(1) This Regulation has effect where a compensation event occurs in relation to a credit institution on or before 30 December 2010.
(2) Subject to paragraph (3), the Bank shall be in a position to make guarantee payments in response to duly verified claims by depositors in respect of eligible deposits with the credit institution concerned within 3 months of the date on which the relevant compensation event occurs.
(3) In wholly exceptional circumstances and in special cases the Bank may provide for up to three extensions of the time limit in paragraph (2), each of which extensions shall not exceed three months.