2.—(1) For the purposes of paragraph (c) of the definition of “debenture” in section 2(1) of the Act, “debenture” includes an arrangement —| (a) | that is entered into on or after 8 October 2018; | | (b) | under which —| (i) | a person (A) transfers legal title to any amount of any precious metal (called in this regulation the specified precious metal) to another person (B), for consideration given by B; | | (ii) | at a predetermined time or within a predetermined period after the arrangement is entered into —| (A) | B is required to transfer legal title to the same amount of the specified precious metal to A, for a predetermined consideration given by A; or | | (B) | B may exercise an option to require A to acquire the legal title to the same amount of the specified precious metal from B for a predetermined consideration given by A, whether or not B may only exercise the option on the fulfilment of one or more conditions; and |
| | (iii) | the predetermined consideration to be given by A under —| (A) | sub‑paragraph (ii)(A); or | | (B) | sub‑paragraph (ii)(B) upon B’s exercise of the option mentioned in that provision, |
| is greater than the value of consideration given by B under sub‑paragraph (i); and |
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| | (c) | that is neither entered into in the ordinary course of B’s business, nor solely incidental to that business. |
(2) In this regulation —| “precious metal” means gold, silver or platinum; |
“predetermined consideration” means —| (a) | a consideration; or | | (b) | a consideration that is determined using a formula, |
| that is fixed as at the time the arrangement mentioned in paragraph (1) is entered into. |
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