Company: ECC-PD
Filing Date: 2025-02-04
Form Type: 40-APP/A
Source: 0001104659-25-008762
Chunk: 28

Company: Eagle Point Credit Co Inc.
Filing Date: 2025-02-04
Form: 40-APP/A
Chunk 28
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 promulgated
by the Commission pursuant to Section 17(d) and made applicable to persons subject to Sections 57(a) and (d) by Section 57(i) to
the extent specified therein. Section 57(i) provides that, until the Commission prescribes rules under Sections 57(a) and
(d), the Commission’s rules under Section 17(d) applicable to registered closed-end investment companies will be
deemed to apply to persons subject to the prohibitions of Section 57(a) or (d). Because the Commission has not adopted any
rules under Section 57(a) or (d), Rule 17d-1 applies to persons subject to the prohibitions of Section 57(a) or
(d).

The Applicants seek relief
pursuant to Rule 17d-1, which permits the Commission to authorize joint transactions upon application. In passing upon applications
filed pursuant to Rule 17d-1, the Commission is directed by Rule 17d-1(b) to consider whether the participation of a registered
investment company or controlled company thereof in the joint enterprise or joint arrangement under scrutiny is consistent with provisions,
policies and purposes of the Act and the extent to which such participation is on a basis different from or less advantageous than that
of other participants.

The Commission has stated
that Section 17(d), upon which Rule 17d-1 is based, and upon which Section 57(a)(4) was modeled, was designed to
protect investment companies from self-dealing and overreaching by insiders. The Commission has also taken notice that there may be transactions
subject to these prohibitions that do not present the dangers of overreaching.23The Court of Appeals for the Second Circuit has enunciated a like rationale for the purpose behind Section 17(d): “The
objective of [Section] 17(d)…is to prevent…injuring the interest of stockholders of registered investment companies by
causing the company to participate on a basis different from or less advantageous than that of such other participants.”24Furthermore, Congress acknowledged that the protective system established by the enactment of Section 57 is “similar
to that applicable to registered investment companies under Section 17, and rules thereunder, but is modified to address concerns
relating to unique characteristics presented by business development companies.”25

| 22 
 23 | See,                                                                                                                                
 e.g., SEC Rel. No. IC-4697 (Sept. 8,