Part 5Loan Relationships
Chapter 3The credits and debits to be brought into account: general
Exchange gains and losses
F1328GMeaning of “relevant contingent contract” and “operative condition”
(1)
In the Part 5 one-way exchange effect provisions “ relevant contingent contract ” means a contract that meets the following two conditions.
(2)
The first condition is that company A, or a company connected with company A (“ the relevant company ”), is a party to the contract.
(3)
The second condition is that the contract includes a condition—
(a)
on the meeting of which a right or liability under the contract is altered, and
(b)
that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.
(4)
In this section “ operating currency ” has the same meaning as in section 328D.
(5)
In the Part 5 one-way exchange effect provisions, “ operative condition ” means a condition of the kind mentioned in subsection (3).