linked transaction

51has the meaning in article 60E of the Regulated Activities Order; in summary, a transaction is a linked transaction in relation to a credit agreement ("the principal agreement") if:

1. (1) it is (or will be) entered into by the borrower under the principal agreement or by a relative of the borrower;
1. (2) it does not relate to the provision of security;
1. (3) it does not form part of the principal agreement; and
1. (4) one of the following conditions is satisfied:
   1. (a) the transaction is entered into in compliance with a term of the principal agreement;
   1. (b) the principal agreement is a borrower-lender-supplier agreement53 and the transaction is financed, or to be financed, by the principal agreement;
   1. (c) the following conditions are met:
      1. (i) the other party is
         1. (aa) the lender,
         1. (bb) the lender's associate,
         1. (cc) a person who, in the negotiation of the transaction, is represented by a credit broker53 who is or was also a negotiator in negotiations for the principal agreement, or
         1. (dd) a person who, at the time the transaction is initiated, knows that the principal agreement has been made or contemplates that it might be made;
      1. (ii) the other party initiated the transaction by suggesting it to the borrower or the relative of the borrower; and
      1. (iii) the borrower or the relative of the borrower enters into the transaction to induce the lender to enter into the principal agreement or for another purpose related to the principal agreement or to a transaction financed or to be financed by the principal agreement.

but a transaction is not a linked transaction if it is:

1. (5) a contract of insurance;
1. (6) a contract which contains a guarantee of goods; or
1. (7) a transaction which comprises, or is effected under:
   1. (a) an agreement for the operation of an account (including any savings account) for the deposit of money, or
   1. (b) an agreement for the operation of a current account.