PART II SPECIFIED ACTIVITIES

F2Chapter 14ARegulated Credit Agreements

Annotations:
Amendments (Textual)
F2

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

The activities

F7Exempt agreements: F1provision qualifying articles 60E, 60F and 60H60HA

1

A credit agreement F8entered into on or after 21st March 2016 is not an exempt agreement pursuant to article 60E(2) or (5) F5or 60F(4) if it is a mortgage agreement to which paragraph (2) does not apply.

2

This paragraph applies F3to an agreement if—

F4a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

the agreement is a bridging loan within the meaning F6given by article 60G(9); 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.