Indemnity or bond

26.5 [Sub-hubco/Project Co] shall procure that it (and any relevant Service Provider) shall as soon as reasonably practicable obtain the indemnity or bond required in accordance with the Admission Agreement.11

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11 Under Regulation 5(5)(a) of the LGPS (Administration) Regulations, the Local Authority (in the majority of cases) must carry out an assessment, taking account of actuarial advice, of the level of financial risk arising on premature termination of the provision of the service or assets by reason of the insolvency, winding up or liquidation of the transferee admission body and that where the level of risk identified by the assessment is such as to require it, the  transferee admission body must provide an indemnity or bond to meet the level of risk identified.