(1) During the protected period -

(a) the Bank of England shall have the right to take immediate control of the banknotes of the insolvent bank which have not been issued;

(b) the Bank of England may issue directions in relation to the insolvent bank’s unissued banknotes, with which the bank must comply.

(2) All other claims to or interests in such banknotes shall be extinguished on the commencement of the protected period or, if the Bank of England has granted the bank permission under regulation 27(1) to issue notes for a transitional period, at the end of that transitional period.