This section has no associated Explanatory Notes
108(1)In the case of a policy issued in respect of an insurance made before 14th March 1989 or a contract made before that date, section 501 (part surrenders: loans) does not apply if—U.K.
(a)a company beneficially owns the rights under the policy,
(b)they are held on trusts which a company created, or
(c)they are held as security for a company's debt.
(2)For the purposes of this paragraph, a policy is treated as issued in respect of an insurance made on or after 14th March 1989 if it is varied on or after that date so as—
(a)to increase the benefits secured, or
(b)to extend the term of the insurance.
(3)Any exercise of rights conferred by a policy counts as its variation for the purposes of sub-paragraph (2).