Conditions to be satisfied in relation to loans
9(1)The first condition of this paragraph is that either—
(a)the CDFI receives from the investor, on the investment date, the full amount of the loan, or
(b)if the loan agreement authorises the CDFI to draw down amounts of the loan over a period of time, the end of that period is not later than 18 months after the investment date.
(2)The second condition is that the loan must not carry 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 the five year period.
(3)The third condition is that the loan must not have been made on terms that allow any person to require—
(a)the repayment during the first two years of the five year period of any of the loan capital advanced in those two years,
(b)the repayment during the third year of that period of more than 25% of the loan capital outstanding at the end of those two years,
(c)the repayment before the end of the fourth year of that period of more than 50% of that loan capital, or
(d)the repayment before the end of that period of more than 75% of that loan capital.
(4)For the purposes of sub-paragraph (3), any requirement arising as a consequence of a failure of the CDFI to fulfil any obligation of the loan agreement shall be disregarded if that obligation—
(a)is imposed by reason only of the commercial risks to which the investor is exposed as lender under that agreement, and
(b)is no more likely to be breached than any obligation that might reasonably have been agreed in respect of the loan in the absence of this Schedule.
(5)The Treasury may by order substitute for any percentage for the time being specified in sub-paragraph (3) such other percentage as they think fit; and any such substitution shall have effect in relation to loans made by a person on or after such date as may be specified in the order.