SCHEDULES
SCHEDULE 30Registered pension schemes: employer loans
Amount of unauthorised payment
Further reduction in value of charge which is not of adequate value
I17
1
If at any time after a loan is made—
a
the loan is secured by a charge which is not of adequate value, and
b
an event mentioned in sub-paragraph (2) occurs,
there is an unauthorised payment.
2
The events are—
a
the loan ceasing to be secured by a charge,
b
a charge being given which does not comply with conditions A or C,
c
a reduction in the value of the assets charged which does not comply with condition B, and
d
the charge ceasing to comply with condition C.
3
The amount of the unauthorised payment is—
where—
AAE is amount 2 (see paragraph 13) calculated after the event, and
ABE is amount 2 (see paragraph 13) calculated before the event.
4
Paragraph 1 defines conditions A, B and C.