Bank of Scotland plc 60 billion Covered Bond Programme Monthly Report April 2013

Monthly Report April 2013 This document is directed at persons in the UK and other EEA countries who are market counterparties and intermediate customers and may not be used or relied upon by private customers (as such terms are defined by the rules of the Financial Services Authority). thing in this document is, or is to be construed as, an offer of or invitation to subscribe for, underwrite or purchase securities in any jurisdiction. thing in this document constitutes an offer of securities for sale in the United States. This report is for information purposes only and is not intended as an offer or invitation with respect to the purchase or sale of security. Reliance should not be placed on the information herein when making any decision whether to buy, hold or sell notes (or other securities) or for any other purpose. Administration Name of issuer Bank of Scotland plc Name of RCB programme 60 billion Covered Bond Programme Name, job title and contact details of person validating this form Tracey Hill Head of Securitisation traceyhill@halifax.co.uk 0113 235 2176 Date of form submission 16 May 2013 Start Date of reporting period 1 Apr 2013 End Date of reporting period 30 Apr 2013 Web links prospectus, transaction documents, loanlevel data http://www.lloydsbankinggroup.com/investors/debt_investors/covered_bonds_terms.asp Counterparties, Ratings Counterparty/ies Fitch Moody's S&P DBRS Rating trigger Current rating Rating trigger Current rating Rating trigger Current rating Rating trigger Current rating Covered bonds AAA Aaa AAA Issuer (1) Bank of Scotland plc F1 / A P1 / A2 A1 / A Seller(s) (1) Bank of Scotland plc F1 / A P1 / A2 A1 / A Cash manager (1) Bank of Scotland plc F1 / A P1 / A2 A1 / A Account bank Bank of Scotland plc <F1 / A F1 / A <P1 P1 / A2 <A A1 / A Standby account bank ne Servicer(s) Bank of Scotland plc <BBB F1 / A <Baa3 P1 / A2 <BBB A1 / A Standby servicer(s) ne Swap provider(s) on cover pool (2) Bank of Scotland plc <F1 / A F1 / A <P1 / A2 P1 / A2 <A1 / A A1 / A Standby swap provider(s) on cover pool ne Swap notional amount(s) (GBP) (3) 33,950,518,809 Swap notional maturity/ies (3) LLP receive rate/margin (3) 1.58% LLP pay rate/margin (3) 3.90% Collateral posting amount(s) (GBP) (3) Accounts, Ledgers Value as of End Date of reporting period Value as of Start Date of reporting period Targeted Value Revenue receipts (please disclose all parts of waterfall) Revenue Receipts (on the Loans) 106,715,295 Bank Interest 1,103,962 Excess amount released from Reserve Fund Available Revenue Receipts 107,819,256 Senior fees (including Cash Manager & Servicer) 2,799,370 Amounts due under cover pool swap 64,705,717 Amounts due under Intercompany Loan 8,375,422 Deferred Consideration 31,935,749 Members' profit 3,000 Total distributed 107,819,256 Principal receipts (please disclose all parts of waterfall) Principal Receipts (on the Loans) 399,953,584 Any other amount standing to credit Principal Ledger Excess amount released PreMaturity Liquidity Ledger Cash Capital Contribution from Members Available Principal Receipts 399,953,584 Credit to PreMaturity Liquidity Ledger Acquisition of Loans (Replenishments) Credit to Principal Ledger 399,953,584 Amounts due under Intercompany Loan Capital Distribution to Members Total distributed 399,953,584 Reserve ledger Revenue ledger 107,819,256 111,579,195 Principal ledger 399,953,584 390,291,792 Prematurity liquidity ledger 4,515,462,562 4,517,944,751 4,513,220,584 1 of 8

Asset Coverage Test Value A 23,536,275,188 B 4,267,538,540 Bank of Scotland plc 60 billion Covered Bond Programme Description Adjusted Aggregate Loan Amount Principal collections not yet applied Qualifying additional C 647,877,506 collateral D Substitute assets Proceeds of sold E mortgage loans V Setoff offset loans W Personal secured loans X 19,301,582 Flexible draw capacity Y 1,683,650,905 Setoff Z 489,051,678 Negative carry Total 26,259,687,068 Method used for calculating component 'A' (4) A(ii) Asset percentage (%) 70.0% Maximum asset percentage from Fitch (%) 78.0% Maximum asset percentage from Moody's (%) 83.3% Maximum asset percentage from S&P (%) 70.6% Maximum asset percentage from DBRS (%) Credit support as derived from ACT (GBP) 3,656,787,213 Credit support as derived from ACT (%) 16.2% ProgrammeLevel Characteristics Programme currency EUR Programme size 60,000,000,000 Covered bonds principal amount outstanding (GBP, nongbp series converted at swap FX rate) 22,602,899,856 Covered bonds principal amount outstanding (GBP, nongbp series converted at current spot rate) 23,677,280,988 Cover pool balance (GBP) 33,673,018,104 GIC account balance (GBP) (5) 5,023,235,402 Any additional collateral (please specify) ne Any additional collateral (GBP) Aggregate balance of offset mortgages (GBP) Aggregate deposits attaching specifically to the offset mortgages (GBP) minal level of overcollateralisation (GBP) (6) 15,985,534,294 minal level of overcollateralisation (%) 70.7% Number of loans in cover pool 363,437 Average loan balance (GBP) 92,652 Weighted average nonindexed LTV (%) 63.8% Weighted average indexed LTV (%) 67.2% Weighted average seasoning (months) 80.2 Weighted average remaining term (months) 209.9 Weighted average interest rate (%) 3.89% Standard Variable Rate(s) (%) 3.99% & 3.89% Constant PrePayment Rate (%, current month) (7) Constant PrePayment Rate (%, quarterly average) (7) Principal Payment Rate (%, current month) 13.22% Principal Payment Rate (%, quarterly average) 12.88% Constant Default Rate (%, current month) (8) Constant Default Rate (%, quarterly average) (8) Fitch Discontinuity Cap (9) 4 (moderate) Moody's Timely Payment Indicator (10) Probable Moody's Collateral Score (%) (10) 7.9% 2 of 8

Mortgage collections (7) Mortgage collections (scheduled interest) 106,715,295 Mortgage collections (scheduled principal) Mortgage collections (unscheduled interest) Mortgage collections (unscheduled principal) 399,953,584 Loan Redemptions & Replenishments Since Previous Reporting Date Number % of total number Amount (GBP) % of total amount Loan redemptions since previous reporting date 2,610 0.72% 206,952,879 0.61% Loans bought back by seller(s) 627 0.17% 64,883,110 0.19% of which are nonperforming loans 429 0.12% 50,114,901 0.15% of which have breached R&Ws 198 0.05% 14,768,209 0.04% Loans sold into the cover pool 0 0.00% 0.00% Product Rate Type and Reversionary Profiles (11) Weighted average Number % of total number Amount (GBP) % of total amount Current rate Remaining teaser period (months) Current margin (12) Reversionary margin (12) Initial rate (13) Fixed currently, reverting to SVR 91,676 25.22% 9,162,545,916.92 27.21% 4.41% 18.32 4.41% 0.00% 4.41% Fixed currently, reverting to Libor 0 0.00% 0.00% Fixed currently, reverting to tracker 3,811 1.05% 318,550,153.53 0.95% 5.85% 20.31 5.85% 0.00% 5.85% Fixed for life 17 0.00% 77,358.21 0.00% 3.68% 3.68% 3.68% Tracker currently, reverting to SVR 11,625 3.20% 1,197,300,603.41 3.56% 2.86% 8.12 2.36% 0.00% 2.86% Tracker currently, reverting to Libor 0 0.00% 0.00% Tracker for life 41,541 11.43% 2,649,314,162.93 7.87% 1.60% 1.10% 1.60% SVR, including discount to SVR 214,767 59.09% 20,345,229,908.84 60.42% 3.99% 0.00% 3.99% Libor 0 0.00% 0.00% 3.89% 3.89% Stratifications Arrears breakdown Number % of total number Amount (GBP) % of total amount Current 351,651 96.76% 32,403,272,910 96.23% 01 month in arrears 6,220 1.71% 637,602,809 1.89% 12 months in arrears 3,825 1.05% 430,146,765 1.28% 23 months in arrears 1,350 0.37% 154,926,046 0.46% 36 months in arrears 385 0.11% 46,414,227 0.14% 612 months in arrears 6 0.00% 655,347 0.00% 12+ months in arrears 0 0.00% 0.00% Current nonindexed LTV Number % of total number Amount (GBP) % of total amount 050% 161,828 44.53% 8,124,360,628 24.13% 5055% 20,188 5.55% 1,993,322,640 5.92% 5560% 21,583 5.94% 2,408,521,934 7.15% 6065% 22,805 6.27% 2,579,051,262 7.66% 6570% 26,294 7.23% 3,260,077,470 9.68% 7075% 30,331 8.35% 4,120,273,220 12.24% 7580% 25,902 7.13% 3,576,105,967 10.62% 8085% 21,150 5.82% 2,910,324,203 8.64% 8590% 17,926 4.93% 2,560,355,712 7.60% 9095% 8,347 2.30% 1,167,500,477 3.47% 95100% 3,633 1.00% 480,827,420 1.43% 100105% 1,715 0.47% 238,774,408 0.71% 105110% 1,010 0.28% 145,628,991 0.43% 110125% 708 0.19% 106,371,539 0.32% 125%+ 17 0.00% 1,522,232 0.00% 3 of 8

Current indexed LTV Number % of total number Amount (GBP) % of total amount 050% 158,398 43.58% 7,769,849,240 23.07% 5055% 17,938 4.94% 1,801,675,905 5.35% 5560% 18,328 5.04% 2,052,450,319 6.10% 6065% 19,250 5.30% 2,262,564,037 6.72% 6570% 21,620 5.95% 2,722,573,767 8.09% 7075% 24,219 6.66% 3,147,856,693 9.35% 7580% 23,852 6.56% 3,187,345,081 9.47% 8085% 20,929 5.76% 2,847,681,172 8.46% 8590% 18,446 5.08% 2,441,867,745 7.25% 9095% 14,540 4.00% 1,926,744,936 5.72% 95100% 10,467 2.88% 1,425,800,885 4.23% 100105% 7,650 2.10% 1,049,972,139 3.12% 105110% 4,723 1.30% 622,481,444 1.85% 110125% 3,045 0.84% 409,883,935 1.22% 125%+ 32 0.01% 4,270,805 0.01% Current outstanding balance of loan Number % of total number Amount (GBP) % of total amount 05,000 8,200 2.26% 16,563,914 0.05% 5,00010,000 7,896 2.17% 60,769,447 0.18% 10,00025,000 36,203 9.96% 649,266,375 1.93% 25,00050,000 65,838 18.12% 2,452,354,765 7.28% 50,00075,000 64,135 17.65% 3,998,429,636 11.87% 75,000100,000 55,246 15.20% 4,807,233,248 14.28% 100,000150,000 69,129 19.02% 8,406,910,538 24.97% 150,000200,000 29,756 8.19% 5,102,375,436 15.15% 200,000250,000 12,478 3.43% 2,762,552,349 8.20% 250,000300,000 5,587 1.54% 1,519,520,192 4.51% 300,000350,000 2,931 0.81% 943,217,361 2.80% 350,000400,000 1,887 0.52% 702,887,707 2.09% 400,000450,000 1,149 0.32% 485,332,240 1.44% 450,000500,000 906 0.25% 430,359,614 1.28% 500,000600,000 1,010 0.28% 545,266,406 1.62% 600,000700,000 521 0.14% 335,212,958 1.00% 700,000800,000 312 0.09% 231,824,799 0.69% 800,000900,000 154 0.04% 129,403,492 0.38% 900,0001,000,000 99 0.03% 93,537,627 0.28% 1,000,000 + 0 0.00% 0.00% Regional distribution (14) Number % of total number Amount (GBP) % of total amount East Midlands 24,497 6.74% 1,952,517,493 5.80% East of England 28,458 7.83% 3,141,141,615 9.33% London 35,438 9.75% 5,593,917,786 16.61% rth East 17,970 4.94% 1,222,644,876 3.63% rth West 42,971 11.82% 3,264,721,264 9.70% Scotland 58,084 15.98% 3,809,152,404 11.31% South East 42,904 11.81% 5,380,061,694 15.98% South West 24,844 6.84% 2,472,510,341 7.34% Wales 16,046 4.42% 1,206,433,224 3.58% West Midlands 30,049 8.27% 2,506,683,433 7.44% Yorkshire And The Humber 42,092 11.58% 3,113,080,440 9.25% Unknown 84 0.02% 10,153,533 0.03% 4 of 8

Repayment type (15) Number % of total number Amount (GBP) % of total amount Capital repayment 231,896 63.81% 18,289,853,128 54.32% Partandpart Interestonly 131,541 36.19% 15,383,164,975 45.68% Offset 0 0.00% 0.00% Seasoning Number % of total number Amount (GBP) % of total amount 0 <12 months 1,868 0.51% 213,239,116 0.63% 12 <24 months 19,034 5.24% 2,142,902,458 6.36% 24 <36 months 9,757 2.68% 1,063,718,979 3.16% 36 <48 months 7,125 1.96% 758,257,233 2.25% 48 <60 months 24,746 6.81% 2,867,501,083 8.52% 60 <72 months 73,184 20.14% 9,014,515,378 26.77% 72 <84 months 45,391 12.49% 4,889,975,720 14.52% 84 <96 months 44,649 12.29% 4,156,082,592 12.34% 96 <108 months 34,443 9.48% 2,814,719,763 8.36% 108 <120 months 27,877 7.67% 2,004,273,449 5.95% 120 <150 months 37,746 10.39% 2,160,680,315 6.42% 150 <180 months 21,863 6.02% 984,366,238 2.92% 180+ months 15,754 4.33% 602,785,781 1.79% Interest payment type Number % of total number Amount (GBP) % of total amount Fixed 95,504 26.28% 9,481,173,429 28.16% SVR 214,767 59.09% 20,345,229,909 60.42% Tracker 53,166 14.63% 3,846,614,766 11.42% Other (please specify) 0 0.00% 0.00% Loan purpose type Number % of total number Amount (GBP) % of total amount Owneroccupied 361,996 99.60% 33,513,023,644.96 99.52% Buytolet 0 0.00% 0.00% Second home 1,441 0.40% 159,994,458.88 0.48% Income verification type (16) Number % of total number Amount (GBP) % of total amount Fully verified Fasttrack Selfcertified Total 0 Remaining term of loan Number % of total number Amount (GBP) % of total amount 0 <30 months 13,812 3.80% 580,921,456 1.73% 30 <60 months 20,477 5.63% 1,181,737,809 3.51% 60 <120 months 55,407 15.25% 3,802,527,297 11.29% 120 <180 months 74,650 20.54% 6,825,093,419 20.27% 180 <240 months 93,011 25.59% 10,867,675,510 32.27% 240 <300 months 42,410 11.67% 4,928,021,151 14.63% 300 <360 months 33,452 9.20% 3,081,419,506 9.15% 360+ months 30,218 8.31% 2,405,621,956 7.14% Employment status (16) Number % of total number Amount (GBP) % of total amount Employed Selfemployed Unemployed Retired Guarantor Other Total 0 5 of 8

Covered Bonds Outstanding, Associated Derivatives (please disclose for all bonds outstanding) Series CB0002/03 CB0004/04 CB0005/04 CB0006/04 CB0007/05 CB0010/05 CB0011/05 CB0013/05 CB0014/05 0016/06 0017/06 Issue date 23 Oct 2003 4 Jun 2004 23 Sep 2004 13 Dec 2004 8 Feb 2005 15 Aug 2005 15 Aug 2005 25 v 2005 25 v 2005 13 Jul 2006 13 Jul 2006 Original rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Current rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Denomination EUR EUR EUR GBP EUR EUR USD EUR GBP EUR EUR Amount at issuance 2,000,000,000 1,250,000,000 2,000,000,000 500,000,000 1,500,000,000 189,100,000 70,200,000 233,800,000 200,000,000 1,500,000,000 1,500,000,000 Amount outstanding 2,000,000,000 1,250,000,000 2,000,000,000 500,000,000 1,500,000,000 89,100,000 70,200,000 233,800,000 200,000,000 1,500,000,000 1,500,000,000 FX swap rate (rate: 1) 1.436 1.248 1.248 1.000 1.248 1.443 1.776 1.169 1.000 1.248 1.248 Maturity type (hard/softbullet/passthrough) Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Scheduled final maturity date 23 Oct 2013 4 Jun 2019 23 Sep 2014 15 Dec 2014 7 Feb 2020 30 Sep 2013 30 Sep 2013 28 May 2013 25 v 2013 13 Jul 2021 13 Jul 2016 Legal final maturity date 23 Oct 2013 4 Jun 2019 23 Sep 2014 15 Dec 2014 7 Feb 2020 30 Sep 2013 30 Sep 2013 28 May 2013 25 v 2013 13 Jul 2021 13 Jul 2016 ISIN XS0178952650 XS0193640629 XS0201674594 XS0208047778 XS0212074388 XS0226832250 XS0226831872 XS0236528542 XS0236527817 XS0260981658 XS0260981229 Stock exchange listing London & Luxembourg London & Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Coupon payment frequency Annual Annual Annual Quarterly Annual Quarterly Quarterly Annual Quarterly Annual Annual Coupon payment date 23 Oct 4 Jun 23 Sep 13 Mar Jun Sep Dec 7 Feb 20 Mar Jun Sep Dec 20 Mar Jun Sep Dec 28 May 25 Feb May Aug v 13 Jul 13 Jul Coupon (rate if fixed, margin and reference rate if floating) 4.500% 4.875% 4.250% 3m GBP LIBOR +0.075% 3.875% 3m EURIBOR +0.00% 3m USD LIBOR 0.01% 2.865% 3m GBP LIBOR +1.28% 4.500% 4.375% Margin payable under extended maturity period (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Swap counterparty/ies Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Swap notional denomination GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP Swap notional amount 1,392,600,000 1,001,500,000 1,602,400,000 500,000,000 1,201,800,000 61,746,300 39,527,027 200,000,000 200,000,000 1,201,800,000 1,201,800,000 Swap notional maturity 23 Oct 2013 4 Jun 2019 23 Sep 2014 15 Dec 2014 7 Feb 2020 30 Sep 2013 30 Sep 2013 28 May 2013 25 v 2013 13 Jul 2021 13 Jul 2016 LLP receive rate/margin 4.500% 4.875% 4.250% 3m GBP LIBOR +0.075% 3.875% 3m EURIBOR +0.00% 3m USD LIBOR 0.01% 2.865% 3m GBP LIBOR +1.28% 4.500% 4.375% LLP pay rate/margin 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR +1.432% 1m GBP LIBOR +1.616% 1m GBP LIBOR 1m GBP LIBOR Collateral posting amount Series 0018/06 0021/07 0022/07 0023/07 0025/07 0026/07 0029/08 0033/08 0035/08 0036/08 0037/08 Issue date 17 v 2006 20 Feb 2007 8 Jun 2007 8 Jun 2007 26 Oct 2007 18 Dec 2007 22 May 2008 26 Sep 2008 26 Sep 2008 26 Sep 2008 2 Oct 2008 Original rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Current rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Denomination EUR USD EUR EUR EUR DKK EUR GBP EUR EUR EUR Amount at issuance 2,000,000,000 3,000,000,000 1,250,000,000 1,250,000,000 2,000,000,000 4,680,000,000 1,196,000,000 1,000,000,000 591,750,000 591,750,000 591,750,000 Amount outstanding 2,000,000,000 2,193,934,000 1,250,000,000 1,250,000,000 2,000,000,000 4,680,000,000 1,196,000,000 1,000,000,000 591,750,000 591,750,000 591,750,000 FX swap rate (rate: 1) 1.248 1.611 1.248 1.248 1.248 10.319 1.196 1.000 1.184 1.184 1.184 Maturity type (hard/softbullet/passthrough) Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Hard bullet Scheduled final maturity date 15 Jan 2014 21 Feb 2017 8 Jun 2017 8 Jun 2022 26 Jan 2015 2 Jan 2018 23 Sep 2019 27 Jan 2014 27 Oct 2014 25 Jan 2016 25 Jan 2016 Legal final maturity date 15 Jan 2014 21 Feb 2017 8 Jun 2017 8 Jun 2022 26 Jan 2015 2 Jan 2018 23 Sep 2019 27 Jan 2014 27 Oct 2014 25 Jan 2016 25 Jan 2016 ISIN XS0275093473 XS0286774483 XS0304458721 XS0304459026 XS0327502224 DK0030075023 XS0366238375 XS0390482213 XS0390479185 XS0390479268 XS0391406591 Stock exchange listing Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Copenhagen Luxembourg Luxembourg Luxembourg Luxembourg Luxembourg Coupon payment frequency Annual Semiannual Annual Annual Annual Semiannual Quarterly Quarterly Annual Annual Annual Coupon payment date 15 Jan 21 Feb & Aug 8 Jun 8 Jun 26 Jan 1 Jan & Jul 22 Mar Jun Sep Dec 27 Jan Apr Jul Oct 27 Oct 20 Dec 20 Dec Coupon (rate if fixed, margin and reference rate if floating) 3.875% 5.250% 4.625% 4.750% 4.750% 6m DKK CIBOR + 0.29% 3m EURIBOR +1.75% 3m GBP LIBOR +1.28% 3.375% 3.375% 3.375% Margin payable under extended maturity period (%) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Swap counterparty/ies Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Swap notional denomination GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP Swap notional amount 1,602,400,000 1,361,761,529 1,001,500,000 1,001,500,000 1,602,400,000 453,549,999 1,000,000,000 1,000,000,000 500,000,000 500,000,000 500,000,000 Swap notional maturity 15 Jan 2014 21 Feb 2017 8 Jun 2017 8 Jun 2022 26 Jan 2015 2 Jan 2018 23 Sep 2019 27 Jan 2014 27 Oct 2014 25 Jan 2016 25 Jan 2016 LLP receive rate/margin 3.875% 5.250% 4.625% 4.750% 4.750% 6m DKK CIBOR + 0.29% 3m EURIBOR +1.75% 3m GBP LIBOR +1.28% 3.375% 3.375% 3.375% LLP pay rate/margin 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR 1m GBP LIBOR +2.331% 1m GBP LIBOR +1.608% 1m GBP LIBOR +1.957% 1m GBP LIBOR +1.594% 1m GBP LIBOR +1.594% Collateral posting amount 6 of 8

Series 0038/08 0039/08 0040/08 0041/10 Issue date 2 Oct 2008 2 Oct 2008 2 Oct 2008 24 Mar 2010 Original rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Current rating (Moody's/S&P/Fitch/DBRS) Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Aaa / AAA / AAA / Denomination GBP EUR EUR EUR Amount at issuance 410,000,000 2,130,300,000 591,750,000 850,000,000 Amount outstanding 410,000,000 2,130,300,000 591,750,000 850,000,000 FX swap rate (rate: 1) 1.000 1.184 1.184 1.109 Maturity type (hard/softbullet/passthrough) Hard bullet Hard bullet Hard bullet Hard bullet Scheduled final maturity date 27 May 2014 27 Jul 2015 23 Aug 2017 24 Mar 2016 Legal final maturity date 27 May 2014 27 Jul 2015 23 Aug 2017 24 Mar 2016 ISIN XS0391406088 XS0391405783 XS0391405940 XS0496583468 Stock exchange listing Luxembourg Luxembourg Luxembourg Luxembourg Coupon payment frequency Quarterly Annual Annual Quarterly Coupon payment date 27 Feb May Aug v 27 Jul 20 Dec 24 Mar Jun Sep Dec Coupon (rate if fixed, margin and reference rate if floating) 3m GBP LIBOR +1.29% 3.625% 3.500% 3m EURIBOR +0.95% Margin payable under extended maturity period (%) N/A N/A N/A N/A Swap counterparty/ies Bank of Scotland Bank of Scotland Bank of Scotland Bank of Scotland Swap notional denomination GBP GBP GBP GBP Swap notional amount 410,000,000 1,800,000,000 500,000,000 766,615,000 Swap notional maturity 27 May 2014 27 Jul 2015 23 Aug 2017 24 Mar 2016 LLP receive rate/margin 3m GBP LIBOR +1.29% 3.625% 3.500% 3m EURIBOR +0.95% LLP pay rate/margin 1m GBP LIBOR +1.621% 1m GBP LIBOR +1.983% 1m GBP LIBOR +1.322% 1m GBP LIBOR Collateral posting amount Programme triggers Event Summary of Event PreMaturity Liquidity Test Loss of required rating by the Issuer A1+ / P1 / F1+ / / A1 / / Reserve Fund trigger Loss of required rating by the Issuer / P1 / F1 / BBB / / A / Setoff risk protection trigger Loss of required rating by the Issuer / P1 / F1 / BBB / A2 / A / Interest Rate Swap Provider rating trigger Loss of required rating by the Interest Rate Swap Provider Covered Bond Swap Provider rating trigger Loss of required rating by the relevant Covered Bond Swap Provider Account Bank rating trigger Loss of required rating by the Account Bank / P1 / F1 / A / / A / Perfection preparation trigger Loss of required rating by the Seller BBB / Baa2 / BBB / Trigger (S&P, Current Rating Moody's, Fitch, (S&P, Moody's, DBRS; shortterm, Fitch, DBRS; shortterm, longterm) longterm) Perfection trigger Loss of required rating by the Seller BBB / Baa3 / BBB / Servicer trigger Loss of required rating by the Servicer BBB / Baa3 / BBB / Title deeds Loss of required rating by the Servicer A1+ / P1 / F1+ / A1 / P1 / F1 / Cash Manager verification trigger Loss of required rating by the Cash Manager BBB / Baa3 / BBB / Trigger breached (yes/no) Yes Yes Consequence of a trigger breach Requirement to fund the PreMaturity Liquidity Ledger to the Required Redemption Amount and, if necessary, the sale of Selected Loans. Requirement to establish and maintain the Reserve Fund and to trap any Available Revenue Receipts (in accordance with the relevant waterfall), as necessary, to fund the Reserve Fund to the Reserve Fund Required Amount. The sizing of the setoff risk protection in the Asset Coverage Test shall be increased from zero to 5% (or such other amount as may be set from time to time, subject to the Issuer obtaining a Rating Agency Confirmation). Requirement to post collateral, transfer obligations to a suitably rated replacement swap provider, procure another suitably rated entity to become a coobligor or guarantor or other actions as may be agreed with the relevant agency in order to maintain or restore (as applicable) the ratings of the covered bonds). The ratings shown are the first level of triggers. Other triggers exist at lower levels with further consequences. Requirement to post collateral, transfer obligations to a suitably rated replacement swap provider, procure another suitably rated entity to become a coobligor or guarantor or other actions as may be agreed with the relevant agency in order to maintain or restore (as applicable) the ratings of the covered bonds). The ratings shown are the first level of triggers. Other triggers exist at lower levels with further consequences. Termination event pursuant to the Bank Account Agreement, unless downgrade remedied in accordance with the terms of the Bank Account Agreement. The Seller shall deliver to the LLP and the Rating Agencies a draft letter of notice to the Borrowers of the sale and purchase of the loans. Legal title to the Loans and their Related Security will be transferred to the LLP. The Servicer will use reasonable endeavours to enter, within 60 days, into a master servicing agreement with a third party in such form as the LLP and the Security Trustee shall reasonably require. The Servicer will use reasonable endeavours to ensure that the Title Deeds are identified as distinct from the title deeds of other properties and mortgages that do not form part of the portfolio. The Asset Monitor will be required to report on the arithmetic accuracy of the Cash Manager's calculations more frequently. 7 of 8

nrating triggers Event Asset Coverage Test Interest Rate Shortfall Test HBOS Event of Default Summary of Event Bank of Scotland plc 60 billion Covered Bond Programme On a Calculation Date, the Adjusted Aggregate Loan Amount is less than the Principal Amount Outstanding of Covered Bonds. The amount of income that the LLP expects to receive in the next Calculation Period is insufficient to cover the would be amounts due to the Covered Bond Swap Provider(s) and other senior expenses ranking in priority thereto. Any of the conditions, events or acts provided in Condition 10(a) of Prospectus (Events of Default and Enforcement HBOS Events of Default) occur. Trigger breached Consequence of a trigger breach (yes/no) Breach of Asset Coverage Test not remedied on the next Calculation Date will result in HBOS Event of Default. Standard variable rate and variable margins (on Tracker Rate Loans) may be increased. Yield Shortfall Test Following HBOS Event of Default, the Loans must yield 1m LIBOR plus 0.50%. increased. Amortisation Test LLP Event of Default will occur. On a Calculation Date, following a tice to Pay, the Amortisation Test Aggregate Loan Amount is less than the Principal Amount Outstanding of Covered Bonds. LLP Event of Default Any of the conditions, events or acts provided in Condition 10(b) of the Prospectus (Events of Default and Enforcement LLP Events of Default) occur. Covered Bonds will become immediately due and payable against the Issuer and Group Guarantor. tice to pay served on the LLP. Following service of tice to Pay, LLP required to make payments of Guaranteed Amounts under the Covered Bonds. Standard variable rate and variable margins (on Tracker Rate Loans) may be Covered Bonds will become immediately due and payable against the LLP, as well as the Issuer and Group Guarantor. Security becomes enforceable. Glossary Term Months in Arrears Indexed LTV nindexed LTV Seasoning PPR Amount (GBP) Original Valuation (for ACT only) Indexed Valuation (for ACT only) Definition The amount of arrears divided by the current payment due. The arrears table on page 3 includes repossessions. The current balance of the loans in a mortgage account divided by the indexed valuation of the property securing that mortgage account at the reporting date. The current balance of the loans in a mortgage account divided by the latest valuation of the property held in the Seller's records, securing that mortgage account, at the reporting date. Seasoning is reported on an aggregated basis for each mortgage account. It is calculated using the origination date of the original loan in the mortgage account and ignores any subsequent loans on the mortgage account. Monthly PPR reflects the aggregate of scheduled and unscheduled principal receipts, including the proceeds from loan repurchases by the Seller. The aggregate current balance of the loans including (without double counting) the initial advance, any further advance, any flexible drawing, capitalised expenses, capitalised arrears and capitalised interest less any prepayments, repayments or payments of the foregoing prior to the relevant date, plus accrued interest on the loans at the relevant date in relation to any property means the value given to that property by the most recent valuation addressed to the Seller of the Loan secured over that property. (a) where the Original Valuation of the property is equal to or greater than the Halifax Price Indexed Valuation as at that date, the Halifax Price Indexed Valuation; or (b) where the Original Valuation of the property is less than the Halifax Price Indexed Valuation as at that date, the Original Valuation plus 85% of the difference between the Original Valuation and the Halifax Price Indexed Valuation. Footnotes (1) There are no minimum ratings for the Issuer, Seller or Cash Manager. However, there are certain event triggers linked to their ratings. Please refer to the Programme triggers table on page 7 for details. (2) For triggers relating to the swap provider(s) on the cover pool, the rating trigger disclosed is the next trigger point. There may be subsequent triggers and these are detailed in the relevant swap agreement. (3) Relates to the asset swap. (4) A(i) is the sum of the Adjusted Current Balance of each loan, which is the lower of (1) the actual Current Balance or (2) 60% of the Indexed Valuation minus, in each case the Aggregate Current Balance of deemed reductions; (4) A(ii) is the aggregate Current Balance of each loan (less deemed reductions) multiplied by the Asset Percentage. (5) The GIC account balance has been adjusted to include cash from assets for the last day of the month collected first working day of following month. (6) The nominal level of overcollateralisation includes cash held on both the PreMaturity Liquidity Ledger and the Principal Ledger. (7) The Seller does not currently record which element of mortgage collections are scheduled and unscheduled, as such, this breakdown is not available. (8) t applicable for the asset pool which is a revolving pool. (9) Source: Fitch press release "Fitch Affirms Bank of Scotland's Covered Bonds at 'AAA' Following Programme Update" dated 21 December 2012. (10) Source: Moody's performance reprt dated 4 December 2012. (11) Based on the mortgage accounts' current primary product holding (rather than any historic product previously held). In addition to the primary product holding, an account may have other active product holdings which may or may not be the same as the primary product holding. (12) The margins are based on the index rate and, therefore, fixed are reported at the fixed rate, trackers are reported over BBR (0.50%) and variable over SVR (3.99%). (13) The initial rate is considered to be the same as the current rate. (14) Regions are NUTS1 classifications (menclature of Units for Territorial Statistics). (15) Any 'Partandpart' loans have been included in 'Interestonly'. (16) The Seller does not currently retain these details in its live reporting systems. 8 of 8