Article 103 - Liability of Cellular Assets

(1) Subject to the provisions of Article 103(2), and save to the extent that the PCC may have agreed that a liability shall be the liability solely of the PCC'sNon-Cellular Assets, or of the Cellular Assets attributable to a particular Cell of the PCC, where any liability arises which is attributable to a particular Cell of a PCC:
(A) the Cellular Assets attributable to that Cell shall be primarily used to satisfy the liability;
(B) the PCC'sNon-Cellular Assets shall be secondarily used to satisfy the liability, provided that the Cellular Assets attributable to the relevant Cell have been exhausted; and
(C) any Cellular Assets not attributable to the relevant Cell shall not be used to satisfy the liability.
(2) In the case of loss or damage which is attributable to a particular Cell of a PCC and which is caused by fraud, the loss or damage shall be the liability solely of the PCC'sNon-Cellular Assets, without prejudice to any liability of any person other than the PCC.
(3) Any liability not attributable to a particular Cell of a PCC shall be the liability solely of the PCC'sNon-Cellular Assets.
(4) Notwithstanding the above provisions of this section:
(A) the liabilities under Article 103(1)(A) of the Cellular Assets attributable to a particular Cell of a PCC shall abate rateably until the value of the aggregate liabilities equals the value of those assets except that the provisions of this paragraph shall be disregarded in assessing the existence and extent of any secondary liability under Article 103(1)(B); and
(B) the liabilities of the PCC'sNon-Cellular Assets shall abate rateably until the value of the aggregate liabilities equals the value of those assets.
(5) For the avoidance of doubt, a PCC may enter into arm's length transactions in respect of two or more of its Cells giving rise to reciprocal liabilities attributable to such Cells.
(6) This Article 103 shall apply to the assets of the PCC wherever situated.