{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 270 sorted by section_id", "rows": [["15:15:1.2.2.7.9.1.10.1", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "A", "Subpart A\u2014General", "", "\u00a7 270.1 Description of rule; purpose; applicability.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 66704, Nov. 28, 2003; 69 FR 33571, June 16, 2004]", "(a) The National Construction Safety Team Act (the Act) (Pub. L. 107-231) provides for the establishment of investigative teams to assess building performance and emergency response and evacuation procedures in the wake of any building failure that has resulted in substantial loss of life or that posed significant potential of substantial loss of life.\n\n(b)(1) The purpose of the Act is to provide for the establishment of investigative teams to assess building performance and emergency response and evacuation procedures in the wake of any building failure that has resulted in substantial loss of life or that posed significant potential of substantial loss of life. The role of NIST in implementing the Act is to understand the factors contributing to the building failure and to develop recommendations for improving national building and fire model codes, standards, and practices. To do this, the Teams produce technical reports containing data, findings, and recommendations for consideration by private sector bodies responsible for the affected national building and fire model code, standard, or practice. While NIST is an active participant in many of these organizations, NIST's recommendations are one of many factors considered by these bodies. NIST is not now and will not become a participant in the processes and adoption of practices, standards, or codes by state or local regulatory authorities.\n\n(2) It is not NIST's role to determine whether a failed building resulted from a criminal act, violated any applicable federal requirements or state or local code or regulatory requirements, or to determine any culpability associated therewith. These are matters for other federal, state, or local authorities, who enforce their regulations.\n\n(c) This part is applicable to the establishment and deployment of Teams and the conduct of investigations under the Act."], ["15:15:1.2.2.7.9.1.10.2", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "A", "Subpart A\u2014General", "", "\u00a7 270.2 Definitions used in this part.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 66704, Nov. 28, 2003]", "The following definitions are applicable to this part:\n\nAct.  The National Construction Safety Team Act (Pub. L. 107-231, 116 Stat. 1471).\n\nAdvisory Committee.  The National Construction Safety Team Advisory Committee.\n\nCredentials.  Credentials issued by the Director, identifying a person as a member of a National Construction Safety Team, including photo identification and other materials, including badges, deemed appropriate by the Director.\n\nDirector.  The Director of the National Institute of Standards and Technology.\n\nEvidence.  Any document, record, book, artifact, building component, material, witness testimony, or physical evidence collected pursuant to an investigation.\n\nGeneral Counsel.  The General Counsel of the U.S. Department of Commerce.\n\nInvestigation participant.  Any person participating in an investigation under the Act, including all Team members, other NIST employees participating in the investigation, private sector experts, university experts, representatives of professional organizations, employees of other Federal, state, or local government entities, and other contractors.\n\nLead Investigator.  A Team member who is a NIST employee and is designated by the Director to lead a Team.\n\nNIST.  The National Institute of Standards and Technology.\n\nTeam.  A team established by the Director and deployed to conduct an investigation under the Act."], ["15:15:1.2.2.7.9.2.10.1", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.100 General.", "NIST", "", "", "[68 FR 66704, Nov. 28, 2003, as amended at 69 FR 33571, June 16, 2004]", "(a) Based on prior NIST experience, NIST expects that the Director will establish and deploy a Team to conduct an investigation at a frequency of approximately once per year or less.\n\n(b) For purposes of this part, a building failure may involve one or more of the following: structural system, fire protection (active or passive) system, air-handling system, and building control system. Teams established under the Act and this part will investigate these technical causes of building failures and will also investigate the technical aspects of evacuation and emergency response procedures, including multiple-occupant behavior or evacuation (egress or access) system, emergency response system, and emergency communication system.\n\n(c) For purposes of this part, the number of fatalities considered to be \u201csubstantial\u201d will depend on the nature of the event, its impact, its unusual or unforeseen character, historical norms, and other pertinent factors."], ["15:15:1.2.2.7.9.2.10.2", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.101 Preliminary reconnaissance.", "NIST", "", "", "", "(a) To the extent the Director deems it appropriate, the Director may conduct a preliminary reconnaissance at the site of a building failure. The Director may establish and deploy a Team to conduct the preliminary reconnaissance, as described in \u00a7 270.102 of this subpart, or may have information gathered at the site of a building failure without establishing a Team.\n\n(b) If the Director establishes and deploys a Team to conduct the preliminary reconnaissance, the Team shall perform all duties pursuant to section 2(b)(2) of the Act, and may perform all activities that Teams are authorized to perform under the Act and these procedures, including gathering and preserving evidence. At the completion of the preliminary reconnaissance, the Team will report its findings to the Director in a timely manner. The Director may either determine that the Team should conduct further investigation, or may direct the Team to prepare its public report immediately.\n\n(c) If the preliminary reconnaissance is conducted without the establishment of a Team, the leader of the initial assessment will report his/her findings to the Director in a timely manner. The Director will decide whether to establish a Team and conduct an investigation using the criteria established in \u00a7 270.102 of this subpart."], ["15:15:1.2.2.7.9.2.10.3", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.102 Conditions for establishment and deployment of a Team.", "NIST", "", "", "[68 FR 66704, Nov. 28, 2003, as amended at 69 FR 33571, June 16, 2004]", "(a) The Director may establish a Team for deployment after an event that caused the failure of a building or buildings that resulted in substantial loss of life or posed significant potential for substantial loss of life. The Director will determine the following prior to deploying a Team:\n\n(1) The event was any of the following:\n\n(i) A major failure of one or more buildings or types of buildings due to an extreme natural event (earthquake, hurricane, tornado, flood, etc.);\n\n(ii) A fire that resulted in a building failure of the building of origin and/or spread beyond the building of origin.\n\n(iii) A major building failure at significantly less than its design basis, during construction, or while in active use; or\n\n(iv) An act of terrorism or other event resulting in a Presidential declaration of disaster and activation of the National Response Plan; and\n\n(2) A fact-finding investigation of the building performance and emergency response and evacuation procedures will likely result in significant and new knowledge or building code revision recommendations needed to reduce or mitigate public risk and economic losses from future building failures.\n\n(b) In making the determinations pursuant to paragraph (a) of this section, the Director will consider the following:\n\n(1) Whether sufficient financial and personnel resources are available to conduct an investigation; and\n\n(2) Whether an investigation of the building failure warrants the advanced capabilities and experiences of a Team; and\n\n(3) If the technical cause of the failure is readily apparent, whether an investigation is likely to result in relevant knowledge other than reaffirmation of the technical cause; and\n\n(4) Whether deployment of a Team will substantially duplicate local or state resources equal in investigatory and analytical capability and quality to a Team; and\n\n(5) Recommendations resulting from a preliminary reconnaissance of the site of the building failure.\n\n(c) To the maximum extent practicable, the Director will establish and deploy a Team within 48 hours after such an event."], ["15:15:1.2.2.7.9.2.10.4", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.103 Publication in the Federal Register.", "NIST", "", "", "", "The Director will promptly publish in the  Federal Register  notice of the establishment of each Team."], ["15:15:1.2.2.7.9.2.10.5", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.104 Size and composition of a Team.", "NIST", "", "", "[68 FR 66704, Nov. 28, 2003, as amended at 69 FR 33571, June 16, 2004]", "(a)  Size of a Team.  The size of a Team will depend upon the likely scope and complexity of the investigation. A Team may consist of five or less members if the investigation is narrowly focused, or a Team may consist of twenty or more members divided into groups if the breadth of the investigation spans a number of technical issues. In addition, Teams may be supported by others at NIST, in other federal agencies, and in the private sector, who may conduct supporting experiments, analysis, interviews witnesses, and/or examine the response of first responders, occupants, etc.\n\n(b)  Composition of a Team.  (1) A Team will be composed of individuals selected by the Director and led by a Lead Investigator designated by the Director.\n\n(2) The Lead Investigator will be a NIST employee, selected based on his/her technical qualifications, ability to mobilize and lead a multi-disciplinary investigative team, and ability to deal with sensitive issues and the media.\n\n(3) Team members will include at least one employee of NIST and will include experts who are not employees of NIST, who may include private sector experts, university experts, representatives of professional organizations with appropriate expertise, and appropriate Federal, State, or local officials.\n\n(4) Team members who are not Federal employees will be Federal Government contractors.\n\n(5) Teams may include members who are experts in one or more of the following disciplines: civil, structural, mechanical, electrical, fire, forensic, safety, architectural, and materials engineering, and specialists in emergency response, human behavior, and evacuation.\n\n(c)  Duration of a Team.  A Team's term will end 3 months after the Team's final public report is published, but the term may be extended or terminated earlier by the Director."], ["15:15:1.2.2.7.9.2.10.6", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.105 Duties of a Team.", "NIST", "", "", "", "(a) A Team's Lead Investigator will organize, conduct, and control all technical aspects of the investigation, up to and including the completion of the final investigation public report and any subsequent actions that may be required. The Lead Investigator has the responsibility and authority to supervise and coordinate all resources and activities of NIST personnel involved in the investigation. The Lead Investigator may be the Contracting Officer's Technical Representative (COTR) on any contract for service on the Team or in support of the Team; while the COTR remains the technical representative of the Contracting Officer for purposes of contract administration, the Lead Investigator will oversee all NIST personnel acting as COTRs for contracts for service on the Team or in support of the Team. The Lead Investigator's duties will terminate upon termination of the Team. The Lead Investigator will keep the Director and the NCST Advisory Committee informed about the status of investigations.\n\n(b) A Team will:\n\n(1) Establish the likely technical cause or causes of the building failure;\n\n(2) Evaluate the technical aspects of evacuation and emergency response procedures;\n\n(3) Recommend, as necessary, specific improvements to building standards, codes, and practices based on the findings made pursuant to paragraphs (b)(1) and (b)(2) of this section;\n\n(4) Recommend any research and other appropriate actions needed to improve the structural safety of buildings, and improve evacuation and emergency response procedures, based on the findings of the investigation; and\n\n(5) Not later than 90 days after completing an investigation, issue a public report in accordance with \u00a7 270.205 of this subpart.\n\n(c) In performing these duties, a Team will:\n\n(1) Not interfere unnecessarily with services provided by the owner or operator of the buildings, building components, materials, artifacts, property, records, or facility;\n\n(2) Preserve evidence related to the building failure consistent with the ongoing needs of the investigation;\n\n(3) Preserve evidence related to a criminal act that may have caused the building failure;\n\n(4) Not impede and coordinate its investigation with any search and rescue efforts being undertaken at the site of the building failure;\n\n(5) Coordinate its investigation with qualified researchers who are conducting engineering or scientific research (including social science) relating to the building failure;\n\n(6) Cooperate with State and local authorities carrying out any activities related to a Team's investigation;\n\n(d) In performing these duties, in a manner consistent with the procedures set forth in this part, a Team may:\n\n(1) Enter property where a building failure being investigated has occurred and take necessary, appropriate, and reasonable action to carry out the duties described in paragraph (b) of this section;\n\n(2) Inspect any record, process, or facility related to the investigation during reasonable hours;\n\n(3) Inspect and test any building components, materials, and artifacts related to the building failure; and\n\n(4) Move records, components, materials, and artifacts related to the building failure."], ["15:15:1.2.2.7.9.2.10.7", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "B", "Subpart B\u2014Establishment and Deployment of Teams", "", "\u00a7 270.106 Conflicts of interest related to service on a Team.", "NIST", "", "", "", "(a) Team members who are not Federal employees will be Federal Government contractors.\n\n(b) Contracts between NIST and Team members will include appropriate provisions to ensure that potential conflicts of interest that arise prior to award or during the contract are identified and resolved."], ["15:15:1.2.2.7.9.3.10.1", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.200 Technical conduct of investigation.", "NIST", "", "", "[68 FR 66704, Nov. 28, 2003, as amended at 69 FR 33571, June 16, 2004]", "(a)  Preliminary reconnaissance.  (1) An initial assessment of the event, including an initial site reconnaissance, if deemed appropriate by the Director, will be conducted. This assessment will be done within a few hours of the event, if possible. The Director may establish and deploy a Team to conduct the preliminary reconnaissance, using the criteria established in \u00a7 270.102 of this part, or may have information gathered at the site of a building failure without establishing a Team.\n\n(2) If the Director establishes and deploys a Team to conduct the preliminary reconnaissance, the Team shall perform all duties pursuant to section 2(b)(2) of the Act, and may perform all activities that Teams are authorized to perform under the Act and these procedures, with a focus on gathering and preserving evidence, inspecting the site of the building failure, and interviewing of eyewitnesses, survivors, and first responders. Collections of evidence by a Team established for preliminary reconnaissance are investigatory in nature and will not be considered research for any purpose. At the completion of the preliminary reconnaissance, the Team will report its findings to the Director in a timely manner. The Director may either determine that the Team should conduct further investigation, or may direct the Team to immediately prepare the public report as required by section 8 of the Act.\n\n(3) If the preliminary reconnaissance is conducted without the establishment of a Team, the leader of the initial assessment will report his/her findings to the Director in a timely manner. The Director will decide whether to establish a team and conduct an investigation using the criteria established in \u00a7 270.102 of this part.\n\n(b)  Investigation plan.  (1) If the Director establishes a Team without ordering preliminary reconnaissance, establishes a Team after preliminary reconnaissance, or establishes a Team to conduct preliminary reconnaissance and subsequently determines that further investigation is necessary prior to preparing the public report required by section 8 of the Act, the Director, or his/her designee, will formulate a plan that includes:\n\n(i) A brief description of the building failure;\n\n(ii) The criteria upon which the decision to conduct the investigation was based;\n\n(iii) Supporting effort(s) by other organizations either in place or expected in the future;\n\n(iv) Identification of the Lead Investigator and Team members;\n\n(v) The technical investigation plan;\n\n(vi) Site, community, and local, state, and Federal agency liaison status; and\n\n(vii) Estimated duration and cost.\n\n(2) To the extent practicable, the Director will include the most appropriate expertise on each Team from within NIST, other government agencies, and the private sector. The NCST Advisory Committee may be convened as soon as feasible following the launch of an investigation to provide the Director the benefit of its advice on investigation Team activities.\n\n(c)  Investigation.  (1) The duration of an investigation that proceeds beyond preliminary reconnaissance will be as little as a few months to as long as a few years depending on the complexity of the event.\n\n(2) Tasks that may be completed during investigations that proceed beyond preliminary reconnaissance include:\n\n(i) Consult with experts in building design and construction, fire protection engineering, emergency evacuation, and members of other investigation teams involved in the event to identify technical issues and major hypotheses requiring investigation.\n\n(ii) Collect data from the building(s) owner and occupants, local authorities, and contractors and suppliers. Such data will include relevant building and fire protection documents, records, video and photographic data, field data, and data from interviews and other oral and written accounts from building occupants, emergency responders, and other witnesses.\n\n(iii) Collect and analyze physical evidence, including material samples and other forensic evidence, to the extent they are available.\n\n(iv) Determine the conditions in the building(s) prior to the event, which may include the materials of construction and contents; the location, size, and condition of all openings that may have affected egress, entry, and fire conditions (if applicable); the installed security and/or fire protection systems (if applicable); the number of occupants and their approximate locations at the time of the event.\n\n(v) Reconstruct the event within the building(s) using computer models to identify the most probable technical cause (or causes) of the failure and the uncertainty(ies) associated with it (them). Such models may include initial damage, blast effects, pre-existing deficiencies and phenomena such as fire spread, smoke movement, tenability, occupant behavior and response, evacuation issues, cooperation of security and fire protection systems, and building collapse.\n\n(vi) Conduct small and full-scale experiments to provide additional data and verify the computer models being used.\n\n(vii) Examine the impact of alternate building/system/equipment design and use on the survivability of the building and its occupants.\n\n(viii) Analyze emergency evacuation and occupant responses to better understand the actions of the first responders and the impediments to safe egress encountered by the occupants.\n\n(ix) Analyze the relevant building practices, including code adoption and enforcement practices, to determine the extent to which the circumstances that led to this building failure have regional or national implications.\n\n(x) Identify specific areas in building and fire codes, standards, and building practices that may warrant revisions based on investigation findings.\n\n(xi) Identify research and other appropriate actions required to help prevent future building failures.\n\n(d) If a disaster site contains multiple building failures, the Director will narrow the scope of the investigation plan taking into account available financial and personnel resources, and giving priority to failures offering the most opportunity to advance the safety of building codes. The Director may consider the capabilities of NIST in establishing priorities."], ["15:15:1.2.2.7.9.3.10.2", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.201 Priority of investigation.", "NIST", "", "", "", "(a)  General.  Except as provided in this section, a Team investigation will have priority over any other investigation of any other Federal agency.\n\n(b)  Criminal acts.  (1) If the Attorney General, in consultation with the Director, determines, and notifies the Director that circumstances reasonably indicate that the building failure being investigated by a Team may have been caused by a criminal act, the Team will relinquish investigative priority to the appropriate law enforcement agency.\n\n(2) If a criminal investigation of the building failure being investigated by a Team is initiated at the state or local level, the Team will relinquish investigative priority to the appropriate law enforcement agency.\n\n(3) The relinquishment of investigative priority by the Team will not otherwise affect the authority of the Team to continue its investigation under the Act.\n\n(c)  National Transportation Safety Board.  If the National Transportation Safety Board is conducting an investigation related to an investigation of a Team, the National Transportation Safety Board investigation will have priority over the Team investigation. Such priority will not otherwise affect the authority of the Team to continue its investigation under the Act.\n\n(d) Although NIST will share any evidence of criminal activity that it obtains in the course of an investigation under the Act with the appropriate law enforcement agency, NIST will not participate in the investigation of any potential criminal activity."], ["15:15:1.2.2.7.9.3.10.3", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.202 Coordination with search and rescue efforts.", "NIST", "", "", "[68 FR 66704, Nov. 28, 2003, as amended at 69 FR 33571, June 16, 2004]", "NIST will coordinate its investigation with any search and rescue or search and recovery efforts being undertaken at the site of the building failure, including FEMA urban search and rescue teams, local emergency management agencies, and local emergency response groups. Upon arrival at a disaster site, the Lead Investigator will identify the lead of the search and rescue operations and will work closely with that person to ensure coordination of efforts."], ["15:15:1.2.2.7.9.3.10.4", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.203 Coordination with Federal, State, and local entities.", "NIST", "", "", "", "NIST will enter into Memoranda of Understanding with Federal, State, and local entities, as appropriate, to ensure the coordination of investigations."], ["15:15:1.2.2.7.9.3.10.5", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.204 Provision of additional resources and services needed by a Team.", "NIST", "", "", "", "The Director will determine the appropriate resources that a Team will require to carry out its investigation and will ensure that those resources are available to the Team."], ["15:15:1.2.2.7.9.3.10.6", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.205 Reports.", "NIST", "", "", "", "(a) Not later than 90 days after completing an investigation, a Team shall issue a public report which includes:\n\n(1) An analysis of the likely technical cause or causes of the building failure investigated;\n\n(2) Any technical recommendations for changes to or the establishment of evacuation or emergency response procedures;\n\n(3) Any recommended specific improvements to building standards, codes, and practices; and\n\n(4) Recommendations for research and other appropriate actions needed to help prevent future building failures.\n\n(b) A Team that is directed to prepare its public report immediately after conducting a preliminary reconnaissance will issue a public report not later than 90 days after completion of the preliminary reconnaissance. The public report will be in accordance with paragraph (a) of this section, but will be summary in nature.\n\n(c) A Team that continues to conduct an investigation after conducting a preliminary reconnaissance will issue a public report not later than 90 days after completing the investigation in accordance with paragraph (a) of this section."], ["15:15:1.2.2.7.9.3.10.7", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "C", "Subpart C\u2014Investigations", "", "\u00a7 270.206 Public briefings and requests for information.", "NIST", "", "", "", "(a) NIST will establish methods to provide updates to the public on its planning and progress of an investigation. Methods may include:\n\n(1) A public Web site;\n\n(2) Mailing lists, to include an emphasis on e-mail;\n\n(3) Semi-annual written progress reports;\n\n(4) Media briefings; and\n\n(5) Public meetings.\n\n(b) Requests for information on the plans and conduct of an investigation should be submitted to the NIST Public and Business Affairs Division."], ["15:15:1.2.2.7.9.4.10.1", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.300 Scope.", "NIST", "", "", "", "During the course of an investigation conducted pursuant to the Act, evidence will be collected, and information will be created by the Team, NIST, and other investigation participants. This subpart sets forth the policy and procedures for the collection, preservation, and protection of evidence obtained and information created pursuant to an investigation."], ["15:15:1.2.2.7.9.4.10.2", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.301 Policy.", "NIST", "", "", "", "Evidence collected and information created by Team members and all other investigation participants will be collected, preserved, and protected in accordance with the procedures set forth in this subpart."], ["15:15:1.2.2.7.9.4.10.3", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.310 Evidence collected by investigation participants who are not NIST employees.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 24345, May 7, 2003]", "Upon receipt of evidence pursuant to an investigation under the Act, each investigation participant who is not a NIST employee shall:\n\n(a) As soon as practicable, transfer the original evidence to NIST, and retain a copy of the evidence only if necessary to carry out their duties under the investigation; and\n\n(b) For any evidence that cannot reasonably be duplicated, retain the evidence in accordance with NIST procedures for preserving evidence as described in \u00a7 270.330 of this subpart, and upon completion of the duties for which retention of the evidence is necessary, transfer the evidence to NIST."], ["15:15:1.2.2.7.9.4.10.4", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.311 Collection of evidence.", "NIST", "", "", "", "(a) In the course of an investigation, evidence normally will be collected following the procedures described in \u00a7\u00a7 270.312 through 270.315 of this subpart.\n\n(b) Upon a written showing by the Lead Investigator of urgent and compelling reasons to believe that evidence may be destroyed, or that a witness may become unavailable, were the procedures described in \u00a7\u00a7 270.312 through 270.314 of this subpart followed, the Director, with the concurrence of the General Counsel, may immediately issue a subpoena for such evidence or testimony, pursuant to \u00a7 270.315 of this subpart."], ["15:15:1.2.2.7.9.4.10.5", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.312 Voluntary submission of evidence.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 24345, May 7, 2003]", "After the Director establishes and deploys a Team, members of the public are encouraged to voluntarily submit to the Team non-privileged evidence that is relevant to the subject matter of the pending investigation."], ["15:15:1.2.2.7.9.4.10.6", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.313 Requests for evidence.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 66707, Nov. 28, 2003]", "(a) After the Director establishes and deploys a Team, the Lead Investigator, or their designee, may request the testimony of any person by deposition, upon oral examination or written questions, and may request documents or other physical evidence without seeking prior approval of the Director.\n\n(b) Requests for responses to written questions will be made in writing and shall include:\n\n(1) A statement that the request is made to gather evidence necessary to an investigation being conducted under the Act;\n\n(2) Identification of the person whose responses are sought;\n\n(3) Contact information for the person to whom the responses should be submitted;\n\n(4) The date and time by which the responses are requested;\n\n(5) A statement that the questions for which responses are sought are attached; and\n\n(6) Contact information for the person to whom questions or problems regarding the request should be addressed.\n\n(c) Requests for documents or other physical evidence will be made in writing and shall include:\n\n(1) A statement that the request is made to gather evidence necessary to an investigation being conducted under the Act;\n\n(2) A description of the documents or other physical evidence sought;\n\n(3) Identification of the person or persons to whom the request is made;\n\n(4) A request that each person to whom the request is directed produce and permit inspection and copying of the documents and physical evidence in the possession, custody, or control of that person at a specific time and place; and\n\n(5) Contact information for the person to whom questions or problems regarding the request should be addressed.\n\n(d) Requests for witness testimony will be made in writing and shall include:\n\n(1) The name of the person whose testimony is requested;\n\n(2) The date, time, and place of the deposition;\n\n(3) A statement that the person whose testimony is requested may be accompanied by an attorney; and\n\n(4) Contact information for the person to whom questions or problems regarding the request should be addressed.\n\n(e) Collections of evidence under paragraphs (b), (c), and (d) of this section are investigatory in nature and will not be considered research for any purpose."], ["15:15:1.2.2.7.9.4.10.7", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.314 Negotiations.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 24345, May 7, 2003]", "The Lead Investigator may enter into discussions with appropriate parties to address problems identified with the submission of evidence requested pursuant to \u00a7 270.313 of this subpart. Should negotiations fail to result in the submission of such evidence, a subpoena may be issued pursuant to \u00a7 270.315."], ["15:15:1.2.2.7.9.4.10.8", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.315 Subpoenas.", "NIST", "", "", "[68 FR 4694, Jan. 30, 2003, as amended at 68 FR 24345, May 7, 2003; 68 FR 66707, Nov. 28, 2003]", "(a)  General.  Subpoenas requiring the attendance of witnesses or the production of documentary or physical evidence for the purpose of taking depositions or at a hearing may be issued only under the signature of the Director with the concurrence of the General Counsel, but may be served by any person designated by the Counsel for NIST on behalf of the Director.\n\n(b)  Determination whether to issue a subpoena.  In determining whether to issue a subpoena, the Director will consider the following factors:\n\n(1) Whether the testimony, documentary, or physical evidence is required for an investigation being conducted pursuant to the Act;\n\n(2) Whether the evidence sought is relevant to the purpose of the investigation;\n\n(3) Whether NIST already has the evidence in its possession; and\n\n(4) Whether the evidence required is described with specificity.\n\n(c)  Contents of a subpoena.  A subpoena issued by the Director will contain the following:\n\n(1) A statement that the subpoena is issued by the Director pursuant to section 5 of the Act;\n\n(2) A description of the documents or physical evidence or the subject matter of the testimony required by the subpoena;\n\n(3) A command that each person to whom it is directed attend and give testimony or produce and permit inspection and copying of designated books, documents or physical evidence in the possession, custody or control of that person at a time and place specified in the subpoena;\n\n(4) A statement that any person whose testimony is required by the subpoena may be accompanied by an attorney; and\n\n(5) The signature of the Director.\n\n(d)  Service of a subpoena.  Service of a subpoena will be effected:\n\n(1) By personal service upon the person or agent of the person whose testimony is required or who is in charge of the documentary or physical evidence required; or\n\n(2) By certified mail, return receipt requested, or delivery to the last known residence or business address of such person or agent; or\n\n(3) Where personal service, mailing, or delivery has been unsuccessful, service may also be effected by publication in the  Federal Register.\n\n(e)  Witness fees.  Witnesses will be entitled to the same fees and mileage as are paid to witnesses in the courts of the United States.\n\n(f)  Failure to obey a subpoena.  If a person disobeys a subpoena issued by the Director under the Act, the Attorney General, acting on behalf of the Director, may bring civil action in a district court of the United States to enforce the subpoena. The court may punish a failure to obey an order of the court to comply with the subpoena as a contempt of court."], ["15:15:1.2.2.7.9.4.10.9", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.316 Public hearings.", "NIST", "", "", "", "(a) During the course of an investigation by a Team, if the Director considers it to be in the public interest, NIST may hold a public hearing for the purposes of gathering testimony from witnesses and informing the public on the progress of the investigation.\n\n(b) Should NIST plan to hold a public hearing, NIST will publish a notice in the  Federal Register,  setting forth the date, time, and place of the hearing, and procedures for members of the public wishing to speak at the hearing. In addition, witnesses may be subpoenaed to provide testimony at a public hearing, in accordance with \u00a7 270.315 of this subpart.\n\n(c) The Director, or his designee, will preside over any public hearing held pursuant to this section."], ["15:15:1.2.2.7.9.4.11.10", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.320 Entry and inspection of site where a building failure has occurred.", "NIST", "", "", "", "When the Director establishes and deploys a Team, the Team members will be issued notices of inspection authority to enter and inspect the site where the building failure has occurred."], ["15:15:1.2.2.7.9.4.11.11", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.321 Entry and inspection of property where building components, materials, artifacts, and records with respect to a building failure are located.", "NIST", "", "", "", "(a) In the course of an investigation, entry and inspection of property where building components, materials, artifacts and records with respect to a building failure are located normally will be conducted following the procedures described in \u00a7\u00a7 270.322 through 270.325 of this subpart.\n\n(b) Upon a written showing by the Lead Investigator of urgent and compelling reasons to believe that building components, materials, artifacts or records located on a particular property may be destroyed were the procedures described in \u00a7\u00a7 270.322 through 270.324 of this subpart followed, the Director, with the concurrence of the General Counsel may immediately issue a notice of inspection authority for such property, pursuant to \u00a7 270.325 of this subpart."], ["15:15:1.2.2.7.9.4.11.12", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.322 Voluntary permission to enter and inspect property where building components, materials, artifacts, and records with respect to a building failure are located.", "NIST", "", "", "", "After the Director establishes and deploys a Team, members of the public are encouraged to voluntarily permit Team members to enter property where building components, materials, artifacts, and records with respect to the building failure are located, and take action necessary, appropriate, and reasonable in light of the nature of the property to be inspected and to carry out the duties of the Team."], ["15:15:1.2.2.7.9.4.11.13", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.323 Requests for permission to enter and inspect property where building components, materials, artifacts, and records with respect to a building failure are located.", "NIST", "", "", "", "(a) After the Director establishes and deploys a Team, the Lead Investigator or their designee may request permission to enter and inspect property where building components, materials, artifacts, and records with respect to a building failure are located, and take action necessary, appropriate, and reasonable in light of the nature of the property to be inspected and to carry out the duties of the Team.\n\n(b) Requests for permission to enter and inspect such property will be made in writing and shall include:\n\n(1) The name and title of the building owner, operator, or agent in charge of the building;\n\n(2) If appropriate, the name of the building to be inspected;\n\n(3) The address of the building to be inspected;\n\n(4) The date and time of the inspection;\n\n(5) If appropriate, a description of particular items to be inspected; and\n\n(6) Contact information for the person to whom questions or problems regarding the request should be addressed."], ["15:15:1.2.2.7.9.4.11.14", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.324 Negotiations.", "NIST", "", "", "", "The Lead Investigator may enter into discussions with appropriate parties to address problems identified with the goal of obtaining the permission requested pursuant to \u00a7 270.323 of this subpart."], ["15:15:1.2.2.7.9.4.11.15", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.325 Notice of authority to enter and inspect property where building components, materials, artifacts, and records with respect to a building failure are located.", "NIST", "", "", "", "(a)  General.  In investigating a building failure pursuant to the Act, any member of a Team, or any other person authorized by the Director to support a Team, on display of written notice of inspection authority provided by the Director with concurrence of the General Counsel and appropriate credentials, may\n\n(1) Enter property where a building failure being investigated has occurred, or where building components, materials, and artifacts with respect to the building failure are located, and take action necessary, appropriate, and reasonable in light of the nature of the property to be inspected and to carry out the duties of the Team;\n\n(2) During reasonable hours, inspect any record (including any design, construction, or maintenance record), process, or facility related to the investigation;\n\n(3) Inspect and test any building components, materials, and artifacts related to the building failure; and\n\n(4) Move any record, component, material and artifact as provided by this part.\n\n(b)  Conduct of inspection, test, or other action.  An inspection, test, or other action taken by a Team pursuant to section 4 of the Act will be conducted in a way that does not interfere unnecessarily with services provided by the owner or operator of the building components, materials, or artifacts, property, records, process, or facility, and to the maximum extent feasible, preserves evidence related to the building failure, consistent with the ongoing needs of the investigation.\n\n(c)  Determination whether to issue a notice of inspection authority.  In determining whether to issue a notice of inspection authority, the Director will consider whether the specific entry and inspection is reasonable and necessary for the Team to carry out its duties under the Act.\n\n(d)  Notice of inspection authority.  Notice of inspection authority will be made in writing and shall include:\n\n(1) A statement that the notice of inspection authority is issued pursuant to section 4 of the Act;\n\n(2) The name and title of the building owner, operator, or agent in charge of the building;\n\n(3) If appropriate, the name of the building to be inspected;\n\n(4) The address of the building to be inspected;\n\n(5) The date and time of the inspection;\n\n(6) If appropriate, a description of particular items to be inspected; and\n\n(7) The signature of the Director.\n\n(e)  Refusal of entry on to property.  If upon being presented with a notice of inspection by any member of a Team, or any other person authorized by the Director, the owner, operator, or agent in charge of the building or property being inspected refuses to allow entry or inspection, the Director may seek the assistance of the Department of Justice to obtain a warrant or other authorized judicial order enabling entry on to the property."], ["15:15:1.2.2.7.9.4.12.16", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.330 Moving and preserving evidence.", "NIST", "", "", "", "(a) A Team and NIST will take all necessary steps in moving and preserving evidence obtained during the course of an investigation under the Act to ensure that such evidence is preserved.\n\n(b) In collecting and preserving evidence in the course of an investigation under the Act, a Team and NIST will:\n\n(1) Maintain records to ensure that each piece of evidence is identified as to its source;\n\n(2) Maintain and document an appropriate chain of custody for each piece of evidence;\n\n(3) Use appropriate means to preserve each piece of evidence; and\n\n(4) Ensure that each piece of evidence is kept in a suitably secure facility.\n\n(c) If a Federal law enforcement agency suspects and notifies the Director that a building failure being investigated by a Team under the Act may have been caused by a criminal act, the Team, in consultation with the Federal law enforcement agency, will take necessary actions to ensure that evidence of the criminal act is preserved and that the original evidence or copies, as appropriate, are turned over to the appropriate law enforcement authorities."], ["15:15:1.2.2.7.9.4.13.17", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.340 Information created by investigation participants who are not NIST employees.", "NIST", "", "", "", "Unless requested sooner by the Lead Investigator, at the conclusion of an investigation, each investigation participant who is not a NIST employee shall transfer any original information they created pursuant to the investigation to NIST. An investigation participant may retain a copy of the information for their records but may not use the information for purposes other than the investigation, nor may they release, reproduce, distribute, or publish any information first developed pursuant to the investigation, nor authorize others to do so, without the written permission of the Director or their designee. Pursuant to 15 U.S.C. 281a, no such information may be admitted or used as evidence in any suit or action for damages arising out of any matter related to the investigation."], ["15:15:1.2.2.7.9.4.14.18", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.350 Freedom of Information Act.", "NIST", "", "", "", "As permitted by section 7(b) of the Act, the following information will not be released:\n\n(a) Information described by section 552(b) of Title 5, United States Code, or protected from disclosure by any other law of the United States; and\n\n(b) Copies of evidence collected, information created, or other investigation documents submitted or received by NIST, a Team, or any other investigation participant, until the final investigation report is issued."], ["15:15:1.2.2.7.9.4.14.19", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.351 Protection of voluntarily submitted information.", "NIST", "", "", "", "Notwithstanding any other provision of law, a Team, NIST, any investigation participant, and any agency receiving information from a Team, NIST, or any other investigation participant, will not disclose voluntarily provided safety-related information if that information is not directly related to the building failure being investigated and the Director finds that the disclosure of the information would inhibit the voluntary provision of that type of information."], ["15:15:1.2.2.7.9.4.14.20", 15, "Commerce and Foreign Trade", "II", "G", "270", "PART 270\u2014NATIONAL CONSTRUCTION SAFETY TEAMS", "D", "Subpart D\u2014Collection and Preservation of Evidence; Information Created Pursuant to an Investigation; and Protection of Information", "", "\u00a7 270.352 Public safety information.", "NIST", "", "", "", "A Team, NIST, and any other investigation participant will not publicly release any information it receives in the course of an investigation under the Act if the Director finds that the disclosure might jeopardize public safety."], ["17:17:5.0.1.1.19.0.36.1", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.0-1 Definition of terms used in this part.", "SEC", "", "", "[Rule N-1, 5 FR 4316, Oct. 31, 1940, as amended at 19 FR 6730, Oct. 20, 1954; 30 FR 829, Jan. 27, 1965; 48 FR 36098, Aug. 9, 1983; 50 FR 42682, Oct. 22, 1985; 58 FR 14859, Mar. 18, 1993; 66 FR 3757, Jan. 16, 2001; 69 FR 46389, Aug. 2, 2004; 85 FR 26101, May 1, 2020]", "(a) As used in the rules and regulations prescribed by the Commission pursuant to the Investment Company Act of 1940, unless the context otherwise requires:\n\n(1) The term  Commission  means the Securities and Exchange Commission.\n\n(2) The term  act  means the Investment Company Act of 1940.\n\n(3) The term  section  refers to a section of the act.\n\n(4) The terms  rule  and  regulations  refer to the rules and regulations adopted by the Commission pursuant to the Act, including the forms for registration and reports and the accompanying instructions thereto.\n\n(5) The term  administrator  means any person who provides significant administrative or business affairs management services to an investment company.\n\n(6)(i) A person is an  independent legal counsel  with respect to the directors who are not interested persons of an investment company (\u201cdisinterested directors\u201d) if:\n\n(A) A majority of the disinterested directors reasonably determine in the exercise of their judgment (and record the basis for that determination in the minutes of their meeting) that any representation by the person of the company's investment adviser, principal underwriter, administrator (\u201cmanagement organizations\u201d), or any of their control persons, since the beginning of the fund's last two completed fiscal years, is or was sufficiently limited that it is unlikely to adversely affect the professional judgment of the person in providing legal representation to the disinterested directors; and\n\n(B) The disinterested directors have obtained an undertaking from such person to provide them with information necessary to make their determination and to update promptly that information when the person begins to represent, or materially increases his representation of, a management organization or control person.\n\n(ii) The disinterested directors are entitled to rely on the information obtained from the person, unless they know or have reason to believe that the information is materially false or incomplete. The disinterested directors must re-evaluate their determination no less frequently than annually (and record the basis accordingly), except as provided in paragraph (iii) of this section.\n\n(iii) After the disinterested directors obtain information that the person has begun to represent, or has materially increased his representation of, a management organization (or any of its control persons), the person may continue to be an independent legal counsel, for purposes of paragraph (a)(6)(i) of this section, for no longer than three months unless during that period the disinterested directors make a new determination under that paragraph.\n\n(iv) For purposes of paragraphs (a)(6)(i)-(iii) of this section:\n\n(A) The term  person  has the same meaning as in section 2(a)(28) of the Act (15 U.S.C. 80a-2(a)(28)) and, in addition, includes a partner, co-member, or employee of any person; and\n\n(B) The term  control person  means any person (other than an investment company) directly or indirectly controlling, controlled by, or under common control with any of the investment company's management organizations.\n\n(7)  Fund governance standards.  The board of directors of an investment company (\u201cfund\u201d) satisfies the  fund governance standards  if:\n\n(i) At least seventy-five percent of the directors of the fund are not interested persons of the fund (\u201cdisinterested directors\u201d) or, if the fund has three directors, all but one are disinterested directors;\n\n(ii) The disinterested directors of the fund select and nominate any other disinterested director of the fund;\n\n(iii) Any person who acts as legal counsel for the disinterested directors of the fund is an independent legal counsel as defined in paragraph (a)(6) of this section;\n\n(iv) A disinterested director serves as chairman of the board of directors of the fund, presides over meetings of the board of directors and has substantially the same responsibilities as would a chairman of a board of directors;\n\n(v) The board of directors evaluates at least once annually the performance of the board of directors and the committees of the board of directors, which evaluation must include a consideration of the effectiveness of the committee structure of the fund board and the number of funds on whose boards each director serves;\n\n(vi) The disinterested directors meet at least once quarterly in a session at which no directors who are interested persons of the fund are present; and\n\n(vii) The disinterested directors have been authorized to hire employees and to retain advisers and experts necessary to carry out their duties.\n\n(b) Unless otherwise specifically provided, the terms used in the rules and regulations in this part shall have the meaning defined in the Act. The terms \u201cEDGAR,\u201d \u201cEDGAR Filer Manual,\u201d \u201celectronic filer,\u201d \u201celectronic filing,\u201d \u201celectronic format,\u201d \u201celectronic submission,\u201d \u201cpaper format,\u201d and \u201csignature\u201d shall have the meanings assigned to such terms in Regulation S-T\u2014General Rules for Electronic Filings (Part 232 of this chapter).\n\n(c) A rule or regulation which defines a term without express reference to the act or to the rules and regulations, or to a portion thereof, defines such terms for all purposes as used both in the act and in the rules and regulations in this part, unless the context otherwise requires.\n\n(d) Unless otherwise specified or the context otherwise requires, the term \u201cprospectus\u201d means a prospectus meeting the requirements of section 10(a) of the Securities Act of 1933 as amended.\n\n(e) Definition of separate account and conditions for availability of exemption under \u00a7\u00a7 270.6c-6, 270.6c-7, 270.6c-8, 270.11a-2, 270.14a-2, 270.15a-3, 270.16a-1, 270.22c-1, 270.22d-2, 270.22e-1, 270.26a-1, 270.27i-1, and 270.32a-2 (Rules 6c-6, 6c-7, 6c-8, 11a-2, 14a-2, 15a-3, 16a-1, 22c-1, 22d-2, 22e-1, 26a-1, 27i-1, and 32a-2).\n\n(1) As used in the rules and regulations prescribed by the Commission pursuant to the Investment Company Act of 1940, unless otherwise specified or the context otherwise requires, the term \u201cseparate account\u201d shall mean an account established and maintained by an insurance company pursuant to the laws of any state or territory of the United States, or of Canada or any province thereof, under which income, gains and losses, whether or not realized, from assets allocated to such account, are, in accordance with the applicable contract, credited to or charged against such account without regard to other income, gains or losses of the insurance company and the term \u201cvariable annuity contract\u201d shall mean any accumulation or annuity contract, any portion thereof, or any unit of interest or participation therein pursuant to which the value of the contract, either prior or subsequent to annuitization, or both, varies according to the investment experience of the separate account in which the contract participates.\n\n(2) As conditions to the availability of exemptive Rules 6c-6, 6c-7, 6c-8, 11a-2, 14a-2, 15a-3, 16a-1, 22c-1, 22d-2, 22e-1, 26a-1, 27i-1, and 32a-2, the separate account shall be legally segregated, the assets of the separate account shall, at the time during the year that adjustments in the reserves are made, have a value at least equal to the reserves and other contract liabilities with respect to such account, and at all other times, shall have a value approximately equal to or in excess of such reserves and liabilities; and that portion of such assets having a value equal to, or approximately equal to, such reserves and contract liabilities shall not be chargeable with liabilities arising out of any other business which the insurance company may conduct."], ["17:17:5.0.1.1.19.0.36.10", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a-1 Valuation of portfolio securities in special cases.", "SEC", "", "", "[Rule N-2A-1, 8 FR 3567, Mar. 24, 1943, as amended at 38 FR 8593, Apr. 4, 1973]", "(a) Any investment company whose securities are qualified for sale, or for whose securities application for such qualification has been made, in any State in which the securities owned by such company are required by applicable State law or regulations to be valued at cost or on some other basis different from that prescribed by clause (A) of section 2(a)(41) of the Act for the purpose of determining the percentage of its assets invested in any particular type or classification of securities or in the securities of any one issuer, may, in valuing its securities for the purposes of sections 5 and 12 of the Act, use the same basis of valuation as that used in complying with such State law or regulations in lieu of the method of valuation prescribed by clause (A) of section 2(a)(41) of the Act.\n\n(b) Any open-end company which has heretofore valued its securities at cost for the purpose of qualifying as a \u201cmutual investment company\u201d under the Internal Revenue Code, prior to its amendment by the Revenue Act of 1942, shall henceforth, for the purposes of sections 5 and 12 of the Act, value its securities in accordance with the method prescribed in clause (A) of section 2(a)(41) of the Act unless such company is permitted under paragraph (a) of this section to use a different method of valuation.\n\n(c) A registered investment company which has adopted for the purposes of sections 5 and 12 of the Act a method of valuation permitted by paragraph (a) of this section, shall state in its registration statement filed pursuant to section 8 (54 Stat. 803; 15 U.S.C. 80a-8) of the Act, or in a report filed pursuant to section 30 (54 Stat. 836; 15 U.S.C. 80a-30) of the Act, the method of valuation adopted and the facts which justify the adoption of such method. A registered investment company which has adopted for the purposes of sections 5 and 12 of the Act a method of valuation permitted by paragraph (a) of this section, unless it shall have adopted such method for the purpose or partly for the purpose of qualifying as a \u201cmutual investment company\u201d under the Internal Revenue Code, shall continue to use that method until it has notified the Commission of its desire to use a different method, and has received from the Commission permission for such change. Such permission may be made effective on a fixed date or within such reasonable time thereafter as may be deemed advisable under the circumstances.\n\n(d) If at any time it appears that the method of valuation adopted by any company pursuant to paragraph (a) of this section is no longer justified by the facts, the Commission may require a change in the method of valuation within a reasonable period of time either to the method prescribed in clause (A) of section 2(a)(41) of the Act or to some other method permitted by paragraph (a) of this section which is justified by the existing facts."], ["17:17:5.0.1.1.19.0.36.100", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.15a-4 Temporary exemption for certain investment advisers.", "SEC", "", "", "[64 FR 68023, Dec. 6, 1999, as amended 66 FR 3758, Jan. 16, 2001; 69 FR 46389, Aug. 2, 2004]", "(a) For purposes of this section:\n\n(1)  Fund  means an investment company, and includes a separate series of the company.\n\n(2)  Interim contract  means a written investment advisory contract:\n\n(i) That has not been approved by a majority of the fund's outstanding voting securities; and\n\n(ii) That has a duration no greater than 150 days following the date on which the previous contract terminates.\n\n(3)  Previous contract  means an investment advisory contract that has been approved by a majority of the fund's outstanding voting securities and has been terminated.\n\n(b) Notwithstanding section 15(a) of the Act (15 U.S.C. 80a-15(a)), a person may act as investment adviser for a fund under an interim contract after the termination of a previous contract as provided in paragraphs (b)(1) or (b)(2) of this section:\n\n(1) In the case of a previous contract terminated by an event described in section 15(a)(3) of the Act (15 U.S.C. 80a-15(a)(3)), by the failure to renew the previous contract, or by an assignment (other than an assignment by an investment adviser or a controlling person of the investment adviser in connection with which assignment the investment adviser or a controlling person directly or indirectly receives money or other benefit):\n\n(i) The compensation to be received under the interim contract is no greater than the compensation the adviser would have received under the previous contract; and\n\n(ii) The fund's board of directors, including a majority of the directors who are not interested persons of the fund, has approved the interim contract within 10 business days after the termination, at a meeting in which directors may participate by any means of communication that allows all directors participating to hear each other simultaneously during the meeting.\n\n(2) In the case of a previous contract terminated by an assignment by an investment adviser or a controlling person of the investment adviser in connection with which assignment the investment adviser or a controlling person directly or indirectly receives money or other benefit:\n\n(i) The compensation to be received under the interim contract is no greater than the compensation the adviser would have received under the previous contract;\n\n(ii) The board of directors, including a majority of the directors who are not interested persons of the fund, has voted in person to approve the interim contract before the previous contract is terminated;\n\n(iii) The board of directors, including a majority of the directors who are not interested persons of the fund, determines that the scope and quality of services to be provided to the fund under the interim contract will be at least equivalent to the scope and quality of services provided under the previous contract;\n\n(iv) The interim contract provides that the fund's board of directors or a majority of the fund's outstanding voting securities may terminate the contract at any time, without the payment of any penalty, on not more than 10 calendar days' written notice to the investment adviser;\n\n(v) The interim contract contains the same terms and conditions as the previous contract, with the exception of its effective and termination dates, provisions governed by paragraphs (b)(2)(i), (b)(2)(iv), and (b)(2)(vi) of this section, and any other differences in terms and conditions that the board of directors, including a majority of the directors who are not interested persons of the fund, finds to be immaterial;\n\n(vi) The interim contract contains the following provisions:\n\n(A) The compensation earned under the contract will be held in an interest-bearing escrow account with the fund's custodian or a bank;\n\n(B) If a majority of the fund's outstanding voting securities approve a contract with the investment adviser by the end of the 150-day period, the amount in the escrow account (including interest earned) will be paid to the investment adviser; and\n\n(C) If a majority of the fund's outstanding voting securities do not approve a contract with the investment adviser, the investment adviser will be paid, out of the escrow account, the lesser of:\n\n( 1 ) Any costs incurred in performing the interim contract (plus interest earned on that amount while in escrow); or\n\n( 2 ) The total amount in the escrow account (plus interest earned); and\n\n(vii) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7)."], ["17:17:5.0.1.1.19.0.36.101", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.16a-1 Exemption for initial period of directors of certain registered accounts from requirements of election by security holders.", "SEC", "", "", "[34 FR 12695, Aug. 5, 1969]", "(a) Persons serving as the directors of a registered separate account shall, prior to the first meeting of such account's variable annuity contract owners, be exempt from the requirement of section 16(a) of the Act that such persons be elected by the holders of outstanding voting securities of such account at an annual or special meeting called for that purpose, subject to the following conditions:\n\n(1) Such registered separate account qualifies for exemption from section 14(a) of the Act pursuant to \u00a7 270.14a-1 or is exempt therefrom by order of the Commission upon application; and\n\n(2) Such persons have been appointed directors of such account by the establishing insurance company; and\n\n(3) An election of directors for such account shall be held at the first meeting of variable annuity contract owners after the effective date of the registration statement under the Securities Act of 1933, as amended (15 U.S.C. 77a  et seq. ), relating to contracts participating in such account:  Provided,  That such meeting shall take place within 1 year after such effective date, unless the time for the holding of such meeting shall be extended by the Commission upon written request showing good cause therefor."], ["17:17:5.0.1.1.19.0.36.102", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-1 Exemption of certain underwriting transactions exempted by \u00a7 270.10f-1.", "SEC", "", "", "[Rule N-17A-1, 6 FR 1191, Feb. 28, 1941]", "Any transaction exempted pursuant to \u00a7 270.10f-1 shall be exempt from the provisions of section 17(a)(1) of the Act (54 Stat. 815; 15 U.S.C. 80a-17)."], ["17:17:5.0.1.1.19.0.36.103", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-2 Exemption of certain purchase, sale, or borrowing transactions.", "SEC", "", "", "[Rule N-17A-2, 12 FR 5008, July 29, 1947]", "Purchase, sale or borrowing transactions occurring in the usual course of business between affiliated persons of registered investment companies shall be exempt from section 17(a) of the Act provided (a) the transactions involve notes, drafts, time payment contracts, bills of exchange, acceptance or other property of a commercial character rather than of an investment character; (b) the buyer or lender is a bank; and (c) the seller or borrower is a bank or is engaged principally in the business of installment financing."], ["17:17:5.0.1.1.19.0.36.104", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-3 Exemption of transactions with fully owned subsidiaries.", "SEC", "", "", "[Rule N-17A-3, 12 FR 3442, May 28, 1947]", "(a) The following transactions shall be exempt from section 17(a) of the Act:\n\n(1) Transactions solely between a registered investment company and one or more of its fully owned subsidiaries or solely between two or more fully owned subsidiaries of such company.\n\n(2) Transactions solely between any subsidiary of a registered investment company and one or more fully owned subsidiaries of such subsidiary or solely between two or more fully owned subsidiaries of such subsidiary.\n\n(b) The term  fully owned subsidiary  as used in this section, means a subsidiary (1) all of whose outstanding securities, other than directors' qualifying shares, are owned by its parent and/or the parent's other fully owned subsidiaries, and (2) which is not indebted to any person other than its parent and/or the parent's other fully owned subsidiaries in an amount which is material in relation to the particular subsidiary, excepting (i) indebtedness incurred in the ordinary course of business which is not overdue and which matures within one year from the date of its creation, whether evidenced by securities or not, and (ii) any other indebtedness to one or more banks or insurance companies."], ["17:17:5.0.1.1.19.0.36.105", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-4 Exemption of transactions pursuant to certain contracts.", "SEC", "", "", "[Rule N-17A-4, 12 FR 5008, July 29, 1947]", "Transactions pursuant to a contract shall be exempt from section 17(a) of the Act if at the time of the making of the contract and for a period of at least six months prior thereto no affiliation or other relationship existed which would operate to make such contract or the subsequent performance thereof subject to the provisions of said section 17(a)."], ["17:17:5.0.1.1.19.0.36.106", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-5 Pro rata distribution neither \u201csale\u201d nor \u201cpurchase.\u201d", "SEC", "", "", "[20 FR 7447, Oct. 6, 1955]", "When a company makes a pro rata distribution in cash or in kind among its common stockholders without giving any election to any stockholder as to the specific assets which such stockholders shall receive, such distribution shall not be deemed to involve a sale to or a purchase from such distributing company as those terms are used in section 17(a) of the Act."], ["17:17:5.0.1.1.19.0.36.107", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-6 Exemption for transactions with portfolio affiliates.", "SEC", "", "", "[68 FR 3153, Jan. 22, 2003]", "(a)  Exemption for transactions with portfolio affiliates.  A transaction to which a fund, or a company controlled by a fund, and a portfolio affiliate of the fund are parties is exempt from the provisions of section 17(a) of the Act (15 U.S.C. 80a-17(a)), provided that none of the following persons is a party to the transaction, or has a direct or indirect financial interest in a party to the transaction other than the fund:\n\n(1) An officer, director, employee, investment adviser, member of an advisory board, depositor, promoter of or principal underwriter for the fund;\n\n(2) A person directly or indirectly controlling the fund;\n\n(3) A person directly or indirectly owning, controlling or holding with power to vote five percent or more of the outstanding voting securities of the fund;\n\n(4) A person directly or indirectly under common control with the fund, other than:\n\n(i) A portfolio affiliate of the fund; or\n\n(ii) A fund whose sole interest in the transaction or a party to the transaction is an interest in the portfolio affiliate; or\n\n(5) An affiliated person of any of the persons mentioned in paragraphs (a)(1)-(4) of this section, other than the fund or a portfolio affiliate of the fund.\n\n(b)  Definitions \u2014(1)  Financial interest.  (i) The term  financial interest  as used in this section does not include:\n\n(A) Any interest through ownership of securities issued by the fund;\n\n(B) Any interest of a wholly-owned subsidiary of a fund;\n\n(C) Usual and ordinary fees for services as a director;\n\n(D) An interest of a non-executive employee;\n\n(E) An interest of an insurance company arising from a loan or policy made or issued by it in the ordinary course of business to a natural person;\n\n(F) An interest of a bank arising from a loan or account made or maintained by it in the ordinary course of business to or with a natural person, unless it arises from a loan to a person who is an officer, director or executive of a company which is a party to the transaction, or from a loan to a person who directly or indirectly owns, controls, or holds with power to vote, five percent or more of the outstanding voting securities of a company which is a party to the transaction;\n\n(G) An interest acquired in a transaction described in paragraph (d)(3) of \u00a7 270.17d-1; or\n\n(H) Any other interest that the board of directors of the fund, including a majority of the directors who are not interested persons of the fund, finds to be not material, provided that the directors record the basis for that finding in the minutes of their meeting.\n\n(ii) A person has a financial interest in any party in which it has a financial interest, in which it had a financial interest within six months prior to the transaction, or in which it will acquire a financial interest pursuant to an arrangement in existence at the time of the transaction.\n\n(2)  Fund  means a registered investment company or separate series of a registered investment company.\n\n(3)  Portfolio affiliate of a fund  means a person that is an affiliated person (or an affiliated person of an affiliated person) of a fund solely because the fund, a fund under common control with the fund, or both:\n\n(i) Controls such person (or an affiliated person of such person); or\n\n(ii) Owns, controls, or holds with power to vote five percent or more of the outstanding voting securities of such person (or an affiliated person of such person)."], ["17:17:5.0.1.1.19.0.36.108", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-7 Exemption of certain purchase or sale transactions between an investment company and certain affiliated persons thereof.", "SEC", "", "", "[46 FR 17013, Mar. 17, 1981, as amended at 58 FR 49921, Sept. 24, 1993; 66 FR 3758, Jan. 16, 2001; 69 FR 46389, Aug. 2, 2004; 70 FR 37632, June 29, 2005]", "A purchase or sale transaction between registered investment companies or separate series of registered investment companies, which are affiliated persons, or affiliated persons of affiliated persons, of each other, between separate series of a registered investment company, or between a registered investment company or a separate series of a registered investment company and a person which is an affiliated person of such registered investment company (or affiliated person of such person) solely by reason of having a common investment adviser or investment advisers which are affiliated persons of each other, common directors, and/or common officers, is exempt from section 17(a) of the Act;  Provided,  That:\n\n(a) The transaction is a purchase or sale, for no consideration other than cash payment against prompt delivery of a security for which market quotations are readily available;\n\n(b) The transaction is effected at the independent current market price of the security. For purposes of this paragraph the \u201ccurrent market price\u201d shall be:\n\n(1) If the security is an \u201cNMS stock\u201d as that term is defined in 17 CFR 242.600, the last sale price with respect to such security reported in the consolidated transaction reporting system (\u201cconsolidated system\u201d) or the average of the highest current independent bid and lowest current independent offer for such security (reported pursuant to 17 CFR 242.602) if there are no reported transactions in the consolidated system that day; or\n\n(2) If the security is not a reported security, and the principal market for such security is an exchange, then the last sale on such exchange or the average of the highest current independent bid and lowest current independent offer on such exchange if there are no reported transactions on such exchange that day; or\n\n(3) If the security is not a reported security and is quoted in the NASDAQ System, then the average of the highest current independent bid and lowest current independent offer reported on Level 1 of NASDAQ; or\n\n(4) For all other securities, the average of the highest current independent bid and lowest current independent offer determined on the basis of reasonable inquiry;\n\n(c) The transaction is consistent with the policy of each registered investment company and separate series of a registered investment company participating in the transaction, as recited in its registration statement and reports filed under the Act;\n\n(d) No brokerage commission, fee (except for customary transfer fees), or other remuneration is paid in connection with the transaction;\n\n(e) The board of directors of the investment company, including a majority of the directors who are not interested persons of such investment company,\n\n(1) Adopts procedures pursuant to which such purchase or sale transactions may be effected for the company, which are reasonably designed to provide that all of the conditions of this section in paragraphs (a) through (d) have been complied with,\n\n(2) Makes and approves such changes as the board deems necessary, and\n\n(3) Determines no less frequently than quarterly that all such purchases or sales made during the preceding quarter were effected in compliance with such procedures;\n\n(f) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7); and\n\n(g) The investment company (1) maintains and preserves permanently in an easily accessible place a written copy of the procedures (and any modifications thereto) described in paragraph (e) of this section, and (2) maintains and preserves for a period not less than six years from the end of the fiscal year in which any transactions occurred, the first two years in an easily accessible place, a written record of each such transaction setting forth a description of the security purchased or sold, the identity of the person on the other side of the transaction, the terms of the purchase or sale transaction, and the information or materials upon which the determinations described in paragraph (e)(3) of this section were made."], ["17:17:5.0.1.1.19.0.36.109", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-8 Mergers of affiliated companies.", "SEC", "", "", "[67 FR 48518, July 24, 2002, as amended at 69 FR 46389, Aug. 2, 2004]", "(a)  Exemption of affiliated mergers.  A Merger of a registered investment company (or a series thereof) and one or more other registered investment companies (or series thereof) or Eligible Unregistered Funds is exempt from sections 17(a)(1) and (2) of the Act (15 U.S.C. 80a-17(a)(1)-(2)) if:\n\n(1)  Surviving company.  The Surviving Company is a registered investment company (or a series thereof).\n\n(2)  Board determinations.  As to any registered investment company (or series thereof) participating in the Merger (\u201cMerging Company\u201d):\n\n(i) The board of directors, including a majority of the directors who are not interested persons of the Merging Company or of any other company or series participating in the Merger, determines that:\n\n(A) Participation in the Merger is in the best interests of the Merging Company; and\n\n(B) The interests of the Merging Company's existing shareholders will not be diluted as a result of the Merger.\n\nFor a discussion of factors that may be relevant to the determinations in paragraph (a)(2)(i) of this section, see Investment Company Act Release No. 25666, July 18, 2002.\n\n(ii) The directors have requested and evaluated such information as may reasonably be necessary to their determinations in paragraph (a)(2)(i) of this section, and have considered and given appropriate weight to all pertinent factors.\n\n(iii) The directors, in making the determination in paragraph (a)(2)(i)(B) of this section, have approved procedures for the valuation of assets to be conveyed by each Eligible Unregistered Fund participating in the Merger. The approved procedures provide for the preparation of a report by an Independent Evaluator, to be considered in assessing the value of any securities (or other assets) for which market quotations are not readily available, that sets forth the fair value of each such asset as of the date of the Merger.\n\n(iv) The determinations required in paragraph (a)(2)(i) of this section and the bases thereof, including the factors considered by the directors pursuant to paragraph (a)(2)(ii) of this section, are recorded fully in the minute books of the Merging Company.\n\n(3)  Shareholder approval.  Participation in the Merger is approved by the vote of a majority of the outstanding voting securities (as provided in section 2(a)(42) of the Act (15 U.S.C. 80a-2(a)(42))) of any Merging Company that is not a Surviving Company, unless\u2014\n\n(i) No policy of the Merging Company that under section 13 of the Act (15 U.S.C. 80a-13) could not be changed without a vote of a majority of its outstanding voting securities, is materially different from a policy of the Surviving Company;\n\n(ii) No advisory contract between the Merging Company and any investment adviser thereof is materially different from an advisory contract between the Surviving Company and any investment adviser thereof, except for the identity of the investment companies as a party to the contract;\n\n(iii) Directors of the Merging Company who are not interested persons of the Merging Company and who were elected by its shareholders, will comprise a majority of the directors of the Surviving Company who are not interested persons of the Surviving Company; and\n\n(iv) Any distribution fees (as a percentage of the fund's average net assets) authorized to be paid by the Surviving Company pursuant to a plan adopted in accordance with \u00a7 270.12b-1 are no greater than the distribution fees (as a percentage of the fund's average net assets) authorized to be paid by the Merging Company pursuant to such a plan.\n\n(4)  Board composition.  The board of directors of the Merging Company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7).\n\n(5)  Merger records.  Any Surviving Company preserves written records that describe the Merger and its terms for six years after the Merger (and for the first two years in an easily accessible place).\n\n(b)  Definitions.  For purposes of this section:\n\n(1)  Merger  means the merger, consolidation, or purchase or sale of substantially all of the assets between a registered investment company (or a series thereof) and another company;\n\n(2)  Eligible Unregistered Fund  means:\n\n(i) A collective trust fund, as described in section 3(c)(11) of the Act (15 U.S.C. 80a-3(c)(11));\n\n(ii) A common trust fund or similar fund, as described in section 3(c)(3) of the Act (15 U.S.C. 80a-3(c)(3)); or\n\n(iii) A separate account, as described in section 2(a)(37) of the Act (15 U.S.C. 80a-2(a)(37)), that is neither registered under section 8 of the Act, nor required to be so registered;\n\n(3)  Independent Evaluator  means a person who has expertise in the valuation of securities and other financial assets and who is not an interested person, as defined in section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)), of the Eligible Unregistered Fund or any affiliate thereof except the Merging Company; and\n\n(4)  Surviving Company  means a company in which shareholders of a Merging Company will obtain an interest as a result of a Merger."], ["17:17:5.0.1.1.19.0.36.11", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a-2 Effect of eliminations upon valuation of portfolio securities.", "SEC", "", "", "[38 FR 8593, Apr. 4, 1973]", "During any fiscal quarter in which elimination of securities from the portfolio of an investment company occur, the securities remaining in the portfolio shall, for the purpose of sections 5 and 12 of the Act (54 Stat. 800, 808; 15 U.S.C. 80a-5, 80a-12), be so valued as to give effect to the eliminations in accordance with one of the following methods:\n\n(a) Specific certificate,\n\n(b) First in\u2014first out,\n\n(c) Last in\u2014first out, or\n\n(d) Average value.\n\nFor these purposes, a single method of elimination shall be used consistently with respect to all portfolio securities. In giving effect to eliminations pursuant to this section values shall be computed in accordance with section 2(a)(41)(A) of the Act (54 Stat. 790; 15 U.S.C. 80a-2(a)(41)(A))."], ["17:17:5.0.1.1.19.0.36.110", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-9 Purchase of certain securities from a money market fund by an affiliate, or an affiliate of an affiliate.", "SEC", "", "", "[75 FR 10117, Mar. 4, 2010]", "The purchase of a security from the portfolio of an open-end investment company holding itself out as a money market fund by any affiliated person or promoter of or principal underwriter for the money market fund or any affiliated person of such person shall be exempt from section 17(a) of the Act (15 U.S.C. 80a-17(a)); provided that:\n\n(a) In the case of a portfolio security that has ceased to be an Eligible Security (as defined in \u00a7 270.2a-7(a)(12)), or has defaulted (other than an immaterial default unrelated to the financial condition of the issuer):\n\n(1) The purchase price is paid in cash; and\n\n(2) The purchase price is equal to the greater of the amortized cost of the security or its market price (in each case, including accrued interest).\n\n(b) In the case of any other portfolio security:\n\n(1) The purchase price meets the requirements of paragraph (a)(1) and (2) of this section; and\n\n(2) In the event that the purchaser thereafter sells the security for a higher price than the purchase price paid to the money market fund, the purchaser shall promptly pay to the fund the amount by which the subsequent sale price exceeds the purchase price paid to the fund."], ["17:17:5.0.1.1.19.0.36.111", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17a-10 Exemption for transactions with certain subadvisory affiliates.", "SEC", "", "", "[68 FR 3153, Jan. 22, 2003]", "(a)  Exemption.  A person that is prohibited by section 17(a) of the Act (15 U.S.C. 80a-17(a)) from entering into a transaction with a fund solely because such person is, or is an affiliated person of, a subadviser of the fund, or a subadviser of a fund that is under common control with the fund, may nonetheless enter into such transaction, if:\n\n(1)  Prohibited relationship.  The person is not, and is not an affiliated person of, an investment adviser responsible for providing advice with respect to the portion of the fund for which the transaction is entered into, or of any promoter, underwriter, officer, director, member of an advisory board, or employee of the fund.\n\n(2)  Prohibited conduct.  The advisory contracts of the subadviser that is (or whose affiliated person is) entering into the transaction, and any subadviser that is advising the fund (or portion of the fund) entering into the transaction:\n\n(i) Prohibit them from consulting with each other concerning transactions for the fund in securities or other assets; and\n\n(ii) If both such subadvisers are responsible for providing investment advice to the fund, limit the subadvisers' responsibility in providing advice with respect to a discrete portion of the fund's portfolio.\n\n(b)  Definitions.  (1)  Fund  means a registered investment company and includes a separate series of a registered investment company.\n\n(2)  Subadviser  means an investment adviser as defined in section 2(a)(20)(B) of the Act (15 U.S.C. 80a-2(a)(20)(B))."], ["17:17:5.0.1.1.19.0.36.112", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17d-1 Applications regarding joint enterprises or arrangements and certain profit-sharing plans.", "SEC", "", "", "[22 FR 426, Jan. 23, 1957, as amended at 26 FR 11240, Nov. 29, 1961; 35 FR 13123, Aug. 18, 1970; 39 FR 37973, Oct. 25, 1974; 44 FR 58503, Oct. 10, 1979; 44 FR 58908, Oct. 12, 1979; 45 FR 12409, Feb. 26, 1980; 66 FR 3758, Jan. 16, 2001; 68 FR 3153, Jan. 22, 2003; 69 FR 46389, Aug. 2, 2004; 78 FR 79299, Dec. 30, 2013]", "(a) No affiliated person of or principal underwriter for any registered investment company (other than a company of the character described in section 12(d)(3) (A) and (B) of the Act) and no affiliated person of such a person or principal underwriter, acting as principal, shall participate in, or effect any transaction in connection with, any joint enterprise or other joint arrangement or profit-sharing plan in which any such registered company, or a company controlled by such registered company, is a participant, and which is entered into, adopted or modified subsequent to the effective date of this rule, unless an application regarding such joint enterprise, arrangement or profit-sharing plan has been filed with the Commission and has been granted by an order entered prior to the submission of such plan or modification to security holders for approval, or prior to such adoption or modification if not so submitted, except that the provisions of this rule shall not preclude any affiliated person from acting as manager of any underwriting syndicate or other group in which such registered or controlled company is a participant and receiving compensation therefor.\n\n(b) In passing upon such applications, the Commission will consider whether the participation of such registered or controlled company in such joint enterprise, joint arrangement or profit-sharing plan on the basis proposed is consistent with the provisions, policies and purposes of the Act and the extent to which such participation is on a basis different from or less advantageous than that of other participants.\n\n(c) \u201cJoint enterprise or other joint arrangement or profit-sharing plan\u201d as used in this section shall mean any written or oral plan, contract, authorization or arrangement, or any practice or understanding concerning an enterprise or undertaking whereby a registered investment company or a controlled company thereof and any affiliated person of or a principal underwriter for such registered investment company, or any affiliated person of such a person or principal underwriter, have a joint or a joint and several participation, or share in the profits of such enterprise or undertaking, including, but not limited to, any stock option or stock purchase plan, but shall not include an investment advisory contract subject to section 15 of the Act.\n\n(d) Notwithstanding the requirements of paragraph (a) of this section, no application need be filed pursuant to this section with respect to any of the following:\n\n(1) Any profit-sharing, stock option or stock purchase plan provided by any controlled company which is not an investment company for its officers, directors or employees, or the purchase of stock or the granting, modification or exercise of options pursuant to such a plan, provided:\n\n(i) No individual participates therein who is either:\n\n( a ) An affiliated person of any investment company which is an affiliated person of such controlled company; or\n\n( b ) An affiliated person of the investment adviser or principal underwriter of such investment company; and\n\n(ii) No participant has been an affiliated person of such investment company, its investment adviser or principal underwriter during the life of the plan and for six months prior to, as the case may be:\n\n( a ) Institution of the profit-sharing plan;\n\n( b ) The purchase of stock pursuant to a stock purchase plan; or\n\n( c ) The granting of any options pursuant to a stock option plan.\n\n(2) Any plan provided by any registered investment company or any controlled company for its officers or employees if such plan has been qualified under section 401 of the Internal Revenue Code of 1954 and all contributions paid under said plan by the employer qualify as deductible under section 404 of said Code.\n\n(3) Any loan or advance of credit to, or acquisition of securities or other property of, a small business concern, or any agreement to do any of the foregoing (\u201cInvestments\u201d), made by a bank and a small business investment company (SBIC) licensed under the Small Business Investment Act of 1958, whether such transactions are contemporaneous or separated in time, where the bank is an affiliated person of either (i) the SBIC or (ii) an affiliated person of the SBIC; but reports containing pertinent details as to Investments and transactions relating thereto shall be made at such time, on such forms and by such persons as the Commission may from time to time prescribe.\n\n(4) The issuance by a registered investment company which is licensed by the Small Business Administration pursuant to the Small Business Investment Act of 1958 of stock options which qualify under section 422 of the Internal Revenue Code, as amended, and which conform to \u00a7 107.805(b) of Chapter I of Title 13 of the Code of Federal Regulations.\n\n(5) Any joint enterprise or other joint arrangement or profit-sharing plan (\u201cjoint enterprise\u201d) in which a registered investment company or a company controlled by such a company, is a participant, and in which a portfolio affiliate (as defined in \u00a7 270.17a-6(b)(3)) of such registered investment company is also a participant, provided that:\n\n(i) None of the persons identified in \u00a7 270.17a-6(a) is a participant in the joint enterprise, or has a direct or indirect financial interest in a participant in the joint enterprise (other than the registered investment company);\n\n(ii)  Financial interest.  (A) The term  financial interest  as used in this section does not include:\n\n( 1 ) Any interest through ownership of securities issued by the registered investment company;\n\n( 2 ) Any interest of a wholly owned subsidiary of the registered investment company;\n\n( 3 ) Usual and ordinary fees for services as a director;\n\n( 4 ) An interest of a non-executive employee;\n\n( 5 ) An interest of an insurance company arising from a loan or policy made or issued by it in the ordinary course of business to a natural person;\n\n( 6 ) An interest of a bank arising from a loan to a person who is an officer, director, or executive of a company which is a participant in the joint transaction or from a loan to a person who directly or indirectly owns, controls, or holds with power to vote, five percent or more of the outstanding voting securities of a company which is a participant in the joint transaction;\n\n( 7 ) An interest acquired in a transaction described in paragraph (d)(3) of this section; or\n\n( 8 ) Any other interest that the board of directors of the investment company, including a majority of the directors who are not interested persons of the investment company, finds to be not material, provided that the directors record the basis for that finding in the minutes of their meeting.\n\n(B) A person has a financial interest in any party in which it has a financial interest, in which it had a financial interest within six months prior to the investment company's participation in the enterprise, or in which it will acquire a financial interest pursuant to an arrangement in existence at the time of the investment company's participation in the enterprise.\n\n(6) The receipt of securities and/or cash by an investment company or a controlled company thereof and an affiliated person of such investment company or an affiliated person of such person pursuant to a plan of reorganization:  Provided,  That no person identified in \u00a7 270.17a-6(a)(1) or any company in which such a person has a direct or indirect financial interest (as defined in paragraph (d)(5)(ii) of this section):\n\n(i) Has a direct or indirect financial interest in the corporation under reorganization, except owning securities of each class or classes owned by such investment company or controlled company;\n\n(ii) Receives pursuant to such plan any securities or other property, except securities of the same class and subject to the same terms as the securities received by such investment company or controlled company, and/or cash in the same proportion as is received by the investment company or controlled company based on securities of the company under reorganization owned by such persons; and\n\n(iii) Is, or has a direct or indirect financial interest in any person (other than such investment company or controlled company) who is:\n\n(A) Purchasing assets from the company under reorganization; or\n\n(B) Exchanging shares with such person in a transaction not in compliance with the standards described in this paragraph (d)(6).\n\n(7) Any arrangement regarding liability insurance policies (other than a bond required pursuant to rule 17g-1 (\u00a7 270.17g-1) under the Act);  Provided,  That\n\n(i) The investment company's participation in the joint liability insurance policy is in the best interests of the investment company;\n\n(ii) The proposed premium for the joint liability insurance policy to be allocated to the investment company, based upon its proportionate share of the sum of the premiums that would have been paid if such insurance coverage were purchased separately by the insured parties, is fair and reasonable to the investment company;\n\n(iii) The joint liability insurance policy does not exclude coverage for bona fide claims made against any director who is not an interested person of the investment company, or against the investment company if it is a co-defendant in the claim with the disinterested director, by another person insured under the joint liability insurance policy;\n\n(iv) The board of directors of the investment company, including a majority of the directors who are not interested persons with respect thereto, determine no less frequently than annually that the standards described in paragraphs (d)(7)(i) and (ii) of this section have been satisfied; and\n\n(v) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7).\n\n(8) An investment adviser's bearing expenses in connection with a merger, consolidation or purchase or sale of substantially all of the assets of a company which involves a registered investment company of which it is an affiliated person."], ["17:17:5.0.1.1.19.0.36.113", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17d-2 Form for report by small business investment company and affiliated bank.", "SEC", "", "", "[26 FR 11240, Nov. 29, 1961]", "Form N-17D-1 is hereby prescribed as the form for reports required by paragraph (d)(3) of \u00a7 270.17d-1."], ["17:17:5.0.1.1.19.0.36.114", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17d-3 Exemption relating to certain joint enterprises or arrangements concerning payment for distribution of shares of a registered open-end management investment company.", "SEC", "", "", "[45 FR 73905, Nov. 7, 1980]", "An affiliated person of, or principal underwriter for, a registered open-end management investment company and an affiliated person of such a person or principal underwriter shall be exempt from section 17(d) of the Act (15 U.S.C. 80a-17(d)) and rule 17d-1 thereunder (17 CFR 270.17d-1), to the extent necessary to permit any such person or principal underwriter to enter into a written agreement with such company whereby the company will make payments in connection with the distribution of its shares,  Provided,  That:\n\n(a) Such agreement is made in compliance with the provisions of \u00a7 270.12b-1; and\n\n(b) No other registered management investment company which is either an affiliated person of such company or an affiliated person of such a person is a party to such agreement."], ["17:17:5.0.1.1.19.0.36.115", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17e-1 Brokerage transactions on a securities exchange.", "SEC", "", "", "[44 FR 37203, June 26, 1979, as amended at 58 FR 49921, Sept. 24, 1993; 66 FR 3759, Jan. 16, 2001; 68 FR 3154, Jan. 22, 2003; 69 FR 46389, Aug. 2, 2004]", "For purposes of section 17(e)(2)(A) of the Act [15 U.S.C. 80a-17(e)(2)(A)], a commission, fee or other remuneration shall be deemed as not exceeding the usual and customary broker's commission, if:\n\n(a) The commission, fee, or other remuneration received or to be received is reasonable and fair compared to the commission, fee or other remuneration received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time;\n\n(b) The board of directors, including a majority of the directors of the investment company who are not interested persons thereof:\n\n(1) Has adopted procedures which are reasonably designed to provide that such commission, fee, or other remuneration is consistent with the standard described in paragraph (a) of this section;\n\n(2) Makes and approves such changes as the board deems necessary; and\n\n(3) Determines no less frequently than quarterly that all transactions effected pursuant to this section during the preceding quarter (other than transactions in which the person acting as broker is a person permitted to enter into a transaction with the investment company by \u00a7 270.17a-10) were effected in compliance with such procedures;\n\n(c) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7); and\n\n(d) The investment company:\n\n(1) Shall maintain and preserve permanently in an easily accessible place a copy of the procedures (and any modification thereto) described in paragraph (b)(1) of this section; and\n\n(2) Shall maintain and preserve for a period not less than six years from the end of the fiscal year in which any transactions occurred, the first two years in an easily accessible place, a record of each such transaction (other than any transaction in which the person acting as broker is a person permitted to enter into a transaction with the investment company by \u00a7 270.17a-10) setting forth the amount and source of the commission, fee or other remuneration received or to be received, the identity of the person acting as broker, the terms of the transaction, and the information or materials upon which the findings described in paragraph (b)(3) of this section were made."], ["17:17:5.0.1.1.19.0.36.116", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-1 Custody of securities with members of national securities exchanges.", "SEC", "", "", "[Rule N-17F-1, 5 FR 4317, Oct. 31, 1940, as amended at 54 FR 32049, Aug. 4, 1989]", "(a) No registered management investment company shall place or maintain any of its securities or similar investments in the custody of a company which is a member of a national securities exchange as defined in the Securities Exchange Act of 1934 (whether or not such company trades in securities for its own account) except pursuant to a written contract which shall have been approved, or if executed before January 1, 1941, shall have been ratified not later than that date, by a majority of the board of directors of such investment company.\n\n(b) The contract shall require, and the securities and investments shall be maintained in accordance with the following:\n\n(1) The securities and similar investments held in such custody shall at all times be individually segregated from the securities and investments of any other person and marked in such manner as to clearly identify them as the property of such registered management company, both upon physical inspection thereof and upon examination of the books of the custodian. The physical segregation and marking of such securities and investments may be accomplished by putting them in separate containers bearing the name of such registered management investment company or by attaching tags or labels to such securities and investments.\n\n(2) The custodian shall have no power or authority to assign, hypothecate, pledge or otherwise to dispose of any such securities and investments, except pursuant to the direction of such registered management company and only for the account of such registered investment company.\n\n(3) Such securities and investments shall be subject to no lien or charge of any kind in favor of the custodian or any persons claiming through the custodian.\n\n(4) Such securities and investments shall be verified by actual examination at the end of each annual and semi-annual fiscal period by an independent public accountant retained by the investment company, and shall be examined by such accountant at least one other time, chosen by the accountant, during each fiscal year. A certificate of such accountant stating that an examination of such securities has been made, and describing the nature and extent of the examination, shall be attached to a completed Form N-17f-1 (17 CFR 274.219) and transmitted to the Commission promptly after each examination.\n\n(5) Such securities and investments shall, at all times, be subject to inspection by the Commission through its employees or agents.\n\n(6) The provisions of paragraphs (b) (1), (2) and (3) of this section shall not apply to securities and similar investments bought for or sold to such investment company by the company which is custodian until the securities have been reduced to the physical possession of the custodian and have been paid for by such investment company:  Provided,  That the company which is custodian shall take possession of such securities at the earliest practicable time. Nothing in this subparagraph shall be construed to relieve any company which is a member of a national securities exchange of any obligation under existing law or under the rules of any national securities exchange.\n\n(c) A copy of any contract executed or ratified pursuant to paragraph (a) of this section shall be transmitted to the Commission promptly after execution or ratification unless it has been previously transmitted.\n\n(d) Any contract executed or ratified pursuant to paragraph (a) of this section shall be ratified by the board of directors of the registered management investment company at least annually thereafter."], ["17:17:5.0.1.1.19.0.36.117", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-2 Custody of investments by registered management investment company.", "SEC", "", "", "[Rule N-17F-2, 12 FR 6717, Oct. 11, 1947, as amended at 54 FR 32049, Aug. 4, 1989]", "(a) The securities and similar investments of a registered management investment company may be maintained in the custody of such company only in accordance with the provisions of this section. Investments maintained by such a company with a bank or other company whose functions and physical facilities are supervised by Federal or State authority under any arrangement whereunder the directors, officers, employees or agents of such company are authorized or permitted to withdraw such investments upon their mere receipt, are deemed to be in the custody of such company and may be so maintained only upon compliance with the provisions of this section.\n\n(b) Except as provided in paragraph (c) of this section, all such securities and similar investments shall be deposited in the safekeeping of, or in a vault or other depository maintained by, a bank or other company whose functions and physical facilities are supervised by Federal or State authority. Investments so deposited shall be physically segregated at all times from those of any other person and shall be withdrawn only in connection with transactions of the character described in paragraph (c) of this section.\n\n(c) The first sentence of paragraph (b) of this section shall not apply to securities on loan which are collateralized to the extent of their full market value, or to securities hypothecated, pledged, or placed in escrow for the account of such investment company in connection with a loan or other transaction authorized by specific resolution of its board of directors, or to securities in transit in connection with the sale, exchange, redemption, maturity or conversion, the exercise of warrants or rights, assents to changes in terms of the securities, or other transactions necessary or appropriate in the ordinary course of business relating to the management of securities.\n\n(d) Except as otherwise provided by law, no person shall be authorized or permitted to have access to the securities and similar investments deposited in accordance with paragraph (b) of this section except pursuant to a resolution of the board of directors of such investment company. Each such resolution shall designate not more than five persons who shall be either officers or responsible employees of such company and shall provide that access to such investments shall be had only by two or more such persons jointly, at least one of whom shall be an officer; except that access to such investments shall be permitted (1) to properly authorized officers and employees of the bank or other company in whose safekeeping the investments are placed and (2) for the purpose of paragraph (f) of this section to the independent public accountant jointly with any two persons so designated or with such officer or employee of such bank or such other company. Such investments shall at all times be subject to inspection by the Commission through its authorized employees or agents accompanied, unless otherwise directed by order of the Commission, by one or more of the persons designated pursuant to this paragraph.\n\n(e) Each person when depositing such securities or similar investments in or withdrawing them from the depository or when ordering their withdrawal and delivery from the safekeeping of the bank or other company, shall sign a notation in respect of such deposit, withdrawal or order which shall show (1) the date and time of the deposit, withdrawal or order, (2) the title and amount of the securities or other investments deposited, withdrawn or ordered to be withdrawn, and an identification thereof by certificate numbers or otherwise, (3) the manner of acquisition of the securities or similar investments deposited or the purpose for which they have been withdrawn, or ordered to be withdrawn, and (4) if withdrawn and delivered to another person the name of such person. Such notation shall be transmitted promptly to an officer or director of the investment company designated by its board of directors who shall not be a person designated for the purpose of paragraph (d) of this section. Such notation shall be on serially numbered forms and shall be preserved for at least one year.\n\n(f) Such securities and similar investments shall be verified by actual examination by an independent public accountant retained by the investment company at least three times during each fiscal year, at least two of which shall be chosen by such accountant without prior notice to such company. A certificate of such accountant stating that an examination of such securities and investments has been made, and describing the nature and extent of the examination, shall be attached to a completed Form N-17f-2 (17 CFR 274.220) and transmitted to the Commission promptly after each examination."], ["17:17:5.0.1.1.19.0.36.118", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-3 Free cash accounts for investment companies with bank custodians.", "SEC", "", "", "[37 FR 9989, May 18, 1972]", "No registered investment company having a bank custodian shall hold free cash except, upon resolution of its board or directors, a petty cash account may be maintained in an amount not to exceed $500:  Provided,  That such account is operated under the imprest system and is maintained subject to adequate controls approved by the board of directors over disbursements and reimbursements including, but not limited to fidelity bond coverage of persons having access to such funds."], ["17:17:5.0.1.1.19.0.36.119", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-4 Custody of investment company assets with a securities depository.", "SEC", "", "", "[68 FR 8442, Feb. 20, 2003, as amended at 69 FR 18803, Apr. 9, 2004; 73 FR 32228, June 5, 2008]", "(a)  Custody arrangement with a securities depository.  A fund's custodian may place and maintain financial assets, corresponding to the fund's security entitlements, with a securities depository or intermediary custodian, if the custodian:\n\n(1) Is at a minimum obligated to exercise due care in accordance with reasonable commercial standards in discharging its duty as a securities intermediary to obtain and thereafter maintain such financial assets;\n\n(2) Is required to provide, promptly upon request by the fund, such reports as are available concerning the internal accounting controls and financial strength of the custodian; and\n\n(3) Requires any intermediary custodian at a minimum to exercise due care in accordance with reasonable commercial standards in discharging its duty as a securities intermediary to obtain and thereafter maintain financial assets corresponding to the security entitlements of its entitlement holders.\n\n(b)  Direct dealings with securities depository.  A fund may place and maintain financial assets, corresponding to the fund's security entitlements, directly with a securities depository, if:\n\n(1) The fund's contract with the securities depository or the securities depository's written rules for its participants:\n\n(i) Obligate the securities depository at a minimum to exercise due care in accordance with reasonable commercial standards in discharging its duty as a securities intermediary to obtain and thereafter maintain financial assets corresponding to the fund's security entitlements; and\n\n(ii) Requires the securities depository to provide, promptly upon request by the fund, such reports as are available concerning the internal accounting controls and financial strength of the securities depository; and\n\n(2) The fund has implemented internal control systems reasonably designed to prevent unauthorized officer's instructions (by providing at least for the form, content and means of giving, recording and reviewing all officer's instructions).\n\n(c)  Definitions.  For purposes of this section the terms:\n\n(1)  Clearing corporation, financial asset, securities intermediary, and security entitlement  have the same meanings as is attributed to those terms in \u00a7 8-102, \u00a7 8-103, and \u00a7\u00a7 8-501 through 8-511 of the Uniform Commercial Code, 2002 Official Text and Comments, which are incorporated by reference in this section pursuant to 5 U.S.C. 552(a) and 1 CFR part 51. The Director of the Federal Register has approved this incorporation by reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. You may obtain a copy of the Uniform Commercial Code from the National Conference of Commissioners on Uniform State Laws, 211 East Ontario Street, Suite 1300, Chicago, Il 60611. You may inspect a copy at the following addresses: Louis Loss Library, U.S. Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549, or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to:  http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.\n\n(2)  Custodian  means a bank or other person authorized to hold assets for the fund under section 17(f) of the Act (15 U.S.C. 80a-17(f)) or Commission rules in this chapter, but does not include a fund itself, a foreign custodian whose use is governed by \u00a7 270.17f-5 or \u00a7 270.17f-7, or a vault, safe deposit box, or other repository for safekeeping maintained by a bank or other company whose functions and physical facilities are supervised by a federal or state authority if the fund maintains its own assets there in accordance with \u00a7 270.17f-2.\n\n(3)  Fund  means an investment company registered under the Act and, where the context so requires with respect to a fund that is a unit investment trust or a face-amount certificate company, includes the fund's trustee.\n\n(4)  Intermediary custodian  means any subcustodian that is a securities intermediary and is qualified to act as a custodian.\n\n(5)  Officer's instruction  means a request or direction to a securities depository or its operator, or to a registered transfer agent, in the name of the fund by one or more persons authorized by the fund's board of directors (or by the fund's trustee, if the fund is a unit investment trust or a face-amount certificate company) to give the request or direction.\n\n(6)  Securities depository  means a clearing corporation that is:\n\n(i) Registered with the Commission as a clearing agency under section 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1); or\n\n(ii) A Federal Reserve Bank or other person authorized to operate the federal book entry system described in the regulations of the Department of Treasury codified at 31 CFR 357, Subpart B, or book-entry systems operated pursuant to comparable regulations of other federal agencies."], ["17:17:5.0.1.1.19.0.36.12", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a3-1 Investment company limited partners not deemed affiliated persons.", "SEC", "", "", "[58 FR 45838, Aug. 31, 1993]", "This \u00a7 270.2a3-1 excepts from the definition of affiliated person in section 2(a)(3)) (15 U.S.C. 80a-2(a)(3)) those limited partners of investment companies organized in limited partnership form that are affiliated persons solely because they are partners under section 2(a)(3)(D) (15 U.S.C. 80a-2(a)(3)(D)). Reliance on this \u00a7 270.2a3-1 does not except a limited partner that is an affiliated person by virtue of any other provision.\n\nNo limited partner of a registered management company or a business development company, organized as a limited partnership and relying on \u00a7 270.2a19-2, shall be deemed to be an affiliated person of such company, or any other partner of such company, solely by reason of being a limited partner of such company."], ["17:17:5.0.1.1.19.0.36.120", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-5 Custody of investment company assets outside the United States.", "SEC", "", "", "[65 FR 25637, May 3, 2000]", "(a)  Definitions.  For purposes of this section:\n\n(1)  Eligible Foreign Custodian  means an entity that is incorporated or organized under the laws of a country other than the United States and that is a Qualified Foreign Bank or a majority-owned direct or indirect subsidiary of a U.S. Bank or bank-holding company.\n\n(2)  Foreign Assets  means any investments (including foreign currencies) for which the primary market is outside the United States, and any cash and cash equivalents that are reasonably necessary to effect the Fund's transactions in those investments.\n\n(3)  Foreign Custody Manager  means a Fund's or a Registered Canadian Fund's board of directors or any person serving as the board's delegate under paragraphs (b) or (d) of this section.\n\n(4)  Fund  means a management investment company registered under the Act (15 U.S.C. 80a) and incorporated or organized under the laws of the United States or of a state.\n\n(5)  Qualified Foreign Bank  means a banking institution or trust company, incorporated or organized under the laws of a country other than the United States, that is regulated as such by the country's government or an agency of the country's government.\n\n(6)  Registered Canadian Fund  means a management investment company incorporated or organized under the laws of Canada and registered under the Act pursuant to the conditions of \u00a7 270.7d-1.\n\n(7)  U.S. Bank  means an entity that is:\n\n(i) A banking institution organized under the laws of the United States;\n\n(ii) A member bank of the Federal Reserve System;\n\n(iii) Any other banking institution or trust company organized under the laws of any state or of the United States, whether incorporated or not, doing business under the laws of any state or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency, and which is supervised and examined by state or federal authority having supervision over banks, and which is not operated for the purpose of evading the provisions of this section; or\n\n(iv) A receiver, conservator, or other liquidating agent of any institution or firm included in paragraphs (a)(7)(i), (ii), or (iii) of this section.\n\n(b)  Delegation.  A Fund's board of directors may delegate to the Fund's investment adviser or officers or to a U.S. Bank or to a Qualified Foreign Bank the responsibilities set forth in paragraphs (c)(1), (c)(2), or (c)(3) of this section,  provided that:\n\n(1)  Reasonable Reliance.  The board determines that it is reasonable to rely on the delegate to perform the delegated responsibilities;\n\n(2)  Reporting.  The board requires the delegate to provide written reports notifying the board of the placement of Foreign Assets with a particular custodian and of any material change in the Fund's foreign custody arrangements, with the reports to be provided to the board at such times as the board deems reasonable and appropriate based on the circumstances of the Fund's arrangements; and\n\n(3)  Exercise of Care.  The delegate agrees to exercise reasonable care, prudence and diligence such as a person having responsibility for the safekeeping of the Fund's Foreign Assets would exercise, or to adhere to a higher standard of care, in performing the delegated responsibilities.\n\n(c)  Maintaining Assets with an Eligible Foreign Custodian.  A Fund or its Foreign Custody Manager may place and maintain the Fund's Foreign Assets in the care of an Eligible Foreign Custodian,  provided that:\n\n(1)  General Standard.  The Foreign Custody Manager determines that the Foreign Assets will be subject to reasonable care, based on the standards applicable to custodians in the relevant market, if maintained with the Eligible Foreign Custodian, after considering all factors relevant to the safekeeping of the Foreign Assets, including, without limitation:\n\n(i) The Eligible Foreign Custodian's practices, procedures, and internal controls, including, but not limited to, the physical protections available for certificated securities (if applicable), the method of keeping custodial records, and the security and data protection practices;\n\n(ii) Whether the Eligible Foreign Custodian has the requisite financial strength to provide reasonable care for Foreign Assets;\n\n(iii) The Eligible Foreign Custodian's general reputation and standing; and\n\n(iv) Whether the Fund will have jurisdiction over and be able to enforce judgments against the Eligible Foreign Custodian, such as by virtue of the existence of offices in the United States or consent to service of process in the United States.\n\n(2)  Contract.  The arrangement with the Eligible Foreign Custodian is governed by a written contract that the Foreign Custody Manager has determined will provide reasonable care for Foreign Assets based on the standards specified in paragraph (c)(1) of this section.\n\n(i) The contract must provide:\n\n(A) For indemnification or insurance arrangements (or any combination) that will adequately protect the Fund against the risk of loss of Foreign Assets held in accordance with the contract;\n\n(B) That the Foreign Assets will not be subject to any right, charge, security interest, lien or claim of any kind in favor of the Eligible Foreign Custodian or its creditors, except a claim of payment for their safe custody or administration or, in the case of cash deposits, liens or rights in favor of creditors of the custodian arising under bankruptcy, insolvency, or similar laws;\n\n(C) That beneficial ownership of the Foreign Assets will be freely transferable without the payment of money or value other than for safe custody or administration;\n\n(D) That adequate records will be maintained identifying the Foreign Assets as belonging to the Fund or as being held by a third party for the benefit of the Fund;\n\n(E) That the Fund's independent public accountants will be given access to those records or confirmation of the contents of those records; and\n\n(F) That the Fund will receive periodic reports with respect to the safekeeping of the Foreign Assets, including, but not limited to, notification of any transfer to or from the Fund's account or a third party account containing assets held for the benefit of the Fund.\n\n(ii) The contract may contain, in lieu of any or all of the provisions specified in paragraph (c)(2)(i) of this section, other provisions that the Foreign Custody Manager determines will provide, in their entirety, the same or a greater level of care and protection for the Foreign Assets as the specified provisions, in their entirety.\n\n(3)(i)  Monitoring the Foreign Custody Arrangements.  The Foreign Custody Manager has established a system to monitor the appropriateness of maintaining the Foreign Assets with a particular custodian under paragraph (c)(1) of this section, and to monitor performance of the contract under paragraph (c)(2) of this section.\n\n(ii) If an arrangement with an Eligible Foreign Custodian no longer meets the requirements of this section, the Fund must withdraw the Foreign Assets from the Eligible Foreign Custodian as soon as reasonably practicable.\n\n(d)  Registered Canadian Funds.  Any Registered Canadian Fund may place and maintain its Foreign Assets outside the United States in accordance with the requirements of this section,  provided\n\n(1) The Foreign Assets are placed in the care of an overseas branch of a U.S. Bank that has aggregate capital, surplus, and undivided profits of a specified amount, which must not be less than $500,000; and\n\n(2) The Foreign Custody Manager is the Fund's board of directors, its investment adviser or officers, or a U.S. Bank.\n\nWhen a Fund's (or its custodian's) custody arrangement with an Eligible Securities Depository (as defined in \u00a7 270.17f-7) involves one or more Eligible Foreign Custodians through which assets are maintained with the Eligible Securities Depository, \u00a7 270.17f-5 will govern the Fund's (or its custodian's) use of each Eligible Foreign Custodian, while \u00a7 270.17f-7 will govern an Eligible Foreign Custodian's use of the Eligible Securities Depository."], ["17:17:5.0.1.1.19.0.36.121", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-6 Custody of investment company assets with Futures Commission Merchants and Commodity Clearing Organizations.", "SEC", "", "", "[61 FR 66212, Dec. 17, 1996]", "(a) A Fund may place and maintain cash, securities, and similar investments with a Futures Commission Merchant in amounts necessary to effect the Fund's transactions in Exchange-Traded Futures Contracts and Commodity Options,  Provided that:\n\n(1) The manner in which the Futures Commission Merchant maintains the Fund's assets shall be governed by a written contract, which provides that:\n\n(i) The Futures Commission Merchant shall comply with the segregation requirements of section 4d(2) of the Commodity Exchange Act (7 U.S.C. 6d(2)) and the rules thereunder (17 CFR Chapter I) or, if applicable, the secured amount requirements of rule 30.7 under the Commodity Exchange Act (17 CFR 30.7);\n\n(ii) The Futures Commission Merchant, as appropriate to the Fund's transactions and in accordance with the Commodity Exchange Act (7 U.S.C. 1 through 25) and the rules and regulations thereunder (including 17 CFR part 30), may place and maintain the Fund's assets to effect the Fund's transactions with another Futures Commission Merchant, a Clearing Organization, a U.S. or Foreign Bank, or a member of a foreign board of trade, and shall obtain an acknowledgment, as required under rules 1.20(a) or 30.7(c) under the Commodity Exchange Act [17 CFR 1.20(a) or 30.7(c)], as applicable, that such assets are held on behalf of the Futures Commission Merchant's customers in accordance with the provisions of the Commodity Exchange Act; and\n\n(iii) The Futures Commission Merchant shall promptly furnish copies of or extracts from the Futures Commission Merchant's records or such other information pertaining to the Fund's assets as the Commission through its employees or agents may request.\n\n(2) Any gains on the Fund's transactions, other than de minimis amounts, may be maintained with the Futures Commission Merchant only until the next business day following receipt.\n\n(3) If the custodial arrangement no longer meets the requirements of this section, the Fund shall withdraw its assets from the Futures Commission Merchant as soon as reasonably practicable.\n\n(b) For purposes of this section:\n\n(1)  Clearing Organization  means a clearing organization as defined in rule 1.3(d) under the Commodity Exchange Act (17 CFR 1.3(d)) and includes a clearing organization for a foreign board of trade.\n\n(2)  Exchange-Traded Futures Contracts and Commodity Options  means commodity futures contracts, options on commodity futures contracts, and options on physical commodities traded on or subject to the rules of:\n\n(i) Any contract market designated for trading such transactions under the Commodity Exchange Act and the rules thereunder; or\n\n(ii) Any board of trade or exchange outside the United States, as contemplated in Part 30 under the Commodity Exchange Act.\n\n(3)  Fund  means an investment company registered under the Act (15 U.S.C. 80a-1  et seq. ).\n\n(4)  Futures Commission Merchant  means any person that is registered as a futures commission merchant under the Commodity Exchange Act and that is not an affiliated person of the Fund or an affiliated person of such person.\n\n(5)  U.S. or Foreign Bank  means a bank, as defined in section 2(a)(5) of the Act (15 U.S.C. 80a-2(a)(5)), or a banking institution or trust company that is incorporated or organized under the laws of a country other than the United States and that is regulated as such by the country's government or an agency thereof."], ["17:17:5.0.1.1.19.0.36.122", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17f-7 Custody of investment company assets with a foreign securities depository.", "SEC", "", "", "[65 FR 25638, May 3, 2000]", "(a)  Custody arrangement with an eligible securities depository.  A Fund, including a Registered Canadian Fund, may place and maintain its Foreign Assets with an Eligible Securities Depository,  provided that:\n\n(1)  Risk-limiting safeguards.  The custody arrangement provides reasonable safeguards against the custody risks associated with maintaining assets with the Eligible Securities Depository, including:\n\n(i)  Risk analysis and monitoring.  (A) The fund or its investment adviser has received from the Primary Custodian (or its agent) an analysis of the custody risks associated with maintaining assets with the Eligible Securities Depository; and\n\n(B) The contract between the Fund and the Primary Custodian requires the Primary Custodian (or its agent) to monitor the custody risks associated with maintaining assets with the Eligible Securities Depository on a continuing basis, and promptly notify the Fund or its investment adviser of any material change in these risks.\n\n(ii)  Exercise of care.  The contract between the Fund and the Primary Custodian states that the Primary Custodian will agree to exercise reasonable care, prudence, and diligence in performing the requirements of paragraphs (a)(1)(i)(A) and (B) of this section, or adhere to a higher standard of care.\n\n(2)  Withdrawal of assets from eligible securities depository.  If a custody arrangement with an Eligible Securities Depository no longer meets the requirements of this section, the Fund's Foreign Assets must be withdrawn from the depository as soon as reasonably practicable.\n\n(b)  Definitions.  The terms  Foreign Assets, Fund, Qualified Foreign Bank, Registered Canadian Fund,  and  U.S. Bank  have the same meanings as in \u00a7 270.17f-5. In addition:\n\n(1)  Eligible Securities Depository  means a system for the central handling of securities as defined in \u00a7 270.17f-4 that:\n\n(i) Acts as or operates a system for the central handling of securities or equivalent book-entries in the country where it is incorporated, or a transnational system for the central handling of securities or equivalent book-entries;\n\n(ii) Is regulated by a foreign financial regulatory authority as defined under section 2(a)(50) of the Act (15 U.S.C. 80a-2(a)(50));\n\n(iii) Holds assets for the custodian that participates in the system on behalf of the Fund under safekeeping conditions no less favorable than the conditions that apply to other participants;\n\n(iv) Maintains records that identify the assets of each participant and segregate the system's own assets from the assets of participants;\n\n(v) Provides periodic reports to its participants with respect to its safekeeping of assets, including notices of transfers to or from any participant's account; and\n\n(vi) Is subject to periodic examination by regulatory authorities or independent accountants.\n\n(2)  Primary Custodian  means a U.S. Bank or Qualified Foreign Bank that contracts directly with a Fund to provide custodial services related to maintaining the Fund's assets outside the United States.\n\nWhen a Fund's (or its custodian's) custody arrangement with an Eligible Securities Depository involves one or more Eligible Foreign Custodians (as defined in \u00a7 270.17f-5) through which assets are maintained with the Eligible Securities Depository, \u00a7 270.17f-5 will govern the Fund's (or its custodian's) use of each Eligible Foreign Custodian, while \u00a7 270.17f-7 will govern an Eligible Foreign Custodian's use of the Eligible Securities Depository."], ["17:17:5.0.1.1.19.0.36.123", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17g-1 Bonding of officers and employees of registered management investment companies.", "SEC", "", "", "[39 FR 10579, Mar. 21, 1974, as amended at 66 FR 3759, Jan. 16, 2001; 69 FR 46390, Aug. 2, 2004]", "(a) Each registered management investment company shall provide and maintain a bond which shall be issued by a reputable fidelity insurance company, authorized to do business in the place where the bond is issued, against larceny and embezzlement, covering each officer and employee of the investment company, who may singly, or jointly with others, have access to securities or funds of the investment company, either directly or through authority to draw upon such funds or to direct generally the disposition of such securities, unless the officer or employee has such access solely through his position as an officer or employee of a bank (hereinafter referred to as \u201ccovered persons\u201d).\n\n(b) The bond may be in the form of (1) an individual bond for each covered person or a schedule or blanket bond covering such persons, (2) a blanket bond which names the registered management investment company as the only insured (hereinafter referred to as \u201csingle insured bond\u201d) or (3) a bond which names the registered management investment company and one or more other parties as insureds (hereinafter referred to as a \u201cjoint insured bond\u201d), such other insured parties being limited to (i) persons engaged in the management or distribution of the shares of the registered investment company, (ii) other registered investment companies which are managed and/or whose shares are distributed by the same persons (or affiliates of such persons), (iii) persons who are engaged in the management and/or distribution of shares of companies included in paragraph (b)(3)(i) of this section, (iv) affiliated persons of any registered management investment company named in the bond or of any person included in paragraph (b)(3)(i) or (b)(3)(iii) of this section who are engaged in the administration of any registered management investment company named as insured in the bond, and (v) any trust, pension, profit-sharing or other benefit plan for officers, directors or employees of persons named in the bond.\n\n(c) A bond of the type described in paragraph (b)(1) or (b)(2) of this section shall provide that it shall not be cancelled, terminated or modified except after written notice shall have been given by the acting party to the affected party and to the Commission not less than sixty days prior to the effective date of cancellation, termination or modification. A joint insured bond described in paragraph (b)(3) of this section shall provide, that (1) it shall not be cancelled terminated or modified except after written notice shall have been given by the acting party to the affected party, and by the fidelity insurance company to all registered investment companies named as insureds and to the Commission, not less than sixty days prior to the effective date of cancellation, termination, or modification and (2) the fidelity insurance company shall furnish each registered management investment company named as an insured with (i) a copy of the bond and any amendment thereto promptly after the execution thereof, (ii) a copy of each formal filing of a claim under the bond by any other named insured promptly after the receipt thereof, and (iii) notification of the terms of the settlement of each such claim prior to the execution of the settlement.\n\n(d) The bond shall be in such reasonable form and amount as a majority of the board of directors of the registered management investment company who are not \u201cinterested persons\u201d of such investment company as defined by section 2(a)(19) of the Act shall approve as often as their fiduciary duties require, but not less than once every twelve months, with due consideration to all relevant factors including, but not limited to, the value of the aggregate assets of the registered management investment company to which any covered person may have access, the type and terms of the arrangements made for the custody and safekeeping of such assets, and the nature of the securities in the company's portfolio:  Provided, however,  That (1) the amount of a single insured bond shall be at least equal to an amount computed in accordance with the following schedule:\n\n(2) A joint insured bond shall be in an amount at least equal to the sum of (i) the total amount of coverage which each registered management investment company named as an insured would have been required to provide and maintain individually pursuant to the schedule hereinabove had each such registered management investment company not been named under a joint insured bond, plus (ii) the amount of each bond which each named insured other than a registered management investment company would have been required to provide and maintain pursuant to federal statutes or regulations had it not been named as an insured under a joint insured bond.\n\n(e) No premium may be paid for any joint insured bond or any amendment thereto unless a majority of the board of directors of each registered management investment company named as an insured therein who are not \u201cinterested persons\u201d of such company shall approve the portion of the premium to be paid by such company, taking all relevant factors into consideration including, but not limited to, the number of the other parties named as insured, the nature of the business activities of such other parties, the amount of the joint insured bond, and the amount of the premium for such bond, the ratable allocation of the premium among all parties named as insureds, and the extent to which the share of the premium allocated to the investment company is less than the premium such company would have had to pay if it had provided and maintained a single insured bond.\n\n(f) Each registered management investment company named as an insured in a joint insured bond shall enter into an agreement with all of the other named insureds providing that in the event recovery is received under the bond as a result of a loss sustained by the registered management investment company and one or more other named insureds, the registered management investment company shall receive an equitable and proportionate share of the recovery, but at least equal to the amount which it would have received had it provided and maintained a single insured bond with the minimum coverage required by paragraph (d)(1) of this section.\n\n(g) Each registered management investment company shall:\n\n(1) File with the Commission (i) within 10 days after receipt of an executed bond of the type described in paragraph (b)(1) or (2) of this section or any amendment thereof, ( a ) a copy of the bond, ( b ) a copy of the resolution of a majority of the board of directors who are not \u201cinterested persons\u201d of the registered management investment company approving the form and amount of the bond, and ( c ) a statement as to the period for which premiums have been paid; (ii) within 10 days after receipt of an executed joint insured bond, or any amendment thereof, ( a ) a copy of the bond, ( b ) a copy of the resolution of a majority of the board of directors who are not \u201cinterested persons\u201d of the registered management investment company approving the amount, type, form and coverage of the bond and the portion of the premium to be paid by such company, ( c ) a statement showing the amount of the single insured bond which the investment company would have provided and maintained had it not been named as an insured under a joint insured bond, ( d ) a statement as to the period for which premiums have been paid, and ( e ) a copy of each agreement between the investment company and all of the other named insureds entered into pursuant to paragraph (f) of this section; and (iii) a copy of any amendment to the agreement entered into pursuant to paragraph (f) of this section within 10 days after the execution of such amendment,\n\n(2) File with the Commission, in writing, within five days after the making of any claim under the bond by the investment company, a statement of the nature and amount of the claim,\n\n(3) File with the Commission, within five days of the receipt thereof, a copy of the terms of the settlement of any claim made under the bond by the investment company, and\n\n(4) Notify by registered mail each member of the board of directors of the investment company at his last known residence address of (i) any cancellation, termination or modification of the bond, not less than forty-five days prior to the effective date of the cancellation or termination or modification, (ii) the filing and of the settlement of any claim under the bond by the investment company, at the time the filings required by paragraph (g) (2) and (3) of this section are made with the Commission, and (iii) the filing and of the proposed terms of settlement of any claim under the bond by any other named insured, within five days of the receipt of a notice from the fidelity insurance company.\n\n(h) Each registered management investment company shall designate an officer thereof who shall make the filings and give the notices required by paragraph (g) of this section.\n\n(i) Where the registered management investment company is an unincorporated company managed by a depositor, trustee or investment adviser, the terms \u201cofficer\u201d and \u201cemployee\u201d shall include, for the purposes of this rule, the officers and employees of the depositor, trustee, or investment adviser.\n\n(j) Any joint insured bond provided and maintained by a registered management investment company and one or more other parties shall be a transaction exempt from the provisions of section 17(d) of the Act (15 U.S.C. 80a-17(d)) and the rules thereunder, if:\n\n(1) The terms and provisions of the bond comply with the provisions of this section;\n\n(2) The terms and provisions of any agreement required by paragraph (f) of this section comply with the provisions of that paragraph; and\n\n(3) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7).\n\n(k) At the next anniversary date of an existing fidelity bond, but not later than one year from the effective date of this rule, arrangements between registered management investment companies and fidelity insurance companies and arrangements between registered management investment companies and other parties named as insureds under joint insured bonds which would not permit compliance with the provisions of this rule shall be modified by the parties so as to effect such compliance."], ["17:17:5.0.1.1.19.0.36.124", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.17j-1 Personal investment activities of investment company personnel.", "SEC", "", "", "[64 FR 46834, Aug. 27, 1999; 65 FR 12943, Mar. 10, 2000, as amended at 69 FR 41707, July 9, 2004; 76 FR 81806, Dec. 29, 2011; 81 FR 83554, Nov. 21, 2016]", "(a)  Definitions.  For purposes of this section:\n\n(1)  Access person  means:\n\n(i) Any Advisory Person of a Fund or of a Fund's investment adviser. If an investment adviser's primary business is advising Funds or other advisory clients, all of the investment adviser's directors, officers, and general partners are presumed to be Access Persons of any Fund advised by the investment adviser. All of a Fund's directors, officers, and general partners are presumed to be Access Persons of the Fund.\n\n(ii) Any director, officer or general partner of a principal underwriter who, in the ordinary course of business, makes, participates in or obtains information regarding, the purchase or sale of Covered Securities by the Fund for which the principal underwriter acts, or whose functions or duties in the ordinary course of business relate to the making of any recommendation to the Fund regarding the purchase or sale of Covered Securities.\n\n(2)  Advisory person  of a Fund or of a Fund's investment adviser means:\n\n(i) Any director, officer, general partner or employee of the Fund or investment adviser (or of any company in a control relationship to the Fund or investment adviser) who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding, the purchase or sale of Covered Securities by a Fund, or whose functions relate to the making of any recommendations with respect to such purchases or sales; and\n\n(ii) Any natural person in a control relationship to the Fund or investment adviser who obtains information concerning recommendations made to the Fund with regard to the purchase or sale of Covered Securities by the Fund.\n\n(3)  Control  has the same meaning as in section 2(a)(9) of the Act [15 U.S.C. 80a-2(a)(9)].\n\n(4)  Covered security  means a security as defined in section 2(a)(36) of the Act [15 U.S.C. 80a-2(a)(36)], except that it does not include:\n\n(i) Direct obligations of the Government of the United States;\n\n(ii) Bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements; and\n\n(iii) Shares issued by open-end Funds.\n\n(5)  Fund  means an investment company registered under the Investment Company Act.\n\n(6) An  Initial public offering  means an offering of securities registered under the Securities Act of 1933 [15 U.S.C. 77a], the issuer of which, immediately before the registration, was not subject to the reporting requirements of sections 13 or 15(d) of the Securities Exchange Act of 1934 [15 U.S.C. 78m or 78o(d)].\n\n(7)  Investment personnel  of a Fund or of a Fund's investment adviser means:\n\n(i) Any employee of the Fund or investment adviser (or of any company in a control relationship to the Fund or investment adviser) who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by the Fund.\n\n(ii) Any natural person who controls the Fund or investment adviser and who obtains information concerning recommendations made to the Fund regarding the purchase or sale of securities by the Fund.\n\n(8) A  Limited offering  means an offering that is exempt from registration under the Securities Act of 1933 pursuant to section 4(a)(2) or section 4(a)(5) [15 U.S.C. 77d(a)(2) or 77d(a)(5)] or pursuant to rule 504, or rule 506 [17 CFR 230.504 or 230.506] under the Securities Act of 1933.\n\n(9)  Purchase or sale of a covered security  includes, among other things, the writing of an option to purchase or sell a Covered Security.\n\n(10)  Security held or to be acquired  by a Fund means:\n\n(i) Any Covered Security which, within the most recent 15 days:\n\n(A) Is or has been held by the Fund; or\n\n(B) Is being or has been considered by the Fund or its investment adviser for purchase by the Fund; and\n\n(ii) Any option to purchase or sell, and any security convertible into or exchangeable for, a Covered Security described in paragraph (a)(10)(i) of this section.\n\n(11)  Automatic investment plan  means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan.\n\n(b)  Unlawful actions.  It is unlawful for any affiliated person of or principal underwriter for a Fund, or any affiliated person of an investment adviser of or principal underwriter for a Fund, in connection with the purchase or sale, directly or indirectly, by the person of a Security Held or to be Acquired by the Fund:\n\n(1) To employ any device, scheme or artifice to defraud the Fund;\n\n(2) To make any untrue statement of a material fact to the Fund or omit to state a material fact necessary in order to make the statements made to the Fund, in light of the circumstances under which they are made, not misleading;\n\n(3) To engage in any act, practice or course of business that operates or would operate as a fraud or deceit on the Fund; or\n\n(4) To engage in any manipulative practice with respect to the Fund.\n\n(c)  Code of Ethics \u2014(1)  Adoption and approval of Code of Ethics.  (i) Every Fund (other than a money market fund or a Fund that does not invest in Covered Securities) and each investment adviser of and principal underwriter for the Fund, must adopt a written code of ethics containing provisions reasonably necessary to prevent its Access Persons from engaging in any conduct prohibited by paragraph (b) of this section.\n\n(ii) The board of directors of a Fund, including a majority of directors who are not interested persons, must approve the code of ethics of the Fund, the code of ethics of each investment adviser and principal underwriter of the Fund, and any material changes to these codes. The board must base its approval of a code and any material changes to the code on a determination that the code contains provisions reasonably necessary to prevent Access Persons from engaging in any conduct prohibited by paragraph (b) of this section. Before approving a code of a Fund, investment adviser or principal underwriter or any amendment to the code, the board of directors must receive a certification from the Fund, investment adviser or principal underwriter that it has adopted procedures reasonably necessary to prevent Access Persons from violating the Fund's, investment adviser's, or principal underwriter's code of ethics. The Fund's board must approve the code of an investment adviser or principal underwriter before initially retaining the services of the investment adviser or principal underwriter. The Fund's board must approve a material change to a code no later than six months after adoption of the material change.\n\n(iii) If a Fund is a unit investment trust, the Fund's principal underwriter or depositor must approve the Fund's code of ethics, as required by paragraph (c)(1)(ii) of this section. If the Fund has more than one principal underwriter or depositor, the principal underwriters and depositors may designate, in writing, which principal underwriter or depositor must conduct the approval required by paragraph (c)(1)(ii) of this section, if they obtain written consent from the designated principal underwriter or depositor.\n\n(2)  Administration of Code of Ethics.  (i) The Fund, investment adviser and principal underwriter must use reasonable diligence and institute procedures reasonably necessary to prevent violations of its code of ethics.\n\n(ii) No less frequently than annually, every Fund (other than a unit investment trust) and its investment advisers and principal underwriters must furnish to the Fund's board of directors, and the board of directors must consider, a written report that:\n\n(A) Describes any issues arising under the code of ethics or procedures since the last report to the board of directors, including, but not limited to, information about material violations of the code or procedures and sanctions imposed in response to the material violations; and\n\n(B) Certifies that the Fund, investment adviser or principal underwriter, as applicable, has adopted procedures reasonably necessary to prevent Access Persons from violating the code.\n\n(3)  Exception for principal underwriters.  The requirements of paragraphs (c)(1) and (c)(2) of this section do not apply to any principal underwriter unless:\n\n(i) The principal underwriter is an affiliated person of the Fund or of the Fund's investment adviser; or\n\n(ii) An officer, director or general partner of the principal underwriter serves as an officer, director or general partner of the Fund or of the Fund's investment adviser.\n\n(d)  Reporting requirements of access persons \u2014(1)  Reports required.  Unless excepted by paragraph (d)(2) of this section, every Access Person of a Fund (other than a money market fund or a Fund that does not invest in Covered Securities) and every Access Person of an investment adviser of or principal underwriter for the Fund, must report to that Fund, investment adviser or principal underwriter:\n\n(i)  Initial holdings reports.  No later than 10 days after the person becomes an Access Person (which information must be current as of a date no more than 45 days prior to the date the person becomes an Access Person):\n\n(A) The title, number of shares and principal amount of each Covered Security in which the Access Person had any direct or indirect beneficial ownership when the person became an Access Person;\n\n(B) The name of any broker, dealer or bank with whom the Access Person maintained an account in which any securities were held for the direct or indirect benefit of the Access Person as of the date the person became an Access Person; and\n\n(C) The date that the report is submitted by the Access Person.\n\n(ii)  Quarterly transaction reports.  No later than 30 days after the end of a calendar quarter, the following information:\n\n(A) With respect to any transaction during the quarter in a Covered Security in which the Access Person had any direct or indirect beneficial ownership:\n\n( 1 ) The date of the transaction, the title, the interest rate and maturity date (if applicable), the number of shares and the principal amount of each Covered Security involved;\n\n( 2 ) The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);\n\n( 3 ) The price of the Covered Security at which the transaction was effected;\n\n( 4 ) The name of the broker, dealer or bank with or through which the transaction was effected; and\n\n( 5 ) The date that the report is submitted by the Access Person.\n\n(B) With respect to any account established by the Access Person in which any securities were held during the quarter for the direct or indirect benefit of the Access Person:\n\n( 1 ) The name of the broker, dealer or bank with whom the Access Person established the account;\n\n( 2 ) The date the account was established; and\n\n( 3 ) The date that the report is submitted by the Access Person.\n\n(iii)  Annual Holdings Reports.  Annually, the following information (which information must be current as of a date no more than 45 days before the report is submitted):\n\n(A) The title, number of shares and principal amount of each Covered Security in which the Access Person had any direct or indirect beneficial ownership;\n\n(B) The name of any broker, dealer or bank with whom the Access Person maintains an account in which any securities are held for the direct or indirect benefit of the Access Person; and\n\n(C) The date that the report is submitted by the Access Person.\n\n(2)  Exceptions from reporting requirements.  (i) A person need not make a report under paragraph (d)(1) of this section with respect to transactions effected for, and Covered Securities held in, any account over which the person has no direct or indirect influence or control.\n\n(ii) A director of a Fund who is not an \u201cinterested person\u201d of the Fund within the meaning of section 2(a)(19) of the Act [15 U.S.C. 80a-2(a)(19)], and who would be required to make a report solely by reason of being a Fund director, need not make:\n\n(A) An initial holdings report under paragraph (d)(1)(i) of this section and an annual holdings report under paragraph (d)(1)(iii) of this section; and\n\n(B) A quarterly transaction report under paragraph (d)(1)(ii) of this section, unless the director knew or, in the ordinary course of fulfilling his or her official duties as a Fund director, should have known that during the 15-day period immediately before or after the director's transaction in a Covered Security, the Fund purchased or sold the Covered Security, or the Fund or its investment adviser considered purchasing or selling the Covered Security.\n\n(iii) An Access Person to a Fund's principal underwriter need not make a report to the principal underwriter under paragraph (d)(1) of this section if:\n\n(A) The principal underwriter is not an affiliated person of the Fund (unless the Fund is a unit investment trust) or any investment adviser of the Fund; and\n\n(B) The principal underwriter has no officer, director or general partner who serves as an officer, director or general partner of the Fund or of any investment adviser of the Fund.\n\n(iv) An Access Person to an investment adviser need not make a separate report to the investment adviser under paragraph (d)(1) of this section to the extent the information in the report would duplicate information required to be recorded under \u00a7 275.204-2(a)(13) of this chapter.\n\n(v) An Access Person need not make a quarterly transaction report under paragraph (d)(1)(ii) of this section if the report would duplicate information contained in broker trade confirmations or account statements received by the Fund, investment adviser or principal underwriter with respect to the Access Person in the time period required by paragraph (d)(1)(ii), if all of the information required by that paragraph is contained in the broker trade confirmations or account statements, or in the records of the Fund, investment adviser or principal underwriter.\n\n(vi) An Access Person need not make a quarterly transaction report under paragraph (d)(1)(ii) of this section with respect to transactions effected pursuant to an Automatic Investment Plan.\n\n(3)  Review of reports.  Each Fund, investment adviser and principal underwriter to which reports are required to be made by paragraph (d)(1) of this section must institute procedures by which appropriate management or compliance personnel review these reports.\n\n(4)  Notification of reporting obligation.  Each Fund, investment adviser and principal underwriter to which reports are required to be made by paragraph (d)(1) of this section must identify all Access Persons who are required to make these reports and must inform those Access Persons of their reporting obligation.\n\n(5)  Beneficial ownership.  For purposes of this section, beneficial ownership is interpreted in the same manner as it would be under \u00a7 240.16a-1(a)(2) of this chapter in determining whether a person is the beneficial owner of a security for purposes of section 16 of the Securities Exchange Act of 1934 [15 U.S.C. 78p] and the rules and regulations thereunder. Any report required by paragraph (d) of this section may contain a statement that the report will not be construed as an admission that the person making the report has any direct or indirect beneficial ownership in the Covered Security to which the report relates.\n\n(e)  Pre-approval of investments in IPOs and limited offerings.  Investment Personnel of a Fund or its investment adviser must obtain approval from the Fund or the Fund's investment adviser before directly or indirectly acquiring beneficial ownership in any securities in an Initial Public Offering or in a Limited Offering.\n\n(f)  Recordkeeping Requirements.  (1) Each Fund, investment adviser and principal underwriter that is required to adopt a code of ethics or to which reports are required to be made by Access Persons must, at its principal place of business, maintain records in the manner and to the extent set out in this paragraph (f), and must make these records available to the Commission or any representative of the Commission at any time and from time to time for reasonable periodic, special or other examination:\n\n(A) A copy of each code of ethics for the organization that is in effect, or at any time within the past five years was in effect, must be maintained in an easily accessible place;\n\n(B) A record of any violation of the code of ethics, and of any action taken as a result of the violation, must be maintained in an easily accessible place for at least five years after the end of the fiscal year in which the violation occurs;\n\n(C) A copy of each report made by an Access Person as required by this section, including any information provided in lieu of the reports under paragraph (d)(2)(v) of this section, must be maintained for at least five years after the end of the fiscal year in which the report is made or the information is provided, the first two years in an easily accessible place;\n\n(D) A record of all persons, currently or within the past five years, who are or were required to make reports under paragraph (d) of this section, or who are or were responsible for reviewing these reports, must be maintained in an easily accessible place; and\n\n(E) A copy of each report required by paragraph (c)(2)(ii) of this section must be maintained for at least five years after the end of the fiscal year in which it is made, the first two years in an easily accessible place.\n\n(2) A Fund or investment adviser must maintain a record of any decision, and the reasons supporting the decision, to approve the acquisition by investment personnel of securities under paragraph (e), for at least five years after the end of the fiscal year in which the approval is granted."], ["17:17:5.0.1.1.19.0.36.125", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18c-1 Exemption of privately held indebtedness.", "SEC", "", "", "[26 FR 11240, Nov. 29, 1961]", "The issuance or sale of more than one class of senior securities representing indebtedness by a small business investment company, licensed under the Small Business Investment Act of 1958, shall not be prohibited by section 18(c) so long as such small business investment company does not have outstanding any publicly held indebtedness, and all securities of any such class are (a) privately held by the Small Business Administration, or banks, insurance companies or other institutional investors, (b) not intended to be publicly distributed, and (c) not convertible into, exchangeable for, or accompanied by any option to acquire, any equity security."], ["17:17:5.0.1.1.19.0.36.126", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18c-2 Exemptions of certain debentures issued by small business investment companies.", "SEC", "", "", "[37 FR 7590, Apr. 18, 1972]", "(a) The issuance or sale of any class of senior security representing indebtedness by a small business investment company licensed under the Small Business Investment Act of 1958 shall not be prohibited by section 18(c) of the Act provided such senior security representing indebtedness is (1) not convertible into, exchangeable for, or accompanied by an option to acquire any equity security; (2) fully guaranteed as to timely payment of all principal and interest by the Small Business Administration and backed by the full faith and credit of the United States; and (3) subordinated to any other debt securities not issued pursuant to this section or, if such security is not so subordinated, that such security, according to its own terms, will not be preferred over any other unsecured debt securities in the payment of principal and interest:  And further provided,  That all other debt securities then outstanding issued by such small business investment company were issued as permitted by \u00a7 270.18c-1 or this section.\n\n(b) Any security issued and sold as permitted by paragraph (a) of this section shall be deemed for purposes of \u00a7 270.18c-1 to be privately held by the Small Business Administration and for purposes of \u00a7 270.18c-1 shall not be deemed to be publicly held outstanding indebtedness.\n\n(c) The issuance or sale of any security as permitted by paragraph (a) of this section shall not be deemed to be a sale to any person other than the Small Business Administration by any small business investment company licensed under the Small Business Investment Company Act of 1958 which is exempt from any provision of the Investment Company Act, if such exemption is conditioned on such company not offering or selling its securities to any person other than the Small Business Administration."], ["17:17:5.0.1.1.19.0.36.127", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18f-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.", "SEC", "", "", "[36 FR 11919, June 23, 1971, as amended at 48 FR 37940, Aug. 22, 1983]", "(a) 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 (\u00a7 274.51 of this chapter) 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\n\n(1) $250,000 or\n\n(2) 1 percent of the net asset value of such company at the beginning of such period.\n\n(b) An election pursuant to paragraph (a) of this section:\n\n(1) Shall be described in either the prospectus or the Statement of Additional Information, at the discretion of the investment company, and\n\n(2) Shall be irrevocable while this \u00a7 270.18f-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.\n\n(c) 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."], ["17:17:5.0.1.1.19.0.36.128", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18f-2 Fair and equitable treatment for holders of each class or series of stock of series investment companies.", "SEC", "", "", "[37 FR 17386, Aug. 26, 1972]", "(a) For purposes of this \u00a7 270.18f-2 a series company is a registered open-end investment company which, in accordance with the provisions of section 18(f)(2) of the Act, issues two or more classes or series of preferred or special stock each of which is preferred over all other classes or series in respect of assets specifically allocated to that class or series. Any matter required to be submitted by the provisions of the Act or of applicable State law, or otherwise, to the holders of the outstanding voting securities of a series company shall not be deemed to have been effectively acted upon less approved by the holders of a majority of the outstanding voting securities of each class or series of stock affected by such matter.\n\n(b) For the purposes of paragraph (a) of this \u00a7 270.18f-2, a class or series of stock will be deemed to be affected by such a matter, unless (1) the interests of each class or series in the matter are substantially identical, or (2) the matter does not affect any interest of such class or series.\n\n(c)(1) With respect to the submission of an investment advisory contract to the holders of the outstanding voting securities of a series company for the approval required by section 15(a) of the Act, such matter shall be deemed to be effectively acted upon with respect to any class or series of securities of such company if a majority of the outstanding voting securities of such class or series vote for the approval of such matter, notwithstanding (i) that such matter has not been approved by the holders of a majority of the outstanding voting securities of any other class or series affected by such matter, and (ii) that such matter has not been approved by the vote of a majority of the outstanding voting securities of such company, provided that if such a majority is required by State law or otherwise, such requirement shall apply.\n\n(2) If any class or series of securities of a series company fails to approve an investment advisory contract in the manner required by paragraph (c)(1) of this section, the investment adviser of such company may continue to serve or act in such capacity for the period of time pending such required approval of such contract, of a new contract with the same or different adviser, or other definitive action:  Provided,  That the compensation received by such investment adviser during such period is equal to no more than its actual costs incurred in furnishing investment advisory services to such class or series or the amount it would have received under the advisory contract, whichever is less.\n\n(d) With respect to the submission of a change in investment policy to the holders of the outstanding voting securities of a series company for the approval required by section 13 of the Act, such matter shall be deemed to have been effectively acted upon with respect to any class or series of such company if a majority of the outstanding voting securities of such class or series vote for the approval of such matter, notwithstanding (1) that such matter has not been approved by the holders of a majority of the outstanding voting securities of any other class or series affected by such matter, and (2) that such matter has not been approved by the vote of a majority of the outstanding voting securities of such company:  Provided,  That if such a majority is required by State law or otherwise, such requirement shall apply.\n\n(e) The submission to shareholders of the selection of the independent public accountant of a series company required by section 32(a) (of the Act) shall be exempt from the separate voting requirements of paragraph (a) of this \u00a7 270.18f-2.\n\n(f) The submission to shareholders of a contract with a principal underwriter of a series company required by section 15(b) of the Act shall be exempt from the separate voting requirements of paragraph (a) of this \u00a7 270.18f-2.\n\n(g) The submission to shareholders of nominees for election as directors required by section 16(a) of the Act shall be exempt from the separate voting requirements of paragraph (a) of this \u00a7 270.18f-2.\n\n(h) For the purposes of this \u00a7 270.18f-2 a \u201cmajority of the outstanding voting securities\u201d of a class or series, (1) when used with respect to a matter required by any provision of the Act to be submitted to the outstanding voting securities of a series company, shall have the same meaning as a \u201cmajority of the outstanding voting securities of a company\u201d as defined in section 2(a)(42) of the Act; and (2) when used with respect to any other matter required to be submitted to the outstanding voting securities of a series company, shall mean the lesser of (i) the minimum vote of the outstanding voting securities of a company required by applicable State law or other applicable requirement, or (ii) the minimum vote specified by paragraph (1) of this paragraph (h), unless State law requires approval of such matters by a specified percentage of the outstanding voting securities of a particular class or series, in which case, State law shall apply."], ["17:17:5.0.1.1.19.0.36.129", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18f-3 Multiple class companies.", "SEC", "", "", "[60 FR 11885, Mar. 2, 1995, as amended at 62 FR 51765, Oct. 3, 1997; 66 FR 3759, Jan. 16, 2001; 69 FR 46390, Aug. 2, 2004; 79 FR 47967, Aug. 14, 2014]", "Notwithstanding sections 18(f)(1) and 18(i) of the Act (15 U.S.C. 80a-18(f)(1) and (i), respectively), a registered open-end management investment company or series or class thereof established in accordance with section 18(f)(2) of the Act (15 U.S.C. 80a-18(f)(2)) whose shares are registered on Form N-1A [\u00a7\u00a7 239.15A and 274.11A of this chapter] (\u201ccompany\u201d) may issue more than one class of voting stock,  provided  that:\n\n(a) Each class:\n\n(1)(i) Shall have a different arrangement for shareholder services or the distribution of securities or both, and shall pay all of the expenses of that arrangement;\n\n(ii) May pay a different share of other expenses, not including advisory or custodial fees or other expenses related to the management of the company's assets, if these expenses are actually incurred in a different amount by that class, or if the class receives services of a different kind or to a different degree than other classes; and\n\n(iii) May pay a different advisory fee to the extent that any difference in amount paid is the result of the application of the same performance fee provisions in the advisory contract of the company to the different investment performance of each class;\n\n(2) Shall have exclusive voting rights on any matter submitted to shareholders that relates solely to its arrangement;\n\n(3) Shall have separate voting rights on any matter submitted to shareholders in which the interests of one class differ from the interests of any other class; and\n\n(4) Shall have in all other respects the same rights and obligations as each other class.\n\n(b) Expenses may be waived or reimbursed by the company's adviser, underwriter, or any other provider of services to the company.\n\n(c)(1) Income, realized gains and losses, unrealized appreciation and depreciation, and Fundwide Expenses shall be allocated based on one of the following methods (which method shall be applied on a consistent basis):\n\n(i) To each class based on the net assets of that class in relation to the net assets of the company (\u201crelative net assets\u201d);\n\n(ii) To each class based on the Simultaneous Equations Method;\n\n(iii) To each class based on the Settled Shares Method,  provided that  the company is a Daily Dividend Fund (such a company may allocate income and Fundwide Expenses based on the Settled Shares Method and realized gains and losses and unrealized appreciation and depreciation based on relative net assets);\n\n(iv) To each share without regard to class,  provided that  the company is a Daily Dividend Fund that maintains the same net asset value per share in each class; that the company has received undertakings from its adviser, underwriter, or any other provider of services to the company, agreeing to waive or reimburse the company for payments to such service provider by one or more classes, as allocated under paragraph (a)(1) of this section, to the extent necessary to assure that all classes of the company maintain the same net asset value per share; and that payments waived or reimbursed under such an undertaking may not be carried forward or recouped at a future date; or\n\n(v) To each class based on any other appropriate method,  provided that  a majority of the directors of the company, and a majority of the directors who are not interested persons of the company, determine that the method is fair to the shareholders of each class and that the annualized rate of return of each class will generally differ from that of the other classes only by the expense differentials among the classes.\n\n(2) For purposes of this section:\n\n(i)  Daily Dividend Fund  means any company that has a policy of declaring distributions of net income daily, including any money market fund that operates in compliance with \u00a7 270.2a-7;\n\n(ii)  Fundwide Expenses  means expenses of the company not allocated to a particular class under paragraph (a)(1) of this section;\n\n(iii) The  Settled Shares Method  means allocating to each class based on relative net assets, excluding the value of subscriptions receivable; and\n\n(iv) The  Simultaneous Equations Method  means the simultaneous allocation to each class of each day's income, realized gains and losses, unrealized appreciation and depreciation, and Fundwide Expenses and reallocation to each class of undistributed net investment income, undistributed realized gains or losses, and unrealized appreciation or depreciation, based on the operating results of the company, changes in ownership interests of each class, and expense differentials between the classes, so that the annualized rate of return of each class generally differs from that of the other classes only by the expense differentials among the classes.\n\n(d) Any payments made under paragraph (a) of this section shall be made pursuant to a written plan setting forth the separate arrangement and expense allocation of each class, and any related conversion features or exchange privileges. Before the first issuance of a share of any class in reliance upon this section, and before any material amendment of a plan, a majority of the directors of the company, and a majority of the directors who are not interested persons of the company, shall find that the plan as proposed to be adopted or amended, including the expense allocation, is in the best interests of each class individually and the company as a whole; initial board approval of a plan under this paragraph (d) is not required, however, if the plan does not make any change in the arrangements and expense allocations previously approved by the board under an existing order of exemption. Before any vote on the plan, the directors shall request and evaluate, and any agreement relating to a class arrangement shall require the parties thereto to furnish, such information as may be reasonably necessary to evaluate the plan.\n\n(e) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7).\n\n(f) Nothing in this section prohibits a company from offering any class with:\n\n(1) An exchange privilege providing that securities of the class may be exchanged for certain securities of another company; or\n\n(2) A conversion feature providing that shares of one class of the company (the \u201cpurchase class\u201d) will be exchanged automatically for shares of another class of the company (the \u201ctarget class\u201d) after a specified period of time,  provided that:\n\n(i) The conversion is effected on the basis of the relative net asset values of the two classes without the imposition of any sales load, fee, or other charge;\n\n(ii) The expenses, including payments authorized under a plan adopted pursuant to \u00a7 270.12b-1 (\u201crule 12b-1 plan\u201d), for the target class are not higher than the expenses, including payments authorized under a rule 12b-1 plan, for the purchase class; and\n\n(iii) If the shareholders of the target class approve any increase in expenses allocated to the target class under paragraphs (a)(1)(i) and (a)(1)(ii) of this section, and the purchase class shareholders do not approve the increase, the company will establish a new target class for the purchase class on the same terms as applied to the target class before that increase.\n\n(3) A conversion feature providing that shares of a class in which an investor is no longer eligible to participate may be converted to shares of a class in which that investor is eligible to participate,  provided that:\n\n(i) The investor is given prior notice of the proposed conversion; and\n\n(ii) The conversion is effected on the basis of the relative net asset values of the two classes without the imposition of any sales load, fee, or other charge."], ["17:17:5.0.1.1.19.0.36.13", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a-4 Definition of \u201ccurrent net asset value\u201d for use in computing periodically the current price of redeemable security.", "SEC", "", "", "[29 FR 19101, Dec. 30, 1964, as amended at 35 FR 314, Jan. 8, 1970; 47 FR 56844, Dec. 21, 1982]", "(a) The current net asset value of any redeemable security issued by a registered investment company used in computing periodically the current price for the purpose of distribution, redemption, and repurchase means an amount which reflects calculations, whether or not recorded in the books of account, made substantially in accordance with the following, with estimates used where necessary or appropriate.\n\n(1) Portfolio securities with respect to which market quotations are readily available shall be valued at current market value, and other securities and assets shall be valued at fair value as determined in good faith by the board of directors of the registered company.\n\n(2) Changes in holdings of portfolio securities shall be reflected no later than in the first calculation on the first business day following the trade date.\n\n(3) Changes in the number of outstanding shares of the registered company resulting from distributions, redemptions, and repurchases shall be reflected no later than in the first calculation on the first business day following such change.\n\n(4) Expenses, including any investment advisory fees, shall be included to date of calculation. Appropriate provision shall be made for Federal income taxes if required. Investment companies which retain realized capital gains designated as a distribution to shareholders shall comply with paragraph (h) of \u00a7 210.6-03 of Regulation S-X.\n\n(5) Dividends receivable shall be included to date of calculation either at ex-dividend dates or record dates, as appropriate.\n\n(6) Interest income and other income shall be included to date of calculation.\n\n(b) The items which would otherwise be required to be reflected by paragraphs (a) (4) and (6) of this section need not be so reflected if cumulatively, when netted, they do not amount to as much as one cent per outstanding share.\n\n(c) Notwithstanding the requirements of paragraph (a) of this section, any interim determination of current net asset value between calculations made as of the close of the New York Stock Exchange on the preceding business day and the current business day may be estimated so as to reflect any change in current net asset value since the closing calculation on the preceding business day."], ["17:17:5.0.1.1.19.0.36.130", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.18f-4 Exemption from the requirements of section 18 and section 61 for certain senior securities transactions.", "SEC", "", "", "[85 FR 83291, Dec. 21, 2020, as amended at 87 FR 22446, Apr. 15, 2022]", "(a)  Definitions.  For purposes of this section:\n\nAbsolute VaR test  means that the VaR of the fund's portfolio does not exceed 20% of the value of the fund's net assets, or in the case of a closed-end company that has issued to investors and has then outstanding shares of a class of senior security that is a stock, that the VaR of the fund's portfolio does not exceed 25% of the value of the fund's net assets.\n\nDerivatives exposure  means the sum of the gross notional amounts of the fund's derivatives transactions described in paragraph (1) of the definition of the term \u201cderivatives transaction\u201d of this section, and in the case of short sale borrowings, the value of the assets sold short. If a fund's derivatives transactions include reverse repurchase agreements or similar financing transactions under paragraph (d)(1)(ii) of this section, the fund's derivatives exposure also includes, for each transaction, the proceeds received but not yet repaid or returned, or for which the associated liability has not been extinguished, in connection with the transaction. In determining derivatives exposure a fund may convert the notional amount of interest rate derivatives to 10-year bond equivalents and delta adjust the notional amounts of options contracts and exclude any closed-out positions, if those positions were closed out with the same counterparty and result in no credit or market exposure to the fund.\n\nDerivatives risk manager  means an officer or officers of the fund's investment adviser responsible for administering the program and policies and procedures required by paragraph (c)(1) of this section, provided that the derivatives risk manager:\n\n(1) May not be a portfolio manager of the fund, or if multiple officers serve as derivatives risk manager, may not have a majority composed of portfolio managers of the fund; and\n\n(2) Must have relevant experience regarding the management of derivatives risk.\n\nDerivatives risks  means the risks associated with a fund's derivatives transactions or its use of derivatives transactions, including leverage, market, counterparty, liquidity, operational, and legal risks and any other risks the derivatives risk manager (or, in the case of a fund that is a limited derivatives user as described in paragraph (c)(4) of this section, the fund's investment adviser) deems material.\n\nDerivatives transaction  means:\n\n(1) Any swap, security-based swap, futures contract, forward contract, option, any combination of the foregoing, or any similar instrument (\u201cderivatives instrument\u201d), under which a fund is or may be required to make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise;\n\n(2) Any short sale borrowing; and\n\n(3) If a fund relies on paragraph (d)(1)(ii) of this section, any reverse repurchase agreement or similar financing transaction.\n\nDesignated index  means an unleveraged index that is approved by the derivatives risk manager for purposes of the relative VaR test and that reflects the markets or asset classes in which the fund invests and is not administered by an organization that is an affiliated person of the fund, its investment adviser, or principal underwriter, or created at the request of the fund or its investment adviser, unless the index is widely recognized and used. In the case of a blended index, none of the indexes that compose the blended index may be administered by an organization that is an affiliated person of the fund, its investment adviser, or principal underwriter, or created at the request of the fund or its investment adviser, unless the index is widely recognized and used.\n\nDesignated reference portfolio  means a designated index or the fund's securities portfolio. Notwithstanding the first sentence of the definition of  designated index  of this section, if the fund's investment objective is to track the performance (including a leverage multiple or inverse multiple) of an unleveraged index, the fund must use that index as its designated reference portfolio.\n\nFund  means a registered open-end or closed-end company or a business development company, including any separate series thereof, but does not include a registered open-end company that is regulated as a money market fund under \u00a7 270.2a-7.\n\nLeveraged/inverse fund  means a fund that seeks, directly or indirectly, to provide investment returns that correspond to the performance of a market index by a specified multiple (\u201cleverage multiple\u201d), or to provide investment returns that have an inverse relationship to the performance of a market index (\u201cinverse multiple\u201d), over a predetermined period of time.\n\nRelative VaR test  means that the VaR of the fund's portfolio does not exceed 200% of the VaR of the designated reference portfolio, or in the case of a closed-end company that has issued to investors and has then outstanding shares of a class of senior security that is a stock, that the VaR of the fund's portfolio does not exceed 250% of the VaR of the designated reference portfolio.\n\nSecurities portfolio  means the fund's portfolio of securities and other investments, excluding any derivatives transactions, that is approved by the derivatives risk manager for purposes of the relative VaR test, provided that the fund's securities portfolio reflects the markets or asset classes in which the fund invests ( i.e.,  the markets or asset classes in which the fund invests directly through securities and other investments and indirectly through derivatives transactions).\n\nUnfunded commitment agreement  means a contract that is not a derivatives transaction, under which a fund commits, conditionally or unconditionally, to make a loan to a company or to invest equity in a company in the future, including by making a capital commitment to a private fund that can be drawn at the discretion of the fund's general partner.\n\nValue-at-risk  or  VaR  means an estimate of potential losses on an instrument or portfolio, expressed as a percentage of the value of the portfolio's assets (or net assets when computing a fund's VaR), over a specified time horizon and at a given confidence level, provided that any VaR model used by a fund for purposes of determining the fund's compliance with the relative VaR test or the absolute VaR test must:\n\n(1) Take into account and incorporate all significant, identifiable market risk factors associated with a fund's investments, including, as applicable:\n\n(i) Equity price risk, interest rate risk, credit spread risk, foreign currency risk and commodity price risk;\n\n(ii) Material risks arising from the nonlinear price characteristics of a fund's investments, including options and positions with embedded optionality; and\n\n(iii) The sensitivity of the market value of the fund's investments to changes in volatility;\n\n(2) Use a 99% confidence level and a time horizon of 20 trading days; and\n\n(3) Be based on at least three years of historical market data.\n\n(b)  Derivatives transactions.  If a fund satisfies the conditions of paragraph (c) of this section, the fund may enter into derivatives transactions, notwithstanding the requirements of sections 18(a)(1), 18(c), 18(f)(1), and 61 of the Investment Company Act (15 U.S.C. 80a-18(a)(1), 80a-18(c), 80a-18(f)(1), and 80a-60), and derivatives transactions entered into by the fund in compliance with this section will not be considered for purposes of computing asset coverage, as defined in section 18(h) of the Investment Company Act (15 U.S.C. 80a-18(h)).\n\n(c)  Conditions \u2014(1)  Derivatives risk management program.  The fund adopts and implements a written derivatives risk management program (\u201cprogram\u201d), which must include policies and procedures that are reasonably designed to manage the fund's derivatives risks and to reasonably segregate the functions associated with the program from the portfolio management of the fund. The program must include the following elements:\n\n(i)  Risk identification and assessment.  The program must provide for the identification and assessment of the fund's derivatives risks. This assessment must take into account the fund's derivatives transactions and other investments.\n\n(ii)  Risk guidelines.  The program must provide for the establishment, maintenance, and enforcement of investment, risk management, or related guidelines that provide for quantitative or otherwise measurable criteria, metrics, or thresholds of the fund's derivatives risks. These guidelines must specify levels of the given criterion, metric, or threshold that the fund does not normally expect to exceed, and measures to be taken if they are exceeded.\n\n(iii)  Stress testing.  The program must provide for stress testing to evaluate potential losses to the fund's portfolio in response to extreme but plausible market changes or changes in market risk factors that would have a significant adverse effect on the fund's portfolio, taking into account correlations of market risk factors and resulting payments to derivatives counterparties. The frequency with which the stress testing under this paragraph is conducted must take into account the fund's strategy and investments and current market conditions, provided that these stress tests must be conducted no less frequently than weekly.\n\n(iv)  Backtesting.  The program must provide for backtesting to be conducted no less frequently than weekly, of the results of the VaR calculation model used by the fund in connection with the relative VaR test or the absolute VaR test by comparing the fund's gain or loss that occurred on each business day during the backtesting period with the corresponding VaR calculation for that day, estimated over a one-trading day time horizon, and identifying as an exception any instance in which the fund experiences a loss exceeding the corresponding VaR calculation's estimated loss.\n\n(v)  Internal reporting and escalation \u2014(A)  Internal reporting.  The program must identify the circumstances under which persons responsible for portfolio management will be informed regarding the operation of the program, including exceedances of the guidelines specified in paragraph (c)(1)(ii) of this section and the results of the stress tests specified in paragraph (c)(1)(iii) of this section.\n\n(B)  Escalation of material risks.  The derivatives risk manager must inform in a timely manner persons responsible for portfolio management of the fund, and also directly inform the fund's board of directors as appropriate, of material risks arising from the fund's derivatives transactions, including risks identified by the fund's exceedance of a criterion, metric, or threshold provided for in the fund's risk guidelines established under paragraph (c)(1)(ii) of this section or by the stress testing described in paragraph (c)(1)(iii) of this section.\n\n(vi)  Periodic review of the program.  The derivatives risk manager must review the program at least annually to evaluate the program's effectiveness and to reflect changes in risk over time. The periodic review must include a review of the VaR calculation model used by the fund under paragraph (c)(2) of this section (including the backtesting required by paragraph (c)(1)(iv) of this section) and any designated reference portfolio to evaluate whether it remains appropriate.\n\n(2)  Limit on fund leverage risk.  (i) The fund must comply with the relative VaR test unless the derivatives risk manager reasonably determines that a designated reference portfolio would not provide an appropriate reference portfolio for purposes of the relative VaR test, taking into account the fund's investments, investment objectives, and strategy. A fund that does not apply the relative VaR test must comply with the absolute VaR test.\n\n(ii) The fund must determine its compliance with the applicable VaR test at least once each business day. If the fund determines that it is not in compliance with the applicable VaR test, the fund must come back into compliance promptly after such determination, in a manner that is in the best interests of the fund and its shareholders.\n\n(iii) If the fund is not in compliance with the applicable VaR test within five business days:\n\n(A) The derivatives risk manager must provide a written report to the fund's board of directors and explain how and by when ( i.e.,  number of business days) the derivatives risk manager reasonably expects that the fund will come back into compliance;\n\n(B) The derivatives risk manager must analyze the circumstances that caused the fund to be out of compliance for more than five business days and update any program elements as appropriate to address those circumstances; and\n\n(C) The derivatives risk manager must provide a written report within thirty calendar days of the exceedance to the fund's board of directors explaining how the fund came back into compliance and the results of the analysis and updates required under paragraph (c)(2)(iii)(B) of this section. If the fund remains out of compliance with the applicable VaR test at that time, the derivatives risk manager's written report must update the report previously provided under paragraph (c)(2)(iii)(A) of this section and the derivatives risk manager must update the board of directors on the fund's progress in coming back into compliance at regularly scheduled intervals at a frequency determined by the board.\n\n(3)  Board oversight and reporting \u2014(i)  Approval of the derivatives risk manager.  A fund's board of directors, including a majority of directors who are not interested persons of the fund, must approve the designation of the derivatives risk manager.\n\n(ii)  Reporting on program implementation and effectiveness.  On or before the implementation of the program, and at least annually thereafter, the derivatives risk manager must provide to the board of directors a written report providing a representation that the program is reasonably designed to manage the fund's derivatives risks and to incorporate the elements provided in paragraphs (c)(1)(i) through (vi) of this section. The representation may be based on the derivatives risk manager's reasonable belief after due inquiry. The written report must include the basis for the representation along with such information as may be reasonably necessary to evaluate the adequacy of the fund's program and, for reports following the program's initial implementation, the effectiveness of its implementation. The written report also must include, as applicable, the derivatives risk manager's basis for the approval of any designated reference portfolio or any change in the designated reference portfolio during the period covered by the report; or an explanation of the basis for the derivatives risk manager's determination that a designated reference portfolio would not provide an appropriate reference portfolio for purposes of the relative VaR test.\n\n(iii)  Regular board reporting.  The derivatives risk manager must provide to the board of directors, at a frequency determined by the board, a written report regarding the derivatives risk manager's analysis of exceedances described in paragraph (c)(1)(ii) of this section, the results of the stress testing conducted under paragraph (c)(1)(iii) of this section, and the results of the backtesting conducted under paragraph (c)(1)(iv) of this section since the last report to the board. Each report under this paragraph must include such information as may be reasonably necessary for the board of directors to evaluate the fund's response to exceedances and the results of the fund's stress testing.\n\n(4)  Limited derivatives users.  (i) A fund is not required to adopt a program as prescribed in paragraph (c)(1) of this section, comply with the limit on fund leverage risk in paragraph (c)(2) of this section, or comply with the board oversight and reporting requirements as prescribed in paragraph (c)(3) of this section, if:\n\n(A) The fund adopts and implements written policies and procedures reasonably designed to manage the fund's derivatives risk; and\n\n(B) The fund's derivatives exposure does not exceed 10 percent of the fund's net assets, excluding, for this purpose, currency or interest rate derivatives that hedge currency or interest rate risks associated with one or more specific equity or fixed-income investments held by the fund (which must be foreign-currency-denominated in the case of currency derivatives), or the fund's borrowings, provided that the currency or interest rate derivatives are entered into and maintained by the fund for hedging purposes and that the notional amounts of such derivatives do not exceed the value of the hedged investments (or the par value thereof, in the case of fixed-income investments, or the principal amount, in the case of borrowing) by more than 10 percent.\n\n(ii) If a fund's derivatives exposure exceeds 10 percent of its net assets, as calculated in accordance with paragraph (c)(4)(i)(B) of this section, and the fund is not in compliance with that paragraph within five business days, the fund's investment adviser must provide a written report to the fund's board of directors informing them whether the investment adviser intends either:\n\n(A) To reduce the fund's derivatives exposure to less than 10 percent of the fund's net assets promptly, but within no more than thirty calendar days of the exceedance, in a manner that is in the best interests of the fund and its shareholders; or\n\n(B) For the fund to establish a program as prescribed in paragraph (c)(1) of this section, comply with the limit on fund leverage risk in paragraph (c)(2) of this section, and comply with the board oversight and reporting requirements as prescribed in paragraph (c)(3) of this section, as soon as reasonably practicable.\n\n(5)  Leveraged/inverse funds.  A leveraged/inverse fund that cannot comply with the limit on fund leverage risk in paragraph (c) of this section is not required to comply with the limit on fund leverage risk if, in addition to complying with all other applicable requirements of this section:\n\n(i) As of October 28, 2020, the fund is in operation; has outstanding shares issued in one or more public offerings to investors; and discloses in its prospectus a leverage multiple or inverse multiple that exceeds 200% of the performance or the inverse of the performance of the underlying index;\n\n(ii) The fund does not change the underlying market index or increase the level of leveraged or inverse market exposure the fund seeks, directly or indirectly, to provide; and\n\n(iii) The fund discloses in its prospectus that it is not subject to the limit on fund leverage risk in paragraph (c)(2) of this section.\n\n(6)  Recordkeeping \u2014(i)  Records to be maintained.  A fund must maintain a written record documenting, as applicable:\n\n(A) The fund's written policies and procedures required by paragraph (c)(1) of this section, along with:\n\n( 1 ) The results of the fund's stress tests under paragraph (c)(1)(iii) of this section;\n\n( 2 ) The results of the backtesting conducted under paragraph (c)(1)(iv) of this section;\n\n( 3 ) Records documenting any internal reporting or escalation of material risks under paragraph (c)(1)(v)(B) of this section; and\n\n( 4 ) Records documenting the reviews conducted under paragraph (c)(1)(vi) of this section.\n\n(B) Copies of any materials provided to the board of directors in connection with its approval of the designation of the derivatives risk manager, any written reports provided to the board of directors relating to the program, and any written reports provided to the board of directors under paragraphs (c)(2)(iii)(A) and (C) of this section.\n\n(C) Any determination and/or action the fund made under paragraphs (c)(2)(i) and (ii) of this section, including a fund's determination of: The VaR of its portfolio; the VaR of the fund's designated reference portfolio, as applicable; the fund's VaR ratio (the value of the VaR of the fund's portfolio divided by the VaR of the designated reference portfolio), as applicable; and any updates to any VaR calculation models used by the fund and the basis for any material changes thereto.\n\n(D) If applicable, the fund's written policies and procedures required by paragraph (c)(4) of this section, along with copies of any written reports provided to the board of directors under paragraph (c)(4)(ii) of this section.\n\n(ii)  Retention periods.  (A) A fund must maintain a copy of the written policies and procedures that the fund adopted under paragraph (c)(1) or (4) of this section that are in effect, or at any time within the past five years were in effect, in an easily accessible place.\n\n(B) A fund must maintain all records and materials that paragraphs (c)(6)(i)(A)( 1 ) through ( 4 ) and (c)(6)(i)(B) through (D) of this section describe for a period of not less than five years (the first two years in an easily accessible place) following each determination, action, or review that these paragraphs describe.\n\n(7)  Current reports.  A fund that experiences an event specified in the parts of Form N-RN [referenced in 17 CFR 274.223] titled \u201cRelative VaR Test Breaches,\u201d \u201cAbsolute VaR Test Breaches,\u201d or \u201cCompliance with VaR Test\u201d must file with the Commission a report on Form N-RN within the period and according to the instructions specified in that form.\n\n(d)  Reverse repurchase agreements.  (1) A fund may enter into reverse repurchase agreements or similar financing transactions, notwithstanding the requirements of sections 18(c) and 18(f)(1) of the Investment Company Act, if the fund:\n\n(i) Complies with the asset coverage requirements of section 18, and combines the aggregate amount of indebtedness associated with all reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness when calculating the asset coverage ratio; or\n\n(ii) Treats all reverse repurchase agreements or similar financing transactions as derivatives transactions for all purposes under this section.\n\n(2) A fund relying on paragraph (d) of this section must maintain a written record documenting whether the fund is relying on paragraph (d)(1)(i) or (ii) of this section for a period of not less than five years (the first two years in an easily accessible place) following the determination.\n\n(e)  Unfunded commitment agreements.  (1) A fund may enter into an unfunded commitment agreement, notwithstanding the requirements of sections 18(a), 18(c), 18(f)(1), and 61 of the Investment Company Act, if the fund reasonably believes, at the time it enters into such agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as they come due. In forming a reasonable belief, the fund must take into account its reasonable expectations with respect to other obligations (including any obligation with respect to senior securities or redemptions), and may not take into account cash that may become available from the sale or disposition of any investment at a price that deviates significantly from the market value of those investments, or from issuing additional equity. Unfunded commitment agreements entered into by the fund in compliance with this section will not be considered for purposes of computing asset coverage, as defined in section 18(h) of the Investment Company Act (15 U.S.C. 80a-18(h)).\n\n(2) For each unfunded commitment agreement that a fund enters into under paragraph (e)(1) of this section, a fund must document the basis for its reasonable belief regarding the sufficiency of its cash and cash equivalents to meet its unfunded commitment agreement obligations, and maintain a record of this documentation for a period of not less than five years (the first two years in an easily accessible place) following the date that the fund entered into the agreement.\n\n(f)  When issued, forward-settling, and non-standard settlement cycle securities transactions.  Notwithstanding the requirements of sections 18(a)(1), 18(c), 18(f)(1), and 61 of the Investment Company Act (15 U.S.C. 80a-18(a)(1), 80a018(c), 80a-18(f)(1), and 80a-60), a fund or registered open-end company that is regulated as a money market fund under \u00a7 270.2a-7 may invest in a security on a when-issued or forward-settling basis, or with a non-standard settlement cycle, and the transaction will be deemed not to involve a senior security, provided that: The fund intends to physically settle the transaction; and the transaction will settle within 35 days of its trade date."], ["17:17:5.0.1.1.19.0.36.131", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.19a-1 Written statement to accompany dividend payments by management companies.", "SEC", "", "", "[Rule N-19-1, 6 FR 1114, Feb. 25, 1941. Redesignated at 36 FR 22901, Dec. 2, 1971, and amended at 38 FR 8593, Apr. 4, 1973]", "(a) Every written statement made pursuant to section 19 by or on behalf of a management company shall be made on a separate paper and shall clearly indicate what portion of the payment per share is made from the following sources:\n\n(1) Net income for the current or preceding fiscal year, or accumulated undistributed net income, or both, not including in either case profits or losses from the sale of securities or other properties.\n\n(2) Accumulated undistributed net profits from the sale of securities or other properties (except that an open-end company may treat as a separate source its net profits from such sales during its current fiscal year).\n\n(3) Paid-in surplus or other capital source.\n\nTo the extent that a payment is properly designated as being made from a source specified in paragraph (a) (1) or (2) of this section, it need not be designated as having been made from a source specified in this paragraph.\n\n(b) If the payment is made in whole or in part from a source specified in paragraph (a)(2) of this section the written statement shall indicate, after giving effect to the part of such payment so specified, the deficit, if any, in the aggregate of (1) accumulated undistributed realized profits less losses on the sale of securities or other properties and (2) the net unrealized appreciation or depreciation of portfolio securities, all as of a date reasonably close to the end of the period as of which the dividend is paid. Any statement made pursuant to the preceding sentence shall specify the amount, if any, of such deficit which represents unrealized depreciation of portfolio securities.\n\n(c) Accumulated undistributed net income and accumulated undistributed net profits from the sale of securities or other properties shall be determined, at the option of the company, either (1) from the date of the organization of the company, (2) from the date of a reorganization, as defined in clause (A) or (B) of section 2(a)(33) of the Act (54 Stat. 790; 15 U.S.C. 80a-2(a)(33)), (3) from the date as of which a write-down of portfolio securities was made in connection with a corporate readjustment, approved by stockholders, of the type known as \u201cquasi- reorganization,\u201d or (4) from January 1, 1925, to the close of the period as of which the dividend is paid, without giving effect to such payment.\n\n(d) For the purpose of this section, open-end companies which upon the sale of their shares allocate to undistributed income or other similar account that portion of the consideration received which represents the approximate per share amount of undistributed net income included in the sales price, and make a corresponding deduction from undistributed net income upon the purchase or redemption of shares, need not treat the amounts so allocated as paid-in surplus or other capital source.\n\n(e) For the purpose of this section, the source or sources from which a dividend is paid shall be determined (or reasonably estimated) to the close of the period as of which it is paid without giving effect to such payment. If any such estimate is subsequently ascertained to be inaccurate in a significant amount, a correction thereof shall be made by a written statement pursuant to section 19(a) of the Act or in the first report to stockholders following discovery of the inaccuracy.\n\n(f) Insofar as a written statement made pursuant to section 19(a) of the Act relates to a dividend on preferred stock paid for a period of less than a year, a company may elect to indicate only that portion of the payment which is made from sources specified in paragraph (a)(1) of this section, and need not specify the sources from which the remainder was paid. Every company which in any fiscal year elects to make a statement pursuant to the preceding sentence shall transmit to the holders of such preferred stock, at a date reasonably near the end of the last dividend period in such fiscal year, a statement meeting the requirements of paragraph (a) of this section on an annual basis.\n\n(g) The purpose of this section, in the light of which it shall be construed, is to afford security holders adequate disclosure of the sources from which dividend payments are made. Nothing in this section shall be construed to prohibit the inclusion in any written statement of additional information in explanation of the information required by this section. Nothing in this section shall be construed to permit a dividend payment in violation of any State law or to prevent compliance with any requirement of State law regarding dividends consistent with this rule.\n\nFor interpretative release applicable to \u00a7 270.19a-1, see No. 71 in tabulation, part 271 of this chapter."], ["17:17:5.0.1.1.19.0.36.132", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.19b-1 Frequency of distribution of capital gains.", "SEC", "", "", "[36 FR 22901, Dec. 2, 1971, as amended at 44 FR 29647, May 22, 1979; 44 FR 40064, July 9, 1979; 52 FR 42428, Nov. 5, 1987]", "(a) No registered investment company which is a \u201cregulated investment company\u201d as defined in section 851 of the Internal Revenue Code of 1986 (\u201cCode\u201d) shall distribute more than one capital gain dividend (\u201cdistribution\u201d), as defined in section 852(b)(3)(C) of the Code, with respect to any one taxable year of the company, other than a distribution otherwise permitted by this rule or made pursuant to section 855 of the Code which is supplemental to the prior distribution with respect to the same taxable year of the company and which does not exceed 10% of the aggregate amount distributed for such taxable year.\n\n(b) No registered investment company which is not a \u201cregulated investment company\u201d as defined in section 851 of the Code shall make more than one distribution of long-term capital gains, as defined in the Code, in any one taxable year of the company:  Provided,  That a unit investment trust may distribute capital gain dividends received from a \u201cregulated investment company\u201d within a reasonable time after receipt.\n\n(c) The provisions of this rule shall not apply to a unit investment trust (hereinafter referred to as the \u201cTrust\u201d) engaged exclusively in the business of investing in eligible trust securities (as defined in Rule 14a-3(b) (17 CFR 270.14a-3(b)) under this Act);  Provided,  That:\n\n(1) The capital gain distribution is a result of\u2014\n\n(i) An issuer's calling or redeeming an eligible trust security held by the Trust,\n\n(ii) The sale of an eligible trust security by the Trust to provide funds for redemption of Trust units when the amount received by the Trust for such sale exceeds the amount required to satisfy the redemption distribution,\n\n(iii) The sale of an eligible trust security to maintain qualification of the Trust as a \u201cregulated investment company\u201d under section 851 of the Code,\n\n(iv) Regular distributions of principal and prepayment of principal on eligible trust securities, or\n\n(v) The sale of an eligible trust security in order to maintain the investment stability of the Trust; and\n\n(2) Capital gains distributions are clearly described as such in a report to the unitholder which accompanies each such distribution.\n\n(d) For purposes of paragraph (c) of this section, sales made to maintain the investment stability of the Trust means sales made to prevent deterioration of the value of the eligible trust securities held in the Trust portfolio when one or more of the following factors exist:\n\n(1) A default in the payment of principal or interest on an eligible trust security;\n\n(2) An action involving the issuer of an eligible trust security which adversely affects the ability of such issuer to continue payment of principal or interest on its eligible trust securities; or\n\n(3) A change in market, revenue or credit factors which adversely affects the ability of such issuer to continue payment of principal or interest on its eligible trust securities.\n\n(e) If a registered investment company because of unforeseen circumstances in a particular taxable year proposes to make a distribution which would be prohibited by the provisions of this section, it may file a request with the Commission for authorization to make such a distribution. Such request shall comply with the requirements of \u00a7 270.0-2 of this chapter and shall set forth the pertinent facts and explain the circumstances which the company believes justify such distribution. The request shall be deemed granted unless the Commission within 15 days after receipt thereof shall deny such request as not being necessary or appropriate in the public interest or for the protection of investors and notify the company in writing of such denial.\n\n(f) A registered investment company may make one additional distribution of long-term capital gains, as defined in the Code, with respect to any one taxable year of the company, which distribution is made, in whole or in part, for the purpose of not incurring any tax under section 4982 of the Code. Such additional distribution may be made prior or subsequent to any distribution otherwise permitted by paragraph (a) of this section."], ["17:17:5.0.1.1.19.0.36.133", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.20a-1 Solicitation of proxies, consents and authorizations.", "SEC", "", "", "[25 FR 1865, Mar. 3, 1960, as amended at 37 FR 1472, Jan. 29, 1972; 52 FR 48985, Dec. 29, 1987; 57 FR 1102, Jan. 10, 1992; 59 FR 52700, Oct. 19, 1994; 87 FR 22446, Apr. 15, 2022]", "(a) No person shall solicit or permit the use of his or her name to solicit any proxy, consent, or authorization with respect to any security issued by a registered fund, except upon compliance with Regulation 14A (\u00a7 240.14a-1 of this chapter), Schedule 14A (\u00a7 240.14a-101 of this chapter), and all other rules and regulations adopted pursuant to section 14(a) of the Securities Exchange Act of 1934 that would be applicable to such solicitation if it were made in respect of a security registered pursuant to section 12 of the Securities Exchange Act of 1934. Unless the solicitation is made in respect of a security registered on a national securities exchange, none of the soliciting material need be filed with such exchange.\n\n(b) If the solicitation is made by or on behalf of the management of the investment company, then the investment adviser or any prospective investment adviser and any affiliated person thereof as to whom information is required in the solicitation shall upon request of the investment company promptly transmit to the investment company all information necessary to enable the management of such company to comply with the rules and regulations applicable to such solicitation. If the solicitation is made by any person other than the management of the investment company, on behalf of and with the consent of the investment adviser or prospective investment adviser, then the investment adviser or prospective investment adviser and any affiliated person thereof as to whom information is required in the solicitation shall upon request of the person making the solicitation promptly transmit to such person all information necessary to enable such person to comply with the rules and regulations applicable to the solicitation.\n\nInstruction.  Registrants that have made a public offering of securities and that hold security holder votes for which proxies, consents, or authorizations are not being solicited pursuant to the requirements of this section should refer to section 14(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78n(c)) and the information statement requirements set forth in the rules thereunder."], ["17:17:5.0.1.1.19.0.36.134", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7\u00a7 270.20a-2--270.20a-4 [Reserved]", "SEC", "", "", "", ""], ["17:17:5.0.1.1.19.0.36.135", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22c-1 Pricing of redeemable securities for distribution, redemption and repurchase.", "SEC", "", "", "[44 FR 29647, May 22, 1979, as amended at 44 FR 48660, Aug. 20, 1979; 45 FR 12409, Feb. 26, 1980; 50 FR 7911, Feb. 27, 1985; 50 FR 24763, June 13, 1985; 50 FR 42682, Oct. 22, 1985; 58 FR 49922, Sept. 24, 1993; 81 FR 82137, Nov. 18, 2016; 87 FR 22446, Apr. 15, 2022]", "(a) No registered investment company issuing any redeemable security, no person designated in such issuer's prospectus as authorized to consummate transactions in any such security, and no principal underwriter of, or dealer in, any such security shall sell, redeem, or repurchase any such security except at a price based on the current net asset value of such security which is next computed after receipt of a tender of such security for redemption or of an order to purchase or sell such security:  Provided,  That:\n\n(1) This paragraph shall not prevent a sponsor of a unit investment trust (hereinafter referred to as the \u201cTrust\u201d) engaged exclusively in the business of investing in eligible trust securities (as defined in Rule 14a-3(b) (17 CFR 270.14a-3(b))) from selling or repurchasing Trust units in a secondary market at a price based on the offering side evaluation of the eligible trust securities in the Trust's portfolio, determined at any time on the last business day of each week, effective for all sales made during the following week, if on the days that such sales or repurchases are made the sponsor receives a letter from a qualified evaluator stating, in its opinion, that:\n\n(i) In the case of repurchases, the current bid price is not higher than the offering side evaluation, computed on the last business day of the previous week; and\n\n(ii) In the case of resales, the offering side evaluation, computed as of the last business day of the previous week, is not more than one-half of one percent ($5.00 on a unit representing $1,000 principal amount of eligible trust securities) greater than the current offering price.\n\n(2) This paragraph shall not prevent any registered investment company from adjusting the price of its redeemable securities sold pursuant to a merger, consolidation or purchase of substantially all of the assets of a company which meets the conditions specified in \u00a7 270.17a-8.\n\n(3) Notwithstanding this paragraph (a), a registered open-end management investment company (but not a registered open-end management investment company that is regulated as a money market fund under \u00a7 270.2a-7 or an exchange-traded fund as defined in paragraph (a)(3)(v)(A) of this section) (a \u201cfund\u201d) may use swing pricing to adjust its current net asset value per share to mitigate dilution of the value of its outstanding redeemable securities as a result of shareholder purchase or redemption activity, provided that it has established and implemented swing pricing policies and procedures in compliance with the paragraphs (a)(3)(i) through (v) of this section.\n\n(i) The fund's swing pricing policies and procedures must:\n\n(A) Provide that the fund must adjust its net asset value per share by a single swing factor or multiple factors that may vary based on the swing threshold(s) crossed once the level of net purchases into or net redemptions from such fund has exceeded the applicable swing threshold for the fund. In determining whether the fund's level of net purchases or net redemptions has exceeded the applicable swing threshold(s), the person(s) responsible for administering swing pricing shall be permitted to make such determination based on receipt of sufficient information about the fund investors' daily purchase and redemption activity (\u201cinvestor flow\u201d) to allow the fund to reasonably estimate whether it has crossed the swing threshold(s) with high confidence, and shall exclude any purchases or redemptions that are made in kind and not in cash. This investor flow information may consist of individual, aggregated, or netted orders, and may include reasonable estimates where necessary.\n\n(B) Specify the process for how the fund's swing threshold(s) shall be determined, considering:\n\n(1)  The size, frequency, and volatility of historical net purchases or net redemptions of fund shares during normal and stressed periods;\n\n(2)  The fund's investment strategy and the liquidity of the fund's portfolio investments;\n\n(3)  The fund's holdings of cash and cash equivalents, and borrowing arrangements and other funding sources; and\n\n(4)  The costs associated with transactions in the markets in which the fund invests.\n\n(C) Specify the process for how the swing factor(s) shall be determined, which must include: The establishment of an upper limit on the swing factor(s) used, which may not exceed two percent of net asset value per share; and the determination that the factor(s) used are reasonable in relationship to the costs discussed in this paragraph. In determining the swing factor(s) and the upper limit, the person(s) responsible for administering swing pricing may take into account only the near-term costs expected to be incurred by the fund as a result of net purchases or net redemptions that occur on the day the swing factor(s) is used, including spread costs, transaction fees and charges arising from asset purchases or asset sales resulting from those purchases or redemptions, and borrowing-related costs associated with satisfying redemptions.\n\n(ii) The fund's board of directors, including a majority of directors who are not interested persons of the fund must:\n\n(A) Approve the fund's swing pricing policies and procedures;\n\n(B) Approve the fund's swing threshold(s) and the upper limit on the swing factor(s) used, and any changes to the swing threshold(s) or the upper limit on the swing factor(s) used;\n\n(C) Designate the fund's investment adviser, officer, or officers responsible for administering the swing pricing policies and procedures (\u201cperson(s) responsible for administering swing pricing\u201d). The administration of swing pricing must be reasonably segregated from portfolio management of the fund and may not include portfolio managers; and\n\n(D) Review, no less frequently than annually, a written report prepared by the person(s) responsible for administering swing pricing that describes:\n\n( 1 ) Its review of the adequacy of the fund's swing pricing policies and procedures and the effectiveness of their implementation, including the impact on mitigating dilution;\n\n(2)  Any material changes to the fund's swing pricing policies and procedures since the date of the last report; and\n\n( 3 ) Its review and assessment of the fund's swing threshold(s), swing factor(s), and swing factor upper limit considering the requirements of paragraphs (a)(3)(i)(B) and (C) of this section, including the information and data supporting the determination of the swing threshold(s), swing factor(s), and swing factor upper limit.\n\n(iii) The fund shall maintain the policies and procedures adopted by the fund under this paragraph (a)(3) that are in effect, or at any time within the past six years were in effect, in an easily accessible place, and shall maintain a written copy of the report provided to the board under paragraph (a)(3)(ii)(C) of this section for six years, the first two in an easily accessible place.\n\n(iv) Any fund (a \u201cfeeder fund\u201d) that invests, pursuant to section 12(d)(1)(E) of the Act (15 U.S.C. 80a-12(d)(1)(E)), in another fund (a \u201cmaster fund\u201d) may not use swing pricing to adjust the feeder fund's net asset value per share; however, a master fund may use swing pricing to adjust the master fund's net asset value per share, pursuant to the requirements set forth in this paragraph (a)(3).\n\n(v) For purposes of this paragraph (a)(3):\n\n(A)  Exchange-traded fund  means an open-end management investment company (or series or class thereof), the shares of which are listed and traded on a national securities exchange, and that has formed and operates under an exemptive order under the Act granted by the Commission or in reliance on an exemptive rule adopted by the Commission.\n\n(B)  Swing factor  means the amount, expressed as a percentage of the fund's net asset value and determined pursuant to the fund's swing pricing policies and procedures, by which a fund adjusts its net asset value per share once a fund's applicable swing threshold has been exceeded.\n\n(C)  Swing pricing  means the process of adjusting a fund's current net asset value per share to mitigate dilution of the value of its outstanding redeemable securities as a result of shareholder purchase and redemption activity, pursuant to the requirements set forth in this paragraph (a)(3).\n\n(D)  Swing threshold  means an amount of net purchases or net redemptions, expressed as a percentage of the fund's net asset value, that triggers the application of swing pricing.\n\n(E)  Transaction fees and charges  means brokerage commissions, custody fees, and any other charges, fees, and taxes associated with portfolio asset purchases and sales.\n\n(b) For the purposes of this section,\n\n(1) The current net asset value of any such security shall be computed no less frequently than once daily, Monday through Friday, at the specific time or times during the day that the board of directors of the investment company sets, in accordance with paragraph (d) of this section, except on:\n\n(i) Days on which changes in the value of the investment company's portfolio securities will not materially affect the current net asset value of the investment company's redeemable securities;\n\n(ii) Days during which no security is tendered for redemption and no order to purchase or sell such security is received by the investment company; or\n\n(iii) Customary national business holidays described or listed in the prospectus and local and regional business holidays listed in the prospectus; and\n\n(2) A \u201cqualified evaluator\u201d shall mean any evaluator which represents it is in a position to determine, on the basis of an informal evaluation of the eligible trust securities held in the Trust's portfolio, whether\u2014\n\n(i) The current bid price is higher than the offering side evaluation, computed on the last business day of the previous week, and\n\n(ii) The offering side evaluation, computed as of the last business day of the previous week, is more than one-half of one percent ($5.00 on a unit representing $1,000 principal amount of eligible trust securities) greater than the current offering price.\n\n(c) Notwithstanding the provisions above, any registered separate account offering variable annuity contracts, any person designated in such account's prospectus as authorized to consummate transactions in such contracts, and any principal underwriter of or dealer in such contracts shall be permitted to apply the initial purchase payment for any such contract at a price based on the current net asset value of such contract which is next computed:\n\n(1) Not later than two business days after receipt of the order to purchase by the insurance company sponsoring the separate account (\u201cinsurer\u201d), if the contract application and other information necessary for processing the order to purchase (collectively, \u201capplication\u201d) are complete upon receipt; or\n\n(2) Not later than two business days after an application which is incomplete upon receipt by the insurer is made complete,  Provided,  That, if an incomplete application is not made complete within five business days after receipt,\n\n(i) The prospective purchaser shall be informed of the reasons for the delay, and\n\n(ii) The initial purchase payment shall be returned immediately and in full, unless the prospective purchaser specifically consents to the insurer retaining the purchase payment until the application is made complete.\n\n(3) As used in this section:\n\n(i)  Prospective Purchaser  shall mean either an individual contractowner or an individual participant in a group contract.\n\n(ii)  Initial Purchase Payment  shall refer to the first purchase payment submitted to the insurer by, or on behalf of, a prospective purchaser.\n\n(d) The board of directors shall initially set the time or times during the day that the current net asset value shall be computed, and shall make and approve such changes as the board deems necessary."], ["17:17:5.0.1.1.19.0.36.136", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22c-2 Redemption fees for redeemable securities.", "SEC", "", "", "[71 FR 58272, Oct. 3, 2006]", "(a)  Redemption fee.  It is unlawful for any fund issuing redeemable securities, its principal underwriter, or any dealer in such securities, to redeem a redeemable security issued by the fund within seven calendar days after the security was purchased, unless it complies with the following requirements:\n\n(1)  Board determination.  The fund's board of directors, including a majority of directors who are not interested persons of the fund, must either:\n\n(i) Approve a redemption fee, in an amount (but no more than two percent of the value of shares redeemed) and on shares redeemed within a time period (but no less than seven calendar days), that in its judgment is necessary or appropriate to recoup for the fund the costs it may incur as a result of those redemptions or to otherwise eliminate or reduce so far as practicable any dilution of the value of the outstanding securities issued by the fund, the proceeds of which fee will be retained by the fund; or\n\n(ii) Determine that imposition of a redemption fee is either not necessary or not appropriate.\n\n(2)  Shareholder information.  With respect to each financial intermediary that submits orders, itself or through its agent, to purchase or redeem shares directly to the fund, its principal underwriter or transfer agent, or to a registered clearing agency, the fund (or on the fund's behalf, the principal underwriter or transfer agent) must either:\n\n(i) Enter into a shareholder information agreement with the financial intermediary (or its agent); or\n\n(ii) Prohibit the financial intermediary from purchasing in nominee name on behalf of other persons, securities issued by the fund. For purposes of this paragraph, \u201cpurchasing\u201d does not include the automatic reinvestment of dividends.\n\n(3)  Recordkeeping.  The fund must maintain a copy of the written agreement under paragraph (a)(2)(i) of this section that is in effect, or at any time within the past six years was in effect, in an easily accessible place.\n\n(b)  Excepted funds.  The requirements of paragraph (a) of this section do not apply to the following funds, unless they elect to impose a redemption fee pursuant to paragraph (a)(1) of this section:\n\n(1) Money market funds;\n\n(2) Any fund that issues securities that are listed on a national securities exchange; and\n\n(3) Any fund that affirmatively permits short-term trading of its securities, if its prospectus clearly and prominently discloses that the fund permits short-term trading of its securities and that such trading may result in additional costs for the fund.\n\n(c)  Definitions.  For the purposes of this section:\n\n(1)  Financial intermediary  means:\n\n(i) Any broker, dealer, bank, or other person that holds securities issued by the fund, in nominee name;\n\n(ii) A unit investment trust or fund that invests in the fund in reliance on section 12(d)(1)(E) of the Act (15 U.S.C. 80a-12(d)(1)(E)); and\n\n(iii) In the case of a participant-directed employee benefit plan that owns the securities issued by the fund, a retirement plan's administrator under section 3(16)(A) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(16)(A)) or any person that maintains the plan's participant records.\n\n(iv)  Financial intermediary  does not include any person that the fund treats as an individual investor with respect to the fund's policies established for the purpose of eliminating or reducing any dilution of the value of the outstanding securities issued by the fund.\n\n(2)  Fund  means an open-end management investment company that is registered or required to register under section 8 of the Act (15 U.S.C. 80a-8), and includes a separate series of such an investment company.\n\n(3)  Money market fund  means an open-end management investment company that is registered under the Act and is regulated as a money market fund under \u00a7 270.2a-7.\n\n(4)  Shareholder  includes a beneficial owner of securities held in nominee name, a participant in a participant-directed employee benefit plan, and a holder of interests in a fund or unit investment trust that has invested in the fund in reliance on section 12(d)(1)(E) of the Act. A shareholder does not include a fund investing pursuant to section 12(d)(1)(G) of the Act (15 U.S.C. 80a-12(d)(1)(G)), a trust established pursuant to section 529 of the Internal Revenue Code (26 U.S.C. 529), or a holder of an interest in such a trust.\n\n(5)  Shareholder information agreement  means a written agreement under which a financial intermediary agrees to:\n\n(i) Provide, promptly upon request by a fund, the Taxpayer Identification Number (or in the case of non U.S. shareholders, if the Taxpayer Identification Number is unavailable, the International Taxpayer Identification Number or other government issued identifier) of all shareholders who have purchased, redeemed, transferred, or exchanged fund shares held through an account with the financial intermediary, and the amount and dates of such shareholder purchases, redemptions, transfers, and exchanges;\n\n(ii) Execute any instructions from the fund to restrict or prohibit further purchases or exchanges of fund shares by a shareholder who has been identified by the fund as having engaged in transactions of fund shares (directly or indirectly through the intermediary's account) that violate policies established by the fund for the purpose of eliminating or reducing any dilution of the value of the outstanding securities issued by the fund; and\n\n(iii) Use best efforts to determine, promptly upon request of the fund, whether any specific person about whom it has received the identification and transaction information set forth in paragraph (c)(5)(i) of this section, is itself a financial intermediary (\u201cindirect intermediary\u201d) and, upon further request by the fund:\n\n(A) Provide (or arrange to have provided) the identification and transaction information set forth in paragraph (c)(5)(i) of this section regarding shareholders who hold an account with an indirect intermediary; or\n\n(B) Restrict or prohibit the indirect intermediary from purchasing, in nominee name on behalf of other persons, securities issued by the fund."], ["17:17:5.0.1.1.19.0.36.137", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22d-1 Exemption from section 22(d) to permit sales of redeemable securities at prices which reflect sales loads set pursuant to a schedule.", "SEC", "", "", "[50 FR 7911, Feb. 27, 1985]", "A registered investment company that is the issuer of redeemable securities, a principal underwriter of such securities or a dealer therein shall be exempt from the provisions of section 22(d) to the extent necessary to permit the sale of such securities at prices that reflect scheduled variations in, or elimination of, the sales load. These price schedules may offer such variations in or elimination of the sales load to particular classes of investors or transactions,  Provided,  That:\n\n(a) The company, the principal underwriter and dealers in the company's shares apply any scheduled variation uniformly to all offerees in the class specified;\n\n(b) The company furnishes to existing shareholders and prospective investors adequate information concerning any scheduled variation, as prescribed in applicable registration statement form requirements;\n\n(c) Before making any new sales load variation available to purchasers of the company's shares, the company revises its prospectus and statement of additional information to describe that new variation; and\n\n(d) The company advises existing shareholders of any new sales load variation within one year of the date when that variation is first made available to purchasers of the company's shares."], ["17:17:5.0.1.1.19.0.36.138", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22d-2 Exemption from section 22(d) for certain registered separate accounts.", "SEC", "", "", "[40 FR 33970, Aug. 13, 1975. Redesignated at 50 FR 7911, Feb. 27, 1985]", "A registered separate account, any principal underwriter for such account, any dealer in contracts or units of interest or participations in such contracts issued by such account and any insurance company maintaining such account shall, with respect to any variable annuity contracts, units, or participations therein issued by such account, be exempted from section 22(d) to the extent necessary to permit the sale of such contracts, units or participations by such persons at prices which reflect variations in the sales load or in any administrative charge or other deductions from the purchase payments;  Provided, however,  That (a) the prospectus discloses as precisely as possible the amount of the variations and the circumstances, if any, in which such variations shall be available or describes the basis for such variations and the manner in which entitlement shall be determined, and (b) any such variations reflect differences in costs or services and are not unfairly discriminatory against any person."], ["17:17:5.0.1.1.19.0.36.139", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22e-1 Exemption from section 22(e) of the Act during annuity payment period of variable annuity contracts participating in certain registered separate accounts.", "SEC", "", "", "[34 FR 12696, Aug. 5, 1969]", "(a) A registered separate account, shall during the annuity payment period of variable annuity contracts participating in such account, be exempt from the provisions of section 22(e) of the Act prohibiting the suspension of the right of redemption or postponement of the date of payment or satisfaction upon redemption of any redeemable security, with respect to such contracts under which payments are being made based upon life contingencies."], ["17:17:5.0.1.1.19.0.36.14", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a-5 Fair value determination and readily available market quotations.", "SEC", "", "", "[86 FR 807, Jan. 6, 2021]", "(a)  Fair value determination.  For purposes of section 2(a)(41) of the Act (15 U.S.C. 80a-2(a)(41)) and \u00a7 270.2a-4, determining fair value in good faith with respect to a fund requires:\n\n(1)  Assess and manage risks.  Periodically assessing any material risks associated with the determination of the fair value of fund investments (\u201cvaluation risks\u201d), including material conflicts of interest, and managing those identified valuation risks;\n\n(2)  Establish and apply fair value methodologies.  Performing each of the following, taking into account the fund's valuation risks:\n\n(i) Selecting and applying in a consistent manner an appropriate methodology or methodologies for determining (and calculating) the fair value of fund investments, provided that a selected methodology may be changed if a different methodology is equally or more representative of the fair value of fund investments, including specifying the key inputs and assumptions specific to each asset class or portfolio holding;\n\n(ii) Periodically reviewing the appropriateness and accuracy of the methodologies selected and making any necessary changes or adjustments thereto; and\n\n(iii) Monitoring for circumstances that may necessitate the use of fair value;\n\n(3)  Test fair value methodologies.  Testing the appropriateness and accuracy of the fair value methodologies that have been selected, including identifying the testing methods to be used and the minimum frequency with which such testing methods are to be used; and\n\n(4)  Evaluate pricing services.  Overseeing pricing service providers, if used, including establishing the process for approving, monitoring, and evaluating each pricing service provider and initiating price challenges as appropriate.\n\n(b)  Performance of fair value determinations.  The board of the fund must determine fair value in good faith for any or all fund investments by carrying out the functions required in paragraph (a) of this section. The board may choose to designate the valuation designee to perform the fair value determination relating to any or all fund investments, which shall carry out all of the functions required in paragraph (a) of this section, subject to the requirements of this paragraph (b).\n\n(1)  Oversight and reporting.  The board oversees the valuation designee, and the valuation designee reports to the fund's board, in writing, including such information as may be reasonably necessary for the board to evaluate the matters covered in the report, as follows:\n\n(i)  Periodic reporting.  (A) At least quarterly:\n\n( 1 ) Any reports or materials requested by the board related to the fair value of designated investments or the valuation designee's process for fair valuing fund investments; and\n\n( 2 ) A summary or description of material fair value matters that occurred in the prior quarter, including:\n\n( i ) Any material changes in the assessment and management of valuation risks required under paragraph (a)(1) of this section, including any material changes in conflicts of interest of the valuation designee (and any other service provider);\n\n( ii ) Any material changes to, or material deviations from, the fair value methodologies established under paragraph (a)(2) of this section; and\n\n( iii ) Any material changes to the valuation designee's process for selecting and overseeing pricing services, as well as any material events related to the valuation designee's oversight of pricing services; and\n\n(B) At least annually, an assessment of the adequacy and effectiveness of the valuation designee's process for determining the fair value of the designated portfolio of investments, including, at a minimum:\n\n( 1 ) A summary of the results of the testing of fair value methodologies required under paragraph (a)(3) of this section; and\n\n( 2 ) An assessment of the adequacy of resources allocated to the process for determining the fair value of designated investments, including any material changes to the roles or functions of the persons responsible for determining fair value under paragraph (b)(2) of this section; and\n\n(ii)  Prompt board notification and reporting.  The valuation designee notifies the board of the occurrence of matters that materially affect the fair value of the designated portfolio of investments, including a significant deficiency or material weakness in the design or effectiveness of the valuation designee's fair value determination process, or material errors in the calculation of net asset value, (any such matter or error, a \u201cmaterial matter\u201d) within a time period determined by the board (but in no event later than five business days after the valuation designee becomes aware of the material matter), with such timely follow-on reporting as the board may determine appropriate; and\n\n(2)  Specify responsibilities.  The valuation designee specifies the titles of the persons responsible for determining the fair value of the designated investments, including by specifying the particular functions for which they are responsible, and reasonably segregates fair value determinations from the portfolio management of the fund such that the portfolio manager(s) may not determine, or effectively determine by exerting substantial influence on, the fair values ascribed to portfolio investments.\n\n(c)  Readily available market quotations.  For purposes of section 2(a)(41) of the Act (15 U.S.C. 80a-2(a)(41)), a market quotation is readily available only when that quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.\n\n(d)  Unit investment trusts.  If the fund is a unit investment trust, and the initial deposit of portfolio securities into the unit investment trust occurs  after  March 8, 2021, the fund's trustee or depositor must carry out the requirements of paragraph (a) of this section. If the initial deposit of portfolio securities into the unit investment trust occurred  before  March 8, 2021, and an entity other than the fund's trustee or depositor has been designated to carry out the fair value determination, that entity must carry out the requirements of paragraph (a) of this section.\n\n(e)  Definitions.  For purposes of this section:\n\n(1)  Fund  means a registered investment company or business development company.\n\n(2)  Fair value  means the value of a portfolio investment for which market quotations are not readily available under paragraph (c) of this section.\n\n(3)  Board  means either the fund's entire board of directors or a designated committee of such board composed of a majority of directors who are not interested persons of the fund.\n\n(4)  Valuation designee  means the investment adviser, other than a sub-adviser, of a fund or, if the fund does not have an investment adviser, an officer or officers of the fund."], ["17:17:5.0.1.1.19.0.36.140", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22e-2 Pricing of redemption requests in accordance with Rule 22c-1.", "SEC", "", "", "[50 FR 24764, June 13, 1985]", "An investment company shall not be deemed to have suspended the right of redemption if it prices a redemption request by computing the net asset value of the investment company's redeemable securities in accordance with the provisions of Rule 22c-1."], ["17:17:5.0.1.1.19.0.36.141", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22e-3 Exemption for liquidation of money market funds.", "SEC", "", "", "[75 FR 10117, Mar. 4, 2010, as amended at 79 FR 47967, Aug. 14, 2014; 87 FR 22446, Apr. 15, 2022]", "(a)  Exemption.  A registered open-end management investment company or series thereof (\u201cfund\u201d) that is regulated as a money market fund under \u00a7 270.2a-7 is exempt from the requirements of section 22(e) of the Act (15 U.S.C. 80a-22(e)) if:\n\n(1) The fund, at the end of a business day, has invested less than ten percent of its total assets in weekly liquid assets or, in the case of a fund that is a government money market fund, as defined in \u00a7 270.2a-7(a)(14) or a retail money market fund, as defined in \u00a7 270.2a-7(a)(21), the fund's price per share as computed for the purpose of distribution, redemption and repurchase, rounded to the nearest one percent, has deviated from the stable price established by the board of directors or the fund's board of directors, including a majority of directors who are not interested persons of the fund, determines that such a deviation is likely to occur;\n\n(2) The fund's board of directors, including a majority of directors who are not interested persons of the fund, irrevocably has approved the liquidation of the fund; and\n\n(3) The fund, prior to suspending redemptions, notifies the Commission of its decision to liquidate and suspend redemptions by electronic mail directed to the attention of the Director of the Division of Investment Management or the Director's designee.\n\n(b)  Conduits.  Any registered investment company, or series thereof, that owns, pursuant to section 12(d)(1)(E) of the Act (15 U.S.C. 80a-12(d)(1)(E)), shares of a money market fund that has suspended redemptions of shares pursuant to paragraph (a) of this section also is exempt from the requirements of section 22(e) of the Act (15 U.S.C. 80a-22(e)). A registered investment company relying on the exemption provided in this paragraph must promptly notify the Commission that it has suspended redemptions in reliance on this section. Notification under this paragraph shall be made by electronic mail directed to the attention of the Director of the Division of Investment Management or the Director's designee.\n\n(c)  Commission Orders.  For the protection of shareholders, the Commission may issue an order to rescind or modify the exemption provided by this section, after appropriate notice and opportunity for hearing in accordance with section 40 of the Act (15 U.S.C. 80a-39).\n\n(d)  Definitions.  Each of the terms  business day, total assets,  and  weekly liquid assets  has the same meaning as defined in \u00a7 270.2a-7."], ["17:17:5.0.1.1.19.0.36.142", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.22e-4 Liquidity risk management programs.", "SEC", "", "", "[81 FR 82264, Nov. 18, 2016, as amended at 85 FR 83295, Dec. 21, 2020]", "(a)  Definitions.  For purposes of this section:\n\n(1)  Acquisition (or acquire)  means any purchase or subsequent rollover.\n\n(2)  Business day  means any day, other than Saturday, Sunday, or any customary business holiday.\n\n(3)  Convertible to cash  means the ability to be sold, with the sale settled.\n\n(4)  Exchange-traded fund  or  ETF  means an open-end management investment company (or series or class thereof), the shares of which are listed and traded on a national securities exchange, and that has formed and operates under an exemptive order under the Act granted by the Commission or in reliance on an exemptive rule adopted by the Commission.\n\n(5)  Fund  means an open-end management investment company that is registered or required to register under section 8 of the Act (15 U.S.C. 80a-8) and includes a separate series of such an investment company, but does not include a registered open-end management investment company that is regulated as a money market fund under \u00a7 270.2a-7 or an In-Kind ETF.\n\n(6)  Highly liquid investment  means any cash held by a fund and any investment that the fund reasonably expects to be convertible into cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment, as determined pursuant to the provisions of paragraph (b)(1)(ii) of this section.\n\n(7)  Highly liquid investment minimum  means the percentage of the fund's net assets that the fund invests in highly liquid investments that are assets pursuant to paragraph (b)(1)(iii) of this section.\n\n(8)  Illiquid investment  means any investment that the fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to the provisions of paragraph (b)(1)(ii) of this section.\n\n(9)  In-Kind Exchange Traded Fund  or  In-Kind ETF  means an ETF that meets redemptions through in-kind transfers of securities, positions, and assets other than a  de minimis  amount of cash and that publishes its portfolio holdings daily.\n\n(10)  Less liquid investment  means any investment that the fund reasonably expects to be able to sell or dispose of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, as determined pursuant to the provisions of paragraph (b)(1)(ii) of this section, but where the sale or disposition is reasonably expected to settle in more than seven calendar days.\n\n(11)  Liquidity risk  means the risk that the fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors' interests in the fund.\n\n(12)  Moderately liquid investment  means any investment that the fund reasonably expects to be convertible into cash in current market conditions in more than three calendar days but in seven calendar days or less, without the conversion to cash significantly changing the market value of the investment, as determined pursuant to the provisions of paragraph (b)(1)(ii) of this section.\n\n(13)  Person(s) designated to administer the program  means the fund or In-Kind ETF's investment adviser, officer, or officers (which may not be solely portfolio managers of the fund or In-Kind ETF) responsible for administering the program and its policies and procedures pursuant to paragraph (b)(2)(ii) of this section.\n\n(14)  Unit Investment Trust  or  UIT  means a unit investment trust as defined in section 4(2) of the Act (15 U.S.C. 80a-4).\n\n(b)  Liquidity Risk Management Program.  Each fund and In-Kind ETF must adopt and implement a written liquidity risk management program (\u201cprogram\u201d) that is reasonably designed to assess and manage its liquidity risk.\n\n(1)  Required program elements.  The program must include policies and procedures reasonably designed to incorporate the following elements:\n\n(i)  Assessment, management, and periodic review of liquidity risk.  Each fund and In-Kind ETF must assess, manage, and periodically review (with such review occurring no less frequently than annually) its liquidity risk, which must include consideration of the following factors, as applicable:\n\n(A) The fund or In-Kind ETF's investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions, including whether the investment strategy is appropriate for an open-end fund, the extent to which the strategy involves a relatively concentrated portfolio or large positions in particular issuers, and the use of borrowings for investment purposes and derivatives;\n\n(B) Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions;\n\n(C) Holdings of cash and cash equivalents, as well as borrowing arrangements and other funding sources; and\n\n(D) For an ETF:\n\n( 1 ) The relationship between the ETF's portfolio liquidity and the way in which, and the prices and spreads at which, ETF shares trade, including, the efficiency of the arbitrage function and the level of active participation by market participants (including authorized participants); and\n\n( 2 ) The effect of the composition of baskets on the overall liquidity of the ETF's portfolio.\n\n(ii)  Classification.  Each fund must, using information obtained after reasonable inquiry and taking into account relevant market, trading, and investment-specific considerations, classify each of the fund's portfolio investments (including each of the fund's derivatives transactions) as a highly liquid investment, moderately liquid investment, less liquid investment, or illiquid investment. A fund must review its portfolio investments' classifications, at least monthly in connection with reporting the liquidity classification for each portfolio investment on Form N-PORT in accordance with \u00a7 270.30b1-9, and more frequently if changes in relevant market, trading, and investment-specific considerations are reasonably expected to materially affect one or more of its investments' classifications.\n\nIf an investment could be viewed as either a highly liquid investment or a moderately liquid investment, because the period to convert the investment to cash depends on the calendar or business day convention used, a fund should classify the investment as a highly liquid investment. For a discussion of considerations that may be relevant in classifying the liquidity of the fund's portfolio investments, see Investment Company Act Release No. IC-32315 (Oct. 13, 2016).\n\n(A) The fund may generally classify and review its portfolio investments (including the fund's derivatives transactions) according to their asset class, provided, however, that the fund must separately classify and review any investment within an asset class if the fund or its adviser has information about any market, trading, or investment-specific considerations that are reasonably expected to significantly affect the liquidity characteristics of that investment as compared to the fund's other portfolio holdings within that asset class.\n\n(B) In classifying and reviewing its portfolio investments or asset classes (as applicable), the fund must determine whether trading varying portions of a position in a particular portfolio investment or asset class, in sizes that the fund would reasonably anticipate trading, is reasonably expected to significantly affect its liquidity, and if so, the fund must take this determination into account when classifying the liquidity of that investment or asset class.\n\n(C) For derivatives transactions that the fund has classified as moderately liquid investments, less liquid investments, and illiquid investments, identify the percentage of the fund's highly liquid investments that it has pledged as margin or collateral in connection with derivatives transactions in each of these classification categories.\n\nFor purposes of calculating these percentages, a fund that has pledged highly liquid investments and non-highly liquid investments as margin or collateral in connection with derivatives transactions classified as moderately liquid, less liquid, or illiquid investments first should apply pledged assets that are highly liquid investments in connection with these transactions, unless it has specifically identified non-highly liquid investments as margin or collateral in connection with such derivatives transactions.\n\n(iii)  Highly liquid investment minimum.  (A) Any fund that does not primarily hold assets that are highly liquid investments must:\n\n( 1 ) Determine a highly liquid investment minimum, considering the factors specified in paragraphs (b)(1)(i)(A) through (D) of this section, as applicable (but considering those factors specified in paragraphs (b)(1)(i)(A) and (B) only as they apply during normal conditions, and during stressed conditions only to the extent they are reasonably foreseeable during the period until the next review of the highly liquid investment minimum). The highly liquid investment minimum determined pursuant to this paragraph may not be changed during any period of time that a fund's assets that are highly liquid investments are below the determined minimum without approval from the fund's board of directors, including a majority of directors who are not interested persons of the fund;\n\n( 2 ) Periodically review, no less frequently than annually, the highly liquid investment minimum; and\n\n( 3 ) Adopt and implement policies and procedures for responding to a shortfall of the fund's highly liquid investments below its highly liquid investment minimum, which must include requiring the person(s) designated to administer the program to report to the fund's board of directors no later than its next regularly scheduled meeting with a brief explanation of the causes of the shortfall, the extent of the shortfall, and any actions taken in response, and if the shortfall lasts more than 7 consecutive calendar days, must include requiring the person(s) designated to administer the program to report to the board within one business day thereafter with an explanation of how the fund plans to restore its minimum within a reasonable period of time.\n\n(B) For purposes of determining whether a fund primarily holds assets that are highly liquid investments, a fund must exclude from its calculations the percentage of the fund's assets that are highly liquid investments that it has pledged as margin or collateral in connection with derivatives transactions that the fund has classified as moderately liquid investments, less liquid investments, and illiquid investments, as determined pursuant to paragraph (b)(1)(ii)(C) of this section.\n\n(iv)  Illiquid investments.  No fund or In-Kind ETF may acquire any illiquid investment if, immediately after the acquisition, the fund or In-Kind ETF would have invested more than 15% of its net assets in illiquid investments that are assets. If a fund or In-Kind ETF holds more than 15% of its net assets in illiquid investments that are assets:\n\n(A) It must cause the person(s) designated to administer the program to report such an occurrence to the fund's or In-Kind ETF's board of directors within one business day of the occurrence, with an explanation of the extent and causes of the occurrence, and how the fund or In-Kind ETF plans to bring its illiquid investments that are assets to or below 15% of its net assets within a reasonable period of time; and\n\n(B) If the amount of the fund's or In-Kind ETF's illiquid investments that are assets is still above 15% of its net assets 30 days from the occurrence (and at each consecutive 30 day period thereafter), the fund or In-Kind ETF's board of directors, including a majority of directors who are not interested persons of the fund or In-Kind ETF, must assess whether the plan presented to it pursuant to paragraph (b)(1)(iv)(A) continues to be in the best interest of the fund or In-Kind ETF.\n\n(v)  Redemptions in Kind.  A fund that engages in, or reserves the right to engage in, redemptions in kind and any In-Kind ETF must establish policies and procedures regarding how and when it will engage in such redemptions in kind.\n\n(2)  Board oversight.  A fund or In-Kind ETF's board of directors, including a majority of directors who are not interested persons of the fund or In-Kind ETF, must:\n\n(i) Initially approve the liquidity risk management program;\n\n(ii) Approve the designation of the person(s) designated to administer the program; and\n\n(iii) Review, no less frequently than annually, a written report prepared by the person(s) designated to administer the program that addresses the operation of the program and assesses its adequacy and effectiveness of implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the program.\n\n(3)  Recordkeeping.  The fund or In-Kind ETF must maintain:\n\n(i) A written copy of the program and any associated policies and procedures adopted pursuant to paragraphs (b)(1) through (b)(2) of this section that are in effect, or at any time within the past five years were in effect, in an easily accessible place;\n\n(ii) Copies of any materials provided to the board of directors in connection with its approval under paragraph (b)(2)(i) of this section, and materials provided to the board of directors under paragraph (b)(2)(iii) of this section, for at least five years after the end of the fiscal year in which the documents were provided, the first two years in an easily accessible place; and\n\n(iii) If applicable, a written record of the policies and procedures related to how the highly liquid investment minimum, and any adjustments thereto, were determined, including assessment of the factors incorporated in paragraphs (b)(1)(iii)(A) through (B) of this section and any materials provided to the board pursuant to paragraph (b)(1)(iii)(A)( 3 ) of this section, for a period of not less than five years (the first two years in an easily accessible place) following the determination of, and each change to, the highly liquid investment minimum.\n\n(c)  UIT liquidity.  On or before the date of initial deposit of portfolio securities into a registered UIT, the UIT's principal underwriter or depositor must determine that the portion of the illiquid investments that the UIT holds or will hold at the date of deposit that are assets is consistent with the redeemable nature of the securities it issues, and must maintain a record of that determination for the life of the UIT and for five years thereafter."], ["17:17:5.0.1.1.19.0.36.143", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.23c-1 Repurchase of securities by closed-end companies.", "SEC", "", "", "[Rule N-23C-1, 7 FR 10424, Dec. 15, 1942, as amended at 68 FR 64975, Nov. 17, 2003]", "(a) A registered closed-end company may purchase for cash a security of which it is the issuer, subject to the following conditions:\n\n(1) If the security is a stock entitled to cumulative dividends, such dividends are not in arrears.\n\n(2) If the security is a stock not entitled to cumulative dividends, at least 90 percent of the net income of the issuer for the last preceding fiscal year, determined in accordance with good accounting practice and not including profits or losses realized from the sale of securities or other properties, was distributed to its shareholders during such fiscal year or within 60 days after the close of such fiscal year.\n\n(3) If the security to be purchased is junior to any class of outstanding security of the issuer representing indebtedness (except notes or other evidences of indebtedness held by a bank or other person, the issuance of which did not involve a public offering) all securities of such class shall have an asset coverage of at least 300 percent immediately after such purchase; and if the security to be purchased is junior to any class of outstanding senior security of the issuer which is a stock, all securities of such class shall have an asset coverage of at least 200 percent immediately after such purchase, and shall not be in arrears as to dividends.\n\n(4) The seller of the security is not to the knowledge of the issuer an affiliated person of the issuer.\n\n(5) Payment of the purchase price is accompanied or preceded by a written confirmation of the purchase.\n\n(6) The purchase is made at a price not above the market value, if any, or the asset value of such security, whichever is lower, at the time of such purchase.\n\n(7) The issuer discloses to the seller or, if the seller is acting through a broker, to the seller's broker, either prior to or at the time of purchase the approximate or estimated asset coverage per unit of the security to be purchased.\n\n(8) No brokerage commission is paid by the issuer to any affiliated person of the issuer in connection with the purchase.\n\n(9) The purchase is not made in a manner or on a basis which discriminates unfairly against any holders of the class of securities purchased.\n\n(10) If the security is a stock, the issuer has, within the preceding six months, informed stockholders of its intention to purchase stock of such class by letter or report addressed to all the stockholders of such class.\n\n(11) The issuer files with the Commission, as an exhibit to Form N-CSR (\u00a7 249.331 and \u00a7 274.128), a copy of any written solicitation to purchase securities under this section sent or given during the period covered by the report by or on behalf of the issuer to 10 or more persons.\n\n(b) Notwithstanding the conditions of paragraph (a) of this section, a closed-end company may purchase fractional interests in, or fractional rights to receive, any security of which it is the issuer.\n\n(c) This rule does not apply to purchase of securities made pursuant to section 23(c)(1) or (2) of the Act (54 Stat. 825; 15 U.S.C. 80a-23). A registered closed-end company may file an application with the Commission for an order under section 23(c)(3) of the Act permitting the purchase of any security of which it is the issuer which does not meet the conditions of this rule and which is not to be made pursuant to section 23(c)(1) or (2) of the Act.\n\n(d) This rule relates exclusively to the requirements of section 23(c) of the Act, and the provisions hereof shall not be construed to authorize any action which contravenes any other applicable law, statutory or otherwise, or the provision of any indenture or other instrument pursuant to which securities of the issuer were issued.\n\nFor interpretative release applicable to \u00a7 270.23c-1, see No. 78 in tabulation, part 271 of this chapter."], ["17:17:5.0.1.1.19.0.36.144", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.23c-2 Call and redemption of securities issued by registered closed-end companies.", "SEC", "", "", "[Rule N-23C-2, 7 FR 6669, Aug. 25, 1942]", "(a) Notwithstanding the provisions of \u00a7 270.23c-1 (Rule N-23c-1), a registered closed-end investment company may call or redeem any securities of which it is the issuer, in accordance with the terms of such securities or the charter, indenture or other instrument pursuant to which such securities were issued:  Provided,  That, if less than all the outstanding securities of a class or series are to be called or redeemed the call or redemption shall be made by lot, on a pro rata basis, or in such other manner as will not discriminate unfairly against any holder of the securities of such class or series.\n\n(b) A registered closed-end investment company which proposes to call or redeem any securities of which it is the issuer shall file with the Commission notice of its intention to call or redeem such securities at least 30 days prior to the date set for the call or redemption;  Provided, however,  That if notice of the call or the redemption is required to be published in a newspaper or otherwise, notice shall be given to the Commission at least 10 days in advance of the date of publication. Such notice shall be filed in triplicate and shall include (1) the title of the class of securities to be called or redeemed, (2) the date on which the securities are to be called or redeemed, (3) the applicable provisions of the governing instrument pursuant to which the securities are to be called or redeemed and, (4) if less than all the outstanding securities of a class or series are to be called or redeemed, the principal amount or number of shares and the basis upon which the securities to be called or redeemed are to be selected."], ["17:17:5.0.1.1.19.0.36.145", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.23c-3 Repurchase offers by closed-end companies.", "SEC", "", "", "[58 FR 19343, Apr. 14, 1993; 58 FR 29695, May 21, 1993, as amended at 66 FR 3759, Jan. 16, 2001; 69 FR 46390, Aug. 2, 2004; 85 FR 33360, June 1, 2020]", "(a)  Definitions.  For purposes of this section:\n\n(1)  Periodic interval  shall mean an interval of three, six, or twelve months.\n\n(2)  Repurchase offer  shall mean an offer pursuant to this section by an investment company to repurchase common stock of which it is the issuer.\n\n(3)  Repurchase offer amount  shall mean the amount of common stock that is the subject of a repurchase offer, expressed as a percentage of such stock outstanding on the repurchase request deadline, that an investment company offers to repurchase in a repurchase offer. The repurchase offer amount shall not be less than five percent nor more than twenty-five percent of the common stock outstanding on a repurchase request deadline. Before each repurchase offer, the repurchase offer amount for that repurchase offer shall be determined by the directors of the company.\n\n(4)  Repurchase payment deadline  with respect to a tender of common stock shall mean the date by which an investment company must pay securities holders for any stock repurchased. A repurchase payment deadline shall occur seven days after the repurchase pricing date applicable to such tender.\n\n(5)  Repurchase pricing date  with respect to a tender of common stock shall mean the date on which an investment company determines the net asset value applicable to the repurchase of the securities. A repurchase pricing date shall occur no later than the fourteenth day after a repurchase request deadline, or the next business day if the fourteenth day is not a business day. In no event shall an investment company determine the net asset value applicable to the repurchase of the stock before the close of business on the repurchase request deadline.\n\n(i) For an investment company making a repurchase offer pursuant to paragraph (b) of this section, the number of days between the repurchase request deadline and the repurchase pricing date for a repurchase offer shall be the maximum number specified by the company pursuant to paragraph (b)(2)(i)(D) of this section.\n\n(ii) For an investment company making a repurchase offer pursuant to paragraph (c) of this section, the repurchase pricing date shall be such date as the company shall disclose to security holders in the notification pursuant to paragraph (b)(4) of this section with respect to such offer.\n\n(iii) For purposes of paragraph (b)(1) of this section, a repurchase pricing date may be a date earlier than the date determined pursuant to paragraph (a)(5) (i) or (ii) of this section if, on or immediately following the repurchase request deadline, it appears that the use of an earlier repurchase pricing date is not likely to result in significant dilution of the net asset value of either stock that is tendered for repurchase or stock that is not tendered.\n\n(6)  Repurchase request  shall mean the tender of common stock in response to a repurchase offer.\n\n(7)  Repurchase request deadline  with respect to a repurchase offer shall mean the date by which an investment company must receive repurchase requests submitted by security holders in response to that offer or withdrawals or modifications of previously submitted repurchase requests. The first repurchase request deadline after the effective date of the registration statement for the common stock that is the subject of a repurchase offer, or after a shareholder vote adopting the fundamental policy specifying a company's periodic interval, whichever is later, shall occur no later than two periodic intervals thereafter.\n\n(b)  Periodic repurchase offers.  A registered closed-end company or a business development company may repurchase common stock of which it is the issuer from the holders of the stock at periodic intervals, pursuant to repurchase offers made to all holders of the stock,  Provided  that:\n\n(1) The company shall repurchase the stock for cash at the net asset value determined on the repurchase pricing date and shall pay the holders of the stock by the repurchase payment deadline except as provided in paragraph (b)(3) of this section. The company may deduct from the repurchase proceeds only a repurchase fee, not to exceed two percent of the proceeds, that is paid to the company and is reasonably intended to compensate the company for expenses directly related to the repurchase. A company may not condition a repurchase offer upon the tender of any minimum amount of shares.\n\n(2)(i) The company shall repurchase the security pursuant to a fundamental policy, changeable only by a majority vote of the outstanding voting securities of the company, stating:\n\n(A) That the company will make repurchase offers at periodic intervals pursuant to this section, as this section may be amended from time to time;\n\n(B) The periodic intervals between repurchase request deadlines;\n\n(C) The dates of repurchase request deadlines or the means of determining the repurchase request deadlines; and\n\n(D) The maximum number of days between each repurchase request deadline and the next repurchase pricing date.\n\n(ii) The company shall include a statement in its annual report to shareholders of the following:\n\n(A) Its policy under paragraph (b)(2)(i) of this section; and\n\n(B) With respect to repurchase offers by the company during the period covered by the annual report, the number of repurchase offers, the repurchase offer amount and the amount tendered in each repurchase offer, and the extent to which in any repurchase offer the company repurchased stock pursuant to the procedures in paragraph (b)(5) of this section.\n\n(iii) A company shall be deemed to be making repurchase offers pursuant to a policy within paragraph (b)(2)(i) of this section if:\n\n(A) The company makes repurchase offers to its security holders at periodic intervals and, before May 14, 1993, has disclosed in its registration statement its intention to make or consider making such repurchase offers; and\n\n(B) The company's board of directors adopts a policy specifying the matters required by paragraph (b)(2)(i) of this section, and the periodic interval specified therein conforms generally to the frequency of the company's prior repurchase offers.\n\n(3)(i) The company shall not suspend or postpone a repurchase offer except pursuant to a vote of a majority of the directors, including a majority of the directors who are not interested persons of the company, and only:\n\n(A) If the repurchase would cause the company to lose its status as a regulated investment company under Subchapter M of the Internal Revenue Code [26 U.S.C. 851-860];\n\n(B) If the repurchase would cause the stock that is the subject of the offer that is either listed on a national securities exchange or quoted in an inter-dealer quotation system of a national securities association to be neither listed on any national securities exchange nor quoted on any inter-dealer quotation system of a national securities association;\n\n(C) For any period during which the New York Stock Exchange or any other market in which the securities owned by the company are principally traded is closed, other than customary week-end and holiday closings, or during which trading in such market is restricted;\n\n(D) For any period during which an emergency exists as a result of which disposal by the company of securities owned by it is not reasonably practicable, or during which it is not reasonably practicable for the company fairly to determine the value of its net assets; or\n\n(E) For such other periods as the Commission may by order permit for the protection of security holders of the company.\n\n(ii) If a repurchase offer is suspended or postponed, the company shall provide notice to security holders of such suspension or postponement. If the company renews the repurchase offer, the company shall send a new notification to security holders satisfying the requirements of paragraph (b)(4) of this section.\n\n(4)(i) No less than twenty-one and no more than forty-two days before each repurchase request deadline, the company shall send to each holder of record and to each beneficial owner of the stock that is the subject of the repurchase offer a notification providing the following information:\n\n(A) A statement that the company is offering to repurchase its securities from security holders at net asset value;\n\n(B) Any fees applicable to such repurchase;\n\n(C) The repurchase offer amount;\n\n(D) The dates of the repurchase request deadline, repurchase pricing date, and repurchase payment deadline, the risk of fluctuation in net asset value between the repurchase request deadline and the repurchase pricing date, and the possibility that the company may use an earlier repurchase pricing date pursuant to paragraph (a)(5)(iii) of this section;\n\n(E) The procedures for security holders to tender their shares and the right of the security holders to withdraw or modify their tenders until the repurchase request deadline;\n\n(F) The procedures under which the company may repurchase such shares on a pro rata basis pursuant to paragraph (b)(5) of this section;\n\n(G) The circumstances in which the company may suspend or postpone a repurchase offer pursuant to paragraph (b)(3) of this section;\n\n(H) The net asset value of the common stock computed no more than seven days before the date of the notification and the means by which security holders may ascertain the net asset value thereafter; and\n\n(I) The market price, if any, of the common stock on the date on which such net asset value was computed, and the means by which security holders may ascertain the market price thereafter.\n\n(ii) The company shall file three copies of the notification with the Commission within three business days after sending the notification to security holders. Those copies shall be accompanied by copies of Form N-23c-3 (\u00a7 274.221 of this chapter) (\u201cNotification of Repurchase Offer\u201d). The format of the copies shall comply with the requirements for registration statements and reports under \u00a7 270.8b-12 of this chapter.\n\n(iii) For purposes of sending a notification to a beneficial owner pursuant to paragraph (b)(4)(i) of this section, where the company knows that shares of common stock that is the subject of a repurchase offer are held of record by a broker, dealer, voting trustee, bank, association or other entity that exercises fiduciary powers in nominee name or otherwise, the company shall follow the procedures for transmitting materials to beneficial owners of securities that are set forth in \u00a7 240.14a-13 of this chapter.\n\n(5) If security holders tender more than the repurchase offer amount, the company may repurchase an additional amount of stock not to exceed two percent of the common stock outstanding on the repurchase request deadline. If the company determines not to repurchase more than the repurchase offer amount, or if security holders tender stock in an amount exceeding the repurchase offer amount plus two percent of the common stock outstanding on the repurchase request deadline, the company shall repurchase the shares tendered on a pro rata basis;  Provided, however,  That this provision shall not prohibit the company from:\n\n(i) Accepting all stock tendered by persons who own, beneficially or of record, an aggregate of not more than a specified number which is less than one hundred shares and who tender all of their stock, before prorating stock tendered by others; or\n\n(ii) Accepting by lot stock tendered by security holders who tender all stock held by them and who, when tendering their stock, elect to have either all or none or at least a minimum amount or none accepted, if the company first accepts all stock tendered by security holders who do not so elect.\n\n(6) The company shall permit tenders of stock for repurchase to be withdrawn or modified at any time until the repurchase request deadline but shall not permit tenders to be withdrawn or modified thereafter.\n\n(7)(i) The current net asset value of the company's common stock shall be computed no less frequently than weekly on such day and at such specific time or times during the day that the board of directors of the company shall set.\n\n(ii) The current net asset value of the company's common stock shall be computed daily on the five business days preceding a repurchase request deadline at such specific time or times during the day that the board of directors of the company shall set.\n\n(iii) For purposes of section 23(b) [15 U.S.C. 80a-23(b)], the current net asset value applicable to a sale of common stock by the company shall be the net asset value next determined after receipt of an order to purchase such stock. During any period when the company is offering its common stock, the current net asset value of the common stock shall be computed no less frequently than once daily, Monday through Friday, at the specific time or times during the day that the board of directors of the company shall set, except on:\n\n(A) Days on which changes in the value of the company's portfolio securities will not materially affect the current net asset value of the common stock;\n\n(B) Days during which no order to purchase its common stock is received, other than days when the net asset value would otherwise be computed pursuant to paragraph (b)(7)(i) of this section; or\n\n(C) Customary national, local, and regional business holidays described or listed in the prospectus.\n\n(8) The board of directors of the investment company satisfies the fund governance standards defined in \u00a7 270.0-1(a)(7).\n\n(9) Any senior security issued by the company or other indebtedness contracted by the company either shall mature by the next repurchase pricing date or shall provide for the redemption or call of such security or the repayment of such indebtedness by the company by the next repurchase pricing date, either in whole or in part, without penalty or premium, as necessary to permit the company to repurchase securities in such repurchase offer amount as the directors of the company shall determine in compliance with the asset coverage requirements of section 18 [15 U.S.C. 80a-18] or 61 [15 U.S.C. 80a-60], as applicable.\n\n(10)(i) From the time a company sends a notification to shareholders pursuant to paragraph (b)(4) of this section until the repurchase pricing date, a percentage of the company's assets equal to at least 100 percent of the repurchase offer amount shall consist of assets that can be sold or disposed of in the ordinary course of business, at approximately the price at which the company has valued the investment, within a period equal to the period between a repurchase request deadline and the repurchase payment deadline, or of assets that mature by the next repurchase payment deadline.\n\n(ii) In the event that the company's assets fail to comply with the requirements in paragraph (b)(10)(i) of this section, the board of directors shall cause the company to take such action as it deems appropriate to ensure compliance.\n\n(iii) In supervising the company's operations and portfolio management by the investment adviser, the company's board of directors shall adopt written procedures reasonably designed, taking into account current market conditions and the company's investment objectives, to ensure that the company's portfolio assets are sufficiently liquid so that the company can comply with its fundamental policy on repurchases, and comply with the liquidity requirements of paragraph (b)(10)(i) of this section. The board of directors shall review the overall composition of the portfolio and make and approve such changes to the procedures as the board deems necessary.\n\n(11) The company, or any underwriter for the company, shall comply, as if the company were an open-end company, with the provisions of section 24(b) [15 U.S.C. 80a-24(b)] and rules issued thereunder with respect to any advertisement, pamphlet, circular, form letter, or other sales literature addressed to or intended for distribution to prospective investors.\n\n(c)  Discretionary repurchase offers.  A registered closed-end company or a business development company may repurchase common stock of which it is the issuer from the holders of the stock pursuant to a repurchase offer that is not made pursuant to a fundamental policy and that is made to all holders of the stock not earlier than two years after another offer pursuant to this paragraph (c) if the company complies with the requirements of paragraphs (b) (1), (3), (4), (5), (6), (7)(ii), (8), (10)(i), and (10)(ii) of this section.\n\n(d)  Exemption from the definition of redeemable security.  A company that makes repurchase offers pursuant to paragraph (b) or (c) of this section shall not be deemed thereby to be an issuer of redeemable securities within section 2(a)(32) [15 U.S.C. 80a-2(a)(32)].\n\n(e)  Registration of an indefinite amount of securities.  A company that makes repurchase offers pursuant to paragraph (b) of this section shall be deemed to have registered an indefinite amount of securities pursuant to Section 24(f) of the Act (15 U.S.C. 80a-24(f)) upon the effective date of its registration statement."], ["17:17:5.0.1.1.19.0.36.146", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24b-1 Definitions.", "SEC", "", "", "[Rule N-24B-1, 6 FR 3020, June 21, 1941, as amended by 21 FR 1046, Feb. 15, 1956]", "(a) The term  form letter  as used in section 24(b) of the Act includes (1) one of a series of identical sales letters, and (2) any sales letter a substantial portion of which consists of a statement which is in essence identical with similar statements in sales letters sent to 25 or more persons within any period of 90 consecutive days.\n\n(b) The term  distribution  as used in section 24(b) of the Act includes the distribution or redistribution to prospective investors of the content of any written sales literature, whether such distribution or redistribution is effected by means of written or oral representations or statements.\n\n(c) The terms  rules and regulations  as used in section 24 (a) and (c) of the Act shall include the forms for registration of securities under the Securities Act of 1933 and the related instructions thereto."], ["17:17:5.0.1.1.19.0.36.147", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24b-2 Filing copies of sales literature.", "SEC", "", "", "[70 FR 43570, July 27, 2005]", "Copies of material filed with the Commission for the sole purpose of complying with section 24(b) of the Act (15 U.S.C. 80a-24(b)) either shall be accompanied by a letter of transmittal which makes appropriate references to said section or shall make such appropriate reference on the face of the material."], ["17:17:5.0.1.1.19.0.36.148", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24b-3 Sales literature deemed filed.", "SEC", "", "", "[53 FR 3880, Feb. 10, 1988]", "Any advertisement, pamphlet, circular, form letter or other sales literature addressed to or intended for distribution to prospective investors shall be deemed filed with the Commission for purposes of section 24(b) of the Act [15 U.S.C. 80a-24(b)] upon filing with a national securities association registered under section 15A of the Securities Exchange Act of 1934 [15 U.S.C. 78 o ] that has adopted rules providing standards for the investment company advertising practices of its members and has established and implemented procedures to review that advertising."], ["17:17:5.0.1.1.19.0.36.149", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24b-4 Filing copies of covered investment fund research reports.", "SEC", "", "", "[83 FR 64222, Dec. 13, 2018]", "A covered investment fund research report, as defined in paragraph (c)(3) of \u00a7 230.139b of this chapter under the Securities Act of 1933 (15 U.S.C. 77a  et seq. ), of a covered investment fund registered as an investment company under the Act, shall not be subject to section 24(b) of the Act or the rules and regulations thereunder, except that such report shall be subject to such section and the rules and regulations thereunder to the extent that it is otherwise not subject to the content standards in the rules of any self-regulatory organization related to research reports, including those contained in the rules governing communications with the public regarding investment companies or substantially similar standards."], ["17:17:5.0.1.1.19.0.36.15", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.2a-6 Certain transactions not deemed assignments.", "SEC", "", "", "[45 FR 1861, Jan. 9, 1980]", "A transaction which does not result in a change of actual control or management of the investment adviser to, or principal underwriter of, an investment company is not an assignment for purposes of section 15(a)(4) or section 15(b)(2) of the act, respectively."], ["17:17:5.0.1.1.19.0.36.150", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24e-1 Filing of certain prospectuses as post-effective amendments to registration statements under the Securities Act of 1933.", "SEC", "", "", "[20 FR 2856, Apr. 28, 1955, as amended at 62 FR 47938, Sept. 12, 1997]", "Section 24(e) of the Act requires that when a prospectus is revised so that it may be available for use in compliance with section 10(a)(3) of the Securities Act of 1933 for a period extending beyond the time when the previous prospectus would have ceased to be available for such use, such revised prospectus, in order to meet the requirements of section 10 of said Act, must be filed as an amendment to the registration statement under said Act and such amendment must have become effective prior to the use of the revised prospectus. Except as hereinabove provided, section 24(e) of the Act shall not be deemed to govern the times and conditions under which post-effective amendments shall be filed to registration statements under the Securities Act of 1933."], ["17:17:5.0.1.1.19.0.36.151", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.24f-2 Registration under the Securities Act of 1933 of certain investment company securities.", "SEC", "", "", "[62 FR 47938, Sept. 12, 1997, as amended at 85 FR 33360, June 1, 2020]", "(a)  General.  Any face-amount certificate company, open-end management company, closed-end management company that makes periodic repurchase offers pursuant to \u00a7 270.23c-3(b), or unit investment trust (\u201cissuer\u201d) that is deemed to have registered an indefinite amount of securities pursuant to Section 24(f) of the Act (15 U.S.C. 80a-24(f)) must not later than 90 days after the end of any fiscal year during which it has publicly offered such securities, file Form 24F-2 (17 CFR 274.24) with the Commission.  Form 24F-2 must be prepared in accordance with the requirements of that form, and must be accompanied by the payment of a registration fee with respect to the securities sold during the fiscal year in reliance upon registration pursuant to section 24(f) of the Act calculated in the manner specified in section 24(f) of the Act and in the Form. An issuer that pays the registration fee more than 90 days after the end of its fiscal year must pay interest in the manner specified in section 24(f) of the Act and in Form 24F-2.\n\n(b)  Issuer ceasing operations; mergers and other transactions.  For purposes of this section, if an issuer ceases operations, the date the issuer ceases operations will be deemed to be the end of its fiscal year. In the case of a liquidation, merger, or sale of all or substantially all of the assets (\u201cmerger\u201d) of the issuer, the issuer will be deemed to have ceased operations for the purposes of this section on the date the merger is consummated;  provided, however,  that in the case of a merger of an issuer or a series of an issuer (\u201cPredecessor Issuer\u201d) with another issuer or a series of an issuer (\u201cSuccessor Issuer\u201d), the Predecessor Issuer will not be deemed to have ceased operations and the Successor issuer will assume the obligations, fees, and redemption credits of the Predecessor Issuer incurred pursuant to section 24(f) of the Act and \u00a7 270.24e-2 (as in effect prior to October 11, 1997; see 17 CFR part 240 to end, revised as of April 1, 1997) if the Successor Issuer:\n\n(1) had no assets or liabilities, other than nominal assets or liabilities, and no operating history immediately prior to the merger;\n\n(2) Acquired substantially all of the assets and assumed substantially all of the liabilities and obligations of the Predecessor Issuer; and\n\n(3) The merger is not designed to result in the Predecessor Issuer merging with, or substantially all of its assets being acquired by, an issuer (or a series of an issuer) that would not meet the conditions of paragraph (b)(1) of this section.\n\n(c)  Counting days.  To determine the date on which Form 24F-2 must be filed with the Commission under paragraph (a) of this section, the first day of the 90-day period is the first calendar day of the fiscal year following the fiscal year for which the Form is to be filed. If the last day of the 90-day period falls on a Saturday, Sunday, or federal holiday, the period ends on the first business day thereafter.\n\nFor example, a Form 24F-2 for a fiscal year ending on June 30 must be filed no later than September 28. If September 28 falls on a Saturday, Sunday, the Form must be filed on the following Monday."], ["17:17:5.0.1.1.19.0.36.152", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.26a-1 Payment of administrative fees to the depositor or principal underwriter of a unit investment trust; exemptive relief for separate accounts.", "SEC", "", "", "[85 FR 26110, May 1, 2020]", "For purposes of section 26(a)(2)(C) of the Act, payment of a fee to the depositor of or a principal underwriter for a registered unit investment trust, or to any affiliated person or agent of such depositor or underwriter (collectively, \u201cdepositor\u201d), for bookkeeping or other administrative services provided to the trust shall be allowed the custodian or trustee (\u201ctrustee\u201d) as an expense, provided that such fee is an amount not greater than the expenses, without profit:\n\n(a) Actually paid by such depositor directly attributable to the services provided; and\n\n(b) Increased by the services provided directly by such depositor, as determined in accordance with generally accepted accounting principles consistently applied."], ["17:17:5.0.1.1.19.0.36.153", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.27c-1 [Reserved]", "SEC", "", "", "", ""], ["17:17:5.0.1.1.19.0.36.154", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.27d-1 Reserve requirements for principal underwriters and depositors to carry out the obligations to refund charges required by section 27(d) and section 27(f) of the Act.", "SEC", "", "", "[36 FR 13136, July 15, 1971, as amended at 40 FR 50712, Oct. 31, 1975]", "(a)(1) Every depositor of or principal underwriter for the issuer of a periodic payment plan certificate sold subject to section 27(d) or section 27(f) of the Act or both, shall deposit and maintain funds in a segregated trust account as a reserve and as security for the purpose of assuring the refund of charges required by sections 27(d) and 27(f) of the Act.\n\n(2) The assets of such trust account may be held as cash or invested only in one or more of (i) government securities as defined in section 2(a)(16) of the Act (except equity securities) or (ii) negotiable certificates of deposit issued by a bank, as defined in section 2(a)(5) of the Act and having capital and surplus of at least $10 million:  Provided,  That no such investment may have a maturity of more than 5 years, no more than 50 percent of the assets may be invested in obligations having a maturity of more than 1 year, and certificates of deposit of a single issuer may not constitute more than 10 percent of the value of the assets in the account.\n\n(3) Any income, gains, or losses from assets allocated to such account, whether or not realized, shall be credited to or charged against such account without regard to other income, gains, or losses of the depositor or principal underwriter.\n\n(4) The assets of such trust account may be withdrawn only as permitted by paragraph (f) of this section and shall in no event be chargeable with liabilities arising out of any aspect of the business of the depositor or principal underwriter other than assuring the ability of the depositor or principal underwriter to refund the amounts required by such sections.\n\n(b) For purposes of this section:\n\n(1) \u201cExcess sales load\u201d on any payment is that portion of the sales load in excess of 15 percent of that payment.\n\n(2) \u201cMonthly payment\u201d shall be the amount of the smallest monthly installment scheduled to be paid during the life of the plan. If payments are required or permitted to be made on a basis less frequently than monthly, an equivalent monthly payment shall be the amount determined by dividing the smallest minimum payment required or permitted in a payment period by the number of months included in such period.\n\n(3) The assets in the segregated trust account shall be valued as follows: (i) With respect to securities for which market quotations are readily available, the market value of such securities; and (ii) with respect to other securities, fair value as determined in good faith by the depositor or principal underwriter.\n\n(c) For every periodic payment plan certificate governed by section 27(d), the depositor or principal underwriter shall deposit into the segregated trust account not less than 45 percent of the excess sales load on each of the first six monthly payments or their equivalent.\n\n(d) For all periodic payment plan certificates governed by section 27(d) which have not been surrendered in accordance with their terms, and for which the depositor or principal underwriter may be liable for the refund of any sales load, the depositor or principal underwriter shall maintain in the segregated trust account an amount equal to not less than 15% of the total refundable sales load on the payments made on those certificates. The depositor or principal underwriter shall also maintain in the segregated trust account such additional amounts as the Commission by order may require for the depositor or principal underwriter to carry out refund obligations pursuant to sections 27(d) and 27(f) of the Act.\n\n(e) For every periodic payment plan certificate governed by section 27(f) of the Act, and for which the depositor or principal underwriter has no obligation to refund any excess sales load pursuant to section 27(d) of the Act, the depositor or principal underwriter shall deposit and maintain during the refund period, at least the following amounts in the segregated trust account:\n\n(1) For certificates that require monthly payments of $100 or less, 20 percent of the difference between the gross payments made and the net amount invested;\n\n(2) For certificates that require monthly payments in excess of $100 and for single payment plan certificates, 30 percent of the difference between the gross payments made and the net amount invested;\n\n(3) For certificates with respect to which the holder is entitled to receive the greater of the refund provided by section 27(f) (of the Act) or a refund of total payments and upon which a total of at least $1,000 has been paid, 100 percent of the difference between the gross payments made and net amount invested; and\n\n(4) Such additional amounts as the Commission by order may require to carry out the obligation to refund charges pursuant to section 27(f) of the Act.\n\n(f) Assets may be withdrawn from the segregated trust account by each depositor or principal underwriter:\n\n(1) To refund excess sales load to a certificate holder exercising the right of surrender specified in section 27(d) of the Act; or\n\n(2) To refund to a certificate holder exercising the right of withdrawal specified in section 27(f) of the Act the difference between the amount of his gross payments and the net amount invested; or\n\n(3) For any other purpose:  Provided, however,  That such withdrawal shall not reduce the segregated trust account to an amount less than the sum of (i) 130 percent of the amount required to be maintained by paragraph (d) of this section, if any, and (ii) 100 percent of that amount required to be maintained by paragraph (e) of this section, if any.\n\n(g) The minimum amounts required to be maintained by paragraphs (d) and (e) of this section shall be computed at least monthly. Any additional deposits required by paragraph (d) or (e) of this section shall be made immediately after such computation, and any withdrawals permitted by paragraph (f)(3) of this section may be made only at such time.\n\n(h) Nothing in this section shall be construed to prohibit a depositor or principal underwriter, acting as such for two or more registered investment companies issuing periodic payment plan certificates, from combining in a single segregated trust account the reserves for such companies required by this section.\n\n(i) The refunds required to be made to certificate holders pursuant to sections 27(d) and 27(f) (of the Act) shall be paid in cash not more than 7 days from the date the certificate is received in proper form by the custodian bank or such other paying agent as may be designated under the periodic payment plan.\n\n(j) Each depositor or principal underwriter shall file with the Commission, within the appropriate period of time specified, an Accounting of Segregated Trust Account. Form N-27D-1 (\u00a7 274.127d-1 of this chapter) is hereby prescribed as such accounting form."], ["17:17:5.0.1.1.19.0.36.155", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.27d-2 [Reserved]", "SEC", "", "", "", ""], ["17:17:5.0.1.1.19.0.36.156", 17, "Commodity and Securities Exchanges", "II", "", "270", "PART 270\u2014RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940", "", "", "", "\u00a7 270.27e-1 [Reserved]", "SEC", "", "", "", ""]], "truncated": false, "filtered_table_rows_count": 377, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, 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