Schedule 2, Part 1, paragraph 4(5)

The following rules apply to the interpretation of subsection (1). The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability. The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability. The reference to changing the form of a liability owed by the bank, includes, for example— converting an instrument under which the bank owes a liability from one form or class to another, replacing such an instrument with another instrument of a different form or class, or creating a new security (of any form or class) in connection with the modification of such an instrument.

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Source: legislation.gov.uk · retrieved 2026-09-04