Common use of Illiquid Securities Clause in Contracts

Illiquid Securities. The LPA will oversee illiquid investment to assure compliance with the following. Rule 22e-4 requires that each Fund limit its investments in LC4 assets to no more than 15% of the Fund's net assets. Rule 22e-4 prohibits a Fund from acquiring any illiquid investment if, immediately after the acquisition, the Fund's investment in illiquid "investments that are assets" is more than 15% of the Fund's net assets. If a Fund exceeds the 15% limit, the LPA is required to notify the Board within one business day with an explanation of the extent and causes of the event, and a plan for how the Fund will be brought back into compliance with the 15% limit within a reasonable period. If the 15% limit remains exceeded for 30 days, the Board, including a majority of its members who are not interested persons, must assess whether the plan presented to it by the LPA continues to be in the best interest of the Fund.