Federal Register / Vol. 62, No. 64 / Thursday, April 3, 1997 / Notices 15951

12 17 CFR 200.30.–3(a)(12).

distribution of a DPP or REIT security

provide an estimated value for such

securities on its customers’ account

statements where the member believes

that the estimated value was inaccurate

as of the date of the valuation or is no

longer accurate as a result of a material

change in the operations or assets of the

program or trust.

Segregation of DPP/REIT Securities—

Subparagraphs (b)(3)(B) and (b)(6)

NASD Regulation considered and

ultimately rejected the views of several

commenters who objected to the

requirement that DPP and REIT

securities be segregated from other

securities into a separate location on the

customer account statement. NASD

Regulation believes that investments in

non-publicly traded DPP and REIT

securities and the estimated values

which may be disclosed regarding their

performance differ sufficiently from the

prices of other securities that customers

will benefit from having the securities

grouped together for ease of

presentation and review.

In addition, NASD Regulation

believes that the segregation of DPPs

and REITs into a separate location on

the customer account statement should

lessen the possibility of misleading

customers regarding values since they

will be distinguished from listed

securities. NASD Regulation also

determined that the requirement to

segregate DPP/REIT securities should

apply regardless of whether the security

is listed with or without an estimated

value. Therefore, proposed

subparagraphs (b)(3)(B) and (b)(6) set

forth the requirement to segregate DPP

and REIT securities.

Use of Purchase Price—Subparagraph

(b)(4)(C)

In response to the correspondence of

the SEC, NASD Regulation amended the

proposal published for comment to add

a new provision in subparagraph

(b)(4)(C) prohibiting members from

using the original purchase price of a

DPP or REIT security on a customer

account statement as the estimated

value. NASD Regulation provided

additional language to clarify that the

same dollar value of the purchase price

may be used when a valuation

methodology results in the estimated

value and purchase price being

equivalent.

Required Disclosure for Unpriced

Securities—Subparagraph (b)(6)

In response to comments, NASD

Regulation amended the proposal

published for comment to require the

following disclosure on the account

statement where a member provides no

valuation for a DPP or REIT: that DPP

and/or REIT securities generally are

illiquid securities; the value of the

security may be different than its

purchase price; and, if applicable, that

accurate valuation information is not

available. This disclosure replaces the

provision in the proposal published for

comment that would have required a

statement that the value of the DPP

security is not available until the

liquidation of the partnership and that

no active secondary market exists.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if it finds such

longer period to be appropriate and

publishes its reason for so finding or (ii)

as to which the self-regulatory

organization consents, the Commission

will:

(a) By order approve such proposed

rule change, or

(b) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying at

the Commission’s Public Reference

Section, 450 Fifth Street, N.W.,

Washington, DC Copies of such filing

will also be available for inspection and

copying at the principal office of the

NASD. All submissions should refer to

file number SR–NASD–97–12 and

should be submitted by April 24, 1997.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–8470 Filed 4–2–97; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Small Business Investment Company;

Computation of Alternative Maximum

Annual Cost of Money to Small

Businesses

13 CFR 107.855 limits the maximum

annual Cost of Money (as defined in 13

CFR 107.50) that may be imposed upon

a Small Business in connection with

Financing by means of Loans or through

the purchase of Debt Securities. The

cited regulation incorporates the term

‘‘Debenture Rate’’, which is defined in

13 CFR 107.50 in terms that require SBA

to publish, from time to time, the rate

charged on ten-year debentures sold by

Licensees to the public.

Accordingly, Licensees are hereby

notified that effective the date of

publication of this Notice, and until

further notice, the Debenture Rate, plus

the 1 percent annual fee which is added

to this Rate to determine a base rate for

computation of maximum cost of

money, is 8.38 percent per annum.

13 CFR 107.855 does not supersede or

preempt any applicable law imposing

an interest ceiling lower than the ceiling

imposed by its own terms. Attention is

directed to Section 308(i) of the Small

Business Investment Act of 1958, as

amended, regarding that law’s Federal

override of State usury ceilings, and to

its forfeiture and penalty provisions.

(Catalog of Federal Domestic Assistance

Program No. 59.011, small business

investment companies)

Dated: March 28, 1997.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 97–8431 Filed 4–2–97; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF STATE

[Public Notice 2526]

Bureau of Oceans and International

Environmental and Scientific Affairs;

International Harmonization of

Chemical Safety and Health

Information

AGENCY: Bureau of Oceans and

International Environmental and

Scientific Affairs (OES); Department of

State.

ACTION: Notice regarding Government

activities on international

harmonization of chemical safety and