Tuesdab, November 29, Y960 FEbERAL REGISYER _ 12177

ventive or protective; ~ 13.205 Sc~entiJie

or other relevant ~aets,

(sec. 6, 38 StAt. 721: lb U.B.C. A8. interpret or apply sec. 6, 38 Stat. 719, Aa amended; lb

II.$.C. 48) [Cease and fleaist order, Noel C.

Genevuy, dr., trading as Contact Lene Specta115tn, New Orleans, La., Docket 7867, September 28, 1980 J

7n the Matter of Noel C. Genevay, Jr., an Individual, Trading Under the Name

of Contact;Lens Specialists

Consent order requiring a retail seller

of "Air Comfort" contact lenses in New

Orleans, La., to cease advertising falsely

in newspapers, circulars, etc., that alI

persons could successfully wear his said

contaet lenses, and with complete comfort; that the lenses were unbreakable,

protected the entire eye, and would correct alt defects in vision including all

cases requiring bifocals.

The o~•der to cease and desist is as

follows:

It fs ordered, That the Respondent,

Noel C. Genevay, Jr.. Lrading under the name of Contact Lens Specialists, or

any other' name, his representatives,

agents and employees, directly or through any corporate or other device,

in connection with the oft'erixa~ for sale,

sale or distribution of contact lenses, do

forthwith cease and desist from, directly

or indirectly ;

1. Disseminating or causing to be disseminated any advertisement by means of the United States mails ox by any means in commerce, as "commerce" 9s

defined in the Federal firade Commission Act, which advertisement represents, directly or by implication, that:

(a> Ali persons can successfully wear his contact lenses ;

(b) His contact lenses wlll correct all

defects of vision;

(c) There is no discomfort in wearing

X115 COI1taCt leTLSES;

(d) All persons can wear Respondent's contact lenses all day without disComfort; or that any person can wear

said contact lenses all day without discomfort except after that person has

become fully adjusted thereto;

(e) Said contact lenses are an adequate substitute for bi-focal eyeglasses

for all persons;

(f) Sa1d contact lenses protect the eye

unless limited to the smaD portion of

the eYe that is covered thereby;

(g) Said contact lenses are unbreakable;

2. Disseminating, or causing to be disseminated, any advertisement, by anY

means, for the purpose of inducing, or

which is likely to induce, directly or indirectly, the Purchase of said products, in

commerce, as "commerce" is defined in

the Federal Trade Commission Act,

which advertisement contains any representation prohibited in paragraph 1

above.

By "Decision of the Commission", etc.,

report of compliance was required as

follows

It is ordered, That respondent Noel C,

CienevaY, Jr., an individual, trading under the name of Contact Lens SPecialists, shall, within sixty (BO) days after

service upon him of this order, Ells with

the Commission a xeport in writing, set'

ting forth in detail the manner and form

in which he has complied with the order to cease and desist.

Issued: September 28, 2960

By the Commission.

ISEAL~ ROBERT M. PARRISH,.

Secretary.

F.R. Doc. GO-11031; Flled, Nov. 28, 1960;

8:47 a.m.]

Title 91--COMMODITY AND

~s~cuRero~s ~xcHa~~~s

Chapter 11--Securities and Exchange

Commission

[Release No. 4288]

PART 2 3 1--INTERPRETATIVE RELEASES RELATING TO SECURITIES

ACT OF 1933 AiVD GENERAL. RULES

AIVD REGULATIONS THEREUNDER

j Release No. 8419 ]

PART 2 4 1—INTERPRETATIVE RELEASES RELATING TO SECURITIES

EXCHi4NG~ AC7 O~ 1934 AND

GENERAL RULES AND REGULATIONS THEREUNDER

[Fteleflsp N0.3140]

PART 2 71--INTERPRETATIVE RELEASES RELAYING TO THE INVESTMENT COMPANY ACT OF 1944

AND GENERAL RULES AND REGULATIONS THEREUNDER

§ 231.4298 Statement of the Commis.

eion us to the applicability of the

Federal securities lows to real estate

investment trusts.

heal estate investment trust. The

Secwrities and Exchange Commission

has received a number of inquiries as to

the applicability of the Federal securities

laws to real estate investment trusts as

defined in a recent amendment to the

Internal Revenixa Code (Public Law 86-

7'i9, September 14, 1950) . This amendment provides substantially the same talc

treatment Por qualified trusts which are

substantially limited to investments in

real estate and real estate mortgages as

is provided for "regulated investment

companies", but it does not amend any

oY the statutes administered by this

Commission. A real estate investment

trust may be subject to the provisions

oY the Federal securities laws, depending

upon the circumstances involved .in offering its securities for sale, the nature

of such securities, and the oharacter of

the trust's investments.

The amendment, among other things,

requires that, in order to qualify for the

special tax treatment provided, the

trust's securities must be beneficially

owned by 100 or more persons, zn view

04 the number of beneficial owners required, it appears unlikely that the scope

oY the offering could be so limited as to

make available the exemption provided

in the second clause oY section 4 ('1) of the

Securities Act oY 1933 for transactions

by an issuer not involving a public offering. Thus, consideration should be given

to seotion 5 oY that Act which requires

that, unless an exemption is available,

a registration statement must be filed

before a public offering oP securities may

be made by any means of transportation or communication in interstate com- merce or by use oP the mails and that

such statement must become effective before any sales may be made by such ~u- risdlctional means. Whether any of the

exemptions from section 5 contained in

sections 3 and 4 would be available would

depend on the facts and circumstances

of each case. In this x•e~ard it should

be noted that the exemption from t)ae

x•egistration of securit9es under the Securities Act of 1933 provided by section

3(a) (11) of that Act for certain intrastate offerings is not available to an investment company registered or required

to be registered under the Investment

Company Act of J,940.

A x•eal estate investment trust, depending upon the nature oY its investment

portfolio and the nature of the securities

it issues, may come within the det~nition

of an investment company as contained

in section '3 (a) of the Investment Company Act of 1940, in which event, absent an available exemption or exception,

re~istratiott of the trust under that Act

would be xeciuired. One exception from

the requirements of the Act which may

be aPPlicable to a real estate investment

trust is that contained in section

3(c)(6)(C> of the 1940 Act fora company primarily engaged 9n the business

of ~ "purchasing or otherwise acquiring

mortgages and other liens on and interests in real estate" and not "engaged in

the business of issuing face-amount certiflcates of the installment type ox Aeriodic payment plan certificates."

Thus,' in cleterminin~ the applicability

oY the exception contained in section

3(c) (6) (C), the character of the trust's

assets must be considered. In this respect, no question would be raised where a real estate investment trust invested

exclusively in fee interests in real estate ox mortgages or liens secured by zeal

estate. A trust, however, which also invested to a substantial extent in other

real estate investment trusts. (as 1s permitted by the amendment) or in companies engaged in the real estate business or in other securities might not qualify

for this exception. Questions in this re- spectcan be determined only on the basis

of a consideration of the facts and circircumstances in each case.

The other question to be considered in

determining the availability of the sec- tlon"3(c) (6) (C) exemption is.the nabure

of the securities issued by the trust. A

face-amount certificate oP the installment type 1s defined in the Investment

Company Act of 1940 as "any certificate,

investment contract, or other security

which represents an obligation on the

part of its issuer to pay a stated sum or

sums at a fixed ar determinable date or

dates more than twenty-Pour months

after the date of issuance, in considez~atlon of the payment of periodic installments of a stated or determinable

amount • ' • A periodic payment

plan certificate is defined as "(A) any
12178

certificate, investment contract, or other

security providing fox a series of periodic payments by the holder, and representing an undivided interest fn cer- tain speciRed securities or in a unit or

fund of securities purchased wholly or partly with the proceeds of such payments; and (B> &ny security the issuer of

which is also issuing securities of the

character described in Clause (A) and

the holder of which has substantially the same rights and privileges as those which

the holder of securities of the character

described in Clause <A) have upon completing the periodic payments for which

such securities provide: ' Consideration should also be given to

whether the broker-dealer registration

and other regulatory provisions oY the

Securities Exchange Act of 1934 are applicable to the real estate investment

trust and those who sell its securities.

Copies of the amendment to the internal Revenue Code may be obtained for

ten cents from the Superintendent of

Documents, U.S. Goverrunent Printing

Office, Washington 25, D.C.

Noce: The text of §§ 241.8419 and 2?1.3140

are ldentScal w(th that appearing !n

§ 231.4298,

By the Commission.

ISEAL~ N6LLYE A. THOBSEN,

Assistant Secretary.

NOVEMBER 18, 1960.

~F.kZ, Doc. 80-1103b; Filed, Nov, 28, 1980;

8:48 a.m.]

Title Z1—FOOD AND DRUGS

Chapter I—Food and Drug Administration, Department of Health, Educafion, and Welfare

PART 121--FOOD ADDITIVES

Subpart A--Definitions and Proceduraland Interpretative Regulations

EXTENSION OF T~"FFECTIVE DATE OF STATSTTE

FOR CERTAIN SPECICIED FOOD ADDITIVES

The Commissioner of Food and Drugs,

pursuant to the authority provided in

the Federal Food, Drug, and Cosmetic

Act (sec. 6(c), Public Law 85-929; 72

Star. 1788; 21 U.S.C., note under sec.

342) and delegated to him by the

Secretary of Health, Education, and

Welfare (25 F.R. 8625), hereby authorizes the use in foods of certain additives

for which tolerances have not yet been

established or petitions therefor denied.

1. Section 121.86 is amended by adding

thereto the following items:

§ 121.SC Extension of efTective date of

statute for certain specified food

additives ue direct udditices to food.

On the basis of data supplied In accordance with § 121.85 and findings that no undue risk to the public health is

involved and that conditions exist that

make necessary the prescribing of an

additional period of time for obtaining

tolerances or denials of tolerances or for

granting exemptions from tolerances,

the following additives m~,y be used in

food, under certain specified conditions,

RULES AND REGULATIONS

for a period oY 1 year from March 6, 1980, or exemptions frown the requirement of

or until regulations shall have been is- tolerances, in accoxd'ance with section

sued establishing or denying tolerances 409 of the wet, whichever occurs first:

Product I Llmits I SpeclHed uses or restrlctlons

Dlmethylpolysilosane________________________________________________ Aseconstltuontotdetoamereusedinaproy

sdJpvants on (tufts and vegotables. Dlsodlum o6Bylenedfamine tetreacetate_____._ 16 parts par part of vl- As on std in etnblltzing vttamtn Du in iamfn s,,. anueous mmt~vttauln solutions. Korosone,ddodortaed_________________________ 1.0 part per mlllfon AsaconsWtirontotsprnyadjuventausedon reatduul. (tufts and vegatpblas.

Non9lPhenoxy polyethyleneoxy othanol(0.6 _____do_________________ mots etLylene oxido). As n cons6Uuont o(spmy edJuvants used on Petrolomn Rulfonate (contalvtng 60 percent ____.do ................ fruits and vcgetablav, minernl oil and 60 percent sultoneted pe- troleum oil of molecWnr weight 392).

Polyglyceryl phthalato ester of coconut oil _.___do________________ AsnsprayndJucnntontrultsandvogetnbles.

fatty acids diluted with ethylene dichlor- ide. 1,1,1-Trlchlorootbane__________________________ ________________________ Aenco[~stltuontofcletonmersusedlnspray

ndjuvan6s on fruits nud vogetablas.

2. Section 121.87 is amended by adding

to paragraph (a) the following items:

§ 121.87 Extension of eflectivc date o£

statute for certain specified food

additives as indireet additives to food.

(a) On the basis oY data supplied in

accordance with § 121.87 and findings

that no undue risk to the public health

is involved and that conditions exist

that make necessary the prescribing of

an additional period oP time fox obtaining tolerances or denials of tolerances or

for granting exemptions from tolerances,

the following additives may be used in

connection with the production, packaging and storage of food Products,

under certain sAecifled conditions for a period of 1 year from March 6, 1960, or until regulations shall have been issued

in accordance with section 409 oP the act,

whichever occurs Srst:

Product I Limits I 6pec1(led uses or rastrlctions

totrnacetla acid, totrasononobutyl aLl~or____________

~btn[nad by wndensetlou of table tatty eclda end ethvlfed nonyl~vauol (0-10 mots _______.___ ,~>. >no-polyoxyprapylene glycol ------------ er, molomilnr weight 2000. ,lbenzone sul(onnto--------_-- _-_-------- mplithalono sul(onicacld can . ....:....... formaldehyde.

. • . :::....:.......... 

~In felt-clowning compound usod In the manufecturo of papor and paperUoord

products.

As a componout o[ food-packaging maNotice and public procedure are not

necessary prerequisites to the promul~ation of this ordex, and I so 8nd, since

extensions oY time, under certain conditions, for the effective date oY the food

additives amendment to the Federal

Food, Drug, and Cosmetic Act were contemplated by the statute as a relief of

restrictions on the fooQ-Processing

industry.

E,~ecttve date. This order shall become efYective as oP the date o4 signature.

(72 8tat. 1788; 21 U.S.C., note under sec. 342)

Dated: November 21, 1960.

ISEAL~ ~TOIiN L. HARVEY,

Deputy Commissioner

o~ Food and Arugs.

[F.R. Doc. 60-11041; Filed, Nov. 28, Ifl80;

8:49 a.m. ~

PART 121—FOOD ADbITIVES

Subpart D—Food Additives Permitted

in Food for Human Consumption

POLYSORBATE 80 ~POLYOXYETHYLENE H2O)

SORBITAN MONOOLEATE)

The Commissioner of Food and Drugs,

having evaluated the data submitted in

a petition filed by Nopco Chemical Company, 60 Park Place, Newaxk, New

Jersey, and other relevant material, has

Mauufacturoofpaporendpaperboard.

-':__.-_-__I~In lel~cleantng compound used 1n ttie manutacturo of paper and pnparUoord.

concluded that the following amendment

to the food additive regulations should

issue in conformance with section 409 0#

the Federai Food, Drug, and Cosmetic

Act, with respect to the food additive

polysorbate 80 (polyoxyethylene (20)

sorbitan monoolea,te) in frozen desserts

as an emulsifier, and as a component of

yeast defoamer. Therefore, pursuant to

the provisions of the act (sec. 409(c) (1),

~2 Stat. 1786; 21 U.S.C. 348(c) (1)) and

under the authority delegated to the

Commissioner by the Secretary of

Health, Education, and Welfaae (25 F.R.

8625) : It is ordered, That ~ 121.1009 of

Subpart D be amended as set forth

below:

In § 121,1009, the introduction to the

section, the section headnote, and paragraphs (c) and (d) are changed to read:

§ 121.1009 Polyrorbato 80 (~olyoxyethylene (20) eorbitun mo~oolcate).

The food additive polysorbate 80

(polyoxyethylene (20) sorbitan monooleate), which is a mixture of polyoxyethylene ethers of mixed partial oleic

acid esters oP sorbiGol anhydrides and

related compounds, may be safely used

in or on food in accordance with the

following prescribed conditions:

w • F 1

(c) The additive is used or intended

for use as follows: