Company: LLOBF
Filing Date: 2025-06-10
Form Type: 424B2
Source: 0000950103-25-007181
Chunk: 25

Company: Lloyds Banking Group plc
Filing Date: 2025-06-10
Form: 424B2
Chunk 25
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 Kingdom under the Banking Act (as amended) and the PRA’s Rulebook of Rules and Guidance before the U.K.’s
withdrawal from the EU. The powers granted to the U.K. resolution authorities under the Banking Act include (but are not limited to) (i)
a “write-down and conversion power” relating to Tier 1 and Tier 2 capital instruments (including the Subordinated Notes) and
(ii) a “bail-in” power relating to eligible liabilities (including the Notes). Such powers give resolution authorities the
ability to write down or write off all or a portion of the claims of certain unsecured creditors of a failing institution or group and/or
to convert certain debt claims into another security, including ordinary shares of the surviving Group entity, if any, which ordinary
shares may also be subject to write-down or write-off.

As the parent company of U.K. banks, we are subject
to the Special Resolution Regime (“SRR”) under the Banking Act, that gives wide powers in respect of U.K. banks and their
parent and other group companies to HM Treasury, the Bank of England (“BoE”) (including the PRA), and the Financial Conduct
Authority of the United Kingdom (the “FCA”) in circumstances where a U.K. bank has encountered or is likely to encounter financial
difficulties.

It is possible that the exercise of other powers
under the Banking Act to resolve failing banks in the United Kingdom and give the authorities powers to override events of default or
termination rights that might be invoked as a result of the exercise of the resolution powers, could have a material adverse effect on
the rights of holders of the Notes and/or a material adverse effect on the price of the Notes. The Banking Act also gives BoE the power
to override, vary or impose contractual obligations between a U.K. bank, its holding company and its group undertakings for reasonable
consideration, in order to enable any transferee or successor bank to operate effectively. There is also power for the U.K. Treasury to
amend the law (excluding provisions made by or under the Banking Act) for the purpose of enabling it to use the regime powers effectively,
potentially with retrospective effect. In addition, the Banking Act may be further amended and/or other legislation may be introduced
in the United Kingdom to amend the resolution regime that would apply in the event of a bank failure or to provide regulators with other
resolution powers.

Finally, the determination that all or part