(1) The rules must set out the procedure which an authorised bank must follow if it -

(a) intends to stop issuing banknotes; or

(b) loses the right to rely on section 213 of the Act (saving for existing issuers) by virtue of -

(i) a determination by the Treasury under section 223(1)(b) of the Act (termination of right to issue); or

(ii) section 223(5) of the Act (bank ceasing to have permission to carry on the regulated activity of accepting deposits).

(2) Where an authorised bank stops issuing banknotes -

(a) these Regulations and the rules shall continue to apply to the bank for a period of two years from the date on which it stops issuing banknotes; and

(b) the Bank of England must, by the end of that period, return to the bank any of the bank’s backing assets which it still holds.

(3) Rules under paragraph (1) may, in particular, specify -