Rules and Regulations
promulgated
under the
Investment Company Act of 1940
Rule 5b-2 -- Exclusion of Certain Guarantees as Securities of the Guarantor
For the purposes of section
5 of the act, a guarantee of a security shall not be deemed to be a security
issued by the guarantor: Provided, That the value of all securities issued
or guaranteed by the guarantor, and owned by the management company, does not exceed
10 percent of the value of the total assets of such management company.
Notwithstanding paragraph (a) of this
section, for the purposes of section 5 of the
Act, a guarantee by a railroad company of a security issued by a terminal company,
warehouse company, switching company, or bridge company, shall not be deemed to be
a security issued by such railroad company: Provided:
The security is guaranteed jointly or severally by
more than one railroad company; and
No one of such guaranteeing railroad companies directly
or indirectly controls all of its co-guarantors.
For the purposes of section
5 of the Act, a lease or other arrangement whereby a railroad company is or becomes
obligated to pay a stipulated annual sum of rental either to another railroad company
or to the security holders of such other railroad company shall not be deemed in
itself a guarantee.
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