Defines key terms for the Part: “credit transaction” as given by subsection (3); “guarantee” to include an indemnity; and “quasi‑loan” as a transaction where a creditor pays or reimburses (otherwise than pursuant to an agreement) for a borrower on terms that the borrower (or a person on their behalf) will reimburse the creditor or where circumstances give rise to such a liability. References to the person to whom a quasi‑loan is made are to the borrower and the borrower’s liabilities include those of any person who agrees to reimburse on the borrower’s behalf.

Specifies credit transactions: hire‑purchase or conditional sale of goods or land; leases or licences of land or hire of goods for periodical payments; and supplies or disposals of land, goods or services where payment is deferred. Excludes leases reserving a nominal annual rent of not more than €100 where a company receives a premium equal to open market value. Sets valuation rules: loan=principal; quasi‑loan=amount or maximum liability; guarantee=amount guaranteed; other transactions=reasonable market price; arrangements under s239(2)/(3)=value less any reductions. Non‑quantifiable items are deemed to exceed €65,000. Defines when a transaction is made for a person (section 7), disapplies the Part to arrangements entered into before 1 February 1991 except for specified treatment of s239(2)/(3), and confirms the Part applies irrespective of governing law.