Commentary on Sections Overview Part 2: General requirements Paragraph 12: No loan arrangements
2981.This paragraph provides that the arrangements for the plan must not be associated in any way with any provision made for loans to employees. It derives from paragraph 12 of Schedule 8.
2982.Sub-paragraphs (1) and (2) both derive from paragraph 12(1) of Schedule 8. The material has been divided to make it easier to follow and to understand.
2983.In sub-paragraph (3), the words “For the purposes of sub-paragraph (1)” have been replaced by the words “In sub-paragraph (1)”.