---
kind: "section"
citation: "15 U.S.C. § 80a–62"
title: "15"
title_heading: "Commerce and Trade"
number: "80a–62"
heading: "Distribution and repurchase of securities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/80a-62"
units:
  - "Chapter 2D — Investment Companies and Advisers"
  - "Subchapter I — Investment Companies"
---

# §80a–62. Distribution and repurchase of securities


Notwithstanding the exemption set forth in [section 80a–6(f) of this title](/usc/15/80a–6.md?p=f), [section 80a–23 of this title](/usc/15/80a–23.md) shall apply to a [business development company](/usc/15/80a–2.md?p=a-48) to the same extent as if it were a registered closed-end investment [company](/usc/15/80a–2.md?p=a-8), except as follows:

- (1) The prohibitions of [section 80a–23(a)(2) of this title](/usc/15/80a–23.md) shall not apply to any [company](/usc/15/80a–2.md?p=a-8) which (A) is a wholly-owned subsidiary of, or directly or indirectly controlled by, a [business development company](/usc/15/80a–2.md?p=a-48), and (B) immediately after the issuance of any of its [securities](/usc/15/80a–2.md?p=a-36) for property other than cash or [securities](/usc/15/80a–2.md?p=a-36), will not be an investment [company](/usc/15/80a–2.md?p=a-8) within the meaning of [section 80a–3(a) of this title](/usc/15/80a–3.md?p=a).
- (2) Notwithstanding the provisions of [section 80a–23(b) of this title](/usc/15/80a–23.md?p=b), a [business development company](/usc/15/80a–2.md?p=a-48) may sell any common stock of which it is the [issuer](/usc/15/80a–2.md?p=a-22) at a price below the current net asset value of such stock, and may sell warrants, options, or rights to acquire any such common stock at a price below the current net asset value of such stock, if—
  - (A) the holders of a majority of such [business development company](/usc/15/80a–2.md?p=a-48)’s outstanding [voting securities](/usc/15/80a–2.md?p=a-42), and the holders of a majority of such [company](/usc/15/80a–2.md?p=a-8)’s outstanding [voting securities](/usc/15/80a–2.md?p=a-42) that are not affiliated [persons](/usc/15/80a–2.md?p=a-28) of such [company](/usc/15/80a–2.md?p=a-8), approved such [company](/usc/15/80a–2.md?p=a-8)’s policy and practice of making such sales of [securities](/usc/15/80a–2.md?p=a-36) at the last annual meeting of shareholders or partners within one year immediately prior to any such sale, except that the shareholder approval requirements of this subparagraph shall not apply to the initial public offering by a [business development company](/usc/15/80a–2.md?p=a-48) of its [securities](/usc/15/80a–2.md?p=a-36);
  - (B) a required majority (as defined in [section 80a–56(o)](/usc/15/80a–56.md?p=o) of this title) of the [directors](/usc/15/80a–2.md?p=a-12) of or general partners in such [business development company](/usc/15/80a–2.md?p=a-48) have determined that any such sale would be in the best interests of such [company](/usc/15/80a–2.md?p=a-8) and its shareholders or partners; and
  - (C) a required majority (as defined in [section 80a–56(o)](/usc/15/80a–56.md?p=o) of this title) of the [directors](/usc/15/80a–2.md?p=a-12) of or general partners in such [business development company](/usc/15/80a–2.md?p=a-48), in consultation with the underwriter or underwriters of the offering if it is to be underwritten, have determined in good faith, and as of a time immediately prior to the first solicitation by or on behalf of such [company](/usc/15/80a–2.md?p=a-8) of firm commitments to purchase such [securities](/usc/15/80a–2.md?p=a-36) or immediately prior to the issuance of such [securities](/usc/15/80a–2.md?p=a-36), that the price at which such [securities](/usc/15/80a–2.md?p=a-36) are to be sold is not less than a price which closely approximates the market value of those [securities](/usc/15/80a–2.md?p=a-36), less any distributing [commission](/usc/15/80a–2.md?p=a-7) or discount.
- (3) A [business development company](/usc/15/80a–2.md?p=a-48) may sell any common stock of which it is the [issuer](/usc/15/80a–2.md?p=a-22) at a price below the current net asset value of such stock upon the exercise of any warrant, option, or right issued in accordance with [section 80a–60(a)(4) of this title](/usc/15/80a–60.md?p=a-4).

## Source credit

(Aug. 22, 1940, ch. 686, title I, § 63, as added Pub. L. 96–477, title I, § 105, Oct. 21, 1980, 94 Stat. 2288; amended Pub. L. 115–141, div. S, title VIII, § 802(b)(2)(B), Mar. 23, 2018, 132 Stat. 1140.)

## Notes

### Editorial Notes

### Amendments

2018—Par. (3). Pub. L. 115–141 substituted “section 80a–60(a)(4) of this title” for “section 80a–60(a)(3) of this title”.