PUBLIC LAW 104-290—OCT. 11, 1996 110 STAT. 3435 the securities offered, as to which the trustee or other person authorized to make decisions with respect to the trust, and each settlor or other person who has contributed assets to the trust, is a person described in clause (i), (ii), or (iv); or "(iv) any person, acting for its own account or the accounts of other qualified purchasers, who in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in investments. "(B) The Commission may adopt such rules and regulations applicable to the persons and trusts specified in clauses (i) through (iv) of subparagraph (A) as it determines are necessary or appropriate in the public interest or for the protection of investors. "(C) The term 'qualified purchaser' does not include a company that, but for the exceptions provided for in paragraph (1) or (7) of section 3(c), would be an investment company (hereafter in this paragraph referred to as an 'excepted investment company), unless all beneficial owners of its outstanding securities (other than short-term paper), determined in accordance with section 3(c)(1)(A), that acquired such securities on or before April 30, 1996 (hereafter in this paragraph referred to as 'programendment beneficial owners'), and all programendment beneficial owners of the outstanding securities (other than short-term paper) of any excepted investment company that, directly or indirectly, owns any outstanding securities of such excepted investment company, have consented to its treatment as a qualified purchaser. Unanimous consent of all trustees, directors, or general partners of a company or trust referred to in clause (ii) or (iii) of subparagraph (A) shall constitute consent for purposes of this subparagraph.". (c) CONFORMING AMENDMENTS.— Section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(a)) is amended— (1) by striking "(1)" and inserting "(A)"; (2) by striking "(2)" and inserting "(B)"; (3) by striking "(3)" and inserting "(C)"; (4) by inserting "(1)" after "(a)"; (5) by striking "As used" and inserting "(2) As used"; and (6) in paragraph (2)(C), as designated by paragraph (5) of this subsection— (A) by striking "which are" and inserting the following: "which (i) are"; and (B) by inserting before the period at the end, the following: ", and (ii) are not relying on the exception from the definition of investment company in paragraph (1) or (7) of subsection (c)". (d) RULEMAKING REQUIRED.— (1) IMPLEMENTATION OF SECTION 3(C)(1)(B).— Not later than 15 USC 80a-3 1 year after the date of enactment of this Act, the Commission note. shall prescribe rules to implement the requirements of section 3(c)(1)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(l)(B)), as amended by this section. (2) IDENTIFICATION OF INVESTMENTS.—Not later than 180 15 USC 80a-2 days after the date of enactment of this Act, the Commission note. shall prescribe rules defining the term, or otherwise identifying, "investments" for purposes of section 2(a)(51) of the Investment Company Act of 1940, as added by this Act.
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