An application for the grant or variation of an ATOL1 must be made in a form and manner published by the Civil Aviation Authority ('CAA')2. Where such an application is received the CAA must:
(1) grant an ATOL or a variation to an ATOL to the applicant in the terms requested in the application3;
(2) grant an ATOL or a variation to an ATOL in those terms with such modifications and subject to such conditions as the CAA thinks fit4; or
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