Mandatory Redeemable Preferred - Equity Not Debt, According to IRS

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It was crucial to the Fund's operation as a RIC, because dividends with respect to equity issued by a RIC?-?as If the New Preferred Shares failed to qualify as equity for federal tax purposes, the dividend-accounting mechanism that ensures subchapter M compliance would likely fail to preserve the Fund's status as a RIC.?It Joyce, Partner, thomas.joyce@klgates.com. By Thomas F. Joyce and Theodore L.