Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 51

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 51
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 Agreements

The Fund may engage in repurchase
agreements with broker-dealers, banks and other financial institutions to earn a return on temporarily available cash. A repurchase agreement
is a short-term investment in which the purchaser (i.e., the Fund) acquires ownership of a security and the seller agrees to repurchase
the obligation at a future time and set price, thereby determining the yield during the holding period. Repurchase agreements involve
certain risks in the event of default by the other party. The Fund may enter into repurchase agreements with broker-dealers, banks and
other financial institutions deemed to be creditworthy by the Investment Adviser under guidelines approved by the Board of Trustees. The
Fund does not bear the risk of a decline in the value of the underlying security unless the seller defaults under its repurchase obligation.
In the event of the bankruptcy or other default of a seller of a repurchase agreement, the Fund could experience both delays in liquidating
the underlying securities and losses including: (a) possible decline in the value of the underlying security during the period while the
Fund seeks to enforce its rights thereto; (b) possible lack of access to income on the underlying security during this period; and (c)
expenses of enforcing its rights.

Repurchase agreements are fully
collateralized by the underlying securities and are considered to be loans under the 1940 Act. The Fund pays for such securities only
upon physical delivery or evidence of book entry transfer to the account of a custodian or bank acting as agent. The seller under a repurchase
agreement will be required to maintain the value of the underlying securities marked-to-market daily at not less than the repurchase price.
The underlying securities (normally securities of the U.S. government, its agencies or instrumentalities) may have maturity dates exceeding
one year.

Reverse Repurchase Agreements

A reverse repurchase agreement
involves the sale of a portfolio-eligible security by the Fund, coupled with its agreement to repurchase the instrument at a specified
time and price. Under a reverse repurchase agreement, the Fund continues to receive any principal and interest payments on the underlying
security during the term of the agreement. The Fund typically will segregate cash and/or liquid securities equal (on a daily mark-to-market
basis) to its obligations under reverse repurchase agreements. However, reverse repurchase agreements involve the risk that the market
value of securities retained by the Fund may decline below the repurchase price of the securities sold by