(1) The Principal Act is amended in Part 7 by the insertion in Chapter 2 of the following section after section 87:

"87A.

(1) In this section -

'equivalent stock' has the meaning assigned to it by section 87 subject to references -

(a) to 'obtained from the lender' being read as 'transferred to the repo buyer',

(b) to 'stock borrowing' being read as 'stock transfer',

(c) to 'lender' being read as 'repo seller',

(d) to 'stock borrower' being read as 'repo buyer',

(e) to 'borrowed stock' being read as 'stock transferred', and

(f) to 'borrower' being read as 'repo buyer';

'repurchase agreement' means an agreement between a person other than an individual (in this section referred to as the 'repo seller') and another person other than an individual (in this section referred to as the 'repo buyer') whereby the repo seller agrees to sell stock to the repo buyer on terms that the repo seller will repurchase, and the repo buyer will resell, equivalent stock not later than 6 months after the date of the stock transfer;

'stock return' means a transaction or transactions whereby a repo buyer conveys equivalent stock to a repo seller in pursuance of a repurchase agreement and within the 6 month time limit referred to in the repurchase agreement;