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Rules and Regulations
promulgated
under the
Investment Company Act of 1940





Rule 8b-2 -- Definitions


Unless the context otherwise requires, the terms in paragraphs (a) through (m) of this section, when used in the rules contained in rule 8b-1 through rule 8b-33, in the rules under section 30(a) or (b) of the Act or in the forms for registration statements and reports pursuant to section 8 or 30(a) or (b) of the Act, shall have the respective meanings indicated in this section. The terms "EDGAR," "EDGAR Filer Manual," "electronic filer," "electronic filing," "electronic format," "electronic submission," "paper format," and "signature" shall have the meanings assigned to such terms in Regulation S-T-General Rules for Electronic Filings (Part 232 of this chapter).
  1. Amount. The term "amount", when used in regard to securities, means the principal amount if relating to evidences of indebtedness, the number of shares if relating to shares, and the number of units if relating to any other kind of security.

  2. Certified. The term "certified", when used in regard to financial statements, means certified by an independent public or independent certified public accountant or accountants.

  3. Charter. The term "charter" includes articles of incorporation, declaration of trust, articles of association or partnership, or any similar instrument, as amended, effecting (either with or without filing with any governmental agency) the organization or creation of an incorporated or unincorporated person.

  4. Employee. The term "employee" does not include a director, trustee, officer or member of the advisory board.

  5. Fiscal year. The term "fiscal year" means the annual accounting period or, if no closing date has been adopted, the calendar year ending on December 31.

  6. Investment income. The term "investment income" means the aggregate of net operating income or loss from real estate and gross income from interest, dividends and all other sources, exclusive of profit or loss on sales of securities or other properties.

  7. Material. The term "material", when used to qualify a requirement for the furnishing of information as to any subject, limits the information required to those matters as to which an average prudent investor ought reasonably to be informed before buying or selling any security of the particular company.

  8. Parent. A "parent" of a specified person is an affiliated person who controls the specified person directly or indirectly through one or more intermediaries.

  9. Previously filed or reported. The terms "previously filed" and "previously reported" means previously filed with, or reported in, a registration statement filed under section 8 of the Act or under the Securities Act of 1933, a report filed under section 30 of the Act or section 13 or 15(d) of the Securities Exchange Act of 1934, a definitive proxy statement filed under section 20 of the Act or section 14 of the Securities Exchange Act of 1934, or a prospectus filed under the Securities Act of 1933: Provided, That information contained in any such document shall be deemed to have been previously filed with, or reported to, an exchange only if such document is filed with such exchange.

  10. Share. The term "share" means a share of stock in a corporation or unit of interest in an unincorporated person.

  11. Significant subsidiary. The term "significant subsidiary" means a subsidiary meeting any one of the following conditions:

    1. The value of the investments in and advances to the subsidiary by its parent and the parent's other subsidiaries, if any exceed 10 percent of the value of the assets of the parent or, if a consolidated balance sheet is filed, the value of the assets of the parent and its consolidated subsidiaries.

    2. The total investment income of the subsidiary or, in the case of a noninvestment company subsidiary, the net income exceeds 10 percent of the total investment income of the parent or, if consolidated statements are filed, 10 percent of the total investment income of the parent and its consolidated subsidiaries.

    3. The subsidiary is the parent of one or more subsidiaries and, together with such subsidiaries would, if considered in the aggregate, constitute a significant subsidiary.

  12. Subsidiary. A "subsidiary" of a specified person is an affiliated person who is controlled by the specified person, directly or indirectly, through one or more intermediaries.

  13. Totally-held subsidiary. The term "totally-held subsidiary" means a subsidiary

      1. substantially all of whose outstanding securities are owned by its parent and/or the parent's other totally-held subsidiaries, and

      2. which is not indebted to any person other than its parent and/or the parent's other totally-held subsidiaries in an amount which is material in relation to the particular subsidiary, excepting indebtedness incurred in the ordinary course of business which is not over-due and which matures within one year from the date of its creation, whether evidenced by securities or not.

Regulatory History


18 FR 8575, Dec. 19, 1953, as amended at 19 FR 2779, May 14, 1954; 58 FR 14860, Mar. 18, 1993; 65 FR 24788, 24802, Apr. 27, 2000; 70 FR 6556, 6572, Feb. 8, 2005

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