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H.R. 1973 (113th): Business Development Company Modernization Act

The text of the bill below is as of May 14, 2013 (Introduced).



1st Session

H. R. 1973


May 14, 2013

introduced the following bill; which was referred to the Committee on Financial Services


To permit business development companies to increase investments in small-and middle-market financial services companies and investment advisors.


Short title

This Act may be cited as the Business Development Company Modernization Act .


Investments of business development companies

The Investment Company Act of 1940 is amended—


in section 2(a)(46(B) ( 15 U.S.C. 80a–2(46)(B) ) by striking nor a company which would be an investment company except for the exclusion from the definition of investment company in section 3(c) of this title ; and


in section 60 ( 15 U.S.C. 80a–59 ) by striking except that the Commission shall not and inserting

except that—


section 12 shall not apply to the purchasing, otherwise acquiring, or holding by a business development company of any security issued by, or any other interest in the business of, any person who is—


an investment adviser registered under title II of this Act or who is an investment adviser to an investment company; or


an eligible portfolio company as defined in section 2(a)(46) ( 15 U.S.C. 80a–2(a)(46) ); and


the Commission shall not