SCHEDULES

SCHEDULE 7Loan relationships and derivative contracts

PART 1Loan relationships: amendments of Parts 5 and 6 of CTA 2009

17

In section 323 (meaning of expressions relating to insolvency etc.), before subsection (1) insert—

A1

For the purposes of sections 322(5B) and 323A(1)(b) a company is unable to pay its debts if—

a

it is unable to pay its debts as they fall due, or

b

the value of the company's assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.