§80a–19 — Title 15 Commerce and Trade | U.S. Code

Summary

Registered investment companies must pay dividends only from two places: their accumulated undistributed net income (figured by accepted accounting rules and not including profits or losses from selling securities or other property), or from the company’s net income for the current or preceding fiscal year. The Securities and Exchange Commission may make rules to protect investors or the public. Under those rules, a fund may not distribute long-term capital gains (as the tax code defines them) more often than once every twelve months.

Title 15, §80a–19

Commerce and Trade — Source: USLM XML via OLRC

(a)It shall be unlawful for any registered investment company to pay any dividend, or to make any distribution in the nature of a dividend payment, wholly or partly from any source other than—

(1)such company’s accumulated undistributed net income, determined in accordance with good accounting practice and not including profits or losses realized upon the sale of securities or other properties; or

(2)such company’s net income so determined for the current or preceding fiscal year;

(b)It shall be unlawful in contravention of such rules, regulations, or orders as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors for any registered investment company to distribute long-term capital gains, as defined in title 26, more often than once every twelve months.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1986—Subsec. (b). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text. 1970—Pub. L. 91–547 designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

of 1970 AmendmentAmendment by Pub. L. 91–547 effective on expiration of one year after Dec. 14, 1970, see section 30(1) of Pub. L. 91–547, set out as a note under section 80a–52 of this title.

Executive Documents

Transfer of Functions

For

Transfer of Functions

of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

§80a–19 Payments or distributions

Summary

Title 15, §80a–19

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Executive Documents

Transfer of Functions

Transfer of Functions

Citations & Metadata