SECTION 4. SCOPE

This revenue procedure applies to a RIC that meets the following requirements:

.01 It is registered as a management investment company under the Investment Company Act of 1940, 15 U.S.C. 80a–1 et seq., as amended, and elects to be treated as a RIC under subchapter M, part 1, of the Code.

.02 It invests at least 70 percent of its original assets (including seed capital and net proceeds from an initial public offering) as a partner in one or more PPIPs that hold Legacy Securities pursuant to the Program and that are treated as partnerships for federal income tax purposes.

.03 Except for certain special allocations agreed to by the Treasury Department and those allocations required under section 704, its allocable share of each item of the PPIP’s income, gain, loss, deduction, and credit is proportionate to its percentage of ownership of the capital interests in the PPIP.