Section 154 | Interpretation of sections 153A and 153B

(1)Repealed

(2)Repealed

(3)Repealed

(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.

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

(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.

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

(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.

(6)Repealed

(7)Repealed