Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 87

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 87
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” as set forth in CFTC No-Action Letter 12-38.
In the event we fail to qualify for the exclusion and the Adviser is required to register as a “commodity pool operator” in
connection with serving as our investment adviser and becomes subject to additional disclosure, recordkeeping and reporting requirements,
our expenses may increase. In October 2020, the SEC adopted Rule 18f-4 under the 1940 Act related to the use of derivatives, short sales,
reverse repurchase agreements and certain other transactions by registered investment companies. Rule 18f-4 in effect rescinds and withdraws
the guidance of the SEC and its staff regarding asset segregation and cover practices with respect to such transactions. Rule 18f-4 permits
us to enter into derivatives and other transactions that create future payment or delivery obligations, including short sales, notwithstanding
the senior security provisions of the 1940 Act if we comply with certain value-at-risk (“VaR”) leverage limits and derivatives
risk management program and board oversight and reporting requirements or comply with a “limited derivatives users” exception.
We intend to elect to rely on the limited derivatives users exception. We may change the election and comply with the other provisions
of Rule 18f-4 related to derivatives transactions at any time and without notice. To satisfy the limited derivatives users exception,
we have adopted and implemented written policies and procedures reasonably designed to manage our derivatives risk and limit our derivatives
exposure in accordance with Rule 18f-4. Rule 18f-4 also permits us to enter into reverse repurchase agreements or similar financing transactions
notwithstanding the senior security provisions of the 1940 Act if we aggregate the amount of indebtedness associated with our reverse
repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness
when calculating our asset coverage ratios as discussed above or treat all such transactions as derivatives transactions for all purposes
under Rule 18f-4. In connection with our intention to elect to rely on Rule 18f-4, we will not rely on the previous guidance of the SEC
and its staff regarding asset segregation and cover practices in determining how we will comply with Section 18 with respect to our use
of derivatives and the other transactions that Rule 18f-4 addresses.

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Loan Securitizations. Section
619 of the Dodd-Frank Act, commonly referred to as the “Volcker Rule,” generally prohibits, subject to certain exemptions,
covered