Notice of Redemption

11.03.2013

THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF THE NOTEHOLDER. IF NOTEHOLDERS ARE IN ANY DOUBT AS TO THE CONSEQUENCES OF THIS NOTICE, THEY SHOULD SEEK THEIR OWN FINANCIAL AND LEGAL ADVICE, INCLUDING AS TO ANY TAX CONSEQUENCES, IMMEDIATELY FROM THEIR STOCKBROKER, SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT FINANCIAL OR LEGAL ADVISER.

NOTICE TO NOTEHOLDERS

Delisting of Notes issued by Highland Funding PLC

£4,485,000,000 Class A-1 Asset Backed Floating Rate Notes due December 2060 ISIN: XS0441875829

£1,565,000,000 Class A-2 Asset Backed Floating Rate Notes due December 2060 ISIN: XS0441876470

(together, the Notes)

NOTICE IS HEREBY GIVEN of Lloyds TSB Scotland plc's intention to repurchase loans and their related security from Highland Funding plc (the Issuer) under the terms of the Mortgage Sale Agreement to be completed on or about 11 March 2013, and the Issuer's intention to effect a full and final redemption of all the Notes issued by the Issuer, on 11 March 2013.

Terms used but not defined in this notice bear the same meaning as set out in the master definitions and construction schedule made between (among others) the Issuer and the Note Trustee dated 28 July 2009 (as the same may be amended, varied, supplemented, replaced and/or novated from time to time).

 

 

This Notice is given on 11 March 2013:

HIGHLAND FUNDING PLC

(registered number 6927392)

35 Great St. Helen's

London EC3A 6AP