15 U.S.C. § 80a–53 — Election to be regulated as business development company

submitted 86 years ago by Pub. L. 96-477 to r/title-15-COMMERCE-AND-TRADE · 234 words · no verdicts yet

in plain englishAI-generated · not legal advice

Certain companies can choose to become "business development companies" by filing an election notice with the SEC. The election takes effect once the SEC receives it. The SEC can revoke the election if the company stops doing business, and the company can withdraw it anytime.

(a) Eligibility. A company defined in section 80a–2(a)(48)(A) and (B) can elect to be covered by sections 80a–54 through 80a–64, by filing a notification of election with the SEC, if the company (1) has a class of equity securities registered under section 78l, or (2) has filed a registration statement under section 78l for a class of equity securities. (b) Form and manner of notification; effect. The SEC can set, by rule, the form and manner for this election notice. Once the SEC receives the notice, the company counts as subject to sections 80a–54 through 80a–64. (c) Revocation or withdrawal of election. If the SEC finds — on its own, or on someone's application — that a company that elected under (a) has stopped doing business, the SEC must issue an order revoking the election. A business development company can also voluntarily withdraw its election, by filing a withdrawal notice with the SEC in whatever form and manner the SEC prescribes; the withdrawal takes effect as soon as the SEC receives it.

the actual law source: uscode.house.gov ↗public domain

(a) Eligibility

Any company defined in section 80a–2(a)(48)(A) and (B) of this title may elect to be subject to the provisions of sections 80a–54 through 80a–64 of this title by filing with the Commission a notification of election, if such company—

(1)

has a class of its equity securities registered under section 78l of this title; or

(2)

has filed a registration statement pursuant to section 78l of this title for a class of its equity securities.

(b) Form and manner of notification; effect

The Commission may, by rule, prescribe the form and manner in which notification of election under this section shall be given. A business development company shall be deemed to be subject to sections 80a–54 through 80a–64 of this title upon receipt by the Commission of such notification of election.

Whenever the Commission finds, on its own motion or upon application, that a business development company which has filed a notification of election pursuant to subsection (a) of this section has ceased to engage in business, the Commission shall so declare by order revoking such company’s election. Any business development company may voluntarily withdraw its election under subsection (a) by filing a notice of withdrawal of election with the Commission, in a form and manner which the Commission may, by rule, prescribe. Such withdrawal shall be effective immediately upon receipt by the Commission.

Source credit: (Aug. 22, 1940, ch. 686, title I, § 54, as added Pub. L. 96–477, title I, § 105, Oct. 21, 1980, 94 Stat. 2278; amended Pub. L. 100–181, title VI, § 625, Dec. 4, 1987, 101 Stat. 1262.)

history & why it existsrecord from the source credit

1940Enacted · Pub. L. 96-477 · 94 Stat. 2278
1987Amended · Pub. L. 100-181 · 101 Stat. 1262

A history note hasn’t been published yet. The record shows enactment by Pub. L. 96-477 on 1940-08-22.

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