Rules and Regulations
promulgated
under the
Investment Company Act of 1940
Rule 3a-2 -- Transient Investment Companies
For purposes of sections 3(a)(1)(A)
and 3(a)(1)(C) of the Act, an issuer is deemed not to be engaged in the business
of investing, reinvesting, owning, holding or trading in securities during
a period of time not to exceed one year; Provided, That the issuer has a bona
fide intent to be engaged primarily, as soon as is reasonably possible (in
any event by the termination of such period of time), in a business other
than that of investing, reinvesting, owning, holding or trading in securities,
such intent to be evidenced by:
The issuer's business activities; and
An appropriate resolution of the issuer's
board of directors, or by an appropriate action of the person or persons
performing similar functions for any issuer not having a board of directors,
which resolution or action has been recorded contemporaneously in its
minute books or comparable documents.
For purposes of this rule, the period of time
described in paragraph (a) shall commence on the earlier of:
The date on which an issuer owns securities
and/or cash having a value exceeding 50 percent of the value of such issuer's
total assets on either a consolidated or unconsolidated basis; or
The date on which an issuer owns or proposes
to acquire investment securities (as defined in section
3(a) of the Act) having a value exceeding 40 per centum of the value
of such issuer's total assets (exclusive of Government securities and
cash items) on an unconsolidated basis.
No issuer may rely on this section more frequently
than once during any three-year period.
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