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Repackaging programme: Difference between revisions
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''At this point the communication was broken'' | ''At this point the communication was broken'' | ||
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===Zombie queen ants=== | ===Zombie queen ants=== | ||
When contemplating the legal contracts around a repackaging programme, it is well to remember: a [[repackaging vehicle]] is a zombie queen ant, prostrate in its Caribbean nest, immobile, pinned down and paralysed, while a small army of [[Swap dealer|drones]], [[Calculation agent|agents]], bots and pleasure-droids crawl over it, administering necessary opioids and analgesics so that the various [[Client|investors]], [[Swap dealer|hedge counterparties]] and agents can do whatever it is they want to do to each other under a prophylactic cloak of non-responsibility. It is rather like swimming in wellingtons, we are told. | When contemplating the legal contracts around a repackaging programme, it is well to remember: a [[repackaging vehicle]] is a zombie queen ant, prostrate in its Caribbean nest, immobile, pinned down and paralysed, while a small army of [[Swap dealer|drones]], [[Calculation agent|agents]], bots and pleasure-droids crawl over it, administering necessary opioids and analgesics so that the various [[Client|investors]], [[Swap dealer|hedge counterparties]] and agents can do whatever it is they want to do to each other under a prophylactic cloak of non-responsibility. It is rather like swimming in wellingtons, we are told. | ||
===Note issuing vehicle=== | |||
We rather think a repackaging vehicle would fall within the definition of “[[note-issuing company]]” under section 83(3) of the [[Finance Act 2005]]: | |||
{{quote| | |||
A “[[note-issuing company]]” means a company in relation to which the following conditions are met— | |||
:(a) it is party as debtor to a capital market investment, | |||
:(b) the securities that represent the capital market investment are issued wholly or mainly to independent persons, | |||
:(c) the capital market investment is part of a capital market arrangement, F3. . . | |||
:(d) the total value of the capital market investments made under that capital market arrangement is at least £50 million [F4, and | |||
:(e) if it has any business apart from the activity mentioned in paragraph (a) (and any incidental activities) it consists in one or both of the following— | |||
::(i) acquiring, holding and managing assets forming the whole or part of the security for the capital market arrangement; | |||
::(ii) acting as guarantor in respect of loan relationships, derivative contracts, finance leases or other liabilities of other companies where the whole, or substantially the whole, of the company's rights in respect of the guarantee (including any right of subrogation) form the whole or part of the security for the capital market arrangement.}} | |||
===A quick word about limited recourse=== | ===A quick word about limited recourse=== | ||
{{repackaging limited recourse capsule}} | {{repackaging limited recourse capsule}} | ||