(1) Section 110 of the Principal Act is amended -

(a) in the definition of "qualifying company" in subsection (1), by the insertion after "arm's length" of ", apart from a transaction where the provisions of paragraph (a) of subsection (3) apply to any interest or other distribution payable under the transaction unless the transaction concerned is excluded from the provisions of that paragraph (a) by virtue of paragraph (b) of that subsection",

and

(b) by the insertion after subsection (2) of the following:

"(3)

(a) Any interest or other distribution which -

(i) is paid out of assets of a qualifying company, directly or indirectly, to -

(I) an original lender or, as the case may be, an originator,

(II) a company which is a 75 per cent subsidiary of the original lender or the originator,

(III) a company of which the original lender or the originator is a 75 per cent subsidiary, or

(IV) a company (other than the original lender or the originator) which is a 75 per cent subsidiary of a company such as is referred to in clause (III),

and

(ii) is so paid in respect of a security falling within section 130(2) (d) (iii),