[475C Meaning of “hybrid capital instrument”]

[Meaning of “hybrid capital instrument”]

[475C  Meaning of “hybrid capital instrument”]

[(1)     For the purposes of this Part, a loan relationship is a “hybrid capital instrument” for an accounting period of the debtor if—

(a)     the loan relationship makes provision under which the debtor is entitled to defer or cancel a payment of interest under the loan relationship,

(b)     the loan relationship has no other significant equity features, and

(c)     the debtor has made an election in respect of the loan relationship which has effect for the period.

(2)     For the purposes of this section a loan relationship “has no other significant equity features” if under the loan relationship—

(a)     there are neither voting rights in the debtor (ignoring insignificant voting rights in the debtor) nor a right to exercise a dominant influence over the debtor,

(b)     any provision for altering the amount of the debt is limited to write-down or conversion events in qualifying cases, and

(c)     any provision for the creditor to receive anything other than interest or repayment of the debt

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