17Allocation of loan priority numbers

17 Allocation of loan priority numbers

17 Allocation of loan priority numbers

(1) A loan fund company shall:

(a) on granting an option to acquire loan entitlement shares in the company,

(b) on allotting qualifying shares in the company, or

(c) on allotting loan entitlement shares in the company without there having previously been granted any such option, or there having previously been allotted any such qualifying shares, with respect to those loan entitlement shares,

allocate in respect of that option or those qualifying shares or loan entitlement shares, as the case may be, a loan priority number in accordance with subsection (3).

(2) Where immediately after the time at which a company becomes a loan fund company there is or are in existence:

(a) any option to acquire loan entitlement shares in the company,

(b) any qualifying shares in the company, or

(c) any loan entitlement shares in the company with respect to which the company has not made an offer of a loan,

not later than 14 days after the date on which the company becomes a loan fund company, the company shall, except as provided in subsection (6), allocate in respect of that option or those qualifying shares or loan entitlement shares, as the case may be, a loan priority number in accordance with subsection (3).

(3) All loan priority numbers allocated by a loan fund company under subsections (1) and (2) shall, whether they are allocated in respect of options to acquire loan entitlement shares or qualifying shares or loan entitlement shares, be consecutive cardinal numbers commencing with the number “1” and each such number:

(a) shall be allocated successively in chronological order by reference:

(i) in the case of an option referred to in subsection (1) (a) or (2) (a), to the time at which the application for the granting of that option was made,

(ii) in the case of qualifying shares referred to in subsection (1) (b) or (2) (b) or loan entitlement shares referred to in subsection (1) (c), to the time at which the application for the allotment of those shares was made, or

(iii) in the case of loan entitlement shares referred to in subsection (2) (c), to the time at which the application for the allotment of those shares was made or, if those shares were acquired pursuant to the exercise of a right conferred by an option granted by the company or by a person referred to in subsection (2) (a) or pursuant to the exercise of a right conferred by qualifying shares in the company, to the time at which the application for the granting of that option or for the allotment of those qualifying shares was made, and