PART II SPECIFIED ACTIVITIES
F1Chapter 14ARegulated Credit Agreements
The activities
F2Exempt agreements: exemptions not permitted under the mortgages directive60HA
1
A credit agreement F3entered into on or after 21st March 2016 is not an exempt agreement pursuant to article 60E(2) or (5), 60F(4) or 60H(1) if—
a
the agreement is of a type described in Article 3(1) of the mortgages directive, and
b
paragraph (2) does not apply.
2
This paragraph applies if—
a
the agreement is of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive;
b
the agreement is a bridging loan within the meaning of Article 4(23) of that directive; or
c
the agreement is a restricted public loan in respect of which—
i
the borrower receives timely information on the main features, risks and costs at the pre-contractual stage; and
ii
any advertising is fair, clear and not misleading.
3
In paragraph (2)(c) “restricted public loan” means a credit agreement that is—
a
offered to a particular class of borrower and not offered to the public generally;
b
offered under an enactment with a general interest purpose; and
c
provided on terms which are more favourable to the borrower than those prevailing on the market, because it meets one of the following conditions—
i
it is interest free;
ii
the rate of interest is lower than that prevailing on the market; or
iii
the rate of interest is no higher than that prevailing on the market but the other terms on which credit is provided are more favourable to 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