Venture Capital Act 2002
PART 2
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REGISTRATION OF LIMITED PARTNERSHIPS
Division 9
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Registration requirements
SECTION 9-10
MEANING OF
PERMITTED LOAN
9-10(1)
A debt interest is a permitted loan if: (a) it is a loan made to a *company and the sum of:
9-10(2)
A *general partner may apply to *Industry Innovation and Science Australia, in the *form approved by Industry Innovation and Science Australia, for Industry Innovation and Science Australia to allow a longer period for the purposes of paragraph (1)(b) .
9-10(3)
*Industry Innovation and Science Australia may, for the purposes of paragraph (1)(b) , allow a longer period if Industry Innovation and Science Australia is satisfied that: (a) there are exceptional circumstances; and (b) the extended period is no longer than reasonably necessary.
View history note
Hide history noteA 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
is at least 10% of the sum of:
(ii) any debt interests that the partnership owns in the company that can be converted into equity interests in the company;
(iii) all of the equity interests in the company; and
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 (aa) it is a loan made to a unit trust and the sum of:
(iv) all of the debt interests in the company that can be converted into equity interests in the company;
(i) the *equity interests that the partnership owns in the unit trust; and
is at least 10% of the sum of:
(ii) any *debt interests that the partnership owns in the unit trust that can be converted into equity interests in the unit trust;
(iii) all of the equity interests in the unit trust; and
and the unit trust meets the requirements of subsections 118-427(3) to (8) 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 *Industry Innovation and Science Australia allows under subsection (3) .
(iv) all of the debt interests in the unit trust that can be converted into equity interests in the unit trust;
9-10(2)
A *general partner may apply to *Industry Innovation and Science Australia, in the *form approved by Industry Innovation and Science Australia, for Industry Innovation and Science Australia to allow a longer period for the purposes of paragraph (1)(b) .
9-10(3)
*Industry Innovation and Science Australia may, for the purposes of paragraph (1)(b) , allow a longer period if Industry Innovation and Science Australia is satisfied that: (a) there are exceptional circumstances; and (b) the extended period is no longer than reasonably necessary.