CAPITAL STRUCTURE AMENDMENTS.

SEC. 506. CAPITAL STRUCTURE AMENDMENTS. Section 61(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-60(a)) is amended— (1) in paragraph (2), by striking “if such business development company” and all that follows through the end of the paragraph and inserting a period; (2) in paragraph (3)(A)— (A) by striking “senior securities representing indebtedness accompanied by”; (B) by inserting “accompanied by securities,” after “of such company,”; and (C) in clause (ii), by striking “senior”; and (3) in paragraph (3)— (A) in subparagraph (A), by striking “and” at the end; (B) in subparagraph (B), by striking the period at the end of clause (iv) and inserting “; and”; and (C) by inserting immediately after subparagraph (B) the following new subparagraph: “(C) a business development company may issue warrants, options, or rights to subscribe to, convert to, or purchase voting securities not accompanied by securities, if— “(i) such warrants, options, or rights satisfy the conditions in clauses (i) and (iii) of subparagraph (A); and “(ii) the proposal to issue such warrants, options, or rights is authorized by the shareholders or partners of such business development company, and such issuance is approved by the required majority (as defined in section 57(o)) of the directors of or general partners in such company on the basis that such issuance is in the best interests of the company and its shareholders or partners.”.