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Amendment of section 88 of Principal Act.
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54.— Section 88 of the Principal Act is amended—
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(a) in subsection (1)—
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(i) by inserting “or formerly designated” after “designated”, and
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(ii) by substituting “comprised” for “included”,
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(b) in subsection (2)—
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(i) by inserting “or formerly designated” after “designated”,
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(ii) by substituting “comprised” for “included”, and
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(iii) in paragraph (b), by inserting “(but disregarding, for the purposes of this subsection, any claims over those assets arising from mandatory laws in the relevant jurisdictions and any costs associated with administering the security interest and realising assets under the security interest)” after “Part”,
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(c) in subsection (3)—
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(i) by inserting “or formerly designated” after “designated”, and
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(ii) by substituting “comprised” for “included”,
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and
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(d) by inserting the following after subsection (3):
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“(3A) Where a security interest of the kind referred to in subsection (2) is granted in favour of a trustee or other representative for the benefit of the persons referred to in subsection (2)(b) (which may include the claims of that trustee or other representative in its own right), then the claims of that trustee or other representative in its own right agreed by the manager, or where no manager has been appointed to the institution, the cover-assets monitor, shall be deemed to be the claims of super-preferred creditors for the purposes of this Act.
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(3B) The cover-assets monitor or any manager may enter into arrangements with any trustee or other representative referred to in subsection (5) in connection with—
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(a) their respective functions under this Act and operations relating to cover assets which are also subject to the security arrangements referred to in subsection (2),
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(b) their respective functions under this Act and the enforcement or administration of cover assets which are also subject to security arrangements referred to in subsection (2).”.
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