By Rishav Chatterjee and Selena Li (Reuters) -HSBC Holdings said on Monday it will book a $1.1 billion provision in its third-quarter results after losing part of an appeal in a long-running lawsuit tied to Bernard Madoff's Ponzi scheme. HSBC acted as a service provider to several funds that invested with Bernard L. Madoff Investment Securities LLC. Herald Fund SPC sued HSBC's Luxembourg unit in 2009 seeking restitution of assets it said were lost in the fraud. Last Friday, the Luxembourg Court of Cassation rejected an appeal by HSBC's unit over the restitution of securities claimed by Herald, although it accepted its appeal on a separate cash restitution claim, the bank said. HSBC now plans to lodge a second appeal with the Luxembourg Court of Appeal and if unsuccessful, the bank said it

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