Government liability (1) The liability of the Government to make good any financial loss sustained by the Bank shall, subject to the provisions of this section, be determined under and in accordance with the Schedule.
(2) In this section —
(i) a claim or claims shall be considered to be claims in respect of losses arising out of one event if —
(a) losses were caused by the acts or omissions of any one person; or
(b) such losses were caused by acts or omissions in which one person was concerned or implicated; or
(c) such losses arose out of the same event;
(ii) "the ultimate net loss" shall mean the net loss to the Bank after making proper deduction for all recoveries and salvages and shall exclude all expenses for salaried employees of the Bank incurred in the investigation or adjustment of claims, actions or proceedings, unless specifically agreed by the Government.
(i) The Government’s liability in respect of any loss or of any losses arising out of one event shall be limited —
(a) to the extent that such loss or losses exceed the appropriate excess for that loss or those losses; and
(b) to a sum equal to the appropriate premium for that loss or those losses multiplied by 25.
(ii) For the purpose of this subsection the "appropriate premium" or the "appropriate excess" for any loss or for any losses arising out of one event shall be the premium payable in or the excess fixed for the financial year in which notice of the claim in respect of that loss or those losses is given under section 7 of the Schedule, or if more than one such notice is given in respect of any loss or losses arising out of one event then the "appropriate premium" or the "appropriate excess" in respect of such loss or losses shall be the premium payable in or the excess fixed for the financial year in which the last such notice is given.
(4) For the purpose of ascertaining the relevant loss the ultimate net loss of the Bank shall be ascertained before the deduction of the excess.