17 CFR 270.6a-5 - Purchase of certain debt securities by companies relying on section 6(a)(5) of the Act.
For purposes of reliance on the exemption for certain companies under section 6(a)(5)(A) of the Act ( 15 U.S.C. 80a-6(a)(5)(A)), a company shall be deemed to have met the requirement for credit-worthiness of certain debt securities under section 6(a)(5)(A)(iv)(I) of the Investment Company Act ( 15 U.S.C. 80a-6(a)(5)(A)(iv)(I)) if, at the time of purchase, the board of directors (or its delegate) determines or members of the company (or their delegate) determine that the debt security is:
(a) Subject to no greater than moderate credit risk; and
(b) Sufficiently liquid that it can be sold at or near its carrying value within a reasonably short period of time.