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Preferential home loan

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  • 15-05-2019 5:56pm
    #1
    Da11
    Registered Users Posts: 61 ✭✭


    Hey everyone,

    Does anybody know if preferential home loan amount cannot be greater than 10% of company's assets full stop?

    Thank You!


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    #2
    Paddy001
    Registered Users Posts: 724 ✭✭✭Paddy001


    Da11 wrote: »
    Hey everyone,

    Does anybody know if preferential home loan amount cannot be greater than 10% of company's assets full stop?

    Thank You!

    Yes, the 10% still applies assuming the loan is to a connected person. However there are two exceptions - if the company is unlimited it is not subject to this rule or alternatively the SAP (summary approval procedure) can be followed to make the loan legal for company law purposes. However this should be considered carefully as it may come with consequences.


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    #3
    Da11
    Registered Users Posts: 61 ✭✭Da11


    Paddy001 wrote: »
    Yes, the 10% still applies assuming the loan is to a connected person. However there are two exceptions - if the company is unlimited it is not subject to this rule or alternatively the SAP (summary approval procedure) can be followed to make the loan legal for company law purposes. However this should be considered carefully as it may come with consequences.

    Thank you very much for the answer. I will go through both exceptions to see whether it is possible to do without any real negative consequences...


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