---
kind: "section"
citation: "15 U.S.C. § 80a–21"
title: "15"
title_heading: "Commerce and Trade"
number: "80a–21"
heading: "Loans by management companies"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80a-21"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter I — Investment Companies"
---

# §80a–21. Loans by management companies


It shall be unlawful for any registered management [company](/usc/15/80a–2.md?p=a-8) to [lend](/usc/15/80a–2.md?p=a-23) money or property to any [person](/usc/15/80a–2.md?p=a-28), directly or indirectly, if—

- (a) the investment policies of such registered [company](/usc/15/80a–2.md?p=a-8), as recited in its registration statement and reports filed under this subchapter, do not permit such a loan; or
- (b) such [person](/usc/15/80a–2.md?p=a-28) [controls](/usc/15/80a–2.md?p=a-9) or is under common [control](/usc/15/80a–2.md?p=a-9) with such registered [company](/usc/15/80a–2.md?p=a-8); except that the provisions of this paragraph shall not apply to any loan from a registered [company](/usc/15/80a–2.md?p=a-8) to a [company](/usc/15/80a–2.md?p=a-8) which owns all of the outstanding [securities](/usc/15/80a–2.md?p=a-36) of such registered [company](/usc/15/80a–2.md?p=a-8), except [directors](/usc/15/80a–2.md?p=a-12)’ qualifying shares.

## Source credit

(Aug. 22, 1940, ch. 686, title I, § 21, 54 Stat. 822; Pub. L. 100–181, title VI, § 615, Dec. 4, 1987, 101 Stat. 1262.)

## Notes

### Editorial Notes

### Amendments

1987—Subsec. (b). Pub. L. 100–181 struck out “to the extension or renewal of any such loan made prior to March 15, 1940, or” after “shall not apply”.