29258 Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 / Notices

may not be usable because they may not

meet specifications or conditions placed

in a COC that NRC may ultimately

approve.

Environmental Impacts of the Proposed

Action

The Environmental Assessment for

the final rule, ‘‘Storage of Spent Nuclear

Fuel in NRC-Approved Storage Casks at

Nuclear Power Reactor Sites’’, (55 FR

29181 (1990)) considered the potential

environmental impacts of casks which

are used to store spent fuel under a COC

and concluded that there would be no

significant environmental impacts. The

proposed action now under

consideration would not permit use of

the casks, but only fabrication. There are

no radiological environmental impacts

from fabrication since cask fabrication

does not involve radiological or

radioactive materials. The major nonradiological environmental impacts

involve use of natural resources due to

cask fabrication. Each TN–32 storage

cask weighs approximately 100 tons and

is fabricated mainly from steel and

plastic. The estimated 600 tons of steel

required for six casks is expected to

have very little impact on the steel

industry. Additionally, the estimated 6

tons of plastic required for six casks is

insignificant compared to the millions

of tons of plastic produced annually.

Cask fabrication would be at a metal

fabrication facility, not at the reactor

site. Fabrication of six casks is

insignificant compared to the amount of

metal fabrication performed annually in

the United States. If the casks are not

usable, the casks could be disposed of

or recycled. The amount of material

disposed of is insignificant compared to

the amount of steel and plastic that is

disposed of annually in the United

States. Based upon this information, the

fabrication of six casks will have no

significant impact on the environment

since no radioactive materials are

involved, and the amount of natural

resources used is minimal.

Alternative to the Proposed Action

Since there is no significant

environmental impact associated with

the proposed action, any alternatives

with equal or greater environmental

impact are not evaluated. The

alternative to the proposed action would

be to deny approval of the exemption

and, therefore, not allow cask

fabrication until a COC is issued.

However, if a COC is issued and

fabrication of the cask occurs, the

environmental impacts of the proposed

action and the alternative action would

be the same.

Given that there are no significant

differences in environmental impacts

between the proposed action and the

alternative considered and that the

applicant has a legitimate need to

fabricate the casks prior to certification

and is willing to assume the risk that the

fabricated casks may not be certified or

may require modification, the

Commission concludes that the

preferred alternative is to grant the

exemption.

Agencies and Persons Consulted

The Wisconsin Public Utility

Commission was consulted about the

EA for the proposed action and had no

concerns.

References used in preparation of the

EA:

1. NRC, Environmental Assessment

Regarding Final Rule, ‘‘Storage of Spent

Fuel in NRC-Approved Storage Casks at

Power Reactor Sites,’’ 55 FR 29181.

2. NRC, 10 CFR Part 51,

Environmental Protection Regulations

for Domestic Licensing and Related

Regulatory Functions.

Finding of No Significant Impact

The environmental impacts of the

proposed action have been reviewed in

accordance with the requirements set

forth in 10 CFR Part 51. Based upon the

foregoing EA, the Commission finds that

the proposed action of granting an

exemption from 10 CFR 72.234(c) so

that TN may fabricate six TN–32 casks

prior to issuance of a COC will not

significantly impact the quality of the

human environment. Accordingly, the

Commission has determined not to

prepare an environmental impact

statement for the proposed exemption.

This application was docketed under

10 CFR Part 72, Docket 72–1021. For

further details with respect to this

action, see the application dated April

9, 1998, which is available for public

inspection at the Commission’s Public

Document Room, 2120 L Street, NW,

Washington, DC 20555, and the Local

Public Document Room at the Joseph

Mann Library, 1516 16th Street, Two

Rivers, WI 54241.

Dated at Rockville, Maryland, this 20th day

of May 1998.

For the Nuclear Regulatory Commission.

William F. Kane,

Acting Deputy Director, Office of Nuclear

Material Safety and Safeguards.

[FR Doc. 98–14100 Filed 5–27–98; 8:45 am]

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Investment Company Act Release No.

23198; 812–10942]

Boston 1784 Funds, et al.; Notice of

Application

May 20, 1998.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for an

order under section 12(d)(1)(J) of the

Investment Company Act of 1940 (the

‘‘Act’’) exempting applicants from

sections 12(d)(1)(A) and (B) of the Act,

under sections 6(c) and 17(b) of the Act

exempting applicants from sections

17(a)(1) and 17(a)(2) of the Act, and

under section 17(d) of the Act and rule

17d–1 under the Act.

SUMMARY OF THE APPLICATION: The

requested order would permit certain

registered open-end management

investment companies to invest excess

cash and collateral in affiliated money

market funds in excess of the limits in

sections 12(d)(1)(A) and (B) of the Act.

APPLICANTS: Boston 1784 Funds (the

‘‘Trust’’), and all other registered openend management investment companies

and series thereof that currently or in

the future are part of the same ‘‘group

of investment companies,’’ within the

meaning of section 12(d)(1)(G) of the

Act, that includes the Trust, and

BankBoston, N.A. (‘‘BankBoston’’).

FILING DATES: The application was filed

on December 31, 1997, and amended on

May 20, 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

June 15, 1998, and should be

accompanied by proof of service on

applicants, 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, NW., Washington, DC 20549.

Applicants, 2 Oliver Street, Boston, MA

02109.

FOR FURTHER INFORMATION CONTACT:

Kathleen L. Knisely, Staff Attorney, at

(202) 942–0517, or Nadya B. Roytblat,

Assistant Director, at (202) 942–0564,
Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 / Notices 29259

1All investment companies that currently intend

to rely on the requested order are named as

applicants. Any other existing or future investment

company that may rely on the order in the future

will do so only in accordance with the terms and

conditions of the application.

(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 at the SEC’s

Public Reference Branch, 450 Fifth

Street, NW., Washington, DC 20549 (tel.

202–942–8090).

Applicants’ Representations

1. The Trust is an open-end

management investment company

registered under the Act and organized

as a Massachusetts business trust. The

Trust currently consists of nineteen

series (‘‘Funds’’), five of which hold

themselves out as money market funds

and are subject to the requirements of

rule 2a–7 under the Act (‘‘Money

Market Funds’’). BankBoston (formerly,

The First National Bank of Boston) is

the investment adviser to each Fund.

Kleinwort Benson Investment

Management Americas Inc. (‘‘KBIMA’’)

serves as co-investment adviser to the

Boston 1784 International Equity Fund

with BankBoston. BankBoston, as a

national bank, is not required to register

as an investment adviser under the

Investment Adviser Act of 1940

(‘‘Advisers Act’’). KBIMA is registered

as an investment adviser under the

Advisers Act. (BankBoston together

with KBIMA, the ‘‘Investment

Advisers’’.) BankBoston also serves as

custodian (‘‘Custodian’’) for the assets of

all series of the Trust.

2. Each Fund may participate in a

securities lending program (‘‘Securities

Lending Program’’) under which the

Fund may lend its portfolio securities to

registered broker-dealers or other

institutional investors. Before a Fund

will participate in the Securities

Lending Program, it will select a

securities lending agent which is not

affiliated with BankBoston or any of its

affiliates. The agreements governing

these loans require that the loans be

continuously secured by collateral equal

at all times to at least the market value

of the securities loaned. Collateral for

these loans may include cash (‘‘Cash

Collateral’’), securities of the U.S.

Government or its agencies, or any

combination of cash and such securities.

Any investment of Cash Collateral will

comply with all present and future

applicable SEC positions regarding

securities lending agreements.

3. Each of the Funds has, or may have,

uninvested cast (‘‘Uninvested Cash’’)

held by its Custodian. Uninvested Cash

may result from a variety of sources,

including dividends or interest received

on portfolio securities, unsettled

securities transactions, reserves held for

investment strategy purposes, scheduled

maturity of investments, liquidation of

investment securities to meet

anticipated redemptions, dividend

payments, or new monies received from

investors. Currently, the Funds may

invest Uninvested Cash in individual

short-term money market instruments

and repurchase agreements.

4. The Funds wish to have the

flexibility to invest their Uninvested

Cash and Cash Collateral (collectively,

‘‘Cash Balances’’) in the Money Market

Funds. Investment of Cash Balances in

shares of the Money Market Funds will

be made only to the extent that such

investments are consistent with each

Fund’s investment restrictions and

policies as set forth in its prospectus

and statement of additional information.

Applicants believe that the proposed

transactions may reduce transaction

costs, create more liquidity, increase

returns, and diversify holdings.

Applicants request an order to permit

certain Funds (‘‘Investing Funds’’) to

invest their Cash Balances in one or

more of the Money Market Funds.1

Applicants’ Legal Analysis

1. Section 12(d)(1)(A) of the Act

provides that no registered investment

company may acquire securities of

another investment company if such

securities represent more than 3% of the

acquired company’s outstanding voting

stock, more than 5% of the acquiring

company’s total assets, or if such

securities, together with the securities of

other acquired investment companies,

represent more than 10% of the

acquiring company’s total assets.

Section 12(d)(1)(B) provides that no

registered open-end investment

company may sell its securities to

another investment company if the sale

will cause the acquiring company to

own more than 3% of the acquired

company’s voting stock, or if the sale

will cause more than 10% of the

acquired company’s voting stock to be

owned by investment companies.

2. Section 12(d)(1)(J) of the Act

provides that the SEC may exempt any

person, security, or transaction (or

classes thereof) from any provision of

section 12(d)(1) if and to the extent that

such exemption is consistent with the

public interest and the protection of

investors.

3. Applicants’ proposal would permit

the Investing Funds to use Cash

Balances to acquire shares of the Money

Market Funds in excess of the

percentage limitations in section

12(d)(1)(A), provided however, that in

all cases the Investing Fund’s aggregate

investment of Uninvested Cash in

shares of the Money Market Funds will

not exceed 25% of the Investing Fund’s

total assets. Applicants’ proposal also

would permit the Money Market Funds

to sell their securities to an Investing

Fund in excess of the percentage

limitations in section 12(d)(1)(B).

Applicants represent that no Money

Market Funds will acquire securities of

any other investment company in excess

of the limitations contained in section

12(d)(1)(A) of the Act.

4. Applicants believe that the

proposed arrangement would not result

in the abuses that sections 12(d)(1) (A)

and (B) were intended to prevent.

Applicants represent that the proposed

arrangement will not result in an

inappropriate layering of fees because

shares of the Money Market Funds sold

to the Investing Funds will not be

subject to a sales load, redemption fee,

asset-based distribution fee or service

fee. In addition, in connection with

approving any advisory contract, the

Investing Fund’s board of trustees (the

‘‘Board’’), including a majority of the

trustees who are not ‘‘interested

persons,’’ as defined in section 2(a)(19)

of the Act (‘‘Disinterested Trustees’’),

will consider to what extent, if any, the

advisory fees charged to the Investing

Fund by the Investment Adviser should

be reduced to account for reduced

services provided to the Investing Fund

by the Investment Adviser as a result of

a portion of the assets of the Investing

Fund being invested in the Money

Market Funds.

5. Section 17(a) makes it unlawful for

any affiliated person of a registered

investment company, acting as

principal, to sell or purchase any

security to or from the company.

Section 2(a)(3) of the Act defines an

affiliated person of another person as

any person directly or indirectly

controlling, controlled by, or under

common control with, such other

person. Under section 2(a)(3), because

the Trust has one board of trustees, each

Fund may be deemed to be under

common control with each of the other

Funds, and thus an affiliated person of

each of the other Funds. As a result,

section 17(a) would prohibit the sale of

the shares of the Money Market Funds

to the Investing Funds, and the

redemption of the shares by the Money

Market Funds.

6. Section 17(b) of the Act authorizes

the SEC to exempt a transaction from

section 17(a) of the Act if the terms of

the proposed transaction, including the
29260 Federal Register / Vol. 63, No. 102 /Thursday, May 28, 1998 / Notices

consideration to be paid or received, are

reasonable and fair and do not involve

overreaching on the part of any person

concerned, the proposed transaction is

consistent with the policy of each

investment company concerned, and the

proposed transaction is consistent with

the general purposes of the Act.

7. Section 6(c) of the Act permits the

SEC to exempt persons or transactions

from any provision of the Act, if the

exemption is necessary or appropriate

in the public interest and consistent

with the protection of investors and the

purposes fairly intended by the policy

and provisions of the Act.

8. Applicants submit that their

request for relief satisfies the standards

in sections 17(b) and 6(c). Applicants

state that the Investing Funds will retain

their ability to invest Cash Balances

directly in money market instruments as

authorized by their respective

investment objectives and policies, if

they believe they can obtain a higher

rate of return, or for any other reason.

Similarly, each of the Money Market

Funds has the right to discontinue

selling shares to any of the Investing

Funds if the Board of the Money Market

Fund determines that such sale would

adversely affect its portfolio

management and operations. In

addition, applicants note that shares of

the Money Market Funds will be

purchased and redeemed at their net

asset value, the same consideration paid

and received for these shares by any

other shareholder.

9. Section 17(d) and rule 17d–1

prohibit an affiliated person of an

investment company, acting as

principal, from participating in or

effecting any transaction in connection

with any joint enterprise or joint

arrangement in which the investment

company participates. Applicants

believe that the Funds, by participating

in the proposed transactions, and the

Investment Advisers, by managing the

proposed transactions, could be deemed

to be participating in a joint

arrangement within the meaning of

section 17(d) and rule 17d–1 under the

Act.

10. In considering whether to grant an

exemption under rule 17d–1, the SEC

considers whether the investment

company’s participation in such joint

enterprise is consistent with the

provisions, policies, and purposes of the

Act, and the extent to which such

participation is on a basis different from

or less advantageous than that of other

participants. Applicants submit that the

Funds will participate in the proposed

transactions on a basis not different

from or less advantageous than that of

any other participant and that the

transactions will be consistent with the

Act.

Applicants’ Conditions

Applicants agree that the order

granting the requested relief will be

subject to the following conditions:

1. Shares of the Money Market Funds

sold to and redeemed by the Investing

Funds will not be subject to a sales load,

redemption fee, distribution fee under a

plan adopted in accordance with rule

12b–1 under the Act or service fee (as

defined in rule 2380(b)(9) of the NASD’s

Conduct Rules).

2. Before the next meeting of the

Board is held for the purpose of voting

on an advisory contract under section

15 of the Act, the Investment Adviser to

the Investing Fund will provide the

Board with specific information

regarding the approximate cost to the

Investment Adviser of, or portion of the

advisory fee under the existing advisory

contract attributable to, managing the

Uninvested Cash of the Investing Fund

that can be expected to be invested in

the Money Market Funds. In connection

with approving any advisory contract

for an Investing Fund, the Board,

including a majority of the Disinterested

Trustees, shall consider to what extent,

if any, the advisory fees charged to the

Investing Fund by the Investment

Adviser should be reduced to account

for reduced services provided to the

Investing Fund by the Investment

Adviser as a result of Uninvested Cash

being invested in the Money Market

Funds. The minute book of the Investing

Fund Will record fully the Board’s

consideration in approving the advisory

contract, including the considerations

referred to above.

3. Each Investing Fund will invest

Uninvested Cash in, and hold shares of,

the Money Market Funds only to the

extent that the Investing Fund’s

aggregate investment in the Money

Market Funds does not exceed 25% of

the Investing Fund’s total assets. For

purposes of this limitation, each

Investing Fund or series thereof will be

treated as a separate investment

company.

4. Investment of Cash Balances in

shares of the Money Market Funds will

be in accordance with each Investing

Fund’s investment restrictions and will

be consistent with each Investing

Fund’s policies as set forth in its

prospectus and statement of additional

information.

5. Each Investing Fund, each Money

Market Fund, and any future registered

open-end management investment

company that may rely on the order

shall be part of the same ‘‘group of

investment companies,’’ as defined in

section 12(d)(1)(G)(ii) of the Act, that

includes the Trust.

6. No Money Market Fund shall

acquire securities of any other

investment company in excess of the

limits contained in section 12(d)(1)(A)

of the Act.

7. Before a Fund may participate in

the Securities Lending Program, a

majority of the Board, including a

majority of the Disinterested Trustees,

will approve the Fund’s participation in

the Securities Lending Program. Such

Trustees also will evaluate the securities

lending arrangement and its results no

less frequently than annually and

determine that any investment of Cash

Collateral in the Money Market Funds is

in the best interest of the shareholders

of the Investing Fund.

For the SEC, by the Division of Investment

Management, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–14018 Filed 5–27–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Rel. No. IC–23202; 813–174]

Chase Global Co-Invest Partners 1997,

L.P., et al.; Notice of Application

May 21, 1998.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of application for an

order under sections 6(b) and 6(e) of the

Investment Company Act of 1940 (the

‘‘Act’’) granting an exemption from all

provisions of the Act, except section 9,

certain provisions of sections 17 and 30,

sections 36 through 53, and the rules

and regulations under those sections.

Summary of Application: Applicants

request an order to exempt certain

investment funds formed for the benefit

of key employees of the The Chase

Manhattan Corporation (‘‘Chase’’) and

its affiliates from certain provisions of

the Act, and to permit the funds to

engage in certain joint transactions.

Each fund will be an ‘‘employees’

securities company’’ as defined in

section 2(a)(13) of the Act.

Applicants: Chase Global Co-Invest

Partners 1997, L.P. (the ‘‘1997

Partnership’’) and Chase.

Filing Dates: The application was

filed on August 12, 1997 and amended

on February 9, 1998. Applicants have

agreed to file an additional amendment,

the substance of which is incorporated

this notice, during the notice period.