In these Conditions “the Company” means the Sir Charles Napier (Blackburn) Community Interest Company and “Loanstock” means ‘2016 Loanstock’ as issued under these Conditions.
This issue of Loanstock was authorised at a Board Meeting of the Company on 29th January 2016, to be known as ‘2016 Loanstock’, to be issued from 1st February 2016 and to mature on 31st March 2019. The issue is to be of no more than £20,000 of Loanstock. Loanstock is to be issued in whole pound units only and is non-transferable.
Interest shall be paid on the amount of Loanstock shown overleaf, at the annual rate specified overleaf. The annual rate of interest shall be not more than 4%. The interest shall be calculated on 1st January each year to the nearest penny. The interest shall be payable gross on the 1st January each year in cash. In the case of repayment of Loanstock on any date other than 1st January, the sum repaid shall include interest calculated to the date of repayment.
Certificates shall be given to show the issue of Loanstock. Consolidation of Certificates shall be possible upon receipt of the Certificates to be consolidated. Where part of the amount of Loanstock indicated on a Certificate is to be repaid, a new Certificate shall be issued in respect of the amount of Loanstock outstanding.
4. REPAYMENT of LOANSTOCK
The Loanstock shall be repaid in full on 31st March 2019. The Company may, at its discretion, accept applications for early repayment of Loanstock subject to the following conditions:
a) A written notice stating the amount requested to be repaid shall be received at the Registered Office of the Company together with the relevant Loanstock Certificate(s).
b) Repayment shall normally be made after the period of time indicated below, depending on the amount to be repaid and so long as proper notice has been received:
less than £50/1 week
between £51 and £500/1 month
more than £500/3 months
5. REPAYMENT on DEFAULT
The Company shall repay its Loanstock in full immediately, if it should:
a) be in breach of these Conditions
b) be overdue on any payment by 21 days or more
c) pass a resolution for winding up or make an effective instrument of dissolution or go into liquidation or have an administrative receiver appointed over any of its assets or have an administration order made against it (see point 7).
Holding Loanstock confers no rights to attend meetings or participate in any way in the management of the Company. Loanstock holders shall receive a copy of the Company’s annual report and accounts.
7. ORDER of CREDITORS
Note that the order of creditors for the Company is legal charges, preferential creditors, floating charges, unsecured creditors and trade creditors (which category includes Loanstock).
8. Social Investment Tax Relief
The Company has received Advanced Approval for Social Investment Tax Relief from HMRC as the company qualifies as a Community Interest Company and managing a pub is a qualifying trade. Investors who are individual UK based taxpayers may receive tax relief up to 30% of the value of their investment. The Company is not able to provide tax advice.