Paragraph 21

United Kingdom

(1)

In a case where—

(a)

all the securities issued on the occasion of the original issue under aparticular prospectus (whatever the time of the issue) are neither gilt-edgedsecurities nor deep gain securities,

(b)

some of the securities issued under the prospectus are not gilt-edgedsecurities but are new would-be deep gain securities, and

(c)

there is a time when the aggregate nominal value of the securities fallingwithin paragraph (b) above (at that time) exceeds the aggregate nominal valueof the securities which (looking at the state of affairs at that time) havebeen issued under the prospectus and are neither gilt-edged securities nor newwould-be deep gain securities,

sub-paragraph (2) below shall apply in relation to any security which isnot a gilt-edged security but which has been or is issued under the prospectusat any time (whether before, at or after the time mentioned in paragraph (c)above).

(2)

As regards any event occurring in relation to the security after the timementioned in sub-paragraph (1)(c) above, paragraphs 5 to 19 above shall haveeffect as if—

(a)

the security were a deep gain security, and

(b)

it had been acquired as such (whatever the time it was acquired).

(3)

For the purposes of sub-paragraph (1) above F1, and subject to paragraph 21A below, a new would-be deep gain security is a security which—

(a)

would be a deep gain security apart from paragraph 1(7) above, and

(b)

was issued on or after 14th March 1989.

(4)

In sub-paragraph (1) above “gilt-edged security” has the same meaning as in paragraph1 above.

(5)

For the purposes of sub-paragraph (2) above events, in relation to asecurity, include anything constituting a transfer or acquisition for thepurposes of this Schedule.

Annotations

Textual amendments

F1: Words in Sch. 11 para. 21(3) inserted (retrospectively and deemed always to have had effect) by Finance (No. 2) Act 1992 (c. 48), s. 33, Sch. 7 paras. 5(1), 7, 8

Notes on Schedule 11

Textual amendments

F1: Sch. 11 repealed (29.4.1996) by 1996 c. 8, ss. 104, 205, Sch. 14 para. 57, Sch. 41 Pt. V(3) (with savings in Pt. IV Ch. II (ss. 80-105))