§270.17a-9. Purchase of certain securities from a money market fund by an affiliate, or an affiliate of an affiliate.
17 C.F.R. § 270.17a-9
The purchase of a security from the portfolio of an open-end investment company holding itself out as a money market fund by any affiliated person or promoter of or principal underwriter for the money market fund or any affiliated person of such person shall be exempt from section 17(a) of the Act (15 U.S.C. 80a-17(a)); provided that:
In the case of a portfolio security that has ceased to be an Eligible Security (as defined in § 270.2a-7(a)(12)), or has defaulted (other than an immaterial default unrelated to the financial condition of the issuer):
The purchase price is paid in cash; and
The purchase price is equal to the greater of the amortized cost of the security or its market price (in each case, including accrued interest).
In the case of any other portfolio security—
In the event that the purchaser thereafter sells the security for a higher price than the purchase price paid to the money market fund, the purchaser shall promptly pay to the fund the amount by which the subsequent sale price exceeds the purchase price paid to the fund.
Notes, amendments, and revision history
Amendments
[75 FR 10117, Mar. 4, 2010]
Authority
Authority: 15 U.S.C. 80a-1 et seq., 80a-34(d), 80a-37, 80a-39, 1681w(a)(1), 6801-6809, 6825, and Pub. L. 111-203, sec. 939A, 124 Stat. 1376 (2010), unless otherwise noted. Section 270.0-1 also issued under sec. 38(a) (15 U.S.C. 80a-37(a)); Section 270.0-1(a)(7) is also issued under 15 U.S.C. 80a-10(e); Section 270.0-11 also issued under secs. 8, 24, 30 and 38, Investment Company Act (15 U.S.C. 80a-8, 80a-24, 80a-29 and 80a-37), secs. 6, 7, 8, 10 and 19(a), Securities Act (15 U.S.C. 77f, 77g, 77h, 77j, 77s(a)) and secs. 3(b), 12, 13, 14, 15(d) and 23(a), Exchange Act (15 U.S.C. 78c(b), 78l, 78m, 78n, 78o(d) and 78w(a)); Section 270.6a-5 is also issued under 15 U.S.C. 80a-6(a)(5)(A)(iv)(I). Section 270.6c-9 is also issued under secs. 6(c) (15 U.S.C. 80a-6(c)) and 38(a) (15 U.S.C. 80a-37(a)); Section 270.6c-10 is also issued under sec. 6(c) (15 U.S.C. 80a-6(c)); Section 270.6c-11 is also issued under 15 U.S.C. 80a-6(c) and 80a-37(a). Section 270.6e-3 is also issued under 15 U.S.C. 80a-5(e); Section 270.8b-11 is also issued under 15 U.S.C. 77s, 80a-8, and 80a-37; Section 270.10e-1 is also issued under 15 U.S.C. 80a-10(e); Sections 270.12d1-1, 270.12d1-2, and 270.12d1-3 are also issued under 15 U.S.C. 80a-6(c), 80a-12(d)(1)(J), and 80a-37(a). Section 270.12d3-1 is also issued under 15 U.S.C. 80a-6(c); Section 270.17a-8 is also issued under 15 U.S.C. 80a-6(c) and 80a-37(a); Section 270.17d-1 is also issued under 15 U.S.C. 80a-6(c), 80a-17(d), and 80a-37(a); Section 270.17e-1 is also issued under 15 U.S.C. 80a-6(c), 80a-30(a), and 80a-37(a); Section 270.17f-5 also issued under sec. 6(c) (15 U.S.C. 80a-6(c); Section 270.17g-1 is also issued under 15 U.S.C. 80a-6(c), 80a-17(d), 80a-17(g), and 80a-37(a); Section 270.17j-1 is also issued under secs. 206(4) and 211(a), Investment Advisers Act (15 U.S.C. 80b-6(4) and 80b-11(a)); Section 270.19b-1 is also issued under secs. 6(c) (15 U.S.C. 80a-6(c)), 19 (a) and (b) (15 U.S.C 80a-19 (a) and (b)), and 38(a) (15 U.S.C. 80a-37(a)); Section 270.22c-1 also issued under secs. 6(c), 22(c), and 38(a) (15 U.S.C. 80a-6(c), 80a-22(c), and 80a-37(a)); Section 270.23c-3 also issued under 15 U.S.C. 80a-23(c). Section 270.24f-2 also issued under 15 U.S.C. 80a-24(f)(4). Section 270.30a-1 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, and 80a-29. Section 270.30a-2 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, 80a-29, 7202, and 7241; and 18 U.S.C. 1350, unless otherwise noted. Section 270.30a-3 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, and 80a-29, and secs. 3(a) and 302, Pub. L. 107-204, 116 Stat. 745. Section 270.30b1-1 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, and 80a-29. Section 270.30b2-1 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, and 80a-29, and secs. 3(a) and 302, Pub. L. 107-204, 116 Stat. 745. Section 270.30d-1 is also issued under 15 U.S.C. 78m, 78o(d), 80a-8, and 80a-29, and secs. 3(a) and 302, Pub. L. 107-204, 116 Stat. 745. Section 270.30e-1 is also issued under 15 U.S.C. 77f, 77g, 77h, 77j, 77s, 78 l, 78m, 78n, 78o(d), 78w(a), 80a-8, 80a-29, and 80a-37; Section 270.31a-2 is also issued under 15 U.S.C. 80a-30.
Amendments
[75 FR 10117, Mar. 4, 2010]