(1)Section 607 does not apply in a case within subsection (2) or (3).
(2)A case is within this subsection if the agreement or agreements for sale and repurchase are not what one would expect of persons dealing at arm's length.
(3)A case is within this subsection if the interim holder has all the benefits and risks from fluctuations in the market value of the securities between their sale and repurchase.
(4)This section is subject to any regulations under—
(a)section 611 (power to modify Chapter 5 in non-arm's length case), and
(b)sections 612 to 614 (powers to modify repo provisions: non-standard repo cases and redemption arrangements).
Modifications etc. (not altering text)
C1Ss. 601-610 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by Sale and Repurchase of Securities (Modification of Enactments) Regulations 2007 (S.I. 2007/2486), regs. 1(1), 2(2), 3