Part 16Factoring of income etc

Chapter 3Loan or credit transactions

777Loan or credit transaction defined

1

This section defines a loan or credit transaction for the purposes of sections 778 and 779.

2

A transaction is a loan or credit transaction if it is—

a

effected with reference to the lending of money or the varying of the terms on which money is lent, or

b

effected with a view to enabling or facilitating an arrangement concerning the lending of money or the varying of the terms on which money is lent.

3

A transaction is a loan or credit transaction if it is—

a

effected with reference to the giving of credit or the varying of the terms on which credit is given, or

b

effected with a view to enabling or facilitating an arrangement concerning the giving of credit or the varying of the terms on which credit is given.

4

Subsection (2) has effect whether the transaction is effected—

a

between the lender and the borrower,

b

between either of them and a person connected with the other, or

c

between a person connected with one and a person connected with the other.

5

Subsection (3) has effect whether the transaction is effected—

a

between the creditor and the debtor,

b

between either of them and a person connected with the other, or

c

between a person connected with one and a person connected with the other.