54 STAT.] 76rT CONG. , 3D SESS.-CH. 686-AUG. 22 , 1940 (41) "Wholly-owned subsidiary" of a person means a company 95 per centum or more of the outstanding voting securities of which are owned by such person, or by a company which, within the mean- ing of this paragraph, is a wholly-owned subsidiary of such person. (42) "Securities Act of 1933", "Securities Exchange Act of 1934", "Public Utility Holding Company Act of 1935", and "Trust Inden- ture Act of 1939" mean those Acts, respectively, as heretofore or hereafter amended. (b) No provision in this title shall apply to, or be deemed to include, the United States, a State, or any political subdivision of a State, or any agency, authority, or instrumentality of any one or more of the foregoing, or any corporation which is wholly owned directly or indirectly by any one or more of the foregoing, or any officer, agent, or employee of any of the foregoing acting as such in the course of his official duty, unless such provision makes specific reference thereto. DEFINITION OF INVESTMENT COMPANY SEC. 3 . (a) When used in this title, "investment company" means any issuer which- (1) is or holds itself out as being engaged primarily, or pro- poses to engage primarily, in the business of investing, reinvesting, or trading in securities; (2) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstand- ing; or (3) is engaged or proposes to engage in the business of invest- ing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such issuer's total assets (exclusive of Government securities and cash items) on an unconsolidated basis. As used in this section, "investment securities" includes all securities except (A) Government securities, (B) securities issued by employees' securities companies, and (C) securities issued by majority-owned subsidiaries of the owner which are not investment companies. (b) Notwithstanding paragraph (3) of subsection (a), none of the following persons is an investment company within the meaning of this title: (1) Any issuer primarily engaged, directly or through a wholly- owned subsidiary or subsidiaries, in a business or businesses other than that of investing, reinvesting, owning, holding, or trading in securities. (2) Any issuer which the Commission, upon application by such issuer, finds and by order declares to be primarily engaged in a business or businesses other than that of investing, reinvesting, own- ing holding, or trading in securities either directly or (A) through majority-owned subsidiaries or (B) through controlled companies conducting similar types of businesses. The filing of an application under this paragraph by an issuer other than a registered invest- ment company shall exempt the applicant for a period of sixty days from all provisions of this title applicable to investment com- panies as such. For cause shown, the Commission by order may extend such period of exemption for an additional period or periods. Whenever the Commission, upon its own motion or upon application, finds that the circumstances which gave rise to the issuance of an order granting an application under this paragraph no longer exist, the Commission shall by order revoke such order. 797 "Wholly-owned subsidiary." 48 Stat. 74, 881; 49 Stat. 803; 53 Stat. 1149. Exemptions. "Investment com- pany" defined. "Investment secu- rities." Persons not an in. vestment company.
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