(1) In these Regulations -

"the Act" means the Banking Act 2009;

"backing assets" means assets of a kind specified by regulation 6(2);

"Bank of England banknotes" means banknotes issued by the Bank of England;

"excluded banknote" has the meaning given by regulation 7(3);

"location" includes a vehicle;

"rules" means rules made by the Bank of England under these Regulations.

(2) For the purposes of these Regulations -

(a) a banknote is in circulation from the time that it is issued by an authorised bank until the time that it is returned to the bank;

(b) a banknote has the potential to enter circulation if the banknote is not -

(i) in circulation; or

(ii) an excluded banknote;