Non-gilts: special rulesU.K.
Textual Amendments
F1Sch. 11 repealed (29.4.1996) by 1996 c. 8, ss. 104, 205, Sch. 14 para. 57, Sch. 41 Pt. V(3) (with savings in Pt. IV Ch. II (ss. 80-105))
21(1)In a case where—
(a)all the securities issued on the occasion of the original issue under aparticular prospectus (whatever the time of the issue) are neither gilt-edgedsecurities nor deep gain securities,
(b)some of the securities issued under the prospectus are not gilt-edgedsecurities but are new would-be deep gain securities, and
(c)there is a time when the aggregate nominal value of the securities fallingwithin paragraph (b) above (at that time) exceeds the aggregate nominal valueof the securities which (looking at the state of affairs at that time) havebeen issued under the prospectus and are neither gilt-edged securities nor newwould-be deep gain securities,
sub-paragraph (2) below shall apply in relation to any security which isnot a gilt-edged security but which has been or is issued under the prospectusat any time (whether before, at or after the time mentioned in paragraph (c)above).
(2)As regards any event occurring in relation to the security after the timementioned in sub-paragraph (1)(c) above, paragraphs 5 to 19 above shall haveeffect as if—
(a)the security were a deep gain security, and
(b)it had been acquired as such (whatever the time it was acquired).
(3)For the purposes of sub-paragraph (1) above [F2, and subject to paragraph 21A below,] a new would-be deep gain security is a security which—
(a)would be a deep gain security apart from paragraph 1(7) above, and
(b)was issued on or after 14th March 1989.
(4)In sub-paragraph (1) above “gilt-edged security” has the same meaning as in paragraph1 above.
(5)For the purposes of sub-paragraph (2) above events, in relation to asecurity, include anything constituting a transfer or acquisition for thepurposes of this Schedule.
[F321A(1)A security which (apart from this paragraph) would be a new would-be deep gain security for the purposes of paragraph 21(1) above is not such a security if the following three conditions are fulfilled.
(2)The first condition is that all the securities issued on the occasion of the original issue were issued before 13th November 1991.
(3)The second condition is that the security is issued on or after 13th November 1991.
(4)The third condition is that, even if paragraph 1(7) above did not prevent the security being a deep gain security, it would nevertheless not be a deep gain security if for the purposes of paragraph 1(2) above “redemption” did not include any redemption which may be made before maturity otherwise than in pursuance of the exercise by the person who holds the security for the time being of an option exercisable only on the effluxion of time or the happening of an event which (judged at the time of the security’s issue) is certain or likely to occur.]