2006 Ruling 2006-0191881R3 - Witholding Tax Exemption -- summary under Subparagraph 212(1)(b)(vii)

Favourable ruling with respect to a cross-border term loan made to an indirect subsidiary ("Finco") of an income fund, with the proceeds on-lent to an indirect general partnership subsidiary of the income fund where a "change of control" (giving a rise to an event of default) is defined to mean any event which results in equity interests representing more than 50% of the voting or economic interest in the Fund being held, directly or indirectly, by any person or associated group of persons; proceeds of asset sales in excess of specified annual limits are required to be utilized to make offers to repay the term loan; and excess cash flow generated in amounts that otherwise would exceed the 25% limit are required to be put into an account with a U.S. agent of the term lenders in the Finco name.