795. Loans, Debts and Covenants.

The basic rule is that neither chargeable gain nor allowable loss arises from a debt1.

This is subject to exceptions for:


    (1)     a debt on a security2;


    (2)     certain foreign bank accounts for private use3; and


    (3)     the assignee of the debt4.

Relief is given for losses on certain loans to traders and for guarantors of such loans