7(1)This paragraph applies in relation to a loan where the loan currency is a currency other than sterling.U.K.
(2)But this paragraph does not apply if paragraph 10 applies in relation to the loan.
(3)The amount of the loan that is outstanding, at the time P is treated as taking the relevant step, is to be calculated in sterling as follows—
Step 1 Calculate, in the loan currency, the amount that is outstanding at that time.
Step 2 Take the value in sterling, at that time, of that amount.
(4)See paragraph 8 for provision about repayments made in a currency other than the loan currency.