Page:United States Statutes at Large Volume 110 Part 5.djvu/371

 PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3445 the definition of the term 'investment compan/ under paragraph (1) or (7) of section 3(c), other than— "(I) any debt security that is rated investment grade by not less than 1 nationally recognized statistical rating organization; or "(II) any security issued by a registered open-end investment company that is required by its investment policies to invest not less than 65 percent of its total assets in securities described in subclause (I) or securities that are determined by such registered open-end investment company to be comparable in quality to securities described in subclause (I). "(B) Notwithstanding the exemption provided by this paragraph, section 9 (and, to the extent necessary to enmrce section 9, sections 38 through 51) shall apply to a company described in this paragraph as if the company were an investment company registered under this title. "(C) Any company proposing to rely on the exemption provided by this paragraph shall file with the Commission a notification stating that the company intends to do so, in such form and manner as the Commission may prescribe by rule. "(D) Any company meeting the requirements of this paragraph may rely on the exemption provided by this paragraph upon filing with the Commission the notification required by subparagraph (C), until such time as the Commission determines by order that such reliance is not in the public interest or is not consistent with the protection of investors. "(E) The exemption provided by this paragraph may be subject to such additional terms and conditions as the Commission may by rule, regulation, or order determine are necessary or appropriate in the public interest or for the protection of investors.". SEC. 502. INTRASTATE CLOSED-END INVESTMENT COMPANY EXEMPTION. Section 6(d)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a-6(d)(l)) is amended by striking "$100,000" and inserting "$10,000,000, or such other amount as the Commission may set by rule, regulation, or order". SEC. 503. DEFINITION OF ELIGIBLE PORTFOLIO COMPANY. Section 2(a)(46)(C) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(46)(C)) is amended— (1) in clause (ii), by striking "or" at the end; (2) by redesignating clause (iii) as clause (iv); and (3) by inserting after clause (ii) the following: "(iii) it has total assets of not more than $4,000,000, and capital and surplus (shareholders' equity less retained earnings) of not less than $2,000,000, except that the Commission may adjust such amounts by rule, regulation, or order to reflect changes in 1 or more generally accepted indices or other indicators for small businesses; or". SEC. 504. DEFINITION OF BUSINESS DEVELOPMENT COMPANY. Section 2(a)(48)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(48)(B)) is amended by adding at the end the following: "provided further that a business development company

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