§80a–21. Loans by management companies

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.

(Aug. 22, 1940, ch. 686, title I, §21, 54 Stat. 822 ; Pub. L. 100–181, title VI, §615, Dec. 4, 1987, 101 Stat. 1262 .)

Amendments

1987-Subsec. (b). Pub. L. 100–181 struck out "to the extension or renewal of any such loan made prior to March 15, 1940, or" after "shall not apply".

Cross References

Unlawful transactions for registered investment companies, see section 80a–17 of this title.

Section Referred to in Other Sections

This section is referred to in sections 80a–6, 80a–17, 80a–56, 80a–61 of this title.