Dividends; restriction; exception. It shall be unlawful
for any registered investment company to pay any dividend, or to make any
distribution in the nature of a dividend payment, wholly or partly from any
source other than--
such company's accumulated undistributed net income,
determined in accordance with good accounting practice and not including
profits or losses realized upon the sale of securities or other properties;
such company's net income so determined for the current
or preceding fiscal year;
unless such payment is accompanied by a written statement which adequately
discloses the source or sources of such payment. The Commission may prescribe
the form of such statement by rules and regulations in the public interest
and for the protection of investors.
Long-term capital gains; limitation. It shall be unlawful
in contravention of such rules, regulations, or orders as the Commission may
prescribe as necessary or appropriate in the public interest or for the protection
of investors for any registered investment company to distribute long-term
capital gains, as defined in the Internal Revenue Code of 1954 [26 USCS §
§ 1 et seq.], more often than once every twelve months.
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