Investment Company Act of 1940, as amended (ICA)
USA
The Investment Company Act of 1940 (15 U.S.C. §§ 80a-1 − 80a-64) regulates mutual funds and other companies that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing public. The purpose of this Act is to require disclosure about the fund, its investment objectives and the investment company structure and operation to the investing public.
Section 13 of the Act limits the ability of a registered investment company to borrow money or issue securities; loans made in violation of the Act are unenforceable. For this reason, bank loan agreements contain a representation that the borrower is not a registered investment company within the meaning of the Act.
For further information, see the SEC website:
Related terms
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.