SCHEDULES

SCHEDULE 19The bank levy

Part 4Chargeable equity and liabilities

“Excluded” equity and liabilities

31

1

Sovereign repo liabilities are excluded.

2

Sovereign repo liability” means a liability of a person (“A”) which represents a sum of money or other asset received by A from another person (“B”) under an arrangement where—

a

under the arrangement A sells high quality securities at any time to B,

b

the arrangement makes provision conferring a right or imposing an obligation on A to buy those or similar securities at any subsequent time, and

c

the subsequent buying of those or similar securities would extinguish the liability.

3

Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of sub-paragraph (2) as it applies for the purposes of Chapter 10 of Part 6 of that Act.

4

Securities are “high quality” if—

a

they are debt securities issued by entities within section BIPRU 12.7.3(1) or (2) of the FSA Handbook which meet the requirements of section BIPRU 12.7.4(1) and (2), or

b

they are issued by a designated multilateral development bank.

Debt securities” has the same meaning as that term has in section BIPRU 12.7.3 of the FSA Handbook.