Section 257LA | Condition that the amount invested must have been paid over ^F1

(1)So far as the investment is in shares—^F1

(a)the shares must be subscribed for wholly in cash, and^F1

(b)must be fully paid up at the time they are issued.^F1

(2)If the investment, so far as it is in qualifying debt investments, involves making—^F1

(a)the only advance covered by the debenture or debentures concerned, or^F1

(b)one of multiple advances covered by the debenture or debentures concerned,^F1

the full amount of that advance must have been advanced wholly in cash by the time the investment is made.

(3)For the purposes of this section—^F1

(a)shares are not fully paid up, or^F1

(b)the full nominal amount of qualifying debt investments has not been advanced,^F1

if there is any undertaking to pay cash to any person at a future time in respect of the acquisition of the shares or investments.

(4)For the purposes of subsection (2) “debenture” includes any instrument creating or acknowledging indebtedness.^F1