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Notes to the parent company accounts

6 Subordinated liabilities

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  2007
£m		   2006
£m
Preferred securities      
Fixed/Floating Rate Non-Cumulative Callable Preference Shares callable 2015 (£600 million) † 593   587
Fixed/Floating Rate Non-Cumulative Callable Preference Shares callable 2016 (US$1,000 million) † 515   504
6% Non-cumulative Redeemable Preference Shares –   –
Undated subordinated liabilities      
6% Undated Subordinated Step-up Guaranteed Bonds callable 2032 (£500 million)* 497   497
Dated subordinated liabilities      
9 1/8% Subordinated Bonds 2011 (£150 million) 149   149
5 7/8% Subordinated Guaranteed Bonds 2014 (€750 million) 591   560
  740   709
Total subordinated liabilities 2,345   2,297

These liabilities will, in the event of the winding-up of the issuer, be subordinated to the claims of depositors and all other creditors of the issuer.

* In certain circumstances, these bonds would acquire the characteristics of preference share capital. Any repayments of undated loan capital would require the prior consent of the Financial Services Authority. They are accounted for as liabilities as coupon payments are mandatory as a consequence of the terms of certain preference shares. At the callable date the coupon on these bonds will be reset by reference to the applicable five year benchmark gilt rate.

† Further information regarding the fixed/floating rate non-cumulative callable preference shares can be found in note 39 to the consolidated financial statements.