After section 176 insert—

“Non-preferential debts

Non-preferential debts of financial institutions176AZA.

(1)

This section applies in the winding up of a company which is a relevant financial institution.

(2)

The company’s ordinary non-preferential debts shall be paid in priority to its secondary non-preferential debts.

(3)

The company’s secondary non-preferential debts—

(a)

shall be paid in priority to its tertiary non-preferential debts, and

(b)

rank equally among themselves after the ordinary non-preferential debts and shall be paid in full, unless the assets are insufficient to meet them, in which case they abate in equal proportions.

(4)

See section 387A for definitions relevant to this section.”.