Part 16Factoring of income etc

Chapter 1Transfers of income streams

755Exception: transfer by way of security

1

This Chapter does not apply if—

a

the consideration for the transfer is the advance under a type 1 finance arrangement, and

b

the transferor is, or is a member of a partnership which is, the borrower in relation to the arrangement.

2

This Chapter does not apply if—

a

the consideration for the transfer is the advance under a type 2 finance arrangement or a type 3 finance arrangement, and

b

the transferor is a member of the partnership which receives that advance under the arrangement.

3

In this section—

  • type 1 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 758,

  • type 2 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 763, and

  • type 3 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 767.