Sec. 2. Expanding access to capital for business development companies
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Section 61(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–60(a) ) is amended— by redesignating paragraphs
(2)through
(4)as paragraphs
(3)through (5), respectively; and by striking paragraph
(1)and inserting the following: Except as provided in paragraph (2), the asset coverage requirements of subparagraphs
(A)and
(B)of section 18(a)(1) (and any related rule promulgated under this Act) applicable to business development companies shall be 200 percent. The asset coverage requirements of subparagraphs
(A)and
(B)of section 18(a)(1) and of subparagraphs
(A)and
(B)of section 18(a)(2) (and any related rule promulgated under this Act) applicable to a business development company shall be 150 percent if— within five business days of the approval of the adoption of the asset coverage requirements described in clause (ii), the business development company discloses such approval and the date of its effectiveness in a Form 8–K filed with the Commission and in a notice on its website and discloses in its periodic filings made under section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) )— the aggregate value of the senior securities issued by such company and the asset coverage percentage as of the date of such company’s most recent financial statements; and that such company has adopted the asset coverage requirements of this paragraph and the effective date of such requirements; with respect to a business development company that issues equity securities that are registered on a national securities exchange, the periodic filings of the company under section 13(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) ) include disclosures reasonably designed to ensure that shareholders are informed of— the amount of indebtedness and asset coverage ratio of the company, determined as of the date of the financial statements of the company dated on or most recently before the date of such filing; and the principal risk factors associated with such indebtedness, to the extent such risk is incurred by the company; and the application of this paragraph to the company is approved by the required majority (as defined in section 57(o)) of the directors of or general partners of such company who are not interested persons of the business development company, which application shall become effective on the date that is 1 year after the date of the approval, and, with respect to a business development company that issues equity securities that are not registered on a national securities exchange, the company extends, to each person who is a shareholder as of the date of the approval, an offer to repurchase the equity securities held by such person as of such approval date, with 25 percent of such securities to be repurchased in each of the four quarters following such approval date; or the company obtains, at a special or annual meeting of shareholders or partners at which a quorum is present, the approval of more than 50 percent of the votes cast of the application of this paragraph to the company, which application shall become effective on the date immediately after the date of the approval. . The Investment Company Act of 1940 ( 15 U.S.C. 80a–1 et seq.) is amended— in section 57— in subsection (j)(1), by striking section 61(a)(3)(B) and inserting section 61(a)(4)(B) ; and in subsection (n)(2), by striking section 61(a)(3)(B) and inserting section 61(a)(4)(B) ; and in section 63(3), by striking section 61(a)(3) and inserting section 61(a)(4) . Section 205(b)(3) of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–5(b)(3) ) is amended— by striking section 61(a)(3)(B)(iii) and inserting section 61(a)(4)(B)(iii) ; and by striking section 61(a)(3)(B) and inserting section 61(a)(4)(B) .
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U.S. Code
3 references not yet in our index
- 15 USC 80a–60(a)
- 15 USC 80a–1
- 15 USC 80b–5(b)(3)
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Sec. 2
Expanding access to capital for business development companies
Cite15 USC 80a–60(a)
Cite15 USC 80a–1
Cite15 USC 80b–5(b)(3)
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