DEFINITION of SEC Form N-18f-1

SEC Form N-18f-1 is a form that must be filed with the Securities Exchange Commission (SEC) if a fund company wishes to take advantage of benefits awarded under SEC rule 18f-1. A registered, open ended investment company which has the right to redeem securities in kind of which it is the issuer is eligible to file SEC Form N-18f-1. If such a firm files the SEC Form N-18f-1, it can be awarded the benefit of SEC rule 18f-1, which allows it to redeem shares for cash. 

BREAKING DOWN SEC Form N-18f-1

SEC Form N-18f-1 is also known as "Notification of Election Pursuant to Rule 18f-1 under the Investment Company Act of 1940." This filing notifies the Securities and Exchange Commission of the fund's actions and commits the fund to pay all requests for redemptions by a shareholder of record in cash. Otherwise, securities might be redeemed in-kind.