Assertion: debt instrument's interest | /r/HasProperty | adequate stated
Facets:
Source sentences:
text: As a general rule, a debt instrument has adequate stated interest if it bears interest at least equal to the applicable federal rate (AFR) under Sec.
text: Whether interest is adequate is determined with reference to the applicable federal rate (AFR).
text: The issue price of a debt instrument that provides for adequate stated interest is the stated principal amount of the debt instrument.
text: (c) Determination of whether a debt instrument provides for adequate stated interest -
text: A debt instrument provides for adequate stated interest if its stated principal amount is less than or equal to its imputed principal amount.
text: If a debt instrument has a single fixed rate of interest that is paid or compounded at least annually, and that rate is equal to or greater than the test rate, the debt instrument has adequate stated interest.
text: Because the option is presumed exercised, the debt instrument fails to provide for adequate stated interest because the imputed principal amount ($9,611,034.87) is less than the stated principal amount ($10,000,000).
text: Because the test rate of interest is 10.5 percent, compounded monthly, the debt instrument provides for adequate stated interest.
text: (ii) Debt instrument has adequate stated interest.