[Federal Register Volume 63, Number 106 (Wednesday, June 3, 1998)]
[Notices]
[Page 30273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14673]



[[Page 30273]]

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SECURITIES AND EXCHANGE COMMISSION

[Rel. No. IC-23225]


Allied Capital Financial Corporation (file no. 811-3811) and 
Allied Investment Corporation (File No. 811-2707); Notice of Proposed 
Deregistration

May 28, 1998.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of proposed deregistration under section 8(f) of the 
Investment Company Act of 1940 (the ``Act'').

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SUMMARY OF NOTICe: The SEC proposes to declare by order on its own 
motion that the registrations of Allied Capital Financial Corporation 
(``Allied Financial'') and Allied Investment Corporation (``Allied 
Investment'') under the Act have ceased to be in effect as of January 
5, 1998, the date upon which each elected to be regulated as a business 
development company (``BDC'').

HEARING OR NOTIFICATION OF HEARING: An order will be issued unless the 
SEC orders a hearing. Interested persons may request a hearing by 
writing to the SEC's Secretary and serving the relevant registrant with 
a copy of the request, personally or by mail. Hearing requests should 
be received by the SEC by 5:30 p.m. on June 23, 1998, and should be 
accompanied by proof of service on the registrant, 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 5th Street, N.W., Washington, D.C. 
20549. Allied Financial and Allied Investment, 1666 K Street, N.W., 9th 
Floor, Washington, D.C. 20006-2803.

FOR FURTHER INFORMATION CONTACT: Elaine M. Boggs, Senior Counsel, at 
(202) 942-0572, or Christine Y. Greenlees, Branch Chief, at (202) 942-
0564 (Office of Investment Company Regulation, Division of Investment 
Management).

SUPPLEMENTARY INFORMATION:

Statement of Facts

    1. Allied Financial and Allied Investment, both Maryland 
corporations and closed-end investment companies registered under the 
Act, filed Notifications of Registration under the Act on July 21, 1983 
and November 23, 1976, respectively. Both companies were formed as 
wholly-owned subsidiaries of Allied Capital Corporation. Therefore, no 
public offering of Allied Financial's or Allied Investment's shares 
were made and they were not required to register their shares under the 
Securities Act of 1933.
    2. Section 54(a) of the Act provides that any company that 
satisfies the definition of a BDC under sections 2(a)(48) (A) and (B) 
of the Act may elect to be subject to the provisions of sections 55 
through 65 of the Act and be regulated as a BDC by filing with the SEC 
a notification of the election, if the company: (i) has a class of its 
equity securities registered under section 12 of the Securities 
Exchange Act of 1934 (the ``Exchange Act''); or (ii) has filed a 
registration statement pursuant to section 12 of the Exchange Act for a 
class of its equity securities. On January 5, 1998, Allied Financial 
and Allied Investment each elected BDC status by filing a Form N-54A 
and a registration statement under the Exchange Act.
    3. Section 8(a) of the Act, which requires registration of 
investment companies, does not apply to BDC's. After an existing 
registered investment company has filed an election to be regulated as 
a BDC, the SEC on its own motion will declare by order under section 
8(f) that the company's registration under the Act has ceased to be in 
effect. The order will be effective retroactively, as of the date the 
SEC received the company's election. See Investment Company Act Release 
No. 11703 (March 26, 1981).

    For the Commission, by the Division of Investment Management, 
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-14673 Filed 6-2-98; 8:45 am]
BILLING CODE 8010-01-M