Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 50

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 50
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 delivery or payment obligations under a contract for a temporary
period, powers to suspend enforcement or termination rights that might be invoked as a result of the exercise of the resolution powers
and powers for the relevant authority to disapply or modify laws (with possible retrospective effect) to enable the powers under the Banking
Act to be used effectively. The use of financial public support will only be available to the relevant U.K. resolution authority as a
last resort after having assessed and exploited, to the maximum extent practicable, the resolution tools, including the bail-in tool and/or
the write-down and/or conversion powers.

The bail-in tool covers bonds and notes (such
as the Additional Tier 1 Securities) issued by the institution subject to resolution measures, but certain defined instruments are excluded
from the scope, such as guaranteed bank deposits and covered bonds. Where the relevant statutory conditions for use of the bail-in tool
have been met, the relevant U.K. resolution authority would be expected to exercise these powers without notice to, or the consent of,
you. Any such exercise of the bail-in tool in respect of us and the Additional Tier 1 Securities may result in the cancellation of all,
or a portion, of the principal amount of, interest on, or any other amounts payable on, the Additional Tier 1 Securities and/or the conversion
of the Additional Tier 1 Securities into shares or other notes or other obligations of us or another person, or any other modification
or variation to the terms of the Additional Tier 1 Securities.

The Banking Act specifies the order in which the
bail-in tool should be applied, reflecting the hierarchy of capital instruments under U.K. CRR and otherwise respecting the hierarchy
of claims in an ordinary insolvency. Furthermore, the BoE has published a statement in regards to the U.K. creditor hierarchy which explains
that the U.K.’s bank resolution framework has a clear statutory order in which shareholders and creditors would bear losses in a
resolution or insolvency scenario and that Additional Tier 1 instruments rank ahead of CET1 and behind Tier 2 in the hierarchy.

The bail-in tool contains an express safeguard
(known as “no creditor worse off”) with the aim that shareholders and creditors do not receive a less favorable treatment
than they would have received in ordinary insolvency proceedings. However, this “no creditor worse off” safeguard may not
apply in relation to an application of the mandatory write-down and conversion power (as described below) in circumstances where a stabilization
power is not also