Investment Company Act of 1940 → §21 [80a–21] Loans by management companies

§21 [80a–21] Loans by management companies

Citation: 15 U.S.C. §80a–21
Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a-21&num=0&edition=prelim
Source credit (OLRC): ( Aug. 22, 1940, ch. 686, title I, §21, 54 Stat. 822; Pub. L. 100–181, title VI, §615, Dec. 4, 1987, 101 Stat. 1262.)

It shall be unlawful for any registered management company to lend money or property to any person, directly or indirectly, if-

(a) the investment policies of such registered company, as recited in its registration statement and reports filed under this subchapter, do not permit such a loan; or

(b) such person controls or is under common control with such registered company; except that the provisions of this paragraph shall not apply to any loan from a registered company to a company which owns all of the outstanding securities of such registered company, except directors' qualifying shares.