Section 154 | Interpretation of sections 153A and 153B

(1)Repealed^F1

(2)Repealed^F1

(3)Repealed^F1

(4)Any reference to a guarantee includes—

(a)a reference to a surety, and

(b)a reference to any other relationship, arrangements, connection or understanding (whether formal or informal) such that the person making the loan to the borrower has a reasonable expectation that in the event of a default by the borrower the person will be paid by, or out of the assets of, one or more companies.^F2

(4A)But any implicit support is not to be regarded as a guarantee.^F3

(5)A person has a participatory relationship with another person at any time if provision relating to financing arrangements made or imposed between them at that time would meet the participation condition in section 148.^F4

(5A)“Borrowing” includes the issuing of a security.^F5

(5B)“Implicit support” means any incidental benefit, in relation to borrowing by a company, that it is reasonable to assume would arise to the company as a result of it having a participatory relationship with one or more other companies.^F5

(6)Repealed^F6

(7)Repealed^F7