Section 755 | Exception: transfer by way of security

(1)This Chapter does not apply if—

(a)the consideration for the transfer is the advance under a type 1 finance arrangement, and

(b)the transferor is, or is a member of a partnership which is, the borrower in relation to the arrangement.

(2)This Chapter does not apply if—

(a)the consideration for the transfer is the advance under a type 2 finance arrangement or a type 3 finance arrangement, and

(b)the transferor is a member of the partnership which receives that advance under the arrangement.

(3)In this section—

“type 1 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 758,

“type 2 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 763, and

“type 3 finance arrangement” has the meaning given for the purposes of Chapter 2 by section 767.