CITE

    15 USC Sec. 80a-19                                          01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
    SUBCHAPTER I - INVESTMENT COMPANIES

HEAD

    Sec. 80a-19. Payments or distributions

STATUTE

    (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.

SOURCE

    (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.)

AMENDMENTS

      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.