Sec. 2602. Definitions
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/bill/118/hr/2799/ih/section-2602·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall, to the extent such revisions facilitate capital formation without compromising investor protection— revise the definition of a qualifying investment under paragraph
(c)of section 275.203(l)–1 of title 17, Code of Federal Regulations— to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and to specify that an investment in another venture capital fund is a qualifying investment under such definition; and revise paragraph
(a)of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments of the private fund are either— predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or predominantly qualifying investments in another venture capital fund or other venture capital funds.