Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2021-05-14.

restricted-use credit agreement

  1. 123(1) (except in CONC) (in accordance with section 11 of the Consumer Credit Act 1974) an agreement:
    1. (a) to finance a transaction between the customer and the firm, whether forming part of that agreement or not;
    2. (b) to finance a transaction between the customer and a person (the 'supplier') other than the firm;
    3. (c) to refinance any existing indebtedness of the customer's, whether to the firm or another person.
  2. (2) (in CONC) a credit agreement:andbut
    1. (a) to finance a transaction between the borrower and the lender, whether forming part of that agreement or not;
    2. (b) to finance a transaction between the borrower and a ("the supplier") other than the lender; or
    3. (c) to refinance any existing indebtedness of the borrower's, whether to the lender or another person,
    4. (d) an agreement may fall within (b) even though the identity of the supplier is unknown at the time the agreement is made,
    5. (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.
    andbut