| (1) | In respect of a policy defined in subparagraph (2) of paragraph 1, paragraphs 2 up to and including 7 shall apply with the following changes: |
| (a) | All references to the "Lloyd’s South African Trust" shall be construed as references to the "Lloyd’s South African Transitional Trust"; |
| (b) | such of the deposit held on the date of commencement of section 60 in respect of a Lloyd’s underwriter under section 60(1)(i) and (j) of the repealed Act as is equal to the minimum amount for that Lloyd’s underwriter calculated as set out in paragraph 4 as at a date agreed with the Authority, shall be transferred on that date to the Lloyd’s South African Transitional Trust for the credit of that underwriter’s deposit in that trust, and any balance shall be paid to Lloyd’s; |
| (c) | in calculating the amount of the security, paragraph 4(c) shall be disregarded; and |
| (d) | the reference to "quarterly" in paragraph 5 shall be construed as a reference to "annually or at such other intervals as may be approved by the Authority from time to time": |
Provided that this paragraph shall cease to apply, and the provisions of paragraphs 2 up to and including 7 shall apply from the latter date without change, to—
| (i) | such policy in the event of the reinsurance, as set out in the trust deeds of the Lloyd’s Trusts, of all the obligations under the policy by another Lloyd’s syndicate; or |
| (ii) | if the Authority and Lloyd’s so agree. |
[Proviso to Schedule 3, paragraph 8(1) substituted by section 38(b) of Act No. 17 of 2003]
| (2) | If the Lloyd’s Trusts have not been created before the date of commencement of section 60, the provisions of section 60(1)(a), (b), (c), (i), (j), (l), (m), (n), (o), (p,), (r) and (t), to the extent that they refer to the trust account and assets contemplated in the repealed Act, shall continue to apply until such creation, in lieu of the provisions of this Schedule. |
