Page:United States Statutes at Large Volume 84 Part 2.djvu/88

 1418 Exceptions.

PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

i'(D) The provisioiis of this paragraph (1) shall not apply to a security received as a dividend or as a result of an otter of exchange Ante, p. 1417. approved pursuant to section 11 or of a plan of reorganization of any company (other than a plan devised for the purpose of evading the foregoing provisions). ,, v, n "(E) The provisions of this paragraph (1) shall not apply to a security (or securitiies) purchased or acquired by an investment company if— . j. "(i) the depositor of, or principal underwriter for, such mvestment company is a broker or dealer registered under the Securities 48 Stat. 881. Exchauffe Act of 1034, or a person controlled by such a broker or IS use 78a. dealer: "(ii) such security is the only investment security held by such investment company (or such "securities are the only investment securities hold by such investment company, if such investment company is a registered unit investment trust that issues two or more classes or series of securities, each of which provides for the accumulation of shares of a dilterent investment company); and "(iii) in the event such investment company^ is not a registered investment company, the purchase or acquisition is made pursuant to an arrangement with the issuer of, or principal underwriter for the issuer of, the security whereby such mvestment company is obligated— "(aa) eitlier to seek instructions from its security holders with regard to the voting of all proxies with respect to such security and to vote such proxies only in accordance with such instructions, or to vote the shares held by it in the same proportion as the vote of all other holders of such security, and "(bb) to refrain from substituting such security unless the Commission shall have approved such substitution in the Post, p. 1424. manner provided in section 26 of this Act. "(F)^ The provisions of this paragraph (1) shall not apply to securities purchased or otherwise acquired by a registered investment company if— "(i) immediately after such purchase or acquisition not more than 3 per centum of the total outstanding stock of such issuer is owned by such registered investment company and all affiliated persons of such registered investment company; and " (ii) such registered investment company has not offered or sold after January 1, 1971, and is not proposing to offer or sell any security issued by it through a principal underwriter or otherwise at a public offering price which includes a sales load of more than IV2 per centum. Xo issuer of any security purchased or acquired by a registered investment company pursuant to this subparagraph shall be obligated to redeem such security in an amount exceeding 1 per centum of such issuers total outstanding securities during any period of less than thirty days. Sucli investment company shall exercise voting rights by proxy or otherwise with respect to any security purchased or acquired pursuant to this subparagraph in the manner prescribed by subparagraph (E) of thissubRoction. "(G) For the purposes of this paragraph (1), the value of an investment company's total assets shall be computed as of the time of a purchase or acquisition or as closely thereto as it reasonably possible. "(H) In any action brought to enforce the provisions of this paragraph (1), the Commission may join as a party the issuer of any f^ecurity purchased or otherwise acquired in violation of this para-

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