(1) For the purposes of this Part , the insolvent estate of a UK credit institution shall not include any assets which at the commencement date are subject to a relevant compromise or arrangement.

(2) In this regulation -

(a) "assets" has the same meaning as "property" in section 436 of the 1986 Act or Article 2(2) of the 1989 Order;

(b) "commencement date" means the date when a UK credit institution goes into liquidation within the meaning given by section 247(2) of the 1986 Act or Article 6(2) of the 1989 Order;

(c) "insolvent estate" has the meaning given by rule 1.2 of the Insolvency Rules or Rule 0.2 of the Insolvency Rules (Northern Ireland) and in Scotland means the company’s assets;

(d) "relevant compromise or arrangement" means -

(i) a compromise or arrangement sanctioned by the court before 5th May 2004 under -