Assertion: debt instrument's interest | /r/HasAspect | material effect
Facets:
value: on the decision of a holder
type: TRANSITIVE-OBJECT
Source sentences:
text: It seems possible that the IRS (and a court) could conclude that a principal purpose of including the contingent interest feature in the Debentures was to make the Debentures subject to the CPDI rules and hence to generate additional interest deductions for the Company.49 While CSFB has represented that the contingent interest could have a material effect on the decision of a holder whether to put the instrument under certain market conditions, we think it is unlikely that a court would be persuaded that making the Debentures subject to the CPDI rules was not at least a principal purpose of including the contingent interest feature, especially when the Debentures could easily have been designed to be subject to the VRDI rules rather than the CPDI rules by using a 90-day look-back rather than a 120-day look-back for the interest reset.