(1) This section has effect if the originating company and the recipient company were * friendly societies just before the transfer took place.
(2) For the purposes of paragraph 320 - 37(1)(d), an *
income bond, * funeral policy, * sickness policy or * scholarship plan issued
by the recipient company in substitution for an income bond, funeral policy,
sickness policy or scholarship plan (the original policy ) transferred from
the originating company is taken to have been issued at the time the original
policy was issued if the terms of the substituted policy are not materially
different from those of the original policy.