Part 11Manufactured payments and repos
Chapter 4Deemed manufactured payments
Stock lending arrangements
600Meaning of “quasi-stock lending arrangements” and “quasi-cash collateral”
1
This section applies for the purposes of sections 596 to 599.
2
“Quasi-stock lending arrangement” means so much of any arrangements between two or more persons as are not stock lending arrangements, but are arrangements under which—
a
a person (“the lender”) transfers securities to another person (“the borrower”) otherwise than by way of sale, and
b
a requirement is imposed on a person to transfer any or all of the securities, or any other property, back to the lender or any other person otherwise than by way of sale.
3
For the purposes of subsection (2) it does not matter whether the person on whom the requirement is imposed is the borrower or any other person.
4
“Quasi-cash collateral”, in relation to a stock lending arrangement or quasi-stock lending arrangement, means—
a
any money which is payable for a relevant purpose, and
b
any other property which is transferable for a relevant purpose.
5
Money or other property is payable or transferable for a relevant purpose if it is payable or transferable to or for the benefit of—
a
the lender under the stock lending arrangement or quasi-stock lending arrangement, or
b
a person connected with the lender,
for the purpose of securing the discharge of the requirement mentioned in subsection (2)(b).
6
If any property other than money is transferable for a relevant purpose, the amount of the quasi-cash collateral so far as relating to that property is determined by reference to its market value.
7
In this section “property” means property in any form.