CONC App 1.3 Exemption of certain credit agreements secured on land

This section specifies:

1. (a)

   the persons or classes of persons to whom the exemption in article 60E(2) of the Regulated Activities Order applies; and

2. (b)

   the agreements or classes of agreement to which the exemption in article 60E(2) of the Regulated Activities Order applies.

Paragraphs (2) to (5) do not apply where the applicable agreement is an MCD article 3(1)(b) credit agreement.

Where the lender is a body specified in CONC App 1.3.2 R or an authorised person with permission to accept deposits, article 60E(2) of the Regulated Activities Order applies only to

1. (a)

   a borrower-lender-supplier agreement falling within (a) or (c) of the definition of relevant credit agreement relating to the purchase of land;

2. (b)

   a borrower-lender agreement secured by any legal or equitable mortgage on land to finance

   1. (i)

      the purchase of land; or

   2. (ii)

      the provision of dwellings or business premises on any land; or

   3. (iii)

      subject to (3) below, the alteration, enlarging, repair or improvement of a dwelling or business premises on any land;

3. (c)

   a borrower-lender agreement secured by any legal or equitable mortgage on land to refinance any existing indebtedness of the borrower, whether to the lender or another person, under any agreement by which the borrower was provided with credit for any of the purposes specified in (b)(i) to (iii) above.

(2)(b)(iii) above applies only

1. (a)

   where the lender is the lender under

   1. (i)

      an agreement (whenever made) by which the borrower is provided with credit for any of the purposes specified in (2)(b)(i) and (2)(b)(ii); or

   2. (ii)

      an agreement (whenever made) refinancing an agreement under which the borrower is provided with credit for any of the said purposes,

   being, in either case, an agreement relating to the land referred to in (2)(b)(iii) and secured by a legal or equitable mortgage on that land; or

2. (b)

   where a borrower-lender agreement to finance the alteration, enlarging, repair or improvement of a dwelling, secured by a legal or equitable mortgage on that dwelling, is made as a result of any such services as are described in section 4(3)(e) of the Housing Associations Act 1985 which are certified as having been provided by

   1. (i)

      a local authority;

   2. (ii)

      a housing association within the meaning of section 1 of the Housing Associations Act 1985 or article 3 of the Housing (Northern Ireland) Order 1992;

   3. (iii)

      a body established by such a housing association for the purpose of providing such services as are described in the said section 4(3)(e) of the Housing Associations Act 1985;

   4. (iv)

      a charity;

   5. (v)

      the National Home Improvement Council;

   6. (vi)

      the Northern Ireland Housing Executive; or

   7. (vii)

      a body, or a body of any description, that has been approved by the Secretary of State under section 169(4)(c) of the Local Government and Housing Act 1989 or the Department of the Environment for Northern Ireland under article 103(4)(c) of the Housing (Northern Ireland) Order 1992.

Where the lender is a body specified in CONC App 1.3.3 R, the exemption in article 60E(2) of the Regulated Activities Order applies only to an agreement of a description specified in that rule in relation to that body and made pursuant to an enactment or for a purpose so specified.

Where the lender is a body specified in CONC App 1.3.4 R, the exemption in article 60E (2) of the Regulated Activities Order applies only to an agreement of a description falling within CONC App 1.3.1R (2)(a) to CONC App 1.3.1R (2)(c), being an agreement advancing money on the security of a dwelling-house.