Determination of “Investments”
as used in this literature.
Securities
(as defined in Section 2(1) of the 1933 Securities
Act) Other than the securities of an issuer that controls, is controlled
by, or is under common control with, the person that owns such securities,
unless the issuer is: (a) a private investment company or a commodity
pool, or (b) a public company that complies with reporting obligations
under U.S. securities laws or that has a class of securities listed
on a securities exchange outside of the U.S., or (c) a company with
shareholders' equity of $50,000,000 or more (as reflected on financial
statements determined in accordance with U.S. GAAP that are prepared
within 16 months of the date the Interests are acquired).
Real Estate held for investment purposes
Real estate is not considered to be held for
investment purposes if it is used as a place of business or in connection
with the conduct of a trade or business of such person or a Related
Person of the owner, or if it is used for personal or residential
purposes unless deductible under section 280A of the Internal Revenue
Code.
Commodity Interests, Physical
Commodities, and Financial Contracts held for investment purposes
Such as futures, forwards and options thereon,
physical gold, silver, etc. and swap agreements.
Cash and Cash Equivalents (including foreign
currencies) held for investment purposes.
Such as bank deposits, certificates of deposit,
bankers' acceptances and the net cash surrender value of an insurance
policy.
“Family Company”
Means a company described in the third category
under “Qualified Purchaser Certification” below.
“Related Person”
Means a person who is related to another person as a sibling, spouse,
or former spouse, or is a direct lineal descendant or ancestor by
birth or adoption of such person, or is a spouse of such descendant,
provided that in the case of a Family Company, a Related Person includes
any owner of the Family Company and any person who is a Related Person
of such owner.
Assets Excluded from the Definition of
“Investments”
Specifically excluded from the definition
of “investments” are other assets that may be held for
investment purposes, such as jewelry, artwork, antiques or other collectibles.
How To Value “Investments”
Investments may be valued at their fair market
value on the most recent practicable date or at their cost.
In either case, the value of “Investments” is reduced
by the amounts specified below in (a) and (b).
(a) Deductions: General.
The value of a person’s investments must be reduced by the
amount of
(b) Deductions: Family Companies.
There shall also be deducted from the value of a Family Company’s
investments any outstanding indebtedness incurred by an owner
of the Family Company to acquire such investments.any outstanding
indebtedness incurred to acquire the investments.
Special Valuation Consideration
Corporate
Investments
For purposes of determining the amount of investments
owned by a corporation (“Corporation”), there may be included
investments owned by majority-owned subsidiaries of the Corporation
(“Subsidiaries”) and investments owned by a company (“Parent
Company”) of which the Corporation is a majority-owned subsidiary,
or by a majority-owned subsidiary of the Corporation and other majority-owned
subsidiaries of the Parent Company.
Commodity Interests
The value of Commodity Interests shall be the
value of the initial margin or option premium deposited in connection
with each Commodity Interest.
Private Investment Companies
and Commodity Pools
Amounts of unfunded capital commitments to
these entities are included in such entities’ investments.
