Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices 11583 

1Applicant states that as of September 30, 2009, 

approximately 99.4% of its assets were invested in 

equity securities of Chilean issuers, 96.9% of which 

were listed on the Santiago Stock Exchange. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2010–5256 Filed 3–10–10; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12066 and #12067] 

District of Columbia Disaster #DC– 

00001 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for public assistance only for 

the District of Columbia (FEMA–1882– 

DR), dated 03/03/2010. 

Incident: Severe winter storm and 

snowstorm. 

Incident Period: 12/18/2009 through 

12/20/2009. 

Effective Date: 03/03/2010. 

Physical Loan Application Deadline 

Date: 05/03/2010. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/03/2010 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

03/03/2010, Private Non-Profit 

organizations that provide essential 

services of governmental nature may file 

disaster loan applications at the address 

listed above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Disaster Area: District of 

Columbia. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Non-Profit Organizations with 

Credit Available Elsewhere ... 3.625 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Percent 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.000 

The number assigned to this disaster 

for physical damage is 12066B and for 

economic injury is 12067B. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2010–5253 Filed 3–10–10; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

29169; 812–13749] 

The Chile Fund, Inc.; Notice of 

Application 

March 8, 2010. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of application for an 

order under section 17(b) of the 

Investment Company Act of 1940 (the 

‘‘Act’’) for an exemption from section 

17(a) of the Act. 

APPLICANT: The Chile Fund, Inc. (the 

‘‘Fund’’). 

SUMMARY: Summary of Application: 

Applicant seeks an order that would 

permit in-kind repurchases of shares of 

the Fund held by certain affiliated 

shareholders of the Fund. 

DATES: Filing Dates: The application was 

filed on January 29, 2010, and amended 

on March 5, 2010. Applicants have 

agreed to file an amendment during the 

notice period, the substance of which is 

reflected in this notice. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the requested relief will 

be issued unless the Commission orders 

a hearing. Interested persons may 

request a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on March 29, 2010, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, Securities and 

Exchange Commission, 100 F Street, 

NE., Washington, DC 20549–1090. 

Applicant, c/o Aberdeen Asset 

Management Inc., 1735 Market Street, 

32nd Floor, Philadelphia, PA 19103. 

FOR FURTHER INFORMATION CONTACT: 

Bruce R. MacNeil, Senior Counsel, at 

(202) 551–6817, or Julia Kim Gilmer, 

Branch Chief, at (202) 551–6821 

(Division of Investment Management, 

Office of Investment Company 

Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained via the Commission’s 

Web site by searching for the file 

number, or an applicant using the 

Company name box, at http:// 

www.sec.gov/search/search.htm or by 

calling (202) 551–8090. 

Applicant’s Representations 

1. The Fund, a Maryland corporation, 

is registered under the Act as a closedend management investment company. 

The Fund’s investment objective is to 

seek total return by investing primarily 

in Chilean equity and debt securities. 

Applicant states that under normal 

circumstances it invests at least 80% of 

its net assets in Chilean equity and debt 

securities.1 Shares of the Fund are listed 

and trade on the NYSE AMEX. 

Aberdeen Asset Management 

Investment Services Limited (the 

‘‘Adviser’’), an investment adviser 

registered under the Investment 

Advisers Act of 1940, serves as the 

investment adviser to the Fund. 

2. The Fund proposes to repurchase 

25% of its outstanding shares at 99% of 

net asset value (‘‘NAV’’) on an in-kind 

basis with a pro rata distribution of the 

Fund’s portfolio securities (with 

exceptions generally for odd lots, 

fractional shares, and cash items) (the 

‘‘In-Kind Repurchase Offer’’). The InKind Repurchase Offer will be made 

pursuant to section 23(c)(2) of the Act 

and conducted in accordance with rule 

13e-4 under the Securities Exchange Act 

of 1934. 

3. Applicant states that the In-Kind 

Repurchase Offer is designed to 

accommodate the needs of shareholders 

who wish to participate in the In-Kind 

Repurchase Offer and long-term 

shareholders who would prefer to 

remain invested in a closed-end 

investment vehicle. Under the In-Kind 

Repurchase Offer, only participating 

shareholders will pay U.S. Federal taxes 


jlentini on DSKJ8SOYB1PROD with NOTICES
11584 Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices 

on the gain on appreciated securities 

distributed in the In-Kind Repurchase 

Offer. Non-participating shareholders 

would avoid the imposition of a 

significant Federal tax liability, which 

would occur if the Fund sold the 

appreciated securities to make payments 

in cash. Applicant further states that the 

In-Kind Repurchase Offer’s in-kind 

payments will minimize market 

disruption, while allowing the Fund to 

avoid a cascade of distributions, 

required to preserve its tax status, that 

would reduce the size of the Fund 

drastically. Applicant requests relief to 

permit any common shareholder of the 

Fund who is an ‘‘affiliated person’’ of the 

Fund solely by reason of owning, 

controlling, or holding with the power 

to vote, 5% or more of the Fund’s shares 

(‘‘Affiliated Shareholder’’) to participate 

in the proposed In-Kind Repurchase 

Offer. 

Applicant’s Legal Analysis 

1. Section 17(a) of the Act prohibits 

an affiliated person of a registered 

investment company, or any affiliated 

person of the person, acting as 

principal, from knowingly purchasing 

or selling any security or other property 

from or to the company. Section 2(a)(3) 

of the Act defines an ‘‘affiliated person’’ 

of another person to include any person 

who directly or indirectly owns, 

controls, or holds with power to vote 

5% or more of the outstanding voting 

securities of the other person. Applicant 

states that to the extent that the In-Kind 

Repurchase Offer could be deemed the 

purchase or sale of securities by an 

Affiliated Shareholder, the transactions 

would be prohibited by section 17(a). 

Accordingly, applicant requests an 

exemption from section 17(a) of the Act 

to the extent necessary to permit the 

participation of Affiliated Shareholders 

in the In-Kind Repurchase Offer. 

2. Section 17(b) of the Act authorizes 

the Commission to exempt any 

transaction from the provisions of 

section 17(a) if the terms of the 

transaction, including the consideration 

to be paid or received, are reasonable 

and fair and do not involve 

overreaching on the part of any person 

concerned, and the transaction is 

consistent with the policy of each 

registered investment company and 

with the general purposes of the Act. 

3. Applicant asserts that the terms of 

the In-Kind Repurchase Offer meet the 

requirements of sections 17(b) of the 

Act. Applicant asserts that neither the 

Fund nor an Affiliated Shareholder has 

any choice as to the portfolio securities 

to be received as proceeds from the InKind Repurchase Offer. Instead, 

shareholders will receive their pro rata 

portion of each of the Fund’s portfolio 

securities, excluding (a) securities 

which, if distributed, would have to be 

registered under the Securities Act of 

1933 (‘‘Securities Act’’), and (b) 

securities issued by entities in countries 

which restrict or prohibit the holding of 

securities by non-residents other than 

through qualified investment vehicles, 

or whose distributions would otherwise 

be contrary to applicable local laws, 

rules or regulations, and (c) certain 

portfolio assets that involve the 

assumption of contractual obligations, 

require special trading facilities, or may 

only be traded with the counterparty to 

the transaction. Moreover, applicant 

states that the portfolio securities to be 

distributed in the In-Kind Repurchase 

Offer will be valued according to an 

objective, verifiable standard, and the 

In-Kind Repurchase Offer is consistent 

with the investment policies of the 

Fund. Applicant also believes that the 

In-Kind Repurchase Offer is consistent 

with the general purposes of the Act 

because the interests of all shareholders 

are equally protected and no Affiliated 

Shareholder would receive an advantage 

or special benefit not available to any 

other shareholder participating in the 

In-Kind Repurchase Offer. 

Applicant’s Conditions 

Applicant agrees that any order 

granting the requested relief will be 

subject to the following conditions: 

1. Applicant will distribute to 

shareholders participating in the InKind Repurchase Offer an in-kind pro 

rata distribution of portfolio securities 

of applicant. The pro rata distribution 

will not include: (a) Securities that, if 

distributed, would be required to be 

registered under the Securities Act; (b) 

securities issued by entities in countries 

that restrict or prohibit the holdings of 

securities by non-residents other than 

through qualified investment vehicles, 

or whose distribution would otherwise 

be contrary to applicable local laws, 

rules or regulations; and (c) certain 

portfolio assets, such as derivative 

instruments or repurchase agreements, 

that involve the assumption of 

contractual obligations, require special 

trading facilities, or can only be traded 

with the counterparty to the transaction. 

Cash will be paid for that portion of 

applicant’s assets represented by cash 

and cash equivalents (such as 

certificates of deposit, commercial paper 

and repurchase agreements) and other 

assets which are not readily 

distributable (including receivables and 

prepaid expenses), net of all liabilities 

(including accounts payable). In 

addition, applicant will distribute cash 

in lieu of fractional shares and accruals 

on such securities. Applicant may 

round down or up the proportionate 

distribution of each portfolio security to 

the nearest round lot amount so as to 

eliminate an odd lot prior to 

distribution and will distribute the 

remaining value of the odd lot, if any, 

in cash. Applicant may also distribute a 

higher pro rata percentage of other 

portfolio securities to represent such 

fractional shares and odd lots. 

2. The securities distributed to 

shareholders pursuant to the In-Kind 

Repurchase Offer will be limited to 

securities that are traded on a public 

securities market or for which quoted 

bid and asked prices are available. 

3. The securities distributed to 

shareholders pursuant to the In-Kind 

Repurchase Offer will be valued in the 

same manner as they would be valued 

for purposes of computing applicant’s 

net asset value, which, in the case of 

securities traded on a public securities 

market for which quotations are 

available, is their last reported sales 

price on the exchange on which the 

securities are primarily traded or at the 

last sales price on a public securities 

market, or, if the securities are not listed 

on an exchange or a public securities 

market or if there is no such reported 

price, the average of the most recent bid 

and asked price (or, if no such asked 

price is available, the last quoted bid 

price). 

4. Applicant will maintain and 

preserve for a period of not less than six 

years from the end of the fiscal year in 

which the In-Kind Repurchase Offer 

occurs, the first two years in an easily 

accessible place, a written record of the 

In-Kind Repurchase Offer that includes 

the identity of each shareholder of 

record that participated in the In-Kind 

Repurchase Offer, whether that 

shareholder was an Affiliated 

Shareholder, a description of each 

security distributed, the terms of the 

distribution, and the information or 

materials upon which the valuation was 

made. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–5235 Filed 3–10–10; 8:45 am] 

BILLING CODE 8011–01–P 


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