600Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”U.K.
(1)This section applies for the purposes of sections 596 to 599.
(2)“Quasi-stock lending arrangement” means so much of any arrangements between two or more persons as are not stock lending arrangements, but are arrangements under which—
(a)a person (“the lender”) transfers securities to another person (“the borrower”) otherwise than by way of sale, and
(b)a requirement is imposed on a person to transfer any or all of the securities, or any other property, back to the lender or any other person otherwise than by way of sale.
(3)For the purposes of subsection (2) it does not matter whether the person on whom the requirement is imposed is the borrower or any other person.
(4)“Quasi-cash collateral”, in relation to a stock lending arrangement or quasi-stock lending arrangement, means—
(a)any money which is payable for a relevant purpose, and
(b)any other property which is transferable for a relevant purpose.
(5)Money or other property is payable or transferable for a relevant purpose if it is payable or transferable to or for the benefit of—
(a)the lender under the stock lending arrangement or quasi-stock lending arrangement, or
(b)a person connected with the lender,
for the purpose of securing the discharge of the requirement mentioned in subsection (2)(b).
(6)If any property other than money is transferable for a relevant purpose, the amount of the quasi-cash collateral so far as relating to that property is determined by reference to its market value.
(7)In this section “property” means property in any form.