Schedule 1
Transactions where goods are deemed to be or not to be pawned
ActIn forceProvision 86 of 88
Schedule 1
FIRST SCHEDULESections 3(4) and 82(1)Transactions where goods are deemed to be or not to be pawnedSale and repurchase agreement1.—
(1)
This paragraph applies to an agreement between 2 persons, X and Y, where —
(a)
X sells goods to Y for a price; and
(b)
X is required to re-purchase the goods from Y at a higher price.
(2)
In such an agreement —
(a)
the goods are deemed to be pawned;
(b)
X is deemed to be the pawner;
(c)
the sale price is deemed to be the sum loaned; and
(d)
the difference between the sale price and the repurchase price is deemed to be the profit taken for the loan.