(1)The Treasury may by regulations provide for—
(a)sections 601 to 606 (deemed manufactured payments: repos),
(b)sections 607 to 610 (treatment of price differences under repos), or
(c)any of those sections,
to apply with modifications in relation to non-standard repo cases.
(2)A case is a non-standard repo case if—
(a)there is a repo in respect of securities,
(b)under the repo, there has been a sale (“the original sale”) of the securities by the original owner to the interim holder, and
(c)any of conditions A to E is met in relation to the repo.
(3)Condition A is that—
(a)the obligation to buy back the securities is not performed, or
(b)the option to buy them back is not exercised.
(4)Condition B is that provision is made by or under an agreement for different or additional UK shares, UK securities or overseas securities to be treated as (or as included with) representative securities.
(5)Condition C is that provision is made by or under an agreement for any UK shares, UK securities or overseas securities to be treated as not included with representative securities.
(6)Condition D is that provision is made by or under an agreement for the sale price or repurchase price to be decided or varied wholly or partly by reference to post-agreement fluctuations.
(7)Condition E is that provision is made by or under an agreement for a person to be required, in a case where there are post-agreement fluctuations, to make a payment in the period—
(a)beginning immediately after the making of the agreement for the original sale, and
(b)ending when the repurchase price becomes due.
(8)“Post-agreement fluctuations” are fluctuations in the value of —
(a)securities transferred in pursuance of the original sale, or
(b)representative securities,
which occur in the period after the making of the agreement for the original sale.
(9)“Representative securities” are UK shares, UK securities or overseas securities which, for the purposes of the repurchase, are to represent securities transferred in pursuance of the original sale.