Regulation 7 Meaning of “intermediate borrowing company”
For the purposes of these Regulations an “intermediate borrowing company” means a company that meets conditions A and B.
Condition A is that the company’s only business, apart from any incidental activities, is to enter into and be a party to creditor relationships with—
an asset-holding company,
a company that would be an asset-holding company if the assets forming the security for the capital market arrangement were financial assets,
a partnership that would be an asset-holding company if it were a company and the assets forming the security for the capital market arrangement were financial assets, or
another intermediate borrowing company.
Condition B is that the company’s liabilities representing debtor relationships are owed wholly or mainly to a note-issuing company or another intermediate borrowing company.