What are the statutory assumptions that the Independent Valuer was required by law to apply?
When undertaking his valuation, the Independent Valuer was required to apply the statutory valuation assumptions set by the Banking (Special Provisions) Act 2008 and the Northern Rock plc Compensation Scheme Order 2008. These statutory valuation assumptions are that: • all financial assistance provided by the Bank of England or HM Treasury to Northern Rock has been withdrawn; • no financial assistance would in future be provided by the Bank of England or HM Treasury to Northern Rock (apart from ordinary market assistance offered by the Bank of England subject to its usual terms); • Northern Rock is unable to continue as a going concern; and • Northern Rock is in administration.
