15 U.S.C. § 80a–59 — Functions and activities of business development companies

This section is short but has one rule and one exception. Business development companies, or BDCs, don't have to follow most rules for investment companies. Section 80a-6(f) gives them that exemption. But this section carves out one rule that BDCs must still follow. Section 80a-12 of this title applies to a BDC exactly as if the BDC were a registered closed-end investment company. There's one limit on that. The Securities and Exchange Commission (the Commission) cannot write a rule, regulation, or order under section 80a-12(a)(1) that controls when a BDC may borrow money from a bank to buy a security. That specific power is off-limits to the Commission for BDCs.