ADVOKS GLOBAL · KENYA
Companies Act
156. Meaning of "quasi-loan" and related expressions
Edition: 2024-12-27 · In force
156. Meaning of "quasi-loan" and related expressions
(1)For the purposes of this Division, a quasi-loan is a transaction under which one party (a creditor)—(a)agrees to pay, or pays otherwise than in accordance with an agreement, an amount for another person (a borrower); or(b)agrees to reimburse, or reimburses otherwise than in accordance with an, agreement, expenditure incurred by another party for another person (also. a borrower)—(i)on terms that the borrower, or a third person on the borrower's behalf, will reimburse the creditor; or(ii)in circumstances giving rise to a liability on the borrower to reimburse the creditor.(2)A reference in subsection (1) to the person to whom a quasi-loan is made is a reference to the borrower(3)The liabilities of the borrower under a quasi-loan include the liabilities of any person who has agreed to reimburse the creditor on behalf of the borrower.