Assertion: fund's security | /r/CapableOf | represent indebtedness
Facets:
Source sentences:
text: This arrangement involves a borrowing by the fund and implicates section 18 of the Investment Company Act, which prohibits an open-end fund from issuing any “senior security,” except for a borrowing from a bank with 300% asset coverage, and generally requires a closed-end fund to have 300% asset coverage for any "senior security" that represents an indebtedness.
text: Section 18(g) generally defines a "senior security" as "any bond, debenture, note, or similar obligation or instrument constituting a security and evidencing indebtedness,” and provides that "‘senior security representing indebtedness’ means any senior security other than stock.