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16.—(1) This article applies if all or part of a payment due under articles 13 or 15 is unpaid by the time when it is required to be paid.
(2) Interest is payable on the amount outstanding for every day of the period beginning with the day on which the amount was due to be paid and ending on the day before the day on which it is paid.
(3) The unpaid amount for the time being carries interest at the rate which is 2 per cent above the highest base rate quoted by any of the reference banks at anytime in the period for which that interest is payable.
(4) The interest is to be paid at the same time as the amount outstanding is paid.
(5) For the purposes of paragraph (3), the reference banks are the seven largest persons for the time being who—
(a)have permission under Part 4A of the Financial Services and Markets Act 2000(1) to accept deposits,
(b)are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits, and
(c)quote a base rate in sterling.
(6) For the purposes of paragraph (5), the size of a person is to be determined by reference to the total consolidated gross assets of that person denominated in sterling, as shown in the audited end-year accounts last published before the period for which interest is payable begins.
(7) In this article, the “consolidated gross assets” of a person is a reference to the gross assets of that person together with any subsidiary (within the meaning of section 1159 of the Companies Act 2006(2)).
(8) Paragraph (5) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000,
(b)any relevant order under that section, and
(c)Schedule 2 to that Act.
2000 c. 8. Part 4A was substituted, for Part 4, by section 11(2) of the Financial Services Act 2012 (c. 21).
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