Title 15, Commerce and TradeRelease 119-73not60

§80a–21 Loans by Management Companies

Title 15 › Chapter 2D— INVESTMENT COMPANIES AND ADVISERS › Subchapter I— INVESTMENT COMPANIES › § 80a–21

Last updated Apr 3, 2026|Official source

Summary

A registered management company must not lend money or property to anyone, directly or indirectly, if the loan is not allowed by the company’s stated investment policies in its registration papers and reports. The company also must not lend to a person who controls it, is controlled by it, or is under common control with it. One exception: the company may lend to a company that owns all of its outstanding securities, except directors’ qualifying shares.

Full Legal Text

Title 15, §80a–21

Commerce and Trade, Source: USLM XML via OLRC

It shall be unlawful for any registered management company to lend money or property to any person, directly or indirectly, if—

(a)the investment policies of such registered company, as recited in its registration statement and reports filed under this subchapter, do not permit such a loan; or

(b)such person controls or is under common control with such registered company; except that the provisions of this paragraph shall not apply to any loan from a registered company to a company which owns all of the outstanding securities of such registered company, except directors’ qualifying shares.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1987—Subsec. (b). Pub. L. 100–181 struck out “to the extension or renewal of any such loan made prior to March 15, 1940, or” after “shall not apply”.

Reference

Citations & Metadata

Citation

15 U.S.C. § 80a–21

Title 15, Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60