PART 3Finance

CHAPTER 2Other financial and investment restrictions

Loans and credit arrangements17.

(1)

A person (“P”) must not directly or indirectly grant a relevant loan if P knows, or has reasonable cause to suspect, that P is granting a relevant loan.

(2)

A person must not directly or indirectly enter into any arrangement to grant a relevant loan if the person knows, or has reasonable cause to suspect, that the arrangement relates to a relevant loan.

(3)

Paragraphs (1) and (2) are subject to F1Part 7 (Exceptions and licences).

(4)

A person who contravenes a prohibition in paragraph (1) or (2) commits an offence.

(5)

In this regulation—

F2“category 1 loan” means a loan or credit—

(a)

with a maturity exceeding 30 days,

(b)

made or granted to—

  1. (i)

    a person falling within Schedule 2,

  2. (ii)

    a person, other than an individual, which is—

    1. (aa)

      incorporated or constituted under the law of a non-UK country, and

    2. (bb)

      owned (within the meaning of regulation 16(7)) by a person within paragraph (i), or

  3. (iii)

    a person, other than an individual, acting on behalf or at the direction of a person within paragraph (i) or paragraph (ii), and

(c)

which is first made or granted at any time after IP completion day;

“category 2 loan” means a loan or credit—

(a)

with a maturity exceeding 30 days,

(b)

made or granted to a person, other than an individual, which is—

  1. (i)

    incorporated or constituted under the law of any part of the United Kingdom, and

  2. (ii)

    owned (within the meaning of regulation 16(7)) by a person falling within Schedule 2, and

(c)

which is first made or granted at any time on or after 1st March 2022;

“category 3 loan” means a loan or credit—

(a)

with a maturity exceeding 30 days,

(b)

made or granted to a person, other than an individual, which is—

  1. (i)

    connected with Russia,

  2. (ii)

    owned (within the meaning of regulation 16(7)) by a person within sub-paragraph (i), or

  3. (iii)

    a person, other than an individual, acting on behalf or at the direction of a person within paragraph (i) or paragraph (ii),

(c)

which is first made or granted at any time on or after 1st March 2022, and

(d)

which is not—

  1. (i)

    a category 1 loan, a category 2 loan or a category 4 loan, or

  2. (ii)

    a loan made or granted to—

    1. (aa)

      a person, other than an individual, which on 1st March 2022 is domiciled in a country other than Russia,

    2. (bb)

      a person, other than an individual, which is owned by a person falling within sub-paragraph (aa), or

    3. (cc)

      a person, other than an individual, acting on behalf or at the direction of a person within sub-paragraph (aa) or sub-paragraph (bb);

“category 4 loan” means a loan or credit—

(a)

made or granted to the Government of Russia,

(b)

which is first made or granted at any time on or after 1st March 2022;

“non-UK country” means a country that is not the United Kingdom;

F3“relevant loan” means a category 1 loan, a category 2 loan, a category 3 loan or a category 4 loan;

F4...