1940 Act Preferred Shares Asset Coverage. Section 18(h) of the Investment Company Act of 1940 "Asset coverage" of a class of senior security of an issuer which is a stock means the ratio which the value of the total assets of such issuer, less all liabilities and indebtedness not represented by senior securities, bears to the aggregate amount of senior securities representing indebtedness of such issuer plus the aggregate of the involuntary liquidation preference of such class of senior security which is a stock. The involuntary liquidation preference of a class of senior security which is a stock shall be deemed to mean the amount to which such class of senior security would be entitled on involuntary liquidation of the issuer in preference to a security junior to it. Frequency: Monthly, as of the last business day of each month Calculation: Determine whether the Asset Coverage is at least 200% Total fund net assets ÷ Value of senior securities representing indebtedness + accrued unpaid dividends on pfd shs + liquidation preference on pfd shares + liquidation preference on pfd shs + value of senior securities representing indebtedness + accrued unpaid dividends on pfd shs = Asset Coverage Percentage > or = 200% = Fund Passes Test < 200% = Fund Fails Test Tolerance: State Street Fund Administration (SSFA) will complete the test on a monthly basis and report the results of the test to Federated Investors Inc. Once SSFA has notified Federated of the test results, Federated may impose certain restrictions on trading.
Appears in 17 contracts
Samples: Accounting Services Agreement (Federated Project & Trade Finance Tender Fund), Financial Administration and Accounting Services Agreement (Federated Core Trust III), Financial Administration and Accounting Services Agreement (Federated U S Government Securities Fund 1-3 Years)
