CFM72540 - Other tax rules on corporate finance: securitisation: periods beginning on or after 1 January 2007: the payments condition: meaning of payment
Meaning of payment
The words 바카라 사이트榩ayment바카라 사이트� and 바카라 사이트榬eceipt바카라 사이트� follow their normal meanings, consistent with case law (see for example the commentary on when interest is paid in CTM51790 and CFM35830). 바카라 사이트楶ayment바카라 사이트� is a movement of funds in discharge of a legal obligation and 바카라 사이트榬eceipt바카라 사이트� must be taken as having a corresponding meaning. Thus, the terms include the disbursement or collection of funds in settlement of loans, interest or other expenses, and advancing funds by way of loan, and receipt of funds borrowed. 바카라 사이트楻바카라 사이트� will include the note issue proceeds received by a note-issuing company at the outset of the securitisation, and 바카라 사이트楶바카라 사이트� will include any amount that it advances to an intermediate borrowing company by way of loan or which it pays to the originator by way of purchase price for the assignment to it of the securitised assets.
However, it is clear that, in the context of the regulations, the words apply only to payments and receipts to and from third parties, and do not include a company effecting payments into, withdrawals from or transfers between accounts of the same company that are solely beneficially owned by the company in question (even where, as will normally be the case, such accounts form part of the security for the capital market arrangement). This means that such a transfer does not give rise to a 바카라 사이트榩ayment바카라 사이트� from the first account and a 바카라 사이트榬eceipt바카라 사이트� in the second account, and does not start the clock ticking again for the purposes of the payments condition.
Where a company sets aside an amount of 바카라 사이트楻바카라 사이트� to build up 바카라 사이트楻A바카라 사이트�, it will generally do this by paying the sum in question into a deposit account which is solely beneficially owned by itself. The making of that deposit will not be regarded as a 바카라 사이트榩ayment바카라 사이트� by the company, and where the company makes a withdrawal from the account, it will not be regarded as a 바카라 사이트榬eceipt바카라 사이트�.
Nor will 바카라 사이트榩ayment바카라 사이트� include a transfer of funds by a company to a trustee who holds the funds as a nominee (or equivalent) for the company. However, 바카라 사이트榩ayment바카라 사이트� will include a transfer of funds to a trustee who holds the trust property in undivided shares for the company and other persons (as will typically be the case with a 바카라 사이트渞eceivables trustee바카라 사이트� of the type commonly encountered in securitisations), and 바카라 사이트榬eceipt바카라 사이트� will be construed on a corresponding basis.
It is common for securitisation companies to invest temporary accumulations of surplus cash received during a payment cycle in specified categories of permitted investments, exclusively beneficially owned by the company for so long as they are held by it. If such investments are pure deposits by the company (as would commonly be the case under 바카라 사이트榞uaranteed investment contracts바카라 사이트�), they will be treated in the same way as all other payments by the company into a bank account of its own.
On the other hand, if such investments are securities which the company purchases in the market, whether as a subscriber or in the secondary market, any amounts paid by the company to acquire such securities will be 바카라 사이트榩ayments바카라 사이트� and any amounts received by it on disposal or redemption of such securities will be 바카라 사이트榬eceipts바카라 사이트�. If this distinction is abused, the 바카라 사이트榰nallowable purposes바카라 사이트� provisions (CFM72570) may become relevant. In this connection, it should be noted that 바카라 사이트榩ermitted investments바카라 사이트� are normally held on a short-term basis (3 to 6 months) and only up to the end of the payment cycle in which they are acquired, at which point sale or redemption proceeds will normally be included in the funds which are subject to the applicable priority of payments for the company concerned.