Securities that are the subject of the repo may be redeemed
during the life of the repo, so that it is the proceeds of
redemption that are returned, not the securities themselves.
Section 730A, or as the case may be, ITA07/S607 also applies in
these circumstances, see SI1995/3220.
It is quite common for repo agreements to enable the
securities originally sold under the repo to be replaced with other
securities of comparable credit risk quality and equal value. For
the purposes of section 730A and Chapter 5 of Part 11 of ITA07
references to securities are to be taken to include references to
securities which have been substituted for those originally
sold.
