Section 346 — Income Tax Act 2007: Conditions to be met in relation to securities

Conditions to be met in relation to securities 346 1 Condition A of this section is that the securities must be—

a subscribed for wholly in cash, and b fully paid for on the investment date.

2 Condition B is that the securities must not carry—

a any present or future right to be redeemed within the 5 year period, or b any present or future right to be converted into or exchanged for a loan which is, or securities, shares or other rights which are, redeemable within that period.

3 For the purposes of subsection (1)(b), securities are not fully paid for if there is any undertaking to pay cash to the CDFI at a future date in connection with the acquisition of the securities.