PART II SPECIFIED ACTIVITIES

Chapter XVIIExclusions Applying to Several Specified Kinds of Activity

F1Local authorities72G

1

There is excluded from article 5 any activity which is carried on by a local authority.

2

There is excluded from articles 21, 25(1) and (2), 39A and 53 any activity carried on by a local authority which relates to a contract of insurance which is not a qualifying contract of insurance.

3

There is excluded from articles F225A(1)(b), 25A(2), 25B, 25C, 25E, 36A, 39D, 39E, 39F, 39G, F3... 53B, 53C, 53D, 60N, F3... 63B, 63F, 63J or 89A any activity which is carried on by a local authority.

F43A

There is excluded from article 25A(1)(b) and (2) any activity which is carried on by a company which is a wholly-owned subsidiary of a local authority.

3B

F7There is excluded from articles 25A(1)(a) and (2A), 53A, 53DA and 61 any activity which is carried on by a local authority, or a company which is a wholly-owned subsidiary of a local authority, in so far as the contract ...—

F8a

was entered into before 21st March 2016; or

b

is entered into on or after 21st March 2016 and—

F16i

is an agreement to which section 423A(3) of the Act applies;

ii

is a bridging loan; or

iii

is a restricted public loan in relation to which the requirements of paragraph (6) are met.

F193C

There is excluded from article 59(1) and (1A) any activity which is carried on by a local authority.

F54

There is excluded from article 60B—

F9a

any activity which is carried on by a local authority—

i

in relation to a credit agreement which was entered into before 21st March 2016, or which is entered into on or after that date for a purpose other than acquiring or retaining property rights in land or in an existing or projected building; and

ii

in so far as the activity is carried on in relation to a credit agreement F17falling within paragraph (6A) or within section 423A(2)(a) or (b) or (3)(b), (d), (e) or (f) of the Act;

b

any activity which is carried on by a local authority F10in relation to a credit agreement entered into on or after 21st March 2016, the purpose of which is to acquire or retain property rights in land or in an existing or projected building, in so far as the credit agreement meets one of the following conditions—

F18i

it is an agreement to which section 423A(3) of the Act applies;

ii

it is a bridging loan; or

iii

it is a restricted public loan in relation to which the requirements of paragraph (6) are met.

F114A

A reference in paragraph (4) to any land or building—

a

in relation to an agreement entered into before IP completion day, is a reference to any land or building in the United Kingdom or within the territory of an EEA State;

b

in relation to an agreement entered into on or after IP completion day, is a reference to any land or building in the United Kingdom.

5

There is excluded from article 64 any agreement made by a local authority to carry on an activity of the kind excluded by paragraphs (2) to (4).

F66

The requirements of this paragraph are that—

a

the borrower receives timely information on the main features, risks and costs of the loan at the pre-contractual stage; and

b

any advertising of the loan is fair, clear and not misleading.

F126A

The following credit agreements fall within this paragraph—

a

an agreement involving a total amount of credit of less than 200 euro;

b

an agreement that involves a total amount of credit of more than 75,000 euro, other than an unsecured credit agreement the purpose of which is the renovation of a residential immovable property;

c

a hiring or leasing agreement under which an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement;

d

an agreement under which the credit is granted free of interest and without any other charges;

e

an agreement under which the credit has to be repaid within three months and only insignificant charges are payable;

f

an agreement concluded with an investment firm or a credit institution for the purposes of allowing an investor to carry out a transaction relating to one or more of the instruments listed in Part 1 of Schedule 2, where the investment firm or credit institution granting the credit is involved in that transaction;

g

an agreement under which the consumer's liability is strictly limited to an item that the consumer is requested to deposit, upon the conclusion of the agreement, as security in the creditor's safe-keeping;

h

an agreement that relates to a restricted public loan.

6B

For the purposes of subsection (6A)(c), an obligation to purchase the object of the agreement is deemed to exist if the creditor decides that it does.

7

In this article—

  • “bridging loan” has the meaning given by F13article 60G(9);

  • “borrower” means a person receiving credit;

  • F14“consumer” means an individual who is acting for purposes outside those of any trade, business or profession carried on by the individual;

  • F15...

  • “credit” includes a cash loan and any other form of financial accommodation;

  • “restricted public loan” means credit that is—

    1. a

      offered to a particular class of borrower and not offered to the public generally;

    2. b

      offered under an enactment with a general interest purpose; and

    3. c

      provided on terms which are more favourable to the borrower than those prevailing on the market, because the credit meets one of the following conditions—

      1. i

        it is interest free;

      2. ii

        the rate of interest is lower than that prevailing on the market; or

      3. iii

        the rate of interest is no higher than that prevailing on the market but the other terms on which the credit is provided are more favourable to the borrower; and

  • “wholly-owned subsidiary” has the same meaning as in section 1159 (meaning of “subsidiary” etc.) of the Companies Act 2006 and, for the purposes of this definition, a local authority is to be treated as a body corporate.