33Enforcement of contracts with respect to allotment etc of shares in loan fund company conditional on compliance with certain requirements

33 Enforcement of contracts with respect to allotment etc of shares in loan fund company conditional on compliance with certain requirements

33 Enforcement of contracts with respect to allotment etc of shares in loan fund company conditional on compliance with certain requirements

(1) A loan fund company which enters into a contract with a person for the allotment to that person of shares in the company, or for the granting to that person of an option to acquire loan entitlement shares in the company, shall not be entitled to enforce the contract unless the requirements of section 34 are complied with.

(2) Where by virtue of subsection (1) a loan fund company is not entitled to enforce a contract:

(a) the company shall not be entitled to enforce any collateral contract or contract of guarantee relating to that contract, and

(b) no security given by:

(i) the person acquiring the shares or option in respect of money payable under that contract or any such collateral contract,

(ii) a guarantor in respect of money payable under that contract or any such collateral contract, or

(iii) a guarantor in respect of money payable under a contract of guarantee relating to that contract or any such collateral contract,

shall be enforceable against the person acquiring the shares or option or against the guarantor, as the case may be, by the holder of such a security.