56A Disposal or exercise of rights in pursuance of deposits.

1

This section applies where there is an arrangement under which—

a

there is a right to receive an amount (with or without interest)

in pursuance of a deposit of money,

b

when the right comes into existence there is no certificate of deposit in respect of the right, and

c

the person for the time being entitled to the right is entitled to call for the issue of a certificate of deposit in respect of the right.

2

In such a case—

a

the right shall be treated as not falling within section 56(1)(b), and

b

if there is a disposal or exercise of the right before such time (if any) as a certificate of deposit is issued in respect of it, section 56(2) shall apply to it by virtue of this paragraph.

3

In the application of section 56 by virtue of this section—

a

subsection (2) shall have effect as if the words from “(whether" to “person)" read “(whether by the person originally entitled to the right or by some other person)", and

b

subsection (3) shall have effect as if the words “stated in a certificate of deposit" read “under an arrangement".

4

In this section “certificate of deposit” has the meaning given by section 56(5).

5A

In a case where—

a

there is an arrangement falling within section 56A,

b

the deposit is with a deposit-taker,

c

no certificate of deposit, as defined in section 56(5), has been issued in respect of the right at the time the interest mentioned in section 480A or 480C is paid, and

d

the conditions set out in paragraphs (a) and (b) in the definition of “qualifying certificate of deposit" in section 482(6) apply,

the deposit is not a relevant deposit.

da

any security which fulfils the following conditions, namely, it is a right to receive an amount (with or without interest) in pursuance of a deposit of money, it subsists under an arrangement falling within section 56A, and no certificate of deposit (as defined in section 56(5)) has been issued in respect of it at the time of the transfer concerned;