PUBLIC LAWS-CH. 686-AUG. 22, 1940 Brokers, etc. Acquisition of cer- tain securities per- mitted. Conditions. Acquisition of face- amount certificate company stock. Provisos. Aggregate cost, limi- tation. Sale. Acquisition of insur- ance company stock. (3) any person who is a broker, a dealer, is engaged in the business of underwriting, or is either an investment adviser of an investment company or an investment adviser registered under title II of this Act, unless (A) such person is a corpora- tion all the outstanding securities of which (other than short- term paper, securities representing bank loans and directors' qualifying shares) are, or after such acquisition will be, owned by one or more registered investment companies; and (B) such person is primarily engaged in the business of underwriting and distributing securities issued by other persons, selling securi- ties to customers, or any one or more of such or related activi- ties, and the gross income of such person normally is derived principally from such business or related activities. (e) Notwithstanding any provisions of this title, any registered investment company may hereafter purchase or otherwise acquire any security issued by any one corporation engaged or proposing to engage in the business of underwriting, furnishing capital to indus- try, financing promotional enterprises, purchasing securities of issuers for which no ready market is in existence, and reorganizing com- panies or similar activities; provided- (1) That the securities issued by such corporation (other than short-term paper and securities representing bank loans) shall consist solely of one class of common stock and shall have been originally issued or sold for investment to registered investment companies only; (2) That the aggregate cost of the securities of such corpora- tion purchased by such registered investment company does not exceed 5 per centum of the value of the total assets of such registered company at the time of any purchase or acquisition of such securities; and (3) That the aggregate paid-in capital and surplus of such corporation does not exceed $100,000,000. For the purpose of paragraph (1) of section 5 (b) any investment in any such corporation shall be deemed to be an investment in an investment company. (f) Notwithstanding any provisions of this Act, any registered face-amount certificate company may organize not more than two face-amount certificate companies and acquire and own all or any part of the capital stock only thereof if such stock is acquired and held for investment: Provided, That the aggregate cost to such reg- istered company of all such stock so acquired shall not exceed six times the amount of the minimum capital stock requirement pro- vided in subdivision (1) of subsection (a) of section 28 for a face- amount company organized on or after March 15, 1940: And pro- vided further, That the aggregate cost to such registered company of all such capital stock issued by face-amount certificate companies organized or otherwise created under laws other than the laws of the United States or any State thereof shall not exceed twice the amount of the minimum capital stock requirement provided in subdivision (1) of subsection (a) of section 28 for a company organized on or after March 15, 1940. Nothing contained in this subsection shall be deemed to prevent the sale of any such stock to any other person if the original purchase was made by such registered face-amount certificate company in good faith for investment and not for resale. (g) Notwithstanding the provisions of this section any registered investment company and any company or companies controlled by such registered company may purchase or otherwise acquire from another investment company or any company or companies con- trolled by such registered company more than 10 per centum of the 810 [54 STAT.