(1) Where the powers specified in Regulation 95(8) or 111(1)(d) are exercised, a different conversion rate to different classes of capital instruments and liabilities in accordance with one or both of the principles referred to in paragraphs (2) and (3) may be applied.
(2) The conversion rate chosen under paragraph (1) shall be such that it appropriately compensates the affected creditor for any loss incurred as a result of the exercise of the write-down and conversion powers.
(3) Where different conversion rates in accordance with paragraph (1) are applied, the conversion rate applied to liabilities that are considered to be senior under national law (including under any enactment or rule of law) shall be higher than the conversion rate applicable to liabilities which are considered to be subordinated.