Rules and Regulations
promulgated
under the
Investment Company Act of 1940
Rule 18f-1 -- Exemption From Certain Requirements of Section 18(f)(1) (of the Act) for Registered Open-End Investment Companies Which Have the Right to Redeem in Kind
A registered open-end investment company which has
the right to redeem securities of which it is the issuer in assets other than
cash may file with the Commission at any time a notification of election on Form
N-18F-1 committing itself to pay in cash all requests for redemption by any shareholder
of record, limited in amount with respect to each shareholder during any 90-day
period to the lesser of
$250,000 or
1 percent of the net asset value of such company
at the beginning of such period.
An election pursuant to paragraph (a) of this section:
Shall be described in either the prospectus or the
Statement of Additional Information, at the discretion of the investment company,
and
Shall be irrevocable while this Rule
18f-1 is in effect unless the Commission by order upon application permits the
withdrawal of such notification of election as being appropriate in the public interest
and consistent with the protection of investors.
Upon making the election described in paragraph
(a) of this section, an investment company shall be exempt from the requirements
of section 18(f)(1) (of the Act) to the
extent necessary for such company to effectuate redemptions in the manner set
forth in such paragraph.
Notice to Users: The Deskbook is made available
with the understanding that the University of Cincinnati College
of Law is not engaged in rendering legal, accounting or other professional
services. If legal advice or other expert assistance is required,
the services of a competent professional person should be sought. See Terms and Conditions of Use.
