[F1606GMeaning of “relevant contingent contract” and “operative condition”U.K.
(1) In the Part 7 one-way exchange effect provisions “ relevant contingent contract ” means a contract that meets the following two conditions.
(2) The first condition is that company A, or a company connected with company A (“ the relevant company ”), is a party to the contract.
(3)The second condition is that the contract includes a condition—
(a)on the meeting of which a right or liability under the contract is altered, and
(b)that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.
(4) In this section “ operating currency ” has the same meaning as in section 606D.
(5) In the Part 7 one-way exchange effect provisions “ operative condition ” means a condition of the kind mentioned in subsection (3). ]
Textual Amendments
F1Ss. 606A-606H inserted (with effect in accordance with Sch. 21 para. 11 of the commencing Act) by Finance Act 2009 (c. 10), Sch. 21 para. 7