Consideration when legal defeasance has occurred

EW 47 Legal defeasance
When this section applies

(1)

This section applies when—

(a)

the obligations of a financial arrangement were the subject of a legal defeasance that required another person to meet the remaining obligations of the arrangement; and

(b)

the person who has a right to receive money under the arrangement is now required by section EW 29 to calculate a base price adjustment for it.

Consideration

(2)

The consideration received by the person who has a right to receive money under the arrangement is the total of—

(a)

the amounts received from the original debtor; and

(b)

the amounts received from the person required to meet the remaining obligations.

Defined in this Act: amount, consideration, financial arrangement, legal defeasance, money

Compare: 2004 No 35 s EW 48