289..99 

. / 

RULES AND REGULATIONS 

with the MARAn regulations covering 

the commodity to which such data.relate. 

notice" and public"procedure thereon are not neeessary.-Also, because this action 

relieves a restriction no delay in effective 

date if>"necessary. 

Accordingly, § 3'19.4(e) (l) (ill) of the 

Expor!;. Administration Regulations a5 

CFR,. 3'19.4(e} (l) CIii) is revJsed to read 

as follows: 

§ 379.4- GeneralIicenseGTDR; technical 

data under restriction. 

o o * *' * 

(e)' * "* * 

(l), ~_ *' * 

(iii) Teebnical data.-relating to thefollowing materials and equipment: 

(a) Other artificial graphite, and electrodes.. electrical carbons. and o.ther 

products made thereof. whether or- not 

coated or composited with other materials to improve its performance-atelevated 

temperatures or to reduce its permeability to gases. having anapparent relative 

density of 1.'10 or greater when cQmpared to water at 60 0 F <15.5 0 C). and 

with. a. particle grain six of less than 

0.001 inch CI mil) CECC Nos. 59UD. 66 

(6).and'1299"U4» ; 

CO) EIectric.:furnacesspeciaIIY"designed 

for the.production or- processfug ofvapor - deposited (pyro1Yf;ic) graphite or doped 

graphites whether as standing bodies. 

coatings. linings or substrates eECC No. 

'1299(7» ; 

- (e) Other gravity meters (gravimeters); and Parts and accessories, .n.e.c. 

CECCNo. 8619(12» : (el) Other transonic,. supersonic;. hYpersonic. andllypervelocity wmd tunnelS 

and devices; and Parts and accessories, n.e.c.. <ECC Nos. '11980(23). '1295(46», 

8618(D. and8619<10} ) : 

(e) Watercraft of 65 feet. and oyer in 

overa1llength, designed to include mo­ tors or engines of 600"horsepower or over 

and greater than 45 displacement tons;' 

rtl Methyl methacrylate, cross-linked. 

hot stretched. clear. :film. sheeting. or IamiI,lates CECC·No. 581(11) ) ; 

(g) Doppler sonar navigation systems 

CECC No. '1295(22» ; 

en) Aerial camera film, sensitized and 

unexposeO. as follows: (a) having spectral sensitivities at wavelengths greater 

than 7,200 Angstroms or at wavelengths less than 2,000 Angstroms; or (b) having 

resolvinlf powers (using- a Test Object , Contrast of 1.000:1) of 100Iinepairs/mm or more or with a. base thickness- before 

coating -«If 0 004- inch or less CECC Nos 

862(5} and (Sa}) • • 

m Continuous'tone aerial duplicating. 

film. sensitized and unexposed. having 

resolving powers (using a. Test-Object 

Contrast of 1.000:1) of 300- line pairs! mm or more (ECCNo. 862" (Sb» : <11: Instrumentation and/or recording 

:film.. sensitized and Unexposed, having 

1Tlifs COIllll1odIty 15 not l1sted on the COmmodity COntrol LIstsince It.15 under the ex­ port control jurJsdlct10n ofthe U.s.1tfar1tlme 

AdmInistration. However. technJ.ca1 data. re­ lating to this col1!ModIty 15 under the export 

controL jurlsd!et1on of the Office of Export 

Adminlstration. 

photo-recording sensItivIties (llS based on the reciprocal of the tungsten expos­ ure in meter-candle-seconds at an ex­ posure time of 0.0001 second) of 125 or more and a resolving power (using a Test-Object Contrast of 1.000:1) or 55 

line paIrstmm or more and wIth a bl!SC 

thickness before coating of 0.004 inch or less and capable of being processed in 

solutions with aIknIiniUes of pH 10 or above at temperatures greater thm 85° 

FcECUNCh 862 (Sc». 

(k) Maraging steels contalnJog all or the following: 12 percent ormore nickel. more than 3 percent molybdenum. more fum 5 percenl; cobalt. and less thm 0.5 

percent carbon CECC Nos. 67(3) and 

6)(8» ; 

a> TransformatIon Induced Plasticity­

(TRIP) steelS or penta-aIloy ausforming 

stainless steelS of the following composition: 8 to 14 percent chromium. I) to 10 

percent mckel, 2 to 5 perecnt molybdenum, 1 to 3 percentsWcon. 0.'15 to 3 percent mnnganese. and 0.15 to 0.35 percent carbon (EOC Nos. 6'1(3) and 69 

(8n. 

(m) Other high speed· continuous 

writing. rotating drum cameras capable 

of recording at mtes in excess or 2.000 

frames per second: and parts and acces­ sories. n.e.Cr CECCNo. 86140(8»; 

en) Other 16 mm hIgh speed motion 

pIcture cameras capable or recording at 

rates in e.~cess of 2,000 frame:> per sec­ ond; and parts and accessories. n.e.c. eECC No. 86150(3» ; and 

(0) SIngle crystal sapphIre substmte:> 

eECC No. 66 (Ba». 

RAUER H. Ml:n:n. 

DErector, OUlce 0/ 

E:J:portAdmfnfstratfon. 

. [F&OOC.7'l-lGDS7F11ed 6-6-77:8:45 amI 

Title 17-Commodlty and Securities
 

Exchanges
 

CHAPTER Il-SECURlnES AND
 

EXCHANGE COMMISSION
 

[Be1eu.soNo. 10-97811. AS-219: F1lo No. 

S7-568AJ 

PART 211-INTERPRETATIVE RELEASES 

RELATING TO ACCOUNTING MATTERS 

(ACCOUNTING SERIES RELEASES) 

PART 271-INTERPRETATIVE RELEASES 

RELATING TO THE INVESTMENT COM. 

PANY ACT OF 1940 AND GENERAL 

RULES AND REGULATIONS THERE. 

UNDER _ Valuatfon of Debt Instruments by Money Market Funds and Cerbin Other Open· 

End InvestmentCompanies 

AGENCY:" securities and Exchange Commission. 

ACTION:Rule Interpretation. 

SUMMARY: The CommissIon hllS fssued an interpretation of a rule adopted under 

the Investment Company Act of 19~0

(the "Act") indicating, genernUy. that 

it shll11 be considered inapproprIate 

Under the provJsIons or the rule for 

"money market" funds and certain other 

open-end investment compnnles to determine the fair nlue or debt portfolio 

securities on an amortized cool; bnsIs. e.,,­

(Cpt in the case of securIUes with remaining maturities of 60 daIs or Ie$. 

There has been consrderable comUSfon 

and uncertainty- as to the appropriate 

methods to be ut1lfzed "money market" funding in wIning' their partfolio securities. This interpretation 

should help insure that sbares or such 

compnnles are sold and redeemed at 

prices re1rccting the fair value of the 

underlying portfolio securities. 

EFFEdnvEDATE: ImmediateIs'_ 

FOR FOR'l'HER INFORi.'\rATION CONTACT: 

Kenneth S. Gerste.Iu. Esq..DivIsfon. of 

Investment Management, securities 

and Exchange Commission. WashingtOIlr D.C. 211549. 202-'155-0233. 

SUPPLEMENTARY INFORMATION: 

On April 28. 1975, there was published 

for pubIrc comment; notice of a positfon the COnuDlssfon proposed totake regarding the standardization of procedures 

Utilized. by regfstered investment com­ panies. including- "moneymarket:· funds. 

for the valuation orshort-term debt: instruments in thefr portfolios (40 FE 

18467>.sThe proposed valuation positfon" 

wouId bave sugSesfed "marking to mar­ ket.'· as the mo~appropriate-method for 

valuing any- short-term. debt securitfes 

held by re;;Istered Investment companies 

and would have expressed the belIef 

that itwould be desirable :rorsuch com­ pames to discontinue the "amortized 

.cost... method ofvaIuation.'" 

AmODg the public comments received 

with respect to the proposed position on wIuation of short-tenn debt instruments were those suggesting that: en 

the benefits or "marking-to market.. valuation were smaIl compared to the attendant costs or such valuation method: 

(2) lJlaDY "money market.. fund shareholders desire a valuation method tbat 

would aebfeve a constant asset value: 

and (3) the CommrssIon lacks the au­ thority to preclude the use of amortized 

cost valuation. Other commentators 

suggested that oDIy "money market'" 

funds be required to "mark to market.'" 

Nevertheless. after cODSfderaUo:;.. and 

anaIys!s or the comments received. with. 

respect to the proposal. the Cmnmrssron,. 

for the reasons dIscussed below. has issued this interpretation settingforth its 

views as to the appronrfateness of cer­ tainmethodsutnrzed. by-"moneymarket" 

funds and certaIn other regf.sfered open.­

end manngement investment companies 

to determine the :rarr value of deb~ se­ curItiesin their portfoIros.The interpre1 Investment. COmp:my Act; of 1940 Release 

No. 8'157. Apr!11S. 1575. 

=-rd. Tho release aIco Indfcated the COmmJs:lIon'& tentativo vIew that. money market 

funds might. be perm!tted to portray return 

by mc= or II quotatfon such as "yfeId to 

nVCll1ge 11!e...InIl1v~t.CompanyAct;Rel~o l~o. 881S (June 12. 1975) (411 F&2.7492)

notice Wll!> F!lven of propos~guidelinesWith 

r~cf; to stlmd3tdlz!ng.money market.!und 

Sll!lcl CluotntlOn!i. Such gI1!de1lneswould have 

pormltted the usa or '"yield to average 1l!e·· 

quotatlon:r. The Comm1ss!on 15 stU1 considering tbe:;o Jnl1tters. 

FEDERAL REGISTER, VOL. 42. NO. 109-TUESDAY, JUNE 7, 1977 
29000·· RULES AND REGULATIONS 

tatton that the Commission has issued or less than the actual value of their 

cillIers In some respects from the pro-; proportionate shares of the funds' cur­ posed position and is discussed In detail rent net asset.s. The effect of such sales 

below. The Commlsslon expects com- or redemptions may therefore result In 

panies to comply with this Interprets.- inappropriate dilution of the assets and 

tion at the earliest possible date conslst- . returns of existing shareholders.· 

ent with their obligations to avoid dIs- Although Inappropriate valuation of 

ruptlon ·of their operations, but in any securities could cause these effects in 

event not later than November 30, 19'77. varioqs types of fun~, the position taken 

The Commission recognizes ~at, in, herein is addressed speclflcaDy to the 

the absence of the Interpretation it has -. case of: (1) "MOney market" funds, and 

determined today to Issue, there has (2) othElt' open-end investment com­ been considerable conTusion and un- panles that hold a significant amount of 

certainty as to the appropriate methods . debt securities, such that the use of the 

to be utilized by "money market" funds amortized cost method In valuing any In valuing their portfolio securities. ThiS portion or type of theSe debt securities 

interpretation should help remove the could have a material impact on such 

uncertainty and further the objectiVes of funds' net. asset values per share. Genenabllng investors in such funds to: (l) eraJly, the Commission would consider 

Purchase and redeem their shares at the use of a particular valuation method 

prIces appropriately refiectlng the cur- to have a material impact if the use rent value of fund portfolio securities; of that method, as opposed to another 

(2) be properly credited for any unreal-. method, might cause a change of at least 

Ized appreciation or depreciation in such 

portfolio securities' and (3) be pro­ vided with meanlngrul and comparable information with which to appraise Investment returns and the current 'earnlng ability of "money market'! funds. 

Interpretation With. B8$pect to Valuation of Debt Instruments By Money 

Market Funds anrl Certain Other OpenEnd, Inv8$tment_Companles. The Commission Is aware that maIiy investment 

companies, inclUding some "money mar­ ket" funds value short-term debt instruments in their portfolios on an amortized 

cost basis. Under this method of valuatlon, investment companies initially val­ ue such instruments at their cost on the 

date of purchase and, if the instrument was purchased at a discount, thereafter assume a constant proportional Increase 

in value untl1 maturity.3 However, during the period a debt 

securIty Is held, changes in the market 

rate of interest and other factors may affect the price at which that security could be sold. As a general principle, the longer the remaining maturity of an outstanding debt security, the more that 

price wlll be affected by such interest rate 

changes. 

The Commission Is concerned that the use of the amortized cost method in 

valuJng portfolio securities of registered Investment . companies may result in 

overvaluation or undervaluation of the 

portfolios of such companies, relative 

to the value of the portfolios determined 

with .refereuce to current· market factors. In the ease of registered open-end 

management investment companies ("mutual funds" or "funds") I this would mean investors purchasing or redeemIng shares could payor receive more 

DIn slmpUlled terms, for instruments pur­ chased at a discount, the d1fI'erence between 

the cost of such an JDstrument at purchase and Its maturity value Is d1vlded by the 

number of days to maturity and" tbat 

amount Is accrued dally as an Increase in 

the value of the 1JlBtrument each day. More _ precisely, amortized cost valuation may be described as cost, adjusted for amortlzatlon ot premium, or for accretion of dIscount. 

one cent in a. net asset value per share 

of $10.00.~ The interpretation explained below wm be applicable to both "money market" funds and these other open-end investment companies.· Generally, "money ma.rket" funds are open-end investment companies which 

invest primarIlY in short-term debt instnunents. They provide a vehicle to per­ mit investors to take advantage of what 

at times may be the higher short-term 

interest rates earned on large investments. Through a poollng of money these 

funds enabl~ the purchase of larger denomination mstruments th~n could nor­ malIy be bought by the individual small 

investor. These funds have also attracted 

investments from corporations, bank 

trust depa.rtments, and other instltutional investors. Another characteristic 

of money ma.rket funds is the short-term 

investment perspective of many shareholders. Although. the. portfolio composl­

• For example, redemptions of &hares in a fund' which has overvalued Its portto110 or sales of shares in a. fund which has undervalued Its portfo110 coUl!! resUlt in the . dUutlon of the assets and returns of other 

investors in the fund. 'l'he extent Of such 

dUutlve effects woUld be dependent upon several faCtors, lncludtDg the extent of the 

overvaluation or undervaluation, and the 

proportion of fund shares sold or redeemed 

at such tlmes. ­

Although one cent d1fferences in net asset 

values per share ot $10.00 might appear to be 

lnslgnlflcant. the effects 01 such differences can be mater1itl to the decIsions ot investors 

when translated into d1fI'erences in rates ot 

return. Moreover, the Inequitable effects of 

amortlzeil cost valuation can occur in the case of any open-end investment company where a B1gn1f1cant proportlon of a.company's portfolio consists of debt securities valued at 

amortIzed cost. 'l'he extent Of such IneqUi­ table ·effects will, Of course, depend upon changes In Interest rates and the level of a company's sales and redemptions of ebares. 

.Bee, generally. Accounting 5er1es Release 

No. 118 (December 23. 1970) (35 FR 19986), 

"Accounting for Investment securities by Registered Investment companies," and Investment Company Act of 1940 Release No. 

'1221 (June 29. 1972) (3'1 FR 12790), "Guldelines for the Preparation of Form N-8B-1," as they relate to the valua110n of portrollo securIties-by open-end investment companies. 

tion of "money market," funds is variable 

both In terms of the types of securities

purchased and their maturities, the port.; folios of such funds typically include U.S, 

government and government aeency Issues, cert1flcates of deposit, banker's

acceptances, and commercIal paper. Section'22(c) <15 U.S.C. 800.-22(0» of 

the Act (15 U.s.C. 80a-l et seq.): by reference to section 22(a) <15 'O.S.O. 

80a.-22(a)') of the Act, authorizes the 

Commission to adopt rules prescribIng, inter alia, methods for computing the 

minimum purchase price and maximum 

redemption price of redeemable securities issued by a registered investment 

company: 

••• • for the purpose of eUminatlng or reduclDg 80 far as reasonably praotlcable 

any d11utlon of the value of othor outstandIng securities of such company or any other 

result ot. • • purc1:lase, redemption, or sale which Is unfair to holders of such other 

outstandlng securIties. • • • 

Section 2(a) (41) (15 'O.S.C. 80a-2 

(a) (41» of the Act defines "value", as here relevant, to mea.~:

(B) • • • (I) with respect to socurltJcs 

for which market quotations lIro readily avaUable, the market vll1uo of suoh seourl-­

ties: and (11) With respoot to other soourltles 

and assets, fair value as dotormlnod In good faith by the (registered Investment com­ panY's) hoard ot dlrectors • • ., 

Rule 28.-4 (1'1 em 270.2a-4) proniul­ gated under the Act provides, In part, that the "current net asset value" of a. 

redeemable securIty issued by a regis­ tered investment company used In com­ puting its price, for the purposes of distribution and redemption, means: 

• • • an amount which rollsots colo\llatlons • • • mode substantially In accord­ ance wIth the following. wIth estImates uSlld 

where necessary or appropriato: (1) Portfollo securltles with respect to 

which market quotations are readily aVaUable shall be valued at current market wtuo, 

and other securities • • • sholl bo vnluod 

at falr value as determined In good fl\lth by 

the board of dlrcetorlJ • • •• 

Now that both the Commission Ilnd 

the money market fund Industry ha.vo 

had the benefit of experience with this

.relatively new investment product, and 

to help insure that wllres of such funds are sold and redeemed at prices reflectM 

lng the current market or fair value of 

such funds' portfolio securities, tho 

Commission has concluded that it shaH 

prospectively consider it inconsistent • with the provlslons of Rule 211-4 for a. 

money ma.rket fund to detennine the 

faIr value of debt securities which 

mature at a date more than 60 days sUbsequent to the valuation dafe on an amor~ed cost b~1s.

Although debt securities with remRinlng maturities in excess of 60 days should not be valued -at amorUzed cost, 

the Commission w1B not object if tho 

board of directors of a money market 

fund, in good faith, determines that tho 

falr value of debt seCUrities or1eInally 

purchased wIth remainb1lt maturities of 

60 days or less shall be their amortized 

FEDER4L REGISTER, VOL. 42, NO. 109-TUESDAY. JUNE 7, 1977 
29001 

.f 

.'	 I 

cost value, unless the particular circumstances dictate otherwlse.T Nor wm the 

CommisSion object if, under sImilar circumstances. the fair value of debt secu­ rities originally purchased With maturIties of in exceSs of 60 d~. but which 

currentlY .bave maturities of 60 days or less, Is determined by using amortIZed 

cost valuation for the 60 days prior to 

maturity. such amortiZation being based 

upon the market or-fair value of the 

-securIties on the 61st daY prior to 

maturity." . • . The CommiSSion belJeves that money 

marketfunds and those other companies 

to which this interpretation is applicable 

shoUld value debt securities with greater 

than 60 days remaining to maturity 

based upon current market quotations 

ifreadily avaUable or. ifsuch quotations are notreadily available, in such a man­ ner as to take into,account any unrealized appreciation or depreciation due to 

changes in Interest rates and other factors which would in1luence the current _ fair values of such securltles.o These 

methods are sometlmes referred to as "marking to market." 1n determJn1ng 

"fair value" by reference to current interest rates and other factors. the bo~d

of directors of a money market fund 

DUlY. of course, utilize whatever method 

it determ1nes in good faith to be most 

appropriate.:so The method utfJ1zed could 

beoased In part. for example. upon quotations by dealers or issuers for securi­ _.ties of simDar type. quality andmaturlty. 

Exceptin the circwnstances delineated 

a.bove. the Commission }JeUeves that, .in 

view of the experience which has now been gained with respect to the characteristicS of money market funds. the use of the amortazed ccst method of valuation by a. money market fund ~ot In 

the future represent & "good fnfth" effort 

to determine_the "fair value" of portfolio 

. 'The fair value of seeul'1t1es with remainIng maturities of 60 days or less may not al­ . ways be accurately reflected tbrough the use 

or amortized cost valuation, due to an 1mpairment ot the credltworthlness of an Is­ suu. or othu factors. In such Situations, 1t 

would appear to be Incumbent upon the directors ot a fund to recognlze such :factors 

and take them. Into account in determ1nlng 

"fair value." . 

• .A fUnd also may use amortIZed cost valuation for a period less than 60 days prior to matur1~,.1nwhlch case "the prInciples indicated above would also be appDeable. o In Accountmg series Release No. 118, note 

6. supra, the CommIssIon stated that: Its a gene~pr1nclple, the eurrent "fair value" of an Jssue o! securities belng valued by the 

Board of Directors would appear to be the amount whlch the ownu might reasonably 

expect to receive for them. upon theh' c:urrent 

sale. . 

In that release, the eoimmsmon noted VIU'­

lous factors that mltht be conslde~edIn ar­ rIvIng at "fah' value". which :£actors inc1ucleel: Yield to maturity with respect to debt Issues ••• an evaluatlon of the fo~ces which 

Jn11uence the market in "Whlch these securlties are purchased and sold ••• (and the) 

price and extent of pubUc tradlDg in slm1lnr 

securities. of the Issuu or comparable com­

-panies. and othurelevant matters.
 

ID5ee note 66Upta.
 

RULES AND R~GULATIONS

securitIesfor purposes ofRule 2a-4: such 

valuatlon faDs to consIder the lmPllct of 

market factors subsequent to the date a debt security Is purch8S\?d on the vtllue 

of such security. Moreover. the probability that amortized cost vDJuatlon wm 

not approxlmllte "fnlr value" Is pro;rrcsslvel.Y great~r for securities of increasIngly loncer maturitIes. The Commlssfon 

believes that the use of amortized cost 

valuation by money market funds In 

.valuIng s~tles with remn~ ma­ turltles In e.'l:cess of 60 dayS Is not an 

appropriate estlmnte of mnrket value or "felr value" and further that. because 

alternative valuation procedures whlCh 

consIder market factors arc aValJable. use of amortized cost Valuation under 

such circumstances as an estimate Is not 

necessary. This standard should help in­ sure that fund shares are sold and re­ deemed at'prlces reflectfng the nppropri: 

ate proportionate sbare of funds' current 

net assets. nnd mlnlm1Ze the potcntfDJ 

for dDutlon of the assets and returns of 

existing shareholders.

The CGmmlsslon Is also of the view 

that money market fund shareholders 

shoUld be accurat~ly credited wIth the 

effects of any 'tUlreallzed apprecIatfon or depreciation that may occur when the 

value of a fund's portloUo fluctuates. If 

such effects nre not reflected In clthcr a 

fund's net asset value or Its dlstrlbutloDli 

to shllreholders. as a pracUcnl matter 

the resUlt would be II. situation annlOgous 

to that whlch would exlst if amortized 

cost valuation were used, and slmUar 

d1!utive e1fects coUld occur. ~ch may be 

the case, for e.umple, where II. money 

market fund "mllrks to market." but 

declares a dally dividend of accrued interest income and re1lects any rcmll.1nlng 

un.realIz.."'d appreclntlon or depreclntlon

In a ".floating" net asset value of $1.00 

nominal value per share, rounded to the 

nearest cent. Under these clrcumstimces. 

unrea1lzeil capital changes, which could 

mater.lally affect the value or such fund's 

portfolio. would ordlnarl]y not be of sufficient magnitude to Clluse the net asset 

value to change by one cent. The efrects 

of unrea11zed appreciation and depreclation, In the case of a fund mth a "noatmg" $1.0,0 net asset value per shore. 

would general]y appear In the third and 

fourth decimal places, and when rounded 

to the third decImal place CLe., tenths 

of one_c~t) would stlll not have a one cent impact on the net asset value. 

Moreover, if such a one cent change 

shoUld occur, dUution may also resUlt, 

since a relatlvely Emall change In net 

asset value would cause a larger change 

in the computed net asset valuepershare 

due to rounding. For c-"l:ample. if In the 

"type of fund described above the net 

asset value was calculated ac~urnte]y to 

three deqlmal places, were a change in 

net asset value from $1.004 to $1 OOS to occur such change of S002 would cause - th ' • e net asset value, when rounded to the 

nearest cent. to change by one fun cent. 

To ~ev1ate ~ese results and Insure 

that shareholders are more properly credited for capital appreclntldn or depreclatlon. the Commission belJeves that 

any money market fund whlch re.flects 

capJtal changes In its net asset value per 

share should calculate. and utDJze· for 

purposes of sales and redemptions. a 

current net asset value per share with 

an accuracy of one-tenth of one percent (equiValent to the nearest one cent on a net asset value ot $10.001 Any less 

precise calculation by such a fund might 

have the efl'ect of masking the imPact ot 

changing values ot portfolIo securities 

and there!ore might not "ret)ecf," the 

fund's ctl1cuJations pertalnJng to its portfoUo valuation as requIred byRUle 2a-4..'" 

Boards or dlrectors or money market 

funds and those other funds referred to 

above shoUld consider and re-evaluate 

current fund. pricJng practices in light 

of the positions expressed herein. In thIs 

regard, the Co~onrecognIzes that 

such considerations may result In. decisions by some funds to make various 

mod1fic:atfons of their valuation and distribution practices. To avoid any sudden 

changes in net asset values some funds 

mfght wish to effect a gradual transition 

to new vDJuation methods. Moreover. some time may be necessary to take the 

action neceoslUY to adopt new diVidend 

poUcles or other measures designed to 

implement the vIews expressed herein. 

There!ore. to allow adequate time for 

plannJng and effecting orderly transitions, the CommL"Sfon. as noted abOve. 

expects companIes to complY with thIs 

Jnternretation by no later than November 30.1977. 

BytheCo~on.

GEORGE A. P.a2sIm.rONS, 

Secretary. 

MAy 31, 1977. 

(PRDoe.'Tl-159711 PJIed &-6-77;8:45 am] 

Title 18-Conservation of Power-and
 

Water Resources
 

CHAPTER I-FEDERAL POWER
 

COMMISSION
 

SUBCHAPTER E-R.EGUtATlONS UNDER THE
 

NATURAL GAS ACT
 

[Docket No. RM77-8; Order No. 565J
 

PART 157-APPUCA,TIONS FOR CERnRCATES OF PUBUC CONVENIENCE AND 

NECESSITY AND FOR ORDERS P.ERMmlNG AND APPROVING A'BANDON­ •	 MENT UNDER SECTION 7 OFTHE NATURAL GAS ACT 

Order DeletingRl!Qulrements for Physical Removal ofEmergency FacUities 

AGENCY: Federal Power CommIssion. 

ACTION: Final rule.
 

5OMMARY: The CommJssfon Is iunend-,
 

Lng t.wo sections ot its RegUlations under
 

-uSuch CII1eulation 15 appUcable o%lly with 

respect to these money market funds wblch 

do not 1I1c1ude 111 theIr dlstnbutlonstosbateholders all capitol c:lUmges. If such a fund 

hIl111l net esset value at '10.00 per share. 1t 

woUld be opproprlnte to calculate its cur­ rent net ~t value ac.cmately to one tenth 

of lL cent. rounded to the :aearest one cent. If such a fund bad a net asset value per 

ohlu'e o[ 51.00 it would be approprlate to ca1­

culllte its e:urrent net 115et value accurately 

to the nema!; 011& hunl!redth or one cent. rounded to the nearest one tenth orone cent. uSCo nato 5. aupra. 

FEDERAL REGISTER. VOL 42. NO. 109-TUESOAY. JUNE 71 1977 

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