Para 22: loan charge relevant step: commercial terms condition
Schedule 11 F(No 2)A 2017
A loan will meet the commercial terms condition if:
- it is reasonable to assume that such a loans would have been available on comparable terms from the lender to members of the public or
- the loan was made in the ordinary course of a lending business
The borrower also needs to have complied in all material respects with the terms of the loan.
In order to decide whether a loan is made in the ordinary course of a lending business, that business has to include the lending of money or the supply of goods or services on credit.