|
|
Amendment of section 110 (securitisation of assets) of Principal Act.
|
82.—(1) Section 110 of the Principal Act is amended—
|
|
| |
(a) in the definition of “qualifying company” in subsection (1), by the insertion after “arm's length” of “, apart from a transaction where the provisions of paragraph (a) of subsection (3) apply to any interest or other distribution payable under the transaction unless the transaction concerned is excluded from the provisions of that paragraph (a) by virtue of paragraph (b) of that subsection”,
|
|
| |
and
|
|
| |
(b) by the insertion after subsection (2) of the following:
|
|
| |
“(3) (a) Any interest or other distribution which—
|
|
| |
(i) is paid out of assets of a qualifying company, directly or indirectly, to—
|
|
| |
(I) an original lender or, as the case may be, an originator,
|
|
| |
(II) a company which is a 75 per cent subsidiary of the original lender or the originator,
|
|
| |
(III) a company of which the original lender or the originator is a 75 per cent subsidiary, or
|
|
| |
(IV) a company (other than the original lender or the originator) which is a 75 per cent subsidiary of a company such as is referred to in clause (III),
|
|
| |
and
|
|
| |
(ii) is so paid in respect of a security falling within section 130(2)(d)(iii),
|
|
| |
shall not be a distribution by virtue only of section 130(2)(d)(iii) unless the application of this paragraph is excluded by paragraph (b).
|
|
| |
(b) Paragraph (a) shall not apply where—
|
|
| |
(i) an original lender or, as the case may be, an originator,
|
|
| |
(ii) a company which is a 75 per cent subsidiary of the original lender or the originator,
|
|
| |
(iii) a company of which the original lender or the originator is a 75 per cent subsidiary, or
|
|
| |
(iv) a company (other than the original lender or the originator) which is a 75 per cent subsidiary of a company such as is referred to in subparagraph (iii),
|
|
| |
(in this paragraph referred to as the ‘lender’) advances an amount or amounts of money to a qualifying company in respect of securities falling within section 130(2)(d)(iii) held, directly or indirectly, by the lender which amount or the total of which amounts, at any time, is in excess of 25 per cent of the market value of all qualifying assets acquired by the qualifying company from that original lender or originator at the time of the acquisition of the qualifying assets.”.
|
|
| |
(2) Subsection (1) shall apply as respects any interest paid on or after 10 February 2000.
|
