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Paragraph 15

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A contract falls within this paragraph if it relates only to the provision of a relevant financial facility and the conditions mentioned in sub-paragraph (2) below are satisfied.

(2)

The conditions referred to in sub-paragraph (1) above are that—

(a)

the person to whom the relevant financial facility is provided is an overseas customer;

(b)

it is provided in order that he may comply with a legally binding obligation to receive a relevant supply of goods, or a supply of services, or both, from a person carrying on business F1. . .; and

F2(c)

the contract of insurance insures against risks arising from or in relation to either or both—

(i)

credit,

(ii)

suretyship.

(3)

For the purposes of this paragraph a relevant financial facility is—

(a)

the making of an advance;

(b)

the issue of a letter of credit or acceptance of a bill of exchange;

(c)

the giving of a guarantee or bond; or

(d)

any other similar transaction entered into in order to provide a customer with the means to pay, or a supplier with the right to call upon a third party for, the consideration for goods or services.

Annotations

Textual amendments

F1

Words in Sch. 7A para. 15(2)(b) omitted (1.1.1997) by virtue of S.I. 1996/2955, art. 2

F2

Sch. 7A para. 15(2)(c) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 346(11)

Notes on Schedule 7A

Textual amendments

F1

Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5

Notes on Part I

Textual amendments

F1

Sch. 7A inserted (1.10.1994) by S.I. 1994/1698, art. 5