Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 56

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 56
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 may not be diversified and are subject
to the risks of financing projects.

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Dividends paid by REITs will not generally qualify
for the reduced U.S. federal income tax rates applicable to qualified dividends under the Code, provided, however, the Fund may designate
certain dividends from a REIT as “Section 199A dividends,” which may be taxed to individual Stockholders and other non-corporate
Stockholders at a reduced effective U.S. federal income tax rate depending on whether certain requirements are satisfied. Investors should
see the discussion under the heading “Certain Additional Material United States Federal Income Tax Consequences” for more
information relating to Section 199A dividends.

The Fund’s investment in REITs may include
an additional risk to Stockholders. Some or all of a REIT’s annual distributions to its investors may constitute a non-taxable
return of capital. Any such return of capital will generally reduce the Fund’s basis in the REIT investment, but not below zero.
To the extent the distributions from a particular REIT exceed the Fund’s basis in such REIT, the Fund will generally recognize
gain. In part because REIT distributions often include a nontaxable return of capital, Fund distributions to Stockholders may also include
a nontaxable return of capital. Stockholders that receive such a distribution will also reduce their tax basis in their shares of the
Fund, but not below zero. To the extent the distribution exceeds a Stockholder’s basis in the Fund shares, such Stockholder will
generally recognize capital gain.

Repurchase Agreement Risk.The Fund
does not enter into nor does it currently intend to enter into repurchase agreements, however, if the Fund were to enter into repurchase
agreements, the Fund could suffer a loss if the proceeds from a sale of the securities underlying a repurchase agreement to which it
is a party turns out to be less than the repurchase price stated in the agreement. In addition, repurchase agreements may involve risks
in the event of default or insolvency of the seller, including possible delays or restrictions upon the Fund’s ability to dispose
of the underlying securities.

Securities Lending Risk.Securities
lending is subject to the risk that loaned securities may not be available to the Fund on a timely basis and the Fund may, therefore,
lose the opportunity to sell the securities at a desirable price. Any loss in the market price of securities loaned by the Fund that
occurs during