Paragraph 4 Meaning of “relevant debts” and treatment of similar arrangements
In this Schedule “relevant debts” means debts which—
are owed by a body of persons corporate or unincorporate, or a corporation sole, incorporated or established or having a place of business in a member State or the Channel Islands, the Isle of Man, Gibraltar, Iceland, Liechtenstein, Norway or Switzerland, and
are not excluded by paragraph (3) below,
and equitable interests in such debts.
A relevant debt may be owed to a body alone or in a syndicate.
A debt which is an advance fully secured on land or a class 3 asset (otherwise than by virtue of the Building Societies (Commercial Assets) Order 1995f1) is not a relevant debt unless paragraph (4) below applies and the debt is treated as a relevant debt pursuant to that paragraph.
Where a body has entered into an arrangement which could constitute the acquisition or holding of a relevant debt or one of the following, namely—
the making of an advance fully secured on land, and
the acquisition or holding of a money transmission service debt (within the meaning of the Building Societies (Money Transmission Services) Order 1989f2),
the body shall record which of the above the arrangement is to be treated as constituting and it shall be so treated.