Section 552 — Corporation Tax Act 2009: General provisions about arrangements

General provisions about arrangements 552 1 For the purposes of this Chapter it does not matter whether or not provision of any arrangement conferring a right or imposing an obligation on any person to buy any securities is subject to any conditions.

2 For the purposes of this Chapter an arrangement is in force from the time when the securities are initially sold until the earlier of—

a the time when the relevant repurchase takes place, and b the time when it becomes apparent that that repurchase will not take place.

3 In subsection (2) “ the relevant repurchase ” has the meaning given by subsections (4) to (7).

4 In the case of a creditor repo, it means the subsequent sale of the securities or similar securities.

5 In the case of a creditor quasi-repo, it means—

a the subsequent sale of the securities or other securities by the lender, b the receipt of the asset from the lender, or c the discharge of the liability to the lender, as the case may be.

6 In the case of a debtor repo, it means the subsequent buying of the securities or similar securities.

7 In the case of a debtor quasi-repo, it means—

a the subsequent buying of the securities or other securities by the borrower, b the receipt of the asset from the borrower, or c the discharge of the liability to the borrower, as the case may be.