Title 15 — Commerce and TradeRelease 119-73

§80a–61 Loans

Title 15 › Chapter CHAPTER 2D— - INVESTMENT COMPANIES AND ADVISERS › Subchapter SUBCHAPTER I— - INVESTMENT COMPANIES › § 80a–61

Last updated Apr 6, 2026|Official source

Summary

Make the same loan rules that apply to registered closed-end investment companies also apply to a business development company. Two exceptions are allowed. First, the company may lend money to a director, officer, employee, or general partner so they can buy the company’s securities as part of an executive pay plan, if that loan follows the special rules for those compensation loans. Second, the company may lend to another company it controls when the only reason they might be treated as under common control is that the same outside person controls the business development company.

Full Legal Text

Title 15, §80a–61

Commerce and Trade — Source: USLM XML via OLRC

Notwithstanding the exemption set forth in section 80a–6(f) of this title, section 80a–21 of this title shall apply to a business development company to the same extent as if it were a registered closed-end investment company, except that nothing in that section shall be deemed to prohibit—

(1)any loan to a director, officer, or employee of, or general partner in, a business development company for the purpose of purchasing securities of such company as part of an executive compensation plan, if such loan meets the requirements of section 80a–56(j) of this title; or

(2)any loan to a company controlled by a business development company, which companies could be deemed to be under common control solely because a third person controls such business development company.

Reference

Citations & Metadata

Citation

15 U.S.C. § 80a–61

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73