PART II SPECIFIED ACTIVITIES
F2Chapter 14ARegulated Credit Agreements
The activities
Exempt agreements: exemptions relating to the nature of the agreement60C
1
A credit agreement is an exempt agreement for the purposes of this Chapter in the following cases.
F42
A credit agreement is an exempt agreement if—
a
by entering into the agreement as lender, a person is or was carrying on an activity of a kind specified by article 61(1) (entering into regulated mortgage contracts); F5...
b
by entering into the agreement as home purchase provider, a person is or was carrying on an activity of a kind specified by article 63F(1) (entering into regulated home purchase plans) F6; or
3
A credit agreement is an exempt agreement if—
a
the lender provides the borrower with credit exceeding £25,000, and
b
the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.
4
A credit agreement is an exempt agreement if—
a
the lender provides the borrower with credit of £25,000 or less,
b
the agreement is entered into by the borrower wholly for the purposes of a business carried on, or intended to be carried on, by the borrower, and
F3c
the agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011).
F3c
the agreement is a green deal plan made in relation to a property that is not a domestic property (as defined by article 60LB).
F84A
A credit agreement is an exempt agreement if—
a
the lender provides the borrower with credit of £25,000 or less,
b
the agreement is entered into by the borrower wholly for the purposes of a business carried on, or intended to be carried on, by the borrower, and
c
the agreement is entered into by the lender and the borrower under the Bounce Back Loan Scheme.
4B
For the purposes of paragraph (4A), “Bounce Back Loan Scheme” means the scheme of that name operated from 4th May 2020 by the British Business Bank plc on behalf of the Secretary of State.
4C
An agreement exempt under paragraph (4A) may not also be an article 36H agreement by virtue of paragraph (4) of that article.
C4C1C5C6C2C3C7C8C9C105
For the purposes of paragraph (3), if an agreement includes a declaration which—
a
is made by the borrower,
b
provides that the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower, and
c
complies with rules made by the FCA for the purpose of this article,
the agreement is to be presumed to have been entered into by the borrower wholly or predominantly for the purposes specified in sub-paragraph (b) unless paragraph (6) applies.
C4C1C5C6C2C3C7C8C9C106
This paragraph applies if, when the agreement is entered into—
a
the lender (or, if there is more than one lender, any of the lenders), or
b
any person who has acted on behalf of the lender (or, if there is more than one lender, any of the lenders) in connection with the entering into of the agreement,
knows or has reasonable cause to suspect that the agreement is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.
7
Paragraphs (5) and (6) also apply for the purposes of paragraph (4) but with the omission of the words “or predominantly”.
8
A credit agreement is an exempt agreement if it is made in connection with trade in goods or services—
a
between the United Kingdom and a country outside the United Kingdom,
b
within a country F1outside the United Kingdom, or
c
between countries outside the United Kingdom, and
the credit is provided to the borrower in the course of a business carried on by the borrower.
Pt. II Ch. 14A, 14B inserted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 1(2)(6), 6