Explanatory note

Section 105(1) of the Consumer Credit Act 1974 requires any security provided by a person other than the debtor or hirer in relation to an agreement regulated by the Act to be expressed in writing.

These Regulations prescribe the form and content of two types of security instrument made in compliance with that requirement—those expressing guarantees and indemnities. They also prescribe the manner of signature and legibility of the document which must be signed if these security instruments are not to be improperly executed.