11.—(1) Subject to paragraph (4), for the purposes of these Regulations a relevant investment is an investment made by the CDFI in an enterprise where—
(a)it makes a loan (whether secured or unsecured) to the enterprise, or
(b)an issue of securities of or shares in the enterprise, for which the CDFI has subscribed, is made to the CDFI.
(2) For the purposes of paragraph (1)(a)—
(a)the CDFI does not make a loan to an enterprise where—
(i)the enterprise uses overdraft facilities provided by the CDFI, or
(ii)the CDFI subscribes for or otherwise acquires securities of the enterprise;
(b)where the loan agreement authorises the enterprise to draw down amounts of the loan over a period of time the loan is treated as made at the time when the first amount is drawn down.
(3) For the purpose of these Regulations where a relevant investment is a loan within paragraph (2)(b) the amount of the relevant investment is the amount drawn down at a given date.
(4) The investments specified in Schedule 1 are not relevant investments.
Commencement Information
I1Reg. 11 in force at 13.2.2003, see reg. 1