Paragraph 2

(1)

Section 263B (stock lending arrangements) is amended as follows.

(2)

In subsection (2), for “section 263C(2)” substitute “ sections 263C(2) and 263CA(3) and (5) ”.

(3)

In subsection (4)—

(a)

in paragraph (a), insert at the end “for a consideration equal to their market value at that time”,

(b)

in paragraph (b), after “at that time” insert “ for that consideration ”, and

(c)

insert at the end (not as part of paragraph (c))— “ This subsection does not apply where section 263CA (insolvency of borrower) applies. ”

(4)

In subsection (7), omit the definition of “interest”.