Onward sales
3
1
Rights transferred by transfer arrangements may be further transferred by arrangements between the loan purchaser and another person (“further transfer arrangements”).
2
In this Act (including this section) a reference to transfer arrangements includes a reference to further transfer arrangements.
3
In the application of this Act to further transfer arrangements—
a
a reference to a loan purchaser is a reference to the transferee under the further transfer arrangements (“the further transferee”), and
b
in section 1(3)(b), (4)(a) and (c) and (7) a reference to the Secretary of State is a reference to the transferor under the further transfer arrangements.
4
Subsection (1) is subject to any provision of transfer arrangements prohibiting, restricting or controlling further transfer.
5
Further transfer arrangements may include provision—
a
transferring to the further transferee an obligation of the loan purchaser in connection with a loan;
b
transferring to the further transferee the benefit of an obligation or undertaking of the borrower in respect of a loan (however deriving);
c
transferring to the further transferee the benefit of warranties or indemnities or other obligations of the Secretary of State under transfer arrangements.
6
Transfer arrangements may—
a
prohibit the making of further transfer arrangements without the Secretary of State's consent;
b
require further transfer arrangements to be effected by way of novation or other arrangements to which the Secretary of State is a party;
c
include provision by virtue of which the Secretary of State is automatically a party to further transfer arrangements (and may enforce any of their terms).
7
In entering into transfer arrangements the Secretary of State shall ensure (whether by reliance on subsection (6)(b) or (c) or otherwise) that the Secretary of State will be party to any further transfer arrangements.
8
The Secretary of State may enter into arrangements, under or in accordance with transfer arrangements, in connection with further transfer.
9
References in this section to the further transfer of transferred rights do not include references to arrangements under which—
a
transferred rights become held on trust,
b
other equitable interests are created or transferred in relation to transferred rights, or
c
securities are granted in respect of transferred rights.