes of sub-paragraph (1)(e).
(5)For the purposes of sub-paragraph (1)—
(a)“agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,
(b)references to amounts due from N include securities provided by M to N as collateral, but only where M recognises those securities in its balance sheet or statement of financial position, and
(c)“a netting event occurs”—
(i)in relation to M, if the insolvency or bankruptcy of M gives rise to the termination of any arrangements under which any liability covered by the provision mentioned in sub-paragraph (1)(e) arises, or
(ii)in relation to N, if the insolvency or bankruptcy of N gives rise to the termination of any arrangements under which such a liability arises.]