Related-party conflict disclosed — Advisor compensation and self-dealing risk
LowThe Advisor (externally advising the Corporation) controls day-to-day operations and may earn Acquisition Fees, Disposition Fees, and other compensation. The charter prohibits significant investments unless the Advisor has recommended them, creating a structural conflict between the Advisor's fee-earning incentives and investor interests.
“for so long as the Corporation is externally advised by the Advisor, it shall not be a proper purpose of the Corporation to make any significant investment unless the Advisor has recommended that the Corporation make such investment.”