15 U.S. Code § 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
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, § 19,54 Stat. 821; Pub. L. 91–547, § 11,Dec. 14, 1970, 84 Stat. 1422; Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095.)
1986—Subsec. (b). Pub. L. 99–514substituted “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. 91–547designated existing provisions as subsec. (a) and added subsec. (b).
Effective Date of 1970 Amendment
Amendment by Pub. L. 91–547effective on expiration of one year after Dec. 14, 1970, see section 30(1) ofPub. L. 91–547, set out as a note under section 80a–52 of this title.
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