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§ 270.6a-5 - Purchase of certain debt securities by companies relying on section 6(a)(5) of the Act.

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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:

Subject to no greater than moderate credit risk; and

Sufficiently liquid that it can be sold at or near its carrying value within a reasonably short period of time.

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