Because the AFRs have fallen so low, now is a good time to consider (1) making additional low-interest loans to shareholders, (2) replacing existing higher-interest shareholder loans with new ones that charge lower rates, or (3) converting demand loans
to term loans to lock in the low rates.
20) In the case of a demand loan
, the value of the interest-free repayment obligation cannot be ascertained at the time the loan is made, because the repayment date is not known in advance, nor is it pegged to predictable external events.
7872-3(e), it is necessary to test a prime-rate demand loan
in each semi-annual period to determine whether there is sufficient interest.
Such transfer was made in connection with GameNow's grant of a demand loan
in the aggregate principal amount of US$4.
Legal documentation to support the restructuring of the Company's balance sheet by the early conversion to equity of a convertible promissory note and the restatement of a demand loan
to a convertible promissory note is being prepared.
Lekach also announced that the Nussdorfs have agreed to make a $5,000,000 secured demand loan
to Perfumania, Inc.
In December 1998, the Company arranged a secured demand loan
2001, the demand loan
has a balance outstanding, including accrued
Should that be the case, Hoyer said he and his colleagues at the EIB would "ask ourselves whether we have to demand loans
If it finds that the funds were used for purposes other than intended, the EU bank will have to "ask ourselves whether we have to demand loans
back," he said.
The court also held that the loan documents were equivalent to demand loans
, there was a fixed obligation to repay and the absence of a sinking fund was irrelevant.
Also, if a business that structures long-term debt to improve working capital does get hit with a drop in revenues, it is in a much better position to negotiate new demand loans
or arrange alternative forms of short-term financing.