42610 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Notices

UC—906 Unlimited Release, Printed

June 1991), and on the licensee’s

experience with the current photoidentification system, the licensee stated

that the hand geometry system

performance is comparable to, or

superior to, that of the current system.

The biometric system has been in use

for a number of years at several sensitive

Department of Energy facilities. The

licensee will implement a process for

testing the proposed system to ensure

continued overall level of performance

equivalent to that specified in the

regulation. The Physical Security Plan

for Salem/Hope Creek will be revised to

include implementation and testing of

the hand geometry access control

system and to allow licensee employees

and contractors to take their badges

offsite.

The licensee will control all points of

personnel access into a protected area

under the observation of security

personnel through the use of a badge

and verification of hand geometry. A

numbered picture badge identification

system will continue to be used for all

individuals who are authorized

unescorted access to protected areas.

Badges will continue to be displayed by

all individuals while inside the

protected area.

Since both the badges and hand

geometry would be necessary for access

into the protected areas, the proposed

system would provide for a positive

verification process and the potential

loss of a badge by an individual, as a

result of taking the badge offsite, would

not enable an unauthorized entry into

protected areas.

For the foregoing reasons, pursuant to

10 CFR 73.55, the NRC staff has

determined that the proposed

alternative measures for protection

against radiological sabotage meet ‘‘the

same high assurance objective,’’ and

‘‘the general performance requirements’’

of the regulation and that ‘‘the overall

level of system performance provides

protection against radiological sabotage

equivalent’’ to that which would be

provided by the regulation.

IV

Accordingly, the Commission has

determined that, pursuant to 10 CFR

73.5, an exemption is authorized by law,

will not endanger life or property or

common defense and security, and is

otherwise in the public interest.

Therefore, the Commission hereby

grants an exemption from those

requirements of 10 CFR 73.55(d)(5)

relating to the returning of picture

badges upon exit from the protected

area such that individuals not employed

by the licensee, i.e., contractors, who are

authorized unescorted access into the

protected area, may take their picture

badges offsite. This exemption is

granted on the condition that the

licensee implements a process for

testing the proposed system and revises

the security plan for each site as

discussed in Section III above.

Pursuant to 10 CFR 51.32, the

Commission has determined that the

granting of this exemption will have no

significant effect on the quality of the

human environment (62 FR 40551).

This exemption is effective upon

issuance.

Dated at Rockville, Maryland, this 31st day

of July 1997.

For the Nuclear Regulatory Commission.

Samuel J. Collins,

Director, Office of Nuclear Reactor

Regulation.

[FR Doc. 97–20876 Filed 8–6–97; 8:45 am]

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE

COMMISSION

Submission for OMB Review;

Comment Request

Upon Written Request, Copies Available

From: Securities and Exchange

Commission, Office of Filings and

Information Services, 450 Fifth Street,

NW, Washington, DC 20549.

Extensions:

Rule 11a–3, SEC File No. 270–321,

OMB Control No. 3235–0358

Rule 17g–1, SEC File No. 270–208,

OMB Control No. 3235–0213

Rule 206(4)–3, SEC File No. 270–218,

OMB Control No. 3235–0242

Rule 206(4)–4, SEC File No. 270–304,

OMB Control No. 3235–0345

Notice is hereby given that, pursuant

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501 et seq.), the Securities

and Exchange Commission

(‘‘Commission’’) has submitted to the

Office of Management and Budget

requests for extension of the previously

approved collections of information

discussed below.

Rule 11a–3 under the Investment

Company Act of 1940 is an exemptive

rule that permits open-end investment

companies (‘‘funds’’), other than

insurance company separate accounts,

and funds’ principal underwriters, to

make certain exchange offers to fund

shareholders and shareholders of other

funds in the same group of investment

companies. The rule requires a fund,

among other things, (i) to disclose in its

prospectus and advertising literature the

amount of any administrative or

redemption fee imposed on an exchange

transaction, (ii) if the fund imposes an

administrative fee on exchange

transactions, other than a nominal one,

to maintain and preserve records with

respect to the actual costs incurred in

connection with exchanges for at least

six years, and (iii) give the fund’s

shareholders a sixty day notice of a

termination of an exchange offer or any

material amendment to the terms of an

exchange offer (unless the only material

effect of an amendment is to reduce or

eliminate an administrative fee, sales

load or redemption fee payable at the

time of an exchange).

The rule’s requirements are designed

to protect investors against abuses

associated with exchange offers, provide

fund shareholders with information

necessary to evaluate exchange offers

and certain material changes in the

terms of exchange offers, and enable the

Commission staff to monitor funds’ use

of administrative fees charged in

connection with exchange transactions.

It is estimated that approximately

2,500 funds may choose to rely on the

rule, and each fund may spend one hour

annually complying with the

recordkeeping requirement and another

hour annually complying with the

notice requirement. The total annual

burden associated with the rule is

estimated to be 5,000 hours. The

burdens associated with the disclosure

requirement of the rule are accounted

for in the burdens associated with the

Form N–1A registration statement for

funds.

Rule 17g–1 under the Investment

Company Act of 1940 governs the

fidelity bonding of officers and

employees of registered management

investment companies (‘‘funds’’). Rule

17g–1 requires, among other things,

that:

(i) Fidelity Bond Content Requirements.

The fidelity bond must provide that it shall

not be cancelled, terminated or modified

except upon a 60-day written notice by the

acting party to the affected party. In the case

of a ‘‘joint bond’’ covering several funds or

certain other parties, the notice also must be

given to each fund and to the Commission.

In addition, a joint bond must provide that

a copy of the bond, any amendments to the

bond, any formal filing of a claim on the

bond, and notification of the terms of any

settlement on such claim, will be furnished

to each fund promptly after the execution.

(ii) Independent Directors’ Approval

Requirements. At least annually, the

independent directors of a fund must

approve the form and amount of the fidelity

bond. The amount of any premium paid for

any joint bond also must be approved by the

independent directors of a fund.

(iii) Joint Bond Agreement Requirement. A

fund that is insured by a joint bond must

enter into an agreement with all other parties
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