Contracts relating to the provision of financial facilitiesU.K.
15(1)A contract falls within this paragraph if it relates only to the provision of a relevant financial facility and the conditions mentioned in sub-paragraph (2) below are satisfied.
(2)The conditions referred to in sub-paragraph (1) above are that—
(a)the person to whom the relevant financial facility is provided is an overseas customer;
(b)it is provided in order that he may comply with a legally binding obligation to receive a relevant supply of goods, or a supply of services, or both, from a person carrying on business in the United Kingdom; and
(c)the contract of insurance is a contract whose effecting and carrying out constitutes business of one or both of classes 14 and 15 of the classes specified in Part I of Schedule 2 to the Insurance Companies Act 1982 (credit, suretyship etc.).
(3)For the purposes of this paragraph a relevant financial facility is—
(a)the making of an advance;
(b)the issue of a letter of credit or acceptance of a bill of exchange;
(c)the giving of a guarantee or bond; or
(d)any other similar transaction entered into in order to provide a customer with the means to pay, or a supplier with the right to call upon a third party for, the consideration for goods or services.