Section 552 | General provisions about arrangements

(1)For the purposes of this Chapter it does not matter whether or not provision of any arrangement conferring a right or imposing an obligation on any person to buy any securities is subject to any conditions.

(2)For the purposes of this Chapter an arrangement is in force from the time when the securities are initially sold until the earlier of—

(a)the time when the relevant repurchase takes place, and

(b)the time when it becomes apparent that that repurchase will not take place.

(3)In subsection (2) “the relevant repurchase” has the meaning given by subsections (4) to (7).

(4)In the case of a creditor repo, it means the subsequent sale of the securities or similar securities.

(5)In the case of a creditor quasi-repo, it means—

(a)the subsequent sale of the securities or other securities by the lender,

(b)the receipt of the asset from the lender, or

(c)the discharge of the liability to the lender,

as the case may be.

(6)In the case of a debtor repo, it means the subsequent buying of the securities or similar securities.

(7)In the case of a debtor quasi-repo, it means—

(a)the subsequent buying of the securities or other securities by the borrower,

(b)the receipt of the asset from the borrower, or

(c)the discharge of the liability to the borrower,

as the case may be.