Rules and Regulations
promulgated
under the
Investment Company Act of 1940
Rule 14a-1 -- Use of Notification Pursuant to Regulation E Under the Securities Act of 1933
For the purposes of section 14(a)(3)
of the Act, registration of securities under the Securities Act of 1933 by a small
business investment company operating under the Small Business Investment Act
of 1958 shall be deemed to include the filing of a notification under Rule
604 of Regulation E promulgated under said Act if provision is made in connection
with such notification which in the opinion of the Commission adequately insures:
(a) that after the effective date of such notification such company will not issue
any security or receive any proceeds of any subscription for any security until
firm agreements have been made with such company by not more than twenty-five
responsible persons to purchase from it securities to be issued by it for an aggregate
net amount which plus the then net worth of the company, if any, will equal at
least $100,000; (b) that said aggregate net amount will be paid into such company
before any subscriptions for such securities will be accepted from any persons
in excess of twenty-five; (c) that arrangements will be made whereby any proceeds
so paid in, as well as any sales load, will be refunded to any subscriber on demand
without any deduction, in the event that the net proceeds so received by the company
do not result in the company having a net worth of at least $100,000 within ninety
days after such notification becomes effective.
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