(1) An instrument to which this Order applies may not make special bail-in provision in respect of a protected liability (subject to paragraph (6)).

(2) In this article a "protected liability" is a bail-in liability which is not within paragraph (3), and meets the following conditions -

(a) condition 1 is that the liability is owed by the relevant banking institution to a particular person ("the person");

(b) condition 2 is that the liability is a liability which either the person or the relevant banking institution is entitled to set-off or net under particular set-off arrangements, netting arrangements or title transfer collateral arrangements into which the person has entered with the relevant banking institution ("the relevant arrangements");

(c) condition 3 is that -

(i) where the liability relates to a derivative, financial contract or qualifying master agreement (see article 5), it has not been converted into a net debt, claim or obligation, whether in accordance with the relevant arrangements or through the making of special bail-in provision or otherwise;