Introduction Equity holders Overview Section 162: Meaning of “normal commercial loan”
646.This section defines normal commercial loans so that they can be excluded from the loansthat are to be considered for the purposes of this Chapter. It is based on paragraph 1 of Schedule 18 to ICTA.
647.Subsection (1) requires that the loan includes new consideration. “New consideration” is defined in section 157(2) by reference to section 1115.
648.The subsection also introduces the four further conditions for a loan to be excluded. The details of the conditions are in subsections (2) to (5).