Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 31

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 31
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 automatic
dividend reinvestment plan; the sale, lease or exchange of any assets of the Fund to any Principal Shareholder, except assets having an
aggregate fair market value of less than $1,000,000, aggregating for the purpose of such computation all assets sold, leased or exchanged
in any series of similar transactions within a twelve-month period; or the sale, lease or exchange to the Fund or any subsidiary of the
Fund, in exchange for securities of the Fund, of any assets of any Principal Shareholder, except assets having an aggregate fair market
value of less than $1,000,000, aggregating for purposes of such computation all assets sold, leased or exchanged in any series of similar
transactions within a twelve-month period.

The Declaration of Trust
limits the ability of persons to beneficially own (within the meaning of Section 382 of the Code) more than 4.99% of the outstanding
Common Shares of the Fund and could have an anti-takeover effect on the Fund, which could decrease the Fund’s market price in certain
circumstances or limit the ability of certain shareholders to influence the management of the Fund. This restriction was adopted in order
to reduce the risk of the Fund undergoing an “ownership change” within the meaning of Section 382 of the Code, which
would limit the Fund’s ability to use a capital loss carryforward and certain unrealized losses (if such tax attributes exist).
These ownership restrictions could have the effect of depriving shareholders of an opportunity to sell their shares at a premium over
prevailing market prices by discouraging a third party from seeking to obtain control over the Fund. Such attempts could have the effect
of increasing the expenses of the Fund and disrupting the normal operation of the Fund. In addition, these ownership restrictions may
reduce market demand for the Fund’s Common Shares, which could have the effect of increasing the likelihood that the Fund’s
Common Shares trade at a discount to net asset value and increasing the amount of any such discount.

To convert the Fund to an
open-end investment company, the Declaration of Trust requires the favorable vote of a majority of the board of the Trustees followed
by the favorable vote of the holders of at least 75% of the outstanding shares of each affected class or series of shares of the Fund,
voting separately as a class or series, unless such amendment has been approved by 75% of the Trustees, in which case “a majority
of the outstanding voting securities” (as defined in