Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices 25245

Copies of written comments received

may be examined at the NRC Public

Document Room, the Gelman Building,

2120 L Street, NW., Washington, DC.

The filing of requests for hearing and

petitions for leave to intervene is

discussed below.

By June 8, 1998, the licensee may file

a request for a hearing with respect to

issuance of the amendment to the

subject facility operating license and

any person whose interest may be

affected by this proceeding and who

wishes to participate as a party in the

proceeding must file a written request

for a hearing and a petition for leave to

intervene. Requests for a hearing and a

petition for leave to intervene shall be

filed in accordance with the

Commission’s ‘‘Rules of Practice for

Domestic Licensing Proceedings’’ in 10

CFR Part 2. Interested persons should

consult a current copy of 10 CFR 2.714

which is available at the Commission’s

Public Document Room, the Gelman

Building, 2120 L Street, NW.,

Washington, DC, and at the local public

document room located at the

Chattanooga-Hamilton County Library,

1001 Broad Street, Chattanooga,

Tennessee 37402. If a request for a

hearing or petition for leave to intervene

is filed by the above date, the

Commission or an Atomic Safety and

Licensing Board, designated by the

Commission or by the Chairman of the

Atomic Safety and Licensing Board

Panel, will rule on the request and/or

petition; and the Secretary or the

designated Atomic Safety and Licensing

Board will issue a notice of hearing or

an appropriate order.

As required by 10 CFR 2.714, a

petition for leave to intervene shall set

forth with particularity the interest of

the petitioner in the proceeding, and

how that interest may be affected by the

results of the proceeding. The petition

should specifically explain the reasons

why intervention should be permitted

with particular reference to the

following factors: (1) The nature of the

petitioner’s right under the Act to be

made party to the proceeding; (2) the

nature and extent of the petitioner’s

property, financial, or other interest in

the proceeding; and (3) the possible

effect of any order which may be

entered in the proceeding on the

petitioner’s interest. The petition should

also identify the specific aspect(s) of the

subject matter of the proceeding as to

which petitioner wishes to intervene.

Any person who has filed a petition for

leave to intervene or who has been

admitted as a party may amend the

petition without requesting leave of the

Board up to 15 days prior to the first

prehearing conference scheduled in the

proceeding, but such an amended

petition must satisfy the specificity

requirements described above.

Not later than 15 days prior to the first

prehearing conference scheduled in the

proceeding, a petitioner shall file a

supplement to the petition to intervene

which must include a list of the

contentions which are sought to be

litigated in the matter. Each contention

must consist of a specific statement of

the issue of law or fact to be raised or

controverted. In addition, the petitioner

shall provide a brief explanation of the

bases of the contention and a concise

statement of the alleged facts or expert

opinion which support the contention

and on which the petitioner intends to

rely in proving the contention at the

hearing. The petitioner must also

provide references to those specific

sources and documents of which the

petitioner is aware and on which the

petitioner intends to rely to establish

those facts or expert opinion. Petitioner

must provide sufficient information to

show that a genuine dispute exists with

the applicant on a material issue of law

or fact. Contentions shall be limited to

matters within the scope of the

amendment under consideration. The

contention must be one which, if

proven, would entitle the petitioner to

relief. A petitioner who fails to file such

a supplement which satisfies these

requirements with respect to at least one

contention will not be permitted to

participate as a party.

Those permitted to intervene become

parties to the proceeding, subject to any

limitations in the order granting leave to

intervene, and have the opportunity to

participate fully in the conduct of the

hearing, including the opportunity to

present evidence and cross-examine

witnesses.

If a hearing is requested, the

Commission will make a final

determination on the issue of no

significant hazards consideration. The

final determination will serve to decide

when the hearing is held.

If the final determination is that the

amendment request involves no

significant hazards consideration, the

Commission may issue the amendment

and make it immediately effective,

notwithstanding the request for a

hearing. Any hearing held would take

place after issuance of the amendment.

If the final determination is that the

amendment request involves a

significant hazards consideration, any

hearing held would take place before

the issuance of any amendment.

A request for a hearing or a petition

for leave to intervene must be filed with

the Secretary of the Commission, U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001, Attention:

Rulemakings and Adjudications Staff, or

may be delivered to the Commission’s

Public Document Room, the Gelman

Building, 2120 L Street, NW.,

Washington, DC, by the above date. A

copy of the petition should also be sent

to the Office of the General Counsel,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555–0001, and to

General Counsel, Tennessee Valley

Authority, ET 10H, 400 East Summit

Hill Drive, Knoxville, Tennessee 37902,

attorney for the licensee.

Nontimely filings of petitions for

leave to intervene, amended petitions,

supplemental petitions and/or requests

for hearing will not be entertained

absent a determination by the

Commission, the presiding officer or the

presiding Atomic Safety and Licensing

Board that the petition and/or request

should be granted based upon a

balancing of the factors specified in 10

CFR 2.714(a)(1)(i)–(v) and 2.714(d).

For further details with respect to this

action, see the application for

amendment dated April 29, 1998, which

is available for public inspection at the

Commission’s Public Document Room,

the Gelman Building, 2120 L Street,

NW., Washington, DC, and at the local

public document room located at the

Chattanooga-Hamilton County Library,

1001 Broad Street, Chattanooga,

Tennessee.

Dated at Rockville, Maryland, this 1st day

of May 1998.

For the Nuclear Regulatory Commission

Robert E. Martin,

Project Manager, Project Directorate II–3 ,

Division of Reactor Projects—I/II, Office of

Nuclear Reactor Regulation.

[FR Doc. 98–12179 Filed 5–6–98; 8:45 am]

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Investment Company Act Release No.

23167; 812–10392]

Extended Stay America, Inc.; Notice of

Application

April 30, 1998.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for

exemption under the Investment

Company Act of 1940 (the ‘‘Act’’).

SUMMARY OF APPLICATION: Applicant

Extended Stay America, Inc. requests an

order under section 3(b)(2) of the Act

declaring that it is primarily engaged in

a business other than that of investing,
25246 Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices

1Applicant states that it will not be able to rely

on rule 3a–1 under the Act in the future without

changing significantly the way it does business and

sharply curtailing its expansion plans so that it can

meet the asset and income tests of the rule.

2See Tonopah Mining Company of Nevada, 26

S.E.C. 426, 427 (1947.

reinvesting, owning, holding, or trading

in securities.

FILING DATES: The application was filed

on October 11, 1996, and amended on

June 4, 1997, and April 14, 1998.

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

May 26, 1998, 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 may request notification of a

hearing by writing to the SEC’s

Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, NW., Washington, DC 20549.

Applicant, 450 East Las Olas Boulevard,

Suite 1100, Fort Lauderdale, Florida

33301.

FOR FURTHER INFORMATION CONTACT:

David W. Grim, Staff Attorney, at (202)

942–0571, or Mary Kay Frech, Branch

Chief, at (202) 942–0564 (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 for a fee from the SEC’s

Public Reference Branch [450 5th Street,

NW., Washington, DC 20549; (202) 942–

8090].

Applicant’s Representations

1. Applicant was incorporated in the

state of Delaware for the purpose of

developing, owning, and managing

extended stay lodging facilities that are

designed to appeal to value-conscious

guests. Applicant’s EXTENDED

STAYAMERICA Efficiency Studios

brand of lodging facilities is designed to

offer quality accommodations to guests

at substantially lower rates than most

other extended stay lodging providers.

Applicant’s facilities feature fully

furnished rooms that are rented

generally on a weekly basis to guests

such as business travelers, professionals

on temporary work assignment, persons

between domestic situations, and

persons relocating or purchasing a

home, with most guests staying for

multiple weeks.

2. Applicant’s goal is to become a

national provider of economy extended

stay lodging. Applicant intends to

achieve this goal by rapidly developing

properties in selected markets,

providing high value accommodations

for its guests, actively managing its

properties to increase revenues and

reduce operating costs, and increasing

awareness of the economy extended stay

concept. Applicant’s Crossland

Economy Studios, EXTENDED

STAYAMERICA Efficiency Studios, and

StudioPLUS Deluxe Studios brands of

lodging facilities compete in the budget,

economy, and mid-price segments,

respectively, of the extended stay

lodging market.

3. The development cycle for a

lodging facility from identification of a

suitable site through completion of

construction and commencement of

operations is eighteen to twenty-four

months. To ensure that applicant is able

to meet its financial obligations for the

development of these facilities and to

facilitate the planned rapid growth of

applicant, applicant has raised a

significant amount of money since its

organization in 1995. Applicant has

raised, in addition to its $60 million of

initial development capital, $572

million in aggregate net proceeds from

offerings of common stock in December

1995 and June 1996 and the private

placement of common stock in February

1997. In addition, in March 1998,

applicant consummated an offering of

senior subordinated notes that raised

approximately $194 million in cash, and

increased and restructured its bank

credit facility, pursuant to which

applicant is required to borrow an

additional $250 million over the next

several months. Pending the use of this

money to finance capital expenditures

and current operations, the money has

been invested in high quality short-term

investments. Applicant represents that,

depending upon market conditions, it

may raise additional capital and/or

conduct additional financings that

would have the effect of substantially

increasing its short-term investments.

Applicant’s Legal Analysis

1. Under section 3(a)(1(C) of the Act,

an issuer is an investment company if

it ‘‘is engaged or proposes to engage in

the business of investing, reinvesting,

owning, holding, or trading in

securities, and owns or proposes to

acquire investment securities having a

value exceeding 40 per centum of the

value of such issuer’s total assets

(exclusive of Government securities and

cash items) on an unconsolidated

basis.’’ Section 3(a)(2) of the Act defines

‘‘investment securities’’ to include all

securities except Government securities,

securities issued by employees’

securities companies, and securities

issued by majority-owned subsidiaries

of the owner which are not investment

companies and which are not excepted

from the definition of investment

company by section 3(c)(1) or section

3(c)(7) of the Act.

2. Section 3(b)(1) of the Act provides

that, notwithstanding section 3(a)(1)(C),

any issuer primarily engaged in a

business or businesses other than

investing, reinvesting, owning, holding,

or trading in securities is not an

investment company. Applicant

believes that it qualifies for the

exemption under section 3(b)(1).

Applicant states that the application

was filed, nonetheless, because others

might view differently the facts or the

applicability of certain provisions of the

Act to those facts.

3. Section 3(b)(2) of the Act provides

that the SEC may issue an order

declaring an issuer to be primarily

engaged in a business or businesses

other than that of investing, reinvesting,

owning, holding, or trading in

securities.

4. Applicant states that approximately

0.1% of its total assets as of December

31, 1997 consisted of investment

securities. Applicant believes that this

percentage may rise above 40%

following subsequent fundraising and

pending utilization of those funds in its

operations.1 Applicant seeks an order

under section 3(b)(2) of the Act

declaring that it is primarily engaged in

a business other than that of investing,

reinvesting, owning, holding, or trading

in securities, and therefore is not an

investment company within the

meaning of the Act.

5. In determining whether a company

is ‘‘primarily engaged’’ in a noninvestment company business under

section 3(b)(2), the SEC considers the

following factors: (a) the company’s

historical development; (b) its public

representations of policy; (c) the

activities of its officers and directors; (d)

the nature of its present assets; and (e)

the sources of its present income.2

a. Historical Development. Applicant

contends that its efforts during its brief

history have been devoted solely

towards the development of its

extended stay lodging business. As of

December 31, 1997, applicant had 185

operating facilities, 84 facilities under

construction, and 146 sites under

option. Applicant states that it has

raised a significant amount of money

since its organization in 1995 to ensure
Federal Register / Vol. 63, No. 88 /Thursday, May 7, 1998 / Notices 25247

that it is able to meet its financial

obligations for the development of its

extended stay facilities and to facilitate

its planned rapid growth. Applicant

states that pending the use of that

money to finance capital expenditures

and current operations, the money has

been invested in high quality short-term

investments.

b. Public Representations of Policy.

Applicant asserts that it has not made

any public representations that would

suggest that it is engaged in any

business other than its extended stay

lodging business. Applicant states that

its prospectuses, reports to

shareholders, and other filings with the

SEC have exclusively focused on its

lodging business. Applicant also states

that all of its marketing and advertising

has focused entirely on its extended stay

lodging business.

c. Activities of Officers and Directors.

Applicant represents that its directors

and executive officers dedicate virtually

all of their efforts toward furthering

applicant’s efforts in developing,

owning, and managing extended stay

lodging facilities. Applicant has

approximately 2,900 employees.

Applicant states that its short-term

investments are managed by an assistant

to its Chief Financial Officer. Applicant

represents that the assistant devotes less

than 25% of his working time to these

activities, and the Chief Financial

Officer spends less than 2% of his time

supervising that activity. Applicant

states that no other employee is

involved in the management of the

short-term investments.

d. Nature of Assets. Applicant

indicates that its short-term

investments, which are limited to bank

deposits, U.S. Government securities,

and short-term, high quality fixed

income corporate/Government

obligations maturing in less than 90

days from the date of investment,

constituted approximately 0.1% of

applicant’s total assets as of December

31, 1997. Applicant also represents that

if the proceeds of its March 1998

financings had been included in

applicant’s assets at December 31, 1997,

applicant would have had short-term

investments of approximately 29% of its

total assets. Furthermore, applicant

asserts that, depending upon market

conditions, it may raise additional

capital and/or conduct additional

financings that would increase

substantially the ratio of its short-term

investments to total assets. Applicant

states that its short-term investments

and total assets are valued at fair value

in accordance with the requirements of

section 2(a)(41) of the Act.

e. Sources of Income. Applicant

indicates that, as of December 31, 1997,

it derived approximately 0.8% of its

total revenues from investment income.

Applicant states that it may significantly

increase its short-term investments, as

well as the ratio of income from these

investments to total revenues, if it

conducts additional capital raising

transactions or financings.

6. Applicant thus believes that it

meets the factors that the SEC considers

in determining whether an issuer is

primarily engaged in a business other

than that of investing, reinvesting,

owning, holding, or trading in

securities.

For the SEC, by the Division of Investment

Management, pursuant to delegated

authority.

Jonathan G. Katz,

Secretary.

[FR Doc. 98–12148 Filed 5–6–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. IC–23166]

Notice of Applications for

Deregistration Under Section 8(f) of the

Investment Company Act of 1940

April 30, 1998.

The following is a notice of applicants

for deregistration under section 8(f) of

the Investment Company Act of 1940 for

the month of April, 1998. A copy of

each application may be obtained for a

fee at the SEC’s Public Reference

Branch, 450 Fifth St., N.W.,

Washington, DC 20549 (tel. 202–942–

8090). An order granting each

application will be issued unless the

SEC orders a hearing. Interested persons

may request a hearing on any

application by writing to the SEC’s

Secretary at the address below and

serving the relevant 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

May 26, 1998, and should be

accompanied by proof of service on the

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 Secretary, SEC, 450 Fifth

Street, N.W., Washington, DC 20549.

For Further Information Contact: Diane

L. Titus, at (202) 942–0564, SEC,

Division of Investment Management,

Office of Investment Company

Regulation, Mail Stop 5–6, 450 Fifth

Street, N.W., Washington, DC 20549.

InterCapital Managed Municipal Trust

[File No. 811–7187], TCW/DW Term

Trust 2001 [File No. 811–8222], TCW/

DW Emerging Markets Government

Income Trust [File No. 811–8310]

Summary: Each applicant seeks an

order declaring that it has ceased to be

an investment company. Each applicant

has never made a public offering of its

shares and does not propose to make a

public offering or engage in business of

any kind.

Filing Dates: Each application was

filed on March 24, 1998.

Applicants’ Address: Two World

Trade Center, New York, New York

10048.

Putnam Capital Growth and Income

Fund [File No. 811–7063]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On February 6,

1995, applicant made a liquidating

distribution to its sole shareholder of

record at net asset value. All other

shareholders redeemed or exchanged

their shares of applicant at net asset

value prior to February 6, 1995.

Applicant did not incur any expenses in

connection with the liquidation, and

unamortized organizational expenses

were paid by applicant’s investment

adviser.

Filing Dates: The application was

filed on October 3, 1995 and amended

on April 2, 1996, September 17, 1996

and March 17, 1998.

Applicant’s Address: One Post Office

Square, Boston, MA 02109.

Fortis Benefits Separate Account A

[File No. 811–2445]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. Applicant is a

separate account organized as a unit

investment trust. No assets are currently

retained in Applicant; all assets were

redeemed at net asset value. No

expenses were incurred by Applicant in

connection with the redemption of its

assets.

Filing Date: The application was filed

on March 23, 1998.

Applicant’s Address: 500 Bielenberg

Drive, Woodbury, MN 55125.

Fortis Benefits Separate Account B [File

No. 811–2446]

Summary: Applicant seeks an order

declaring that it has ceased to be

investment company. Applicant is a

separate account organized as a unit

investment trust. No assets are currently

retained in Applicant; all assets were