Section 135(4)

An eligible liability must be excluded from the amount of the institution's own funds and eligible liabilities if— the instrument that creates the liability is not issued or fully paid up; the liability is owed to, or secured or guaranteed by, the institution itself; the purchase of the instrument that creates the liability was funded directly or indirectly by the institution itself; the liability has a remaining maturity of less than one year; the liability arises from a derivative contract held by the institution; the liability arises from a deposit in respect of which the depositor's rights, in any proceedings relating to the insolvency of the institution, would be preferred to the rights of other creditors; or the instrument that creates the liability is governed by the law of a third country and the Bank is not satisfied that a decision by the Bank to convert or write down the liability would be effective under that law.

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