(1) Section 48B (special bail-in provision) [Sections 48B to 48W were inserted by paragraph 4 of Schedule 2 to the Financial Services (Banking Reform) Act 2013 (c.33).] is amended as follows.
(2) After subsection (7) insert -
"(7A) Liabilities of the bank are "excluded liabilities" if they are -
(a) liabilities listed in subsection (8), or
(b) liabilities which the Bank of England has excluded under subsection (10) from the application of special bail-in provision.".
(3) In subsection (5), in rule 3, omit the "or" at the end of paragraph (b) and after paragraph (c) insert -
", or
(d) converting those liabilities into securities issued by a bridge bank or a UK parent undertaking (within the meaning of section 6C(7)).".
(4) In subsection (8) -
(a) for "are "excluded liabilities"" substitute "are the excluded liabilities referred to in subsection (7A)(a)",
(b) in paragraph (e), after "liabilities" insert "with a remaining maturity of less than 7 days",
(c) omit paragraph (f) (liabili