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WRITTEN NOTICE

CORE UK GROUP PERMISSION

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To: Lloyds Plc (FRN 119278) Bank of Scotland PIc (FRN 169628) (each a “firm”)

Of: 25 Gresham Street, , EC2V 7HN

Reference Number: 4322168 & 4627813

Date: 1 June 2017

Decision

(1) In accordance with Article 113(6) of Regulation 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms (the “CRR”), the Prudential Regulation Authority (“the PRA”) has decided to grant the firm the permission, on an individual basis, not to apply the requirements of Article 113(1) CRR to exposures to the counterparties listed in the Annex to this written notice. This permission does not apply to exposures giving rise to Common Equity Tier 1, Additional Tier 1 or Tier 2 items.

(2) In accordance with Article 429(7) of the CRR, as amended by the Delegated Act 2015/62, the PRA has decided to allow the firm to exclude from its leverage exposures the exposures that benefit from the treatment under Article 113(6) CRR.

(3) This permission is granted on the basis that the conditions set out in Article 113(6) of the CRR have been met and continue to be met. If any of those conditions ceases to be met, the PRA may re- consider the terms of this permission or revoke this permission in whole or in part.

Decision-Maker

(4) The decision which gave rise to the obligation to give this Notice was made by Duncan Mackinnon, Head of Division, Major Retail UKDT.

Publication (5) Details of this permission will be published on the Register.

PRA contact

(6) For more information concerning this matter generally, the firm should contact its usual supervisory contact.

Effect

(7) This permission replaces the permission granted on 24 December 2015 (Ref: 2205035, 2205036, 2205037, 2205038) and takes effect on 1 June 2017 and expires on 31 December 2018.

Duncan Mackinnon Head of Division, Major Retail UKDT Prudential Regulation Authority

Annex

Counterparties

1 ACL Autolease Holdings Limited 2 Amberdate Limited 3 Automobile Association Personal Finance Ltd 4 Bank of Scotland Edinburgh Nominees Limited 5 Bank of Scotland plc and its solo consolidating entities 6 Bank of Scotland Structured Asset Finance Ltd 7 Black Horse Finance Holdings Ltd 8 Black Horse Group Ltd 9 Black Horse Ltd 10 Capital Bank Leasing 3 Limited 11 Charterhall (No.2) Ltd 12 Dunstan Investments (UK) Limited 13 Halifax Leasing (March No.2) Limited 14 Halifax Leasing (September) Limited 15 Halifax Share Dealing Limited 16 Halifax Vehicle Leasing (1998) Limited 17 HBOS Directors Ltd 18 HBOS plc 19 Hill Samuel Finance Limited 20 LBG Capital Holdings Limited 21 LBG Capital No.1 plc 22 LBG Capital No.2 plc 23 LBI Leasing Limited 24 Lex Autolease Limited 25 Lex Vehicle Leasing (Holdings) Limited 26 Lex Vehicle Leasing Ltd 27 Asset Finance Limited

28 Lloyds Bank Commercial Finance Limited 29 Lloyds Bank Commercial Finance Scotland Limited 30 Lloyds Bank Corporate Asset Finance (HP) Limited 31 Lloyds Bank Corporate Asset Finance (No.1) Limited 32 Lloyds Bank Corporate Asset Finance (No.2) Limited 33 Lloyds Bank Corporate Asset Finance (No.3) Limited 34 Lloyds Bank Corporate Asset Finance (No.4) Limited 35 Lloyds Bank Equipment Leasing (No.1) Limited 36 Lloyds Bank Equipment Leasing (No.7) Limited 37 Lloyds Bank Financial Services (Holdings) Limited 38 Lloyds Bank General Leasing (No.11) Limited 39 Lloyds Bank General Leasing (No.3) Limited 40 Lloyds Bank Leasing (No.6) Limited 41 Lloyds Bank Leasing (No.8) Limited 42 Lloyds Bank Leasing Limited 43 Lloyds Bank Maritime Leasing (No. 16) Limited 44 Lloyds Bank Maritime Leasing (No. 17) Limited 45 Lloyds Bank plc and its solo consolidating entities 46 plc 47 Lloyds Development Capital (Holdings) Ltd 48 Lloyds General Leasing Limited 49 Lloyds Investment Bonds Limited 50 Lloyds Project Leasing Limited 51 Lloyds UDT Limited 52 Lovat Funding (Holdings) Limited 53 MBNA Limited 54 Nordic Leasing Ltd 55 Pacific Leasing Limited 56 Portland Funding Limited 57 The Agricultural Mortgage Corporation plc 58 The Mortgage Business Plc 59 Uberior ENA Ltd 60 Uberior Infrastructure Investments (No 2) Ltd 61 Uberior Infrastructure Investments Limited 62 Uberior Investments Limited 63 United Dominions Leasing Limited 64 United Dominions Trust Limited

ANNEX 2

VERSION CONTROL

Version Comment Date

1.0 CRR Permission issued 1 June 2017 Amended to delete cancelled firms: Lloyds Bank Private Banking Limited (122626) 2 October 2017 2.0 Scottish Widows Bank Plc (201601)