Part 11Manufactured payments and repos

Chapter 1Introduction

570Meaning of “buying back” securities etc

1

This section applies for the purposes of this Part, in the context of a repo.

2

References to buying back securities include references to—

a

buying similar securities, and

b

in the case of a person connected with the person who is the original owner under the repo, buying the securities sold by the original owner or similar securities.

3

Subsection (2) applies even if the person buying the securities has not held them before.

4

References to repurchase or a repurchaser are to be read accordingly.

5

For the purposes of subsection (2) securities are similar if they give their holders—

a

the same rights against the same persons as to capital and distributions, interest and dividends, and

b

the same remedies to enforce those rights.

6

Subsection (5) applies even if there is a difference in—

a

the total nominal amounts of the securities,

b

the form in which they are held, or

c

the manner in which they can be transferred.