Eligible debt securities–interpretation

4.—(1) In regulation 3(3)–

(a) before “public” (wherever occurring), insert “general”;

(b) after “appointed” (where second occurring), insert–

• “; or

  (iii)

  if the security falls within paragraph (a)(ii) of the definition of “local authority security” in paragraph (1) and the local authority has appointed as a registrar a person who is neither an officer nor any other employee of the authority for all of the purposes of the register required to be maintained under section 46(1) of the 1989 Act, to the person so appointed”.

(2) After regulation 3(3), add–

“(4) In respect of a security which is an eligible debt security, references in these regulations to the issuer or the participating issuer of that security (or units of that security) shall be taken to be references to–

(a) a person (“P”) who undertakes as principal to perform the payment obligation constituted by the security in accordance with its current terms of issue; and

(b) any other person who undertakes as principal to perform that obligation in accordance with those terms in the event that P fails to do so.

(5) For the purposes of paragraph (4)(b), a person who undertakes to perform an obligation under a contract of guarantee or other contract of suretyship is not to be regarded as undertaking to perform it as principal.

(6) For the purposes of paragraph (a) of the definition of “eligible debt security” in paragraph (1), a sum of money–

(a) is to be regarded as payable at a determinable future time if it is payable–

(i) at a future time fixed by or in accordance with the current terms of issue of the security; or

(ii) at the expiry of a fixed period after the occurrence of a specified event which is certain to happen, though the time of happening may be uncertain; and

(b) is not to be regarded as payable at a determinable future time if it is payable on a contingency.”.