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 Securities Lawyer's Deskbook
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Rules and Regulations
promulgated
under the
Investment Company Act of 1940





Rule 6c-10 -- Exemption for Certain Open-End Management Investment Companies to Impose Deferred Sales Loads


  1. A company and any exempted person shall be exempt from the provisions of sections 2(a)(32), 2(a)(35), and 22(d) of the Act and Rule 22c-1 to the extent necessary to permit a deferred sales load to be imposed on shares issued by the company, Provided, that:

    1. The amount of the deferred sales load does not exceed a specified percentage of the net asset value or the offering price at the time of purchase;

    2. The terms of the deferred sales load are covered by the provisions of Rule 2830 of the Conduct Rules of the National Association of Securities Dealers, Inc.; and

    3. The same deferred sales load is imposed on all shareholders, except that scheduled variations in or elimination of a deferred sales load may be offered to a particular class of shareholders or transactions, Provided, that the conditions in Rule 22d-1 are satisfied. Nothing in this paragraph (a) shall prevent a company from offering to existing shareholders a new scheduled variation that would waive or reduce the amount of a deferred sales load not yet paid.

  2. For purposes of this section:

    1. Company means a registered open-end management investment company, other than a registered separate account, and includes a separate series of company;

    2. Exempted person means any principal underwriter of, dealer in, and any other person authorized to consummate transactions in, securities issued by a company; and

    3. Deferred sales load means any amount properly chargeable to sales or promotional expenses that is paid by a shareholder after purchase but before or upon redemption.

Regulatory History


60 FR 11889, Mar. 2, 1995; 61 FR 49011, 49016, Sept. 17, 1996

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