Regulation 6 Determining the gross cash equivalent of a small loan
(1)
Where a loan meets the conditions for a small loan set out in paragraphs (2) or (3) the gross cash equivalent of that loan may be determined to be equal to £315,000.
(2)
A loan is a small loan if it is—
(a)
secured by collateral of a value of at least 50% of the amount of the loan,
(b)
of an amount which is not more than £1,575,000, and
(c)
for a term of not more than 5 years.
(3)
A loan is a small loan if it is—
(a)
of an amount which is not more than £785,000, and
(b)
for a term of not more than 10 years.
(4)
Where a small loan is for less than the amounts set out in paragraphs (2)(b) or (3)(a), or is given for a term of less than 5 or 10 years respectively, the gross cash equivalent of that loan may be determined to be the corresponding proportion of £315,000.