PART 4Miscellaneous
CHAPTER 2Effect of payment and interest
Apportioning sums to revenue collection contracts34
1
This regulation applies where the revenue collection counterparty is unable fully to meet its liabilities under, or pursuant to, a revenue collection contract.
2
The revenue collection counterparty is unable fully to meet its liabilities under, or pursuant to, a revenue collection contract when the total amount held by the revenue collection counterparty at any time is less than the total amount of revenue collection counterparty payments it must pay at that time.
3
Where this regulation applies, the amount which may be used to make revenue collection counterparty payments in relation to a particular revenue collection contract is the amount given by—
where—
AH is the total amount held by the revenue collection counterparty;
OG is the amount of revenue collection counterparty payments owed in relation to that revenue collection contract; and
OA is the total amount of revenue collection counterparty payments which the revenue collection counterparty owes.
4
An amount is held by the revenue collection counterparty if it is in possession of that amount and—
a
b
c
it is an amount of collateral which was provided in the form of cash and the revenue collection counterparty is entitled to call that collateral by virtue of regulation 21;
d
it is an amount received as a RCC party payment by the revenue collection counterparty; or
e
it is any other amount provided to the revenue collection counterparty for the purpose of making revenue collection counterparty payments.