Commentary on Sections Overview Chapter 3: Credits and debits to be brought into account: general Section 611: Release under statutory insolvency arrangement of liability under derivative contract
1656.This section exempts from the scope of this Part any credit arising on the release of a company’s liability to pay an amount under a derivative contract, if the release is part of a statutory insolvency arrangement. It is based on paragraph 22(5) of Schedule 26 to FA 2002.
1657.A “statutory insolvency arrangement” is defined in section 834(1) of ICTA by reference to the Insolvency Act 1986 and other provisions having a similar effect.