(1)Interest on a loan within section 401 to an individual is eligible for relief only if conditions A to C are met.
(2)Condition A is that when the interest is paid the body continues to be a co-operative.
(3)Condition B is that in the period from the use of the loan to the payment of the interest the greater part of the individual's time has been spent working as an employee of the body or of a subsidiary of the body.
(4)Condition C is that in that period the individual has not recovered any capital from the body, apart from any taken into account under section 406(2) (recovered capital that is treated as a repayment of the loan).