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(1) A manager or custodian of a mutual fund shall not

(a) borrow money on behalf of the mutual fund for the purpose of acquiring securities or other property for the mutual fund;

(b) lend money that is subject to die mutual fund to a person to enable that person acquire an interest in the mutual fund or for any purpose;

(c) mortgage, charge or impose any other encumbrance on the securities or any other property subject to the mutual fund; or

(d) engage in a transaction which in the opinion of the Commission is not in the interest of the shareholders of the mutual fund.

(2) Paragraphs (a) and (c) of subsection (1) do not apply to borrowings made on behalf of the fund solely for the purpose of meeting obligations to redeem shares from the holders when requested.

(3) The borrowings are subject to the restrictions as prescribed by the Commission.