71GX1Valuation of regulated transactionU.K.
(1)The value of a regulated transaction which is a loan is the value of the total amount to be lent under the loan agreement.
(2)The value of a regulated transaction which is a credit facility is the maximum amount which may be borrowed under the agreement for the facility.
(3)The value of a regulated transaction which is an arrangement by which any form of security is given is the contingent liability under the security provided.
(4)For the purposes of subsections (1) and (2), no account is to be taken of the effect of any provision contained in a loan agreement or an agreement for a credit facility at the time it is entered into which enables outstanding interest to be added to any sum for the time being owed in respect of the loan or credit facility, whether or not any such interest has been so added.
Editorial Information
X1The insertion of the new heading "Chapter 1" in Pt. 4A on 1.7.2008 gives rise to a change in the structure of this legislation on SLD which breaks the continuity of historical versions of the existing provisions which are now brought under that new heading.