# Insolvency Act 1986, Paragraph 13: Parties to capital market arrangements

Extent: E+W+S+N.I.

(1) A company is excluded from being eligible if, on the filing date—
(a) it is a party to an agreement which is or forms part of a capital market arrangement (see sub-paragraph (2)),
(b) a party has incurred, or when the agreement was entered into was expected to incur, a debt of at least £10 million under the arrangement (at any time during the life of the capital market arrangement), and
(c) the arrangement involves the issue of a capital market investment (see paragraph 14).
(2) For the purposes of this paragraph, an arrangement is a “capital market arrangement” if any of the following applies—
(a) it involves a grant of security to a person holding it as trustee for a person who holds a capital market investment issued by a party to the arrangement;
(b) at least one party guarantees the performance of obligations of another party;
(c) at least one party provides security in respect of the performance of obligations of another party;
(d) the arrangement involves an investment of a kind described in articles 83 to 85 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (options, futures and contracts for differences).
(3) For the purposes of sub-paragraph (2)—
(a) a reference to holding a security as trustee includes a reference to holding it as nominee or agent,
(b) a reference to holding for a person who holds a capital market investment includes a reference to holding for a number of persons at least one of whom holds a capital market investment, and
(c) a reference to holding a capital market investment is to holding a legal or beneficial interest in it.
(4) For the purposes of sub-paragraph (1)(b), where a debt is denominated wholly or partly in a foreign currency, the sterling equivalent is to be calculated as at the time when the arrangement is entered into.

---
Source: https://www.legislation.gov.uk/ukpga/1986/45/schedule/ZA1/paragraph/13 (the official version)
Page: https://openlegislation.uk/insolvency-act-1986/schedule-ZA1/paragraph-13
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.