California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 8 - Investment Companies
Section 260.140.89 - Redemptions in-Kind

Universal Citation: 10 CA Code of Regs 260.140.89

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

An open-end investment company reserving the right to redeem its shares in-kind by delivering securities from its investment portfolio to redeeming shareholders shall comply with these conditions:

(a) Elect to be governed by Rule 18f-1 under the Investment Company Act of 1940.

(b) Disclose fully in its prospectus the Rule 18f-1 reservation and election, how the securities will be valued, and the possibility that its shareholders will incur brokerage commissions in selling the securities.

1. New section filed 5-3-83; effective thirtieth day thereafter (Register 83, No. 19).

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

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