Amendment to article 48 (shortfall in the buy-out and late payment funds: the total mutualisation sum)3

1

Article 48 is amended in accordance with paragraphs (2) and (3).

2

For paragraph (3) substitute—

3

A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.

3

After paragraph (3) insert—

3A

The mutualisation threshold for a relevant period is determined as 0.1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—

a

A is the total obligation for the relevant period determined under article 11,

b

B is the buy-out price for the relevant period referred to in article 43(4).