15 U.S.C. § 80a–19 | Payments or distributions

(a)

Dividends; restriction; exception

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;

unless such payment is accompanied by a written statement which adequately discloses the source or sources of such payment. The Commission may prescribe the form of such statement by rules and regulations in the public interest and for the protection of investors.

(b)

Long-term capital gains; limitation

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.

Aug. 22, 1940, ch. 686 54 Stat. 821 Pub. L. 91–547, § 11Dec. 14, 197084 Stat. 1422 Pub. L. 99–514, § 2Oct. 22, 1986100 Stat. 2095(, title I, § 19, ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 99–5141986—Subsec. (b). 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.

Pub. L. 91–5471970— designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 1970 Amendment

Pub. L. 91–547Dec. 14, 1970section 30(1) of Pub. L. 91–547 section 80a–52 of this titleAmendment by effective on expiration of one year after , see , set out as a note under .

Executive Documents

Transfer of Functions

May 24, 195064 Stat. 1265 section 78d of this titleFor 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. , 15 F.R. 3175, , set out under .