Finance Act, 1996

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Amendment of section 31 (securitisation of assets) of Finance Act, 1991.

55.—(1) Section 31 of the Finance Act, 1991 , is hereby amended—

(a) in subsection (1)—

(i) by the substitution for the definition of “qualifying asset” of the following:

“‘original lender’ and ‘originator’ have the meanings they have, respectively, in the definition of ‘qualifying asset’;

‘qualifying asset’ means—

(a) in the case of a qualifying company which is a qualified company (within the meaning of section 39B of the Finance Act, 1980 ), an asset—

(i) denominated in a foreign currency which consists of, or of an interest in or a contractual right to, any loan, lease, trade or consumer receiveable or other debt or receiveable whether secured or unsecured, and

(ii) of a person (hereafter in this section referred to as the ‘originator’), being any government, public or local authority, company or other body corporate which—

(I) is not resident in the State, and

(II) (A) is not carrying on a trade in the State through a branch or agency, or

(B) is carrying on a trade in the State through a branch or agency and the asset was not created, acquired or held by or in connection with the branch or agency,

and

(b) in any other case, a loan made by a company (hereafter in this section referred to as the ‘original lender’) on the security of a mortgage of a freehold or leasehold estate or interest in the ordinary course of a trade carried on by it which consists of or includes the lending of money on such security;”,

(ii) in the definition of “qualifying company”—

(I) by the insertion after “original lenders” of “, or the originator or originators”, and

(II) by the insertion after “any other business” of “, apart from activities which are ancillary to the said business of the management of qualifying assets”,

and

(b) in subsection (2)—

(i) by the insertion in subparagraph (b) (ii) after “the original lender” of “or the originator, as the case may be,”, and

(ii) by the insertion in the proviso to paragraph (b) after “Provided that” of “in the case of a company referred to in paragraph (b) of the definition of ‘qualifying asset’.”.

(2) This section shall apply and have effect as on and from the 28th day of March, 1996.