Page:United States Statutes at Large Volume 94 Part 2.djvu/1011

 PUBLIC LAW 96-477—OCT. 21, 1980

94 STAT. 2289

asset value of such stock upon the exercise of any warrant, option, or right issued in accordance with section 61(a)(3). "ACCOUNTS AND RECORDS

"SEC. 64. (a) Notwithstanding the exemption set forth in section 15 USC 80a-63. 6(f), section 31 shall apply to a business development company to the Ante, p. 2277,15 same extent as if it were a registered closed-end investment company, ^^^ 80a-30. except that the reference to the financial statements required to be filed pursuant to section 30 shall be construed to refer to the financial 15 USC 80a-29. statements required to be filed by such business development company pursuant to section 13 of the Securities Exchange Act of 1934. is use 78m. "(b)(1) In addition to the requirements of subsection (a), a business Risk factors development company shall file with the Commission and supply statement. annually to its shareholders a written statement, in such form and manner as the Commission may, by rule, prescribe, describing the risk factors involved in an investment in the securities of a business development company due to the nature of such company's investment portfolio, and shall supply copies of such statement to any registered broker or dealer upon request. "(2) If the Commission finds it is necessary or appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of this title, the Commission may also require, by rule, any person who, acting as principal or agent, sells a security of a business development company to inform the purchaser of such securities, at or before the time of sale, of the existence of the risk statement prepared by such business development company pursuant to this subsection, and make such risk statement available on request. The Commission, in making such rules and regulations, shall consider, among other matters, whether any such rule or regulation would impose any unreasonable burdens on such brokers or dealers or unreasonably impair the maintenance of fair and orderly markets. "LIABILITY OF CONTROLLING PERSONS; PREVENTING COMPLIANCE WITH TITLE

"SEC. 65. Notwithstanding the exemption set forth in section 6(f), section 48 shall apply to a business development company to the same extent as if it were a registered closed-end investment company, except that the provisions of section 48(a) shall not be construed to require any company which is not an investment company within the meaning of section 3(a) to comply with the provisions of this title which are applicable to a business development company solely because such company is a wholly-owned subsidiary of, or directly or indirectly controlled by, a business development company.". TITLE II—AMENDMENTS TO THE INVESTMENT ADVISERS ACT OF 1940 DEFINITION OF BUSINESS DEVELOPMENT COMPANY

SEC. 201. Section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)) is amended by adding at the end thereof the following new paragraph: "(22) 'Business development company' means any company which is a business development company as defined in section 2(a)(48) of

15 USC 80a-64. Ante, p. 2277,15 use 80a-47. 15 USC 80a-3.

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