3.13 If a department accepts any adverse consequences from a refinancing then it is reasonable for it to seek compensation for this by sharing in the refinancing benefits. The situation which the Prison Service faced in the case of Fazakerley, which will arise on many refinancings, is that its liabilities in the event of contract termination increased as a result of the refinancing. The Service was correct in negotiating compensation arrangements before agreeing to accept these higher termination liabilities and, as described in Part 1, secured a £1 million payment from FPSL.