PART II SPECIFIED ACTIVITIES
F1Chapter 14ARegulated Credit Agreements
The activities
Exempt agreements: exemption relating to the purchase of land for non-residential purposes60D
1
A credit agreement is an exempt agreement for the purposes of this Chapter if, at the time it is entered into, any sums due under it are secured by a legal mortgage on land and the condition in paragraph (2) is satisfied.
2
The condition is that less than 40% of the land is used, or is intended to be used, as or in connection with a dwelling—
a
by the borrower or a related person of the borrower, or
b
in the case of credit provided to trustees, by an individual who is a beneficiary of the trust or a related person of a beneficiary.
3
For the purposes of paragraph (2)—
a
the area of any land which comprises a building or other structure containing two or more storeys is to be taken to be the aggregate of the floor areas of each of those stories;
b
“related person” in relation to a person (“B”) who is the borrower or (in the case of credit provided to trustees) a beneficiary of the trust, means—
i
B’s spouse or civil partner,
ii
a person (whether or not of the opposite sex) whose relationship with B has the characteristics of the relationship between husband and wife, or
iii
B’s parent, brother, sister, child, grandparent or grandchild.
Pt. 2 Chs. 14A, 14B inserted (26.7.2013 for specified purposes) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2), 6