restricted-use credit agreement
- 123(1) (except in CONC) (in accordance with section 11 of the Consumer Credit Act 1974) an agreement:
- (a) to finance a transaction between the customer and the firm, whether forming part of that agreement or not;
- (b) to finance a transaction between the customer and a person (the 'supplier') other than the firm;
- (c) to refinance any existing indebtedness of the customer's, whether to the firm or another person.
- (2) (in CONC) a credit agreement:andbut
- (a) to finance a transaction between the borrower and the lender, whether forming part of that agreement or not;
- (b) to finance a transaction between the borrower and a ("the supplier") other than the lender; or
- (c) to refinance any existing indebtedness of the borrower's, whether to the lender or another person,
- (d) an agreement may fall within (b) even though the identity of the supplier is unknown at the time the agreement is made,
- (e) a credit agreement is not a restricted-use credit agreement if the credit is in fact provided in such a way as to leave the borrower free to use it as the borrower chooses, even though certain uses would contravene that or any other agreement.