Section 193 | Interaction between claims under sections 174 and 192(1)

(1)In this section “the loan provision” means the actual provision made or imposed between—

(a)the borrower, and

(b)another person (“the lender”)

which is provision in relation to the borrowing transaction.

(2)Subsections (3) and (4) apply if—

(a)the guarantor company makes a claim under section 192(1), and

(b)the lender makes a claim under section 174 in relation to the loan provision.

(3)In determining the arm's length provision for the purposes of section 174(2)(a) in relation to the lender’s claim, additional amounts are to be brought into account as credits corresponding to the debits that fall to be brought into account by the guarantor company because of section 192(1).

(4)If—

(a)the lender makes its claim under section 174 before the guarantor company makes its claim under section 192(1), and

(b)the calculation on which the lender’s claim is based does not comply with subsection (3),

the guarantor company's claim is to be disallowed.