Paragraph 4

(1)

In this Article “financing terms” means provisions for any of the following, that is to say—

(a)

the making or continuation of a loan;

(b)

the granting or continuation of any form of credit or of facilities for credit;

(c)

the supply of any property by way of lease or hire (with or without the option to acquire the ownership of the property);

(d)

the assumption of any liability in the event of a person’s default; and

(e)

the granting of any right to resort to any property in the event of a person’s default.

(2)

Where an agreement contains financing terms the following provisions apply for the purpose of determining whether the agreement is one to which Part I of the Restrictive Trade Practices Act 1956 applies by virtue of this order.

(3)

No account shall be taken of any restriction the sole purpose of which is either or both of the following—

(a)

to maintain a person’s ability to discharge any liability incurred by him under or in connection with the financing terms; and

(b)

to protect a person against the consequences of another person’s default in discharging such a liability.

(4)

If the financing terms relate to the doing of anything outside the United Kingdom by a person who neither resides nor carries on a business within the United Kingdom, no account shall be taken of any restriction which is accepted only—

(a)

by him; or

(b)

by one or more other such persons; or

(c)

by him and one or more other such persons.

Notes on the whole Act

Textual amendments

F1: Act repealed (1.3.2000) by 1998 c. 41, ss. 1(b), 74(2)(3), Sch. 14 Pt. I (with s. 73, Sch. 13); S.I. 2000/344, art. 2, Sch.