9(in UPRU) means that part of a firm's capital which is a security of indeterminate duration, or other instrument, that fulfils the following conditions:
- (a) it may not be reimbursed on the bearer's initiative or without the prior agreement of FSA;
- (b) the debt agreement must provide for the firm to have the option of deferring the payment of interest on the debt;
- (c) the lender's claims on the firm must be wholly subordinated to those of all non-subordinated creditors;
- (d) the documents governing the issue of the securities must provide for debt and unpaid interest to be such as to absorb losses, whilst leaving the firm in a position to continue trading; and
- (e) only fully paid-up amounts shall be taken into account.