Section 153 | Meaning of “gilt-edged security” and “strip”

(1)In this Act “gilt-edged security” means a security which—

(a)is a gilt-edged security for the purposes of TCGA 1992 (see Schedule 9 to that Act), or

(b)will be such a security on the making of an order under paragraph 1 of Schedule 9 to TCGA 1992, if the making of the order is anticipated in the prospectus under which the security is issued.

(2)For the purposes of sections 151 and 152 “strip”, in relation to a gilt-edged security, means a security issued under the National Loans Act 1968 (c. 13) which meets conditions A to C.

(3)Condition A is that the security is issued for the purpose of representing the right to or of securing—

(a)a payment corresponding to a payment of interest or principal remaining to be made under the gilt-edged security, or

(b)two or more payments each corresponding to a payment to be so made.

(4)Condition B is that the security is issued in conjunction with the issue of one or more other securities which, together with that security—

(a)represent the right to, or

(b)secure,

payments corresponding to every payment remaining to be made under the gilt-edged security.

(5)Condition C is that the security is not itself a security which—

(a)represents the right to, or

(b)secures,

payments corresponding to a part of every payment remaining to be made under the gilt-edged security.