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Title 15, Commerce and TradeRelease 119-73not60

§80a–19 Payments or Distributions

Title 15 › Chapter 2D— INVESTMENT COMPANIES AND ADVISERS › Subchapter I— INVESTMENT COMPANIES › § 80a–19

Last updated Apr 3, 2026|Official source

Summary

Registered investment companies must not pay a dividend or a dividend-like distribution from anything other than either their accumulated undistributed net income (calculated using normal accounting rules and not including gains or losses from selling securities or other property) or the company’s net income calculated the same way for the current or preceding fiscal year. Under rules the Commission creates to protect investors, these companies must not distribute long-term capital gains (as defined in title 26) more often than once every twelve months.

Full Legal Text

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.

Legislative History

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.

Reference

Citations & Metadata

Citation

15 U.S.C. § 80a–19

Title 15, Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60