Commonwealth Numbered Acts

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VENTURE CAPITAL ACT 2002 No. 137, 2002 - SECT 9.10

Meaning of permitted loan
(1)
A debt interest is a permitted loan if:

(a)
it is a loan made to a * company and the sum of:
(i)
the * equity interests that the partnership owns in the company; and
(ii)
any debt interests that the partnership owns in the company that can be converted into equity interests in the company;
is at least 10% of the sum of:
(iii)
all of the equity interests in the company; and
(iv)
all of the debt interests in the company that can be converted into equity interests in the company;
and the company meets the requirements of subsections 118- 425(2) to (7) of the Income Tax Assessment Act 1997 in relation to the investments referred to in subparagraphs (i) and (ii); or
(b)
it is repaid within 6 months, or such longer period as the * PDF Board allows under subsection (3).
(2)
A * general partner may apply to the * PDF Board, in the * form approved by the PDF Board, for the PDF Board to allow a longer period for the purposes of paragraph (1)(b).

(3)
The * PDF Board may, for the purposes of paragraph (1)(b), allow a longer period if the PDF Board is satisfied that:

(a)
there are exceptional circumstances; and
(b)
the extended period is no longer than reasonably necessary.

Table of sections

11-1 Application for registration
11-5 Determination of further information to be included in application
11-10 Further information may be requested
11-15 Period within which application must be decided



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