(1) During the protected period, the Bank of England may issue directions in relation to the insolvent bank’s backing assets, with which the bank must comply.

(2) An insolvent bank’s backing assets shall -

(a) be excluded from any insolvency process; and

(b) during the protected period, be used solely for the purpose of satisfying noteholders’ claims by means of the note exchange programme.

(3) At the end of the protected period -

(a) paragraph (2)(a) and regulation 9(1)(b) and (2) shall cease to apply to any remaining backing assets; and

(b) any remaining backing assets under the control of the Bank of England shall be returned to the insolvent bank or the appointed insolvency practitioner.