NEWGATE FUNDING PLC - Irish Stock Exchange

Level: 8 – From: 8 – Wednesday, December 19, 2007 – 9:36 pm – mac8 – 3894 Section 01 : 3894 Section 01
procedures of credit agreements, and (in so far as applicable) pre-contract disclosure. If it does not
comply with those requirements, then to the extent that the credit agreement is regulated by the CCA
or treated as such, it is unenforceable against the borrower:
(i)
(ii)
(iii)
without an order of the OFT, if requirements as to licensing of lenders and brokers are not met;
totally, if the form to be signed by the borrower is not signed by the borrower personally or
omits or mis-states a “prescribed term”; or
without a court order in other cases and, in exercising its discretion whether to make the order,
the court would take into account any prejudice suffered by the borrower and any culpability
of the lender.”
for this Series 2007-3 now reads:
“Any credit agreement that is wholly or partly regulated by the CCA or treated as such has to comply
with requirements under the CCA as to licensing of lenders and brokers, documentation and
procedures of credit agreements, and (in so far as applicable) pre-contract disclosure. If it does not
comply with those requirements, then to the extent that the credit agreement is regulated by the CCA
or treated as such, it is unenforceable against the borrower:
(i)
(ii)
(iii)
without an order of the OFT, if requirements as to licensing of lenders and brokers are not met;
totally, for agreements entered into before 6 April 2007, if the form to be signed by the
borrower is not signed by the borrower personally or omits or mis-states a “prescribed term”;
or
without a court order in other cases and, in exercising its discretion whether to make the order,
the court would take into account any prejudice suffered by the borrower and any culpability
of the lender.”
(c)
on page 58 of the Offering Circular, the second and third paragraphs under the section “Consumer
Credit Reform”:
“The Consumer Credit Act was enacted on 30 March 2006 under which the CCA will be amended by,
inter alia: (a) removing the financial limit for consumer lending; and (b) repealing the rule that, to the
extent that a credit agreement is regulated by the CCA or treated as such, it may be unenforceable
totally. Once these changes come into force, then any Loan made or changed such that a new contract
is entered into after this time, other than a Regulated Mortgage Contract under the FSMA or other
exempt agreement under the CCA, will be regulated by the CCA. Such Loan will have to comply with
requirements under the CCA as described above and, if it does not comply, it will be unenforceable
without an order of the OFT or without a court order, as described above.
The CCA will also be amended by: (a) strengthening the licensing regime; (b) changing the grounds
for challenging a credit agreement, from “extortionate credit bargain” to “unfair relationship” between
the lender and the borrower, with retrospective effect on existing agreements, and explicitly imposing
liability to repay the borrower on both the Series Originator and any assignee such as the Issuer; and
(c) extending the jurisdiction of the Ombudsman to licence-holders under the CCA. The resulting
amendments to the CCA will come into force as and when the Secretary of State for Trade and
Industry so appoints. Further proposals to amend the CCA and secondary legislation made under it
are expected at an unspecified time.”
for this Series 2007-3 now read:
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