PART IIU.K. SPECIFIED ACTIVITIES

[F1Chapter 14AU.K.Regulated Credit Agreements

Textual Amendments

F1Pt. II Ch. 14A, 14B inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), 6

The activitiesU.K.

Exempt agreements: exemption relating to the purchase of land for non-residential purposesU.K.

60D.—(1) A credit agreement is an exempt agreement for the purposes of this Chapter if, at the time it is entered into, any sums due under it are secured by a legal [F2or equitable] mortgage on land and the condition in paragraph (2) is satisfied.

(2) The condition is that less than 40% of the land is used, or is intended to be used, as or in connection with a dwelling—

(a)by the borrower or a related person of the borrower, or

(b)in the case of credit provided to trustees, by an individual who is a beneficiary of the trust or a related person of a beneficiary.

(3) For the purposes of paragraph (2)—

(a)the area of any land which comprises a building or other structure containing two or more storeys is to be taken to be the aggregate of the floor areas of each of those stories;

(b)“related person” in relation to a person (“B”) who is the borrower or (in the case of credit provided to trustees) a beneficiary of the trust, means—

(i)B’s spouse or civil partner,

(ii)a person (whether or not of the opposite sex) whose relationship with B has the characteristics of the relationship between husband and wife, or

(iii)B’s parent, brother, sister, child, grandparent or grandchild.

[F3(4) This article does not apply to an agreement if—

(a)the agreement is entered into on or after 21st March 2016,

(b)under the agreement a mortgage creditor grants or promises to grant a credit in the form of a deferred payment, loan or other similar financial accommodation,

(c)the credit is granted or promised to an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual,

(d)the purpose of the agreement is to acquire or retain property rights in land or in an existing or projected building, and

(e)the agreement does not meet the conditions in paragraphs (i) to (iii) of article 61(3)(a) (regulated mortgage contracts).

(5) A reference in paragraph (4)(d) to any land or building—

(a)in relation to an agreement entered into before IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;

(b)in relation to an agreement entered into on or after IP completion day, is a reference to any land or building in the United Kingdom.]]

Textual Amendments

F2Words in art. 60D(1) inserted (14.2.2014 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014 (S.I. 2014/366), art. 1(3)(4), 2(25)