Page:United States Statutes at Large Volume 94 Part 2.djvu/1000

 94 STAT. 2278

PUBLIC LAW 96-477—OCT. 21, 1980 REGULATION OF BUSINESS DEVELOPMENT COMPANIES

SEC. 105. The Investment Company Act of 1940 is amended by adding at the end thereof the following new sections: "ELECTION TO B E REGULATED AS A BUSINESS DEVELOPMENT COMPANY

15 USC 80a-53. Ante, p. 2275.

15 USC 78/.

"SEC. 54. (a) Any company defined in sections 2(a)(48)(A) and (B) j^^y elect to be subject to the provisions of sections 55 through 65 by filing with the Commission a notification of election, if such company— "(1) has a class of its equity securities registered under section 12 of the Securities Exchange Act of 1934; or "(2) has filed a registration statement pursuant to section 12 of the Securities Exchange Act of 1934 for a class of its equity securities. "(b) The Commission may, by rule, prescribe the form and manner in which notification of election under this section shall be given. A business development company shall be deemed to be subject to sections 55 through 65 upon receipt by the Commission of such notification of election. "(c) Whenever the Commission finds, on its own motion or upon application, that a business development company which has filed a notification of election pursuant to subsection (a) of this section has ceased to engage in business, the Commission shall so declare by order revoking such company's election. Any business development company may voluntarily withdraw its election under subsection (a) by filing a notice of withdrawal of election with the Commission, in a form and manner which the Commission may, by rule, prescribe. Such withdrawal shall be effective immediately upon receipt by the Commission. " F U N C T I O N S AND ACTIVITIES OF BUSINESS DEVELOPMENT COMPANIES

15 USC 80a-54.

15 USC 77a.

Ante, p. 2275.

"SEC. 55. (a) It shall be unlawful for a business development company to acquire any assets (other than those described in paragraphs (1) through (7) of this subsection) unless, at the time the acquisition is made, assets described in paragraphs (1) through (6) below represent at least 70 per centum of the value of its total assets (other than assets described in paragraph (7) below): "(1) securities purchased, in transactions not involving any public offering or in such other transactions as the Commission may, by rule, prescribe if it finds that enforcement of this title and of the Securities Act of 1933 with respect to such transactions is not necessary in the public interest or for the protection of investors by reason of the small amount, or the limited nature of the public offering, involved in such transactions— "(A) from the issuer of such securities, which issuer is an eligible portfolio company, or from any person who is, or who within the preceding thirteen months has been, an affiliated person of such eligible portfolio company; or "(B) from the issuer of such securities, which issuer is described in sections 2(a)(46)(A) and (B) but is not an eligible portfolio company because it has issued a class of securities with respect to which a member of a national securities exchange, broker, or dealer may extend or maintain credit to or for a customer pursuant to rules or regulations adopted by the Board of Governors of the Federal Reserve System under

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