Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 54

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 54
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 a price or yield considered to be advantageous. Pursuant
to Rule 18f-4 under the 1940 Act (the “Derivatives Rule”), the Fund may invest in securities on a when-issued or forward-settling
basis or with a non-standard settlement cycle, provided (i) the Fund intends to physically settle the transaction and (ii) the transaction
will settle within 35 days of its trade date. Otherwise, such transactions, depending on their terms, may be treated as unfunded commitment
agreements, which requires the Fund to reasonably believe that, at the time it enters into such a transaction, it will have sufficient
cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements as they come due, or as derivatives
transactions. The Fund will make commitments to purchase securities on such basis only with the intention of actually acquiring these
securities, but the Fund may sell such securities prior to the settlement date if such sale is considered to be advisable. To the extent
the Fund engages in when-issued and delayed delivery transactions, it will do so for the purpose of acquiring securities for the Fund’s
portfolio consistent with the Fund’s investment objective and policies and not for the purpose of investment leverage.

Since the market value of
the securities or currency subject to the commitment may fluctuate, the use of commitments may magnify the impact of interest rate changes
on the Fund’s net asset value. A commitment sale is covered if the Fund owns or has the right to acquire the underlying securities
or currency subject to the commitment. A commitment sale is for cross-hedging purposes if it is not covered, but is designed to provide
a hedge against a decline in value of a security or currency which the Fund owns or has the right to acquire. By entering into a commitment
sale transaction, the Fund foregoes or reduces the potential for both gain and loss in the security which is being hedged by the commitment
sale.

Short Sales Against the
Box

The Fund may from time to time
make short sales of securities it owns or has the right to acquire. A short sale is “against the box” to the extent that the
Fund contemporaneously owns or has the right to obtain at no added cost securities identical to those sold short. In a short sale, the
Fund does not immediately deliver the securities sold and does not receive the proceeds from the sale. The Fund is required to recognize
gain from the short sale for U.S. federal