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PART IV

INVESTMENT COMPANY ACT* OF 1940

EXEMPTIONS

Where the purpose of a company is to aid in the economic development of Palestine and its funds are employed primarily for that purpose and its securities offered only to those interested therein, held that the company does not come within the purview of the Investment Company Act of 1940 and is entitled to an exemption under Section 6 (c) from all its provisions ... Page 24

Transactions between a company controlled by a registered investment company and affiliated persons of an affiliated person of such registered investment company.

Transactions involving the purchase and sale of securities between a company controlled by a registered investment company and affiliated persons of an affiliated person of such registered investment company, where the issuer of said securities is a company subject to examination by banking authority and the price to be paid was determined in arms-length bargaining between the parties and is based upon the net asset value per share as shown in report of examination by such banking authority, held, in view of the circumstances, to meet the standards of Section 17 (b) of the Investment Company Act of 1940 ... Page 203 OFFERS OF EXCHANGE

Terms of offers to holders of investment certificates issued by a registered unit investment trust to exchange such certificates for shares of a registered openend management investment company or certificates issued by another registered unit investment trust on the basis of the relative net asset values of the respective securities to be exchanged, in effect at the time the exchange offers are accepted, without the imposition of a sales load in connection with the exchange, held, are approved, and applicants conditionally exempted, pursuant to Sections 6 (c) and 11 (a) of the Investment Company Act of 1940, from the provisions of Section 11 (a) of the Act for the purpose of making such offers of exchange ... Page 141 TRANSACTIONS BETWEEN AFFILIATED PERSONS

The purchase of bonds (1) by an affiliated person of a registered investment company from such investment company and (2) by an affiliated person of a registered investment company from a company controlled by such investment company, in both cases pursuant to a general invitation to all bondholders to tender such bonds, held, to meet the standards of Section 17 (b) of the Investment Company Act of 1940 and ordered exempt from Section 17 (a) of the Act . . . Page 325

The sale of real estate by an affiliated person of an affiliated person of a registered investment company to a company controlled by such registered investment

*The term “Act" as used in Part IV of this Digest refers to the Investment Company Act of 1940. 25 S. E. C.

company held to meet the standards of Section 17 (b) of the Investment Com-
pany Act and ordered exempt from the provisions of Section 17 (a) of the
Act . .. Page 291

Where a registered investment company proposes to exchange with an af-
filiated person preferred stock of such affiliate for common stock thereof, held
in view of all the circumstances, to meet the standards of Section 17 (b) of
the Investment Company Act of 1940 and entitled to an exemption from Section
17 (a) thereof ... Page 321

An agreement under which an affiliated person of a registered investment
company agrees to borrow money from a company controlled by such investment
company and under which such affiliated person may sell mortgages to a company
controlled by such investment company, held, to meet the standards of Section
17 (b) of the Investment Company Act and ordered exempt from Section 17 (a)
of the Act . .. Page 122
RECEIPT OF COMPENSATION BY AN AFFILIATED PERSON ACTING AS AGENT

Where a real estate broker is an affiliated person of a registered investment
company and proposes to receive brokerage commissions in connection with the
purchase or sale of real estate to or for the investment company or certain of
its controlled companies, held, an exemption may be granted pursuant to Section
6 (c) of the Investment Company Act of 1940 from Section 17 (e) (1) of the
Act to permit the receipt of such commissions by real estate broker in past
transactions and, subject to certain conditions, in connection with future pur-
chases and sales . . . Page 364

Where an affiliated person of a registered investment company proposes to
borrow money from the investment company, held, that the proposed transaction,
including the commitment fee and annual rate of interest proposed to be paid,
appears to be fair and reasonable and does not involve overreaching on the part
of any person concerned ... Page 221

Proposed transaction involving the purchase by an affiliated person of an
affiliated person of a registered investment company of the assets of a bank
controlled by such registered investment company, held, to meet the standards
of Section 17 (b) of the Investment Company Act of 1940 ... Page 248

The purchase by an affiliated person of a registered investment company of its
preferred stock from such registered investment company pursuant to a call for
redemption of such stock, held, to meet the standards of Section 17 (b) of the
Investment Company Act of 1940 and ordered exempt from Section 17 (a) of the
Act . .. Page 569

Where an open-end investment company proposes to acquire all the assets of
a closed-end investment company, except cash equal to 2 percent of the net assets
of such closed-end company which is to be paid to the underwriter for the open-
end investment company as a fee for services in effecting the transaction, and out
of which the underwriter has agreed to pay the expenses of the transaction and of
the dissolution of the closed-end company estimated to be approximately one-
half of the fee, and where the open-end investment company proposes to issue
and deliver, in exchange for such assets, its shares of stock having a net asset
value equal to the value of the assets acquired by it, held that exemption from
the provisions of Section 17 (e) (1) of the Investment Company Act of 1940
to permit the payment of such fee to the underwriter, and from Section 22 (d)
of the Act, to permit the open-end investment company to issue its shares of
stock on the basis indicated above, is appropriate in the public interest and
consistent with the protection of investors and the purposes fairly intended by
the policy and provisions of the Act ... Page 133

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