408 NEW ZEALAND GAZETTE No. 18

BNZ, in consultation with the Valuer and/or the directors of TradeCo, as applicable; and

(d) any value (whether of a security or cash) otherwise than in New Zealand dollars shall be translated into New Zealand dollars in accordance with Determination G6D.

Guarantee

4.11 TradeCo is the issuer under the Guarantee.

4.12 TradeCo will return expenditure in respect of the Guarantee in accordance with a straight-line method.

5. Interpretation

5.1 In this Determination, unless the context otherwise requires:

(a) words and expressions shall have the same meaning as in the Act, except that, where there is a conflict between the meaning of an expression in sections EH 1 to EH 9 of the Act and the meaning of an expression elsewhere in the Act, the expression shall have the meaning as if the said sections EH 1 to EH 9;

(b) the singular includes the plural and vice versa.

“Act” means the Income Tax Act 1994.

“BNZ” means the Bank of New Zealand.

“Capital Guaranteed Amount”, in relation to an Investor and a FundCo Agreement to which that Investor is a party, means the amount which BNZ has guaranteed will be repaid to the Investor in relation to that FundCo Agreement on Settlement Date.

“Capital Floor”, in relation to an Investor and a FundCo Agreement to which an Investor is a party, and for any particular income year, means the aggregate of:

(i) the amount which was paid to FundCo in relation to that FundCo Agreement on Issue Date by the first investor to be a party to that FundCo Agreement; and

(ii) the aggregate of the amounts of interest that would be deemed to accrue in that income year and in all previous years since Issue Date, in respect of that FundCo Agreement, if such amounts of interest were calculated according to the yield to maturity method on the basis that the Investor had paid to FundCo on Issue Date the amount referred to in (i) of this definition and that the only payment that the Investor was to receive in relation to that FundCo Agreement was the payment at Settlement Date of the Capital Guaranteed Amount in relation to that FundCo Agreement.

“Deposit” means the deposit made by FundCo with the BNZ.

“E D & F Man” means E D & F Man International Limited.

“FundCo” means BNZ Capital Guaranteed Growth Fund Limited.

“FundCo Agreements” means the agreements for sale, as documented by the Notes, entered into between the Investors and FundCo.

“FundCo Variable Payments” means the payments made by FundCo to the Investors during the term of the FundCo Agreements, as a result of FundCo receiving any TradeCo Variable Payments.

“Guarantee” means the guarantee between BNZ and TradeCo.

“Investors” means the investors who have entered into the FundCo Agreements.

“Issue Date” means:

(a) in relation to a FundCo Agreement, the date of entry into the FundCo Agreement by FundCo; and

(b) in relation to the TradeCo Agreement, the date of entry into the TradeCo Agreement.

“Market Value” means:

(a) in relation to all FundCo Agreements which are on issue at any particular time, the value of those FundCo Agreements, as notified by BNZ, being equal to the aggregate of:

(i) an amount equal to the core acquisition price of the Deposit and income derived in relation to the Deposit up to the relevant point in time, determined in accordance with the yield to maturity method less the aggregate payments received by FundCo from BNZ in relation to the Deposit on account of early settlement of FundCo Agreements; and

(ii) the Market Value of the TradeCo Agreement at that point in time—

Provided that in determining the value of any particular FundCo Agreement, such an agreement shall have a value which is proportional to the aggregate value of all FundCo Agreements (having regard to the total number of FundCo Agreements on issue at that particular time).

(b) in relation to the TradeCo Agreement, the value of the TradeCo Agreement as notified to FundCo by BNZ from time to time and pursuant to the terms of the TradeCo Agreement, being the market value of the futures contract, derivative contracts and foreign exchange contracts to which TradeCo is a party (such market value being determined in accordance with paragraph 4.10 of this Determination), less any accrued liabilities or expenses of TradeCo at the relevant time.

“Notes” means the notes issued to the Investors by FundCo which document the terms of the FundCo Agreements.

“Settlement Date” means the date of settlement under the FundCo Agreements.

“TradeCo” means AHL Guaranteed Trading (NZ) Limited.

“TradeCo Agreement” means the agreement for sale entered into between FundCo and TradeCo.

“TradeCo Variable Payments” means the payments made by TradeCo to FundCo during the term of the TradeCo Agreement.

“Valuer” means E D & F Man Valuation Services Limited, a member of the E D & F Man group of companies, appointed to provide assistance to BNZ for valuations in relation to the FundCo Agreements and TradeCo Agreement.

6. Method

FundCo Agreements

6.1 The amount of the core acquisition price of each FundCo Agreement is to be determined in accordance with paragraph (e) (i) of the definition of “core acquisition price” in section OB 1 of the Act. The core acquisition price in relation to the Investors who subscribe for the Notes is the amount subscribed for on issue of the Notes. For Investors who do not subscribe for Notes on their issue but acquire Notes from other Investors, the core acquisition price in relation to such Investors shall be the price paid to acquire the Notes.

6.2 Expenditure incurred or income derived with respect to a FundCo Agreement shall be calculated using the method