Rules and Regulations
promulgated
under the
Investment Company Act of 1940
Rule 3c-2 -- Definition of Beneficial Ownership in Small Business Investment Companies
For the purpose of section 3(c)(1) of the
Act, beneficial ownership by a company owning 10 per centum or more of the outstanding
voting securities of any issuer which is a small business investment company licensed
to operate under the Small Business Investment Act of 1958, or which has received
from the Small Business Administration notice to proceed to qualify for a license,
which notice or license has not been revoked, shall be deemed to be beneficial ownership
by one person (a) if and so long as the value of all securities of small business
investments companies owned by such company does not exceed 5 per centum of the value
of its total assets; or (b) if and so long as such stock of the small business investment
company shall be owned by a state development corporation which has been created
by or pursuant to an act of the State legislature to promote and assist the growth
and development of the economy within such State on a state-wide basis: Provided,
That such State development corporation is not, or as a result of its investment
in the small business investment company (considering such investment as an investment
security) would not be, an investment company as defined in section
3 of the Act.
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