15 USC Sec. 80a-19 01/05/2009
TITLE 15 - COMMERCE AND TRADE
CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I - INVESTMENT COMPANIES
Sec. 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
(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, title I, Sec. 19, 54 Stat. 821; Pub. L. 91-
547, Sec. 11, Dec. 14, 1970, 84 Stat. 1422; Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095.)
1986 - Subsec. (b). Pub. L. 99-514 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.
1970 - Pub. L. 91-547 designated existing provisions as subsec.
(a) and added subsec. (b).
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-547 effective on expiration of one year
after Dec. 14, 1970, see section 30(1) of Pub. L. 91-547, set out
as a note under section 80a-52 of this title.
TRANSFER OF FUNCTIONS
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg.
Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
64 Stat. 1265, set out under section 78d of this title.