“Substantial” means considerable.
SEC 5 – Investment Company Act of 1940 -- Section 3(a)(1)(A), 3(a)(1)(C), 3(c)(3), 2(a)(5), 7(d), 3(a)(10) -- Rule 3a-6(b), 3a-6, 3a-6(a), 3a-6(b)(2), 6c-9, 3-16 of Regulation S-X, 902 of Regulation S, lexis
You contend further that the ten percent test is consistent with the plain meaning of the word "substantial": "Belonging to substance; actually existing; real; not seeming or imaginary; not illusive; solid; true; veritable. Something worthwhile as distinguished from something without value or merely nominal." n7 You also contend that foreign banks that meet the ten percent test view their deposit-taking and credit extension activities as substantial due in part to the resources that must be extended to engage in those activities. In addition, you assert that the relevant foreign financial authorities view these activities as substantial, as evidenced by their specific regulation of such activities. In determining whether a foreign bank derives "a substantial portion of its business from ... extending commercial and other types of credit, and accepting demand and other types of deposits," for purposes of rule 3a-6, we are not inclined to provide an interpretation based on particular minimum percentages of either the bank's liabilities (in the case of deposits) or assets or revenues (in the case of credit extensions). This conclusion [*9] is based, in part, on the fact that the Commission, when adopting this standard, chose not to define it by reference to minimum percentages. Although we are not willing to set forth such minimum percentages, we recognize that various percentages could demonstrate that a foreign bank derives a substantial portion of its business from extending commercial and other types of credit and accepting demand and other types of deposits.