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PART 2
Amendment of Principal Act
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Amendment of section 1 of Principal Act
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3. Section 1 of the Principal Act is amended—
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(a) by the insertion of the following definitions:
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“ ‘asset credit facility agreement’ means an agreement (other than a loan agreement or a credit facility agreement) under which a participating finance provider agrees to provide to a qualifying enterprise credit in the form of tangible movable property upon—
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(a) such date or dates as may be specified in the agreement, or
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(b) the happening of such event as may be so specified,
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in consideration of that qualifying enterprise agreeing to make payments to the participating finance provider on such date or dates, or the happening of such event as may be so specified, and ‘asset credit facility’ shall be construed accordingly;
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‘cash price’ means, in relation to property provided pursuant to a qualifying finance agreement that is an asset credit facility agreement, the price that the participating enterprise would have been required to pay for the property if, at the time of the making of the agreement, that enterprise had elected to—
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(a) purchase the property, and
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(b) pay for the property in cash;
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‘credit amount’ means—
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(a) in the case of a qualifying finance agreement that is a loan agreement, the principal of moneys borrowed from the participating finance provider by a participating enterprise pursuant to the agreement,
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(b) in the case of a qualifying finance agreement that is a credit facility agreement, the maximum amount (whether or not drawn down) of moneys agreed to be given or advanced by the participating finance provider to a participating enterprise, or to a third party nominated in that behalf by a participating enterprise, pursuant to the agreement,
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(c) in the case of a qualifying finance agreement that is an asset credit facility agreement, the cash price (specified in the agreement) of the property provided by the participating finance provider to a participating enterprise pursuant to the agreement, and
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(d) in the case of a qualifying finance agreement that is an invoice finance facility agreement, the maximum amount of moneys agreed to be given or advanced by the participating finance provider to a participating enterprise pursuant to the agreement, irrespective of whether that amount is given or advanced;
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‘credit facility agreement’ means an agreement (other than a loan agreement) under which a participating finance provider agrees to give or advance to a qualifying enterprise, or to a third party nominated in that behalf by a qualifying enterprise, a sum or sums of money upon—
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(a) such date or dates as may be specified in the agreement, or
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(b) the happening of such event as may be so specified,
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in consideration of that qualifying enterprise agreeing to repay to the participating finance provider the said sum or sums of money so given or advanced, and interest or charges (if any) thereon, on such date or dates as may be so specified, and ‘credit facility’ shall be construed accordingly;
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‘finance agreement’ means—
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(a) a loan agreement,
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(b) a credit facility agreement,
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(c) an asset credit facility agreement, or
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(d) an invoice finance facility agreement;
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‘finance provider’ means a person who, in the ordinary course of business—
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(a) provides financial products to qualifying enterprises,
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(b) arranges for the provision by other persons of financial products to qualifying enterprises, or
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(c) provides facilities for the provision on credit of goods or services by the person to qualifying enterprises,
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but does not include a person who is prohibited under the law of the State or any other state from engaging in any of the activities specified in the foregoing paragraphs, and references to the provision of a financial product shall be construed accordingly;
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‘financial product’ means—
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(a) a loan,
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(b) a credit facility,
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(c) an asset credit facility, or
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(d) an invoice finance facility,
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provided to a qualifying enterprise under a finance agreement;
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‘invoice finance facility agreement’ means an agreement under which a participating finance provider agrees to give or advance to a qualifying enterprise a sum or sums of money in consideration of that qualifying enterprise assigning to the participating finance provider the right to recover debts owed to that qualifying enterprise, and ‘invoice finance facility’ shall be construed accordingly;
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‘participating enterprise’ means a qualifying enterprise—
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(a) belonging to a class to which a credit guarantee scheme applies, and
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(b) who has entered into a qualifying finance agreement with a participating finance provider;
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‘participating finance provider’ shall be construed in accordance with section 2;
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‘qualifying finance agreement’ means a finance agreement—
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(a) in respect of which there has been compliance with the conditions specified in a credit guarantee scheme under subsection (4) of section 5,
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(b) belonging to a class of finance agreement to which a credit guarantee scheme applies,
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(c) that is made for a purpose that does not contravene a provision of a credit guarantee scheme to which paragraph (c) of that subsection applies, and
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(d) that does not permit a finance provider to exercise his or her powers under the finance agreement in such manner as would result in—
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(i) the value of the financial product provided under the agreement exceeding the maximum value specified under that subsection,
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(ii) the aggregate of the value of the financial products provided under a particular class of finance agreements with the qualifying enterprise concerned exceeding the maximum value so specified, or
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(iii) the aggregate of the value of the financial products provided under all qualifying finance agreements with the qualifying enterprise concerned exceeding the maximum value specified under that subsection;”,
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(b) in the definition of “loan agreement”—
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(i) by the substitution of “participating finance provider” for “participating lender” in each place where it occurs, and
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(ii) by the insertion of “, credit card facility or credit line facility” after “overdraft facility”,
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and
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(c) by the deletion of the definitions of—
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(i) “lender”,
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(ii) “EEA Agreement”,
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(iii) “EEA state”,
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(iv) “participating borrower”,
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(v) “participating lender”, and
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(vi) “qualifying loan agreement”.
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