Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Notices 42611

insured by the joint bond regarding recovery

under the joint bond.

(iv) Required Filings with the Commission.

Upon execution of a fidelity bond or any

amendment thereto, a fund must file with the

Commission a copy of: (i) The executed

fidelity bond; (ii) the resolution of the fund’s

directors approving the fidelity bond; and

(iii) a statement as to the period for which

the fidelity bond premiums have been paid.

In the case of a joint bond, a fund also must

file a copy of: (i) A statement showing the

amount of a single insured bond the fund

would have maintained under the rule had

it not been named under a joint bond; and

(ii) each agreement between the fund and all

other insured parties. A fund also must notify

the Commission in writing within 5 days of

any claim and settlement on a claim made

under a fidelity bond.

(v) Required Notices to Directors. A fund

must notify by registered mail each member

of its board of directors (i) of any

cancellation, termination or modification of

the fidelity bond at least 45 days prior to the

effective date; and (ii) of the filing or

settlement of any claim under the fidelity

bond when the notification is filed with the

Commission.

The fidelity bond content

requirements, the joint bond agreement

requirement, the independent directors’

annual review requirement and the

required notices to directors are

designed to ensure the safety of fund

assets against losses due to the conduct

of persons who may obtain access to

those assets, and facilitate oversight of

a fund’s fidelity bond. The rule’s

required filings with the Commission

are designed to assist the Commission in

monitoring funds’ compliance with the

fidelity bond requirements.

The Commission estimates that

approximately 3,200 funds are subject to

the requirements of rule 17g–1, and that

on average a fund spends approximately

one hour per year on complying with

the rule’s paperwork requirements. The

total annual burden of the rule’s

paperwork requirements thus is

estimated to be 3,200 hours.

Rule 206(4)–3, entitled ‘‘Cash

Payments for Client Solicitations’’

provides restrictions on cash payments

for client solicitations. The rule imposes

two sets of information collection

requirements. Where only impersonal

advisory services are to be provided or

an affiliation between the solicitor and

adviser exists, the rule requires that the

fee be paid pursuant to a written

agreement and that the prospective

client be advised of any affiliation

between the adviser and the solicitor.

Where individualized services are to be

provided, the solicitor must furnish the

prospective client with a copy of the

adviser’s brochure and a disclosure

document containing specified

information. The information collection

and disclosure requirements in rule

206(4)–3 permit the Commission’s

inspection staff to monitor the activities

of investment advisers and protect

investors. Rule 206(4)–3 is applicable to

all registered investment advisers.

The Commission believes that

approximately 4,577 of these advisers

have cash referral fee arrangements.

Under the recently enacted National

Securities Markets Improvement Act of

1996 (the ‘‘1996 Act’’), however, only

about 1,281 advisers are subject to the

rule after the legislation became

effective on July 8, 1997. The rule

requires approximately 7.04 burden

hours per year per adviser and would

result in a total of approximately 9,018

total burden hours (7.04×1281) for all

advisers.

Rule 206(4)–4, entitled ‘‘Financial and

Disciplinary Information that

Investment Advisers Must Disclose to

Clients,’’ requires advisers to disclose

certain financial and disciplinary

information to clients. The disclosure

requirements in rule 206(4)–4 are

designed so that a client will have

information about an adviser’s financial

condition and disciplinary events that

may be material to a client’s evaluation

of the adviser’s integrity or ability to

meet contractual commitments to

clients. The Commission does not use

the information disclosed to clients.

It is estimated that approximately

3,222 advisers were subject to this rule,

but that after the 1996 Act became

effective only 902 advisers are subject to

the rule. The rule requires

approximately 7.5 burden hours per

year per adviser and would amount to

approximately 6,765 total burden hours

(7.5×902) for all advisers.

Rule 206(4)–3 does not specify a

retention period for its recordkeeping

requirements. The disclosure and

recordkeeping requirements of rule

206(4)–3 and the disclosure

requirements of rule 206(4)–4 are

mandatory. Information subject to the

recordkeeping and disclosure

requirements of rules 206(4)–3 and –4 is

not submitted to the Commission, so

confidentiality is not an issue.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a currently valid

control number.

Written comments regarding the

above information should be directed to

the following persons: (i) Desk Officer

for the Securities and Exchange

Commission, Office of Information and

Regulatory Affairs, Office of

Management and Budget, Room 3208,

New Executive Office Building,

Washington, DC 20503; and (ii) Michael

E. Bartell, Associate Executive Director,

Office of Information Technology,

Securities and Exchange Commission,

450 Fifth Street, NW., Washington, DC

20549. Comments must be submitted to

OMB within 30 days of this notice.

Dated: July 28, 1997.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20748 Filed 8–6–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. IC–22776; 811–5774]

ABD American Capital Markets Funds,

Inc.; Notice of Application

August 1, 1997.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for

deregistration under section 8(f) of the

Investment Company Act of 1940 (the

‘‘Act’’).

SUMMARY OF APPLICATION: Applicant

ABD American Capital Markets Fund,

Inc. requests an order declaring that it

has ceased to be an investment

company.

FILING DATES: The application was filed

on April 4, 1997, and amended on June

19, 1997 and July 21, 1997.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the SEC orders a hearing.

Interested persons may request a

hearing by writing to the SEC’s

Secretary and serving applicant with a

copy of the request, personally or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

August 26, 1997, and should be

accompanied by proof of service on

applicant, 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 SEC’s Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, N.W., Washington, D.C. 20549.

Applicant, 75 Wall Street, New York,

N.Y. 10005–2889.

FOR FURTHER INFORMATION CONTACT:

Joseph B. McDonald, Jr., Senior

Counsel, at (202) 942–0533, or Christine

Y. Greenlees, Branch Chief, at (202)

942–0564 (Division of Investment

Management, Office of Investment

Company Regulation).

SUPPLEMENTARY INFORMATION: The

following is a summary of the
42612 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Notices

1 In late 1990, applicant commenced a voluntary

redemption of all of its publicly-held shares. To

accomplish the voluntary redemption, applicant

received no-action assurance from the SEC’s

Division of Investment Management. See ABD

American Capital Markets Funds, Inc. (pub. avail.

Nov. 16, 1990). Following the voluntary

redemption, ABD Securities Corporation,

applicant’s investment adviser and manager,

retained a minimum number of shares as

applicant’s sole shareholder.

2Although the Board considered whether to

liquidate applicant in 1990, it undertook the

voluntary redemption so as to retain the ability to

take prompt advantage of a change in the German

investment climate for U.S. securities. However,

since a beneficial investment climate for applicant’s

shares has not developed, the Board found that it

was in the best interests of applicant to deregister

under the Act.

application. The complete application

may be obtained for a fee at the SEC’s

Public Reference Branch, 450 Fifth St.,

N.W., Washington, D.C. 20549 (tel. 202–

942–8090).

Applicant’s Representations

1. Applicant is an open-end,

diversified, series management

investment company organized as a

Maryland corporation. On February 27,

1989, applicant filed a Notification of

Registration on Form N–8A pursuant to

section 8(a) of the Act. On the same day,

applicant filed a registration statement

on Form N–1A to register an indefinite

number of shares of common stock

under section 8(b) of the Act and the

Securities Act of 1933. The registration

statement became effective on

September 6, 1989, and the initial

public offering commenced on June 26,

1990. Applicant consists of three series:

ABD Money Market Fund, ABD Fixed

Income Fund, and ABD Common Stock

Fund.1

2. On December 16, 1996, applicant’s

board of directors (the ‘‘Board’’)

approved a plan of liquidaton and

dissolution (‘‘Liquidation Plan’’),2

which provided for the liquidation of

applicant and the distribution of

applicant’s remaining assets to

applicant’s sole shareholder. On

December 18, 1996, applicant’s sole

shareholder approved the Liquidation

Plan by written consent. On December

26, 1996, applicant distributed

$188,956.46 (representing its remaining

asset, the balance of cash on deposit in

a non-interest-bearing account at State

Street Bank and Trust Company) to its

sole shareholder.

3. As of December 26, 1996, there

were 80,000 shares of common stock of

ABD Money Market Fund, and 1,000

shares each of common stock of ABD

Fixed Income Fund and ABD Common

Stock Fund, having an aggregate net

asset value of $113,835.59, $38,640.47,

and $36,480.40, respectively, and a per

share net asset value of $1.42, $38.64,

and $36.48, respectively.

4. Certain expenses were incurred in

connection with the liquidation,

consisting primarily of legal expenses

and miscellaneous accounting and

administrative expenses. These

expenses are expected to total

approximately $20,000 and have been or

will be paid by applicant’s sole

shareholder.

5. As of the date of the application,

applicant had no shareholders, debts,

liabilities, or assets and was not a party

to any litigation or administrative

proceeding. Applicant is not engaged,

nor does it propose to engage, in any

business activities other than those

necessary for the winding-up of its

affairs.

6. On January 17, 1997, applicant

filed Articles of Dissolution with the

Maryland Department of Assessments

and Taxation.

For the Commission, by the Division of

Investment Management, under delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20830 Filed 8–6–97; 8;45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 35–26752]

Filings Under the Public Utility Holding

Company Act of 1935, as Amended

(‘‘Act’’)

August 1, 1997.

Notice is hereby given that the

following filing(s) has/have been made

with the Commission pursuant to

provisions of the Act and rules

promulgated thereunder. All interested

persons are referred to the application(s)

and/or declaration(s) for complete

statements of the proposed

transaction(s) summarized below. The

application(s) and/or declaration(s) and

any amendments thereto is/are available

for public inspection through the

Commission’s Office of Public

Reference.

Interested persons wishing to

comment or request a hearing on the

application(s) and/or declaration(s)

should submit their views in writing by

August 26, 1997, to the Secretary,

Securities and Exchange Commission,

Washington, D.C. 20549, and serve a

copy on the relevant applicant(s) and/or

declarant(s) at the address(es) specified

below. Proof of service (by affidavit or,

in case of an attorney at law, by

certificate) should be filed with the

request. Any request for hearing shall

identify specifically the issues of fact or

law that are disputed. A person who so

requests will be notified of any hearing,

if ordered, and will receive a copy of

any notice or order issued in the matter.

After said date, the application(s) and/

or declaration(s), as filed or as amended,

may be granted and/or permitted to

become effective.

Central Ohio Coal Company, et al. (70–

8611)

Central Ohio Coal Company, Southern

Ohio Coal Company (‘‘SOCCO’’) and

Windsor Coal Company, each located at

1 Riverside Plaza, Columbus, Ohio

25327 and each a wholly owned

nonutility subsidiary of Ohio Power

Company (‘‘Ohio Power’’), a public

utility subsidiary of American Electric

Power Company, Inc., a registered

holding company, have filed a posteffective amendment under section

12(c) of the Act and rules 46 and 54

under the Act pursuant to an

application-declaration filed under

sections 6(a), 7, and 12(c) of the Act and

rule 46 under the Act.

By order dated September 13, 1996

(HCAR No. 26573), SOCCO was

authorized to return excess capital to

Ohio Power through the payment on or

before December 31, 1998 of one or

more dividends on its common stock in

the amount of $68 million. This amount

was expected to be comprised of

approximately $50 million in proceeds

from the sale and leaseback of certain

SOCCO assets and $18 million in

internally generated funds. SOCCO now

requests authority to increase the

amount of dividends it can pay out of

capital surplus from $68 million to

$83,806,814, an increase of $15,806,814.

In accordance with an order of the

Commission dated December 10, 1982

(HCAR No. 22770), Ohio Power may

earn up to a specified rate of return on

its capital contributions to SOCCO.

Applicants state that, if the Commission

authorizes SOCCO to pay the requested

dividends, Ohio Power’s total capital

investment in SOCCO will be reduced

by the amount of such payments. This

reduction in Ohio Power’s capital

surplus investment will remove from

Ohio Power’s cost of coal the return

associated with the portion of its capital

investment repaid.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–20829 Filed 8–6–97; 8:45 am]

BILLING CODE 8010–01–M