SCHEDULES

SCHEDULE 2Investment contracts

PART 2Regulations: general

Application of sums

9

1

Regulations may make provision for apportioning sums—

a

received by the Secretary of State, an investment contract counterparty or a CFD counterparty from electricity suppliers under provision made by virtue of paragraph 7;

b

received by the Secretary of State, an investment contract counterparty or a CFD counterparty under an investment contract,

c

received by a CFD counterparty from electricity suppliers under provision made by virtue of section 9;

d

received by a CFD counterparty under a CFD,

in circumstances where the Secretary of State, an investment contract counterparty or a CFD counterparty is unable fully to meet liabilities under an investment contract or a CFD.

2

Provision made by virtue of sub-paragraph (1) may include provision about the meaning of “unable fully to meet liabilities under an investment contract or a CFD”.

3

In making provision by virtue of sub-paragraph (1) the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed.

4

Regulations may make provision about the application of sums held by the Secretary of State, an investment contract counterparty or a CFD counterparty.

5

Provision made by virtue of sub-paragraph (4) may include provision that sums are to be paid, or not to be paid, into the Consolidated Fund.