SCHEDULE 3PREFERRED DEBTS

PART 2Interpretation of Part 1

Meaning of “eligible deposit”

I113

1

In paragraphs 6 to 8, “eligible deposit” means a deposit in respect of which the person, or any of the persons, to whom it is owed would be eligible for compensation under the Financial Services Compensation Scheme.

2

For the purposes of those paragraphs and of this paragraph, a “deposit” means rights of the kind described in paragraph 22 of schedule 2 of the Financial Services and Markets Act 2000 (deposits).

3

In paragraphs 7 and 8, “eligible person” means—

a

an individual, or

F1b

any micro, small or medium-sized enterprise, as defined with regard to the annual turnover criterion referred to in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC.

4

In paragraph 8—

a

“credit institution” has the meaning given in Article 4.1(1) of the capital requirements regulation,

F2b

“UK branch” means a branch, as defined in Article 4(1)(17) of the capital requirements regulation, which is established in the United Kingdom, and

c

“non-UK branch” means a branch, as so defined, which is established outside the United Kingdom.

F35

In sub-paragraph (4)(a) and (b), “the capital requirements regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012.