Section HR 10 — Income Tax Act 2007: What happens when vehicle stops being financial institution special purpose vehicle?

HR 10 What happens when vehicle stops being financial institution special purpose vehicle? Property transferred and parties reconstituted (1) When a company or a trustee of a trust (the vehicle ) stops being an financial institution special purpose vehicle for any reason, other than on unwind, the following apply: (a) the relevant financial institution is treated as disposing of its property (the property ) that has been subject to section HR 9(b) in relation to the vehicle immediately before the vehicle stops being an financial institution special purpose vehicle: (b) the vehicle is treated as acquiring the property immediately after the vehicle stops being an financial institution special purpose vehicle: (c) the relevant financial institution is treated as not being a party to an arrangement (the arrangement ) that it was treated as being a party to under section HR 9(c) in relation to the vehicle immediately before the vehicle stops being an financial institution special purpose vehicle: (d) the vehicle is treated as being a party to the arrangement immediately after the vehicle stops being an financial institution special purpose vehicle. Property transferred: market value (2) The disposition of property in subsection (1)(a) and the acquisition of property in subsection (1)(b) are treated as occurring with a single third party for a payments equal to the property's market value. Parties reconstituted: consideration (3) At the time the financial institution or the vehicle becomes a party to an arrangement under subsection (1)(c) or (d), the market value, at that time, of consideration that has been paid, or is or will be payable, to or by the financial institution or vehicle (as applicable) for or under the arrangement, ignoring section HR 9(c) , is treated as consideration that has been paid, or is or will be payable, to or by the financial institution or vehicle for or under the arrangement. Definition (4) In this section, unwind means a process, ignoring section HR 9 , by which— (a) guarantees and residential mortgage backed securities, as the case may be, described in the definition of financial institution special purpose vehicle , paragraph (d) are cancelled; and (b) interests described in the definition of financial institution special purpose vehicle , paragraph (b) are transferred to the financial institution; and (c) the vehicle is terminated, by liquidation or otherwise. Defined in this Act: arrangement , company , consideration , dispose , financial institution , financial institution special purpose vehicle , liquidation , residential mortgage backed securities , trustee , unwind Section HR 10: added (with effect on 1 April 2008), on 6 October 2009, by section 294(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HR 10 heading: amended (with effect on 1 June 2010), on 7 September 2010, by section 79(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(a): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(a): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(c) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(b): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(c) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(c): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(c): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(c) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(1)(d): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(2)(c) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(3): amended (with effect on 1 June 2010), on 7 September 2010, by section 79(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10(4): substituted (with effect on 1 June 2010), on 7 September 2010, by section 79(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10 list of defined terms financial institution : inserted (with effect on 1 June 2010), on 7 September 2010, by section 79(5)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10 list of defined terms financial institution special purpose vehicle : inserted (with effect on 1 June 2010), on 7 September 2010, by section 79(5)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10 list of defined terms registered bank : repealed (with effect on 1 June 2010), on 7 September 2010, by section 79(5)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HR 10 list of defined terms RMBS special purpose vehicle : repealed (with effect on 1 June 2010), on 7 September 2010, by section 79(5)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).