Section 554Z21 | Relief for earmarking or security not followed by contribution or relevant benefit ^F1

(1)This section applies if, by virtue of section 554Z17, Chapter 2 applies by reason of a step taken by B within section 554Z18 or 554Z19.

(2)Section 554Z14 has effect in relation to the step with the following modifications.

(3)Subsection (1)(b) has effect as if for “not a relevant step in relation to a relevant sum or asset” there were substituted “ neither the payment of the relevant contribution (or any part of it) nor the provision of any relevant benefit ”.

(4)Subsection (1)(c) has effect as if for the words from “no further relevant step” to “any relevant sum or asset” there were substituted “ the relevant contribution (or any part of it) will not be paid or a relevant benefit will not be provided ”.

(5)Subsection (1) has effect as if subsection (6) below were substituted for subsection (3).

(6)In subsection (1)—

(a)“the relevant contribution” means the contribution to be paid under the relevant undertaking (within the meaning of Chapter 3), and

(b)“relevant benefit” means a relevant benefit to be provided out of the relevant contribution as mentioned in section 554Z16(2)(b) and (c).