Part 7 Community investment tax relief

Chapter 2 Qualifying investments

227 Conditions to be met in relation to securities
(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.