Commonwealth Consolidated Acts

VENTURE CAPITAL ACT 2002 - SECT 9.10

  (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

  (aa)   it is a loan made to a unit trust and the sum of:

  (i)   the * equity interests that the partnership owns in the unit trust; and

  (ii)   any * debt interests that the partnership owns in the unit trust that can be converted into equity interests in the unit trust;

    is at least 10% of the sum of:

  (iii)   all of the equity interests in the unit trust; and

  (iv)   all of the debt interests in the unit trust that can be converted into equity interests in the unit trust;

    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).

  (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).

  (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.

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