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YC 19B: Treatment when certain trusts terminated
or “How the law handles the ending of trusts set up for governments”
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“Rules for certain securities in credit account continuity”

When you’re dealing with credit account continuity provisions, there are some special rules about certain types of financial securities. These rules change how you apply some parts of the law.

You need to look at Section YC 6, but ignore the part that talks about ‘excluded fixed rate securities’. Also, anywhere else in that section where it mentions ‘excluded fixed rate securities’, you should ignore that too.

When you’re looking at definitions in Section YA 1, you need to make a few changes. First, don’t pay attention to part (e) of the definition for ‘excluded option’. Then, in parts (a), (b), and (f) of the definition for ‘market value circumstance’, replace the words ‘an excluded fixed rate security’ with just ‘a’.

These changes help make sure that certain types of securities are treated differently for credit account continuity purposes.

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Part Y Definitions and related matters
Measurement of company ownership

YC 20Credit account continuity provisions: excluded fixed rate securities

  1. This section applies for the purposes of the credit account continuity provisions.

  2. Section YC 6 applies as if—

  3. section YC 6(1)(a) were omitted; and
    1. each other reference to excluded fixed rate security were omitted.

      1. Section YA 1 (Definitions) applies as if—

      2. paragraph (e) of the definition of excluded option were omitted; and
        1. in paragraphs (a), (b), and (f) of the definition of market value circumstance, the words an excluded fixed rate security were replaced by a.

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