A work-in-art agreement (WIK agreement) is an agreement between a person who must pay the contribution of growth zones to infrastructure (GAIC) and the Minister of Planning. As part of a WIK agreement, the manager agrees to make available land and/or construction work (construction of public infrastructure) instead of a cash payment in order to fulfill all or part of his GAIC responsibility. In most cases, PIK`s notes jeopardize a fraction of a company`s total outstanding debt and financiers structure these bonds so that they mature later than the company`s other debts. This allows the company to focus more quickly on repaying traditional debt or cash dividend debt, but increases the additional risk to the financier. To cover their risk, most financiers impose an advance payment in order to maximize their potential profits. If a person has entered into a WIK agreement and does not fulfill that agreement or a step of it up to the due date, and if the liability of the GAIC has been deferred or subject to a phased payment agreement, all GAIC liability is immediately due. In-kind calculations give the issuer the ability to delay cash dividend payments and, in exchange for the delay, the issuing entity generally agrees to offer a higher return on the note. The IRS requires people who collect material income by bartering to report it on their income tax return. For example, if a plumber accepts a page of beef in exchange for services, he should report the fair value of beef or his usual expenses as income on his income tax return. Parties to a WIK agreement include the head of detention, the Minister of Planning, and may also include other parties, such as other government ministers and landowners. WIK applications must be submitted to the Victorian Planning Authority, which can continue to assist you in your application.
You can also find WIK model agreements and WIK guidelines on the Victoria Planning Authority website and the website of the Department of Environment, Country, Water and Planning (DELWP). A WIK agreement may contain a clause limiting a person who has entered into the contract, unless the approval of the Minister of Planning is obtained through transactions with: PIK switches, also known as “numbers if you wish”, are a little less risky than PIKs, since borrowers can “switch” on benefits in kind at the borrower`s discretion (figures if you wish).  Sometimes the borrower may also be able to steal some of the interest (usually half) while paying the rest in cash; Sometimes only a portion of the interest can be paid in the form of in-kind benefits, the rest being only in cash. This will also benefit borrowers, who can opt for prepayment of interest in cash, minimizing the compound payment at maturity.  The literature often provides that if the PIK function is activated, the interest rate will be increased by 25, 50 or 75 basis points.  This is another type of PIK switch, also known as a “contingent cash payment” or “payment if you can,” where borrowers pay interest in cash and do not “switch” on in-kind benefits under certain conditions; z.B. if there is not enough cash, it is usually determined by a cash flow trigger.  A PIK or benefit in kind is a kind of high-risk credit or loan that allows borrowers to pay interest with additional debts rather than cash.