Part 6Relationships treated as loan relationships etc

Chapter 10Repos

General provisions

554Power to modify this Chapter

1

The Treasury may by regulations provide for all or any of the provisions of this Chapter to apply with modifications in relation to—

a

cases where section 555 (non-standard repo cases) applies, or

b

cases involving redemption arrangements, or

c

both of those cases.

2

A case involves redemption arrangements if—

a

arrangements, corresponding to those made in cases where a company has a repo, are made in relation to securities that are to be redeemed in the period after their sale, and

b

the arrangements are such that a person (instead of having the right or obligation to buy those securities, or similar or other securities, at any subsequent time) has a right or obligation in respect of the benefits which will result from the redemption.

3

The regulations may make—

a

different provision for different cases, and

b

incidental, supplemental, consequential and transitional provision and savings.

4

In this section and section 555—

  • “modifications” include exceptions and omissions, and

  • “repo” means—

    1. a

      a debtor repo or debtor quasi-repo, or

    2. b

      a creditor repo or creditor quasi-repo (including anything treated, as a result of section 547, as a creditor repo for the purposes of section 546).