* Says to convert to a taxable Canadian Corporation

* Says the new entity would secure bank lending (Adds details)

Nov 3 (Reuters) - Canadian trust unit Enbridge Income Fund (ENF_u.TO: Quote, Profile, Research) said it proposed a restructuring of the fund to take effect prior to the implementation of Canada's Specified Investment Flow-Through tax law.

The proposed change would convert the fund from a tax-advantaged income trust to a taxable Canadian corporation as required by the law, which comes into effect on Jan. 1, 2011.

The restructuring would involve the exchange by public unitholders of their trust units, which collectively represent a 28 percent economic interest in the fund, the company said in a statement.

Upon conversion to a corporation, the new entity Enbridge Income Fund Holdings Inc would secure a bank credit facility to fund the cash payment as well as to provide further investment in the fund in support of its growth opportunities, the company said.

Public unitholders would retain their current proportionate economic interest in the new fund, held indirectly through Enbridge Income Fund Holdings, the company said. (Reporting by Sakthi Prasad in Bangalore)