SCHEDULES
SCHEDULE 30Registered pension schemes: employer loans
Definitions
I11
1
A charge is of adequate value if it meets conditions A, B and C.
2
Condition A is that, at the time the charge is given, the market value of the assets subject to the charge—
a
in the case of the first charge to secure the loan, is at least equal to the amount owing (including interest), and
b
in any other case, is at least equal to the lower of that amount and the market value of the assets subject to the previous charge.
3
Condition B is that if, at any time after the charge is given, the market value of the assets charged is less than would be required under condition A if the charge were given at that time, the reduction in value is not attributable to any step taken by the pension scheme, the sponsoring employer or a person connected with the sponsoring employer.
4
Condition C is that the charge takes priority over any other charge over the assets.