Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Notices 20141

2Without an exemption, a Trust selling Units

subject to a deferred sales charge could not meet the

definition of a unit investment trust under section

4(2) of the Act. Section 4(2) defines a unit

investment trust as an investment company that

issues only ‘‘redeemable securities.’’

calculated as the greater of (a) $25 per

Unit, or (b) if Units of any Series are

exchanged within five months of their

acquisition for Units of a Series with a

higher sales charge, or if Units subject

to a deferred sales charge are exchanged

for Units sold with an initial sales

charge, an amount that, together with

the sales charge already paid on the

Units being exchanged, equals the

normal sales charge on the acquired

Units.

7. If Units subject to a deferred sales

charge are exchanged for Units of a

Series not having such a charge, the

deferred sales charge will be collected at

the time of the exchange. If Units

subject to a deferred sales charge are

exchanged for Units without such a

charge, installment payments will

continue to be deducted from the

distributions on the acquired Units until

the original balance of the sales charge

owed on the initial investment has been

collected. In either case, the additional

sales charge will be imposed at the time

of the exchange.

Applicants’ Legal Analysis

1. Under section 6(c), the SEC may

exempt any person or transaction from

any provision of the Act or any rule

thereunder to the extent that such

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.

2. Section 2(a)(32) defines a

‘‘redeemable security’’ as a security that,

upon its presentation to the issuer,

entitles the holder to receive

approximately his or her proportionate

share of the issuer’s current net assets,

or the cash equivalent of those assets.

Because the imposition of deferred sales

charge may cause a redeeming

unitholder to receive an amount less

than the net asset value of the redeemed

Units, applicants seek an exemption

from section 2(a)(32) so that Units

subject to a deferred sales charge are

considered redeemable securities for

purposes of the Act.2

3. Section 2(a)(35) defines the term

‘‘sales load’’ to be the difference

between the sales price and the

proceeds to the issuer, less any expenses

not properly chargeable to sales or

promotional expenses. Because a

deferred sales charge is not charged at

the time of purchase, an exemption from

section 2(a)(35) is necessary.

4. Rule 22c–1 requires that the price

of a redeemable security issued by an

investment company for purposes of

sale, redemption, and repurchase be

based on the investment company’s

current net asset value. Because the

imposition of a deferred sales charge

may cause a redeeming unitholder to

receive an amount less than the net

asset value of the redeemed Units,

applicants seek an exemption from this

rule.

5. Section 22(d) requires an

investment company and its principal

underwriter and dealer to sell securities

only at a current public offering price

described in the investment company’s

prospectus. Because sales charges

traditionally have been a component of

the public offering price, section 22(d)

historically required that all investors be

charged the same load. Rule 22d–1 was

adopted to permit the sale of

redeemable securities ‘‘at prices that

reflect scheduled variations in, or

elimination of, the sales load.’’ Because

rule 22d–1 does not extend to scheduled

variations in deferred sales charges,

applicants seek relief from section 22(d)

to let them waive or reduce their

deferred sales charge in certain

instances.

6. Section 26(a)(2) in relevant part

prohibits a trustee or custodian of a unit

investment trust from collecting from

the trust as an expense any payment to

a depositor or principal underwriter

thereof. Because of this prohibition,

applicants need an exemption to let the

trustee collect the deferred sales charge

installments from distribution

deductions or Trust assets.

7. Applicants believe that

implementation of the deferred sales

charge program in the manner described

above would be fair and equitable and

consistent with all provisions of the Act.

Thus, granting the requested order

would be 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. Section 11(c) prohibits any offers of

exchange of the securities of a registered

unit investment trust for the securities

of any other investment company,

unless the terms of the offer have been

approved by the SEC. Applicants assert

that the reduced sales charge imposed at

the time of exchange is a reasonable and

justifiable expense to be allocated for

the professional assistance and

operational expenses incurred in

connection with the exchange.

Applicants’ Conditions

Applicants agree that any relief

granted will be subject to the following

conditions:

1. Whenever the exchange option is to

be terminated or its terms are to be

amended materially, any holder of a

security subject to that privilege will be

given prominent notice of the

impending termination or amendment

at least 60 days prior to the date of

termination or the effective date of the

amendment, provided: (a) No such

notice need be given if the only material

effect of an amendment is to reduce or

eliminate the sales charge payable at the

time of an exchange, to add one or more

new Series eligible for the exchange

option, or to delete a Series that has

terminated; and (b) no notice need be

given if, under extraordinary

circumstances, either (i) there is a

suspension of the redemption of units of

the Trust under section 22(e) and the

rules and regulations promulgated

thereunder, or (ii) a Trust temporarily

delays or ceases the sale of its Units

because it is unable to invest amounts

effectively in accordance with

applicable investment objectives,

policies, and restrictions.

2. An investor who purchases Units

under the exchange option will pay a

lower aggregate sales charge than that

that would be paid for the Units by a

new investor.

3. The prospectus of each Trust

offering exchanges and any sales

literature or advertising that mentions

the existence of the exchange option

will disclose that the exchange option is

subject to modification, termination, or

suspension, without notice except in

certain limited cases.

4. Each Series offering Units subject to

a deferred sales charge will include in

its prospectus the table required by item

2 of Form N–1A (modified as

appropriate to reflect the differences

between unit investment trusts and

open-end management investment

companies) and a schedule setting forth

the number and date of each installment

payment.

For the SEC, by the Division of Investment

Management, under delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–9982 Filed 4–21–95; 8:45 am]

BILLING CODE 8010–01–M
20142 Federal Register / Vol. 60, No. 78 / Monday, April 24, 1995 / Notices

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Reports, Forms, and Recordkeeping

Requirements

AGENCY: Department of Transportation

(DOT), Office of the Secretary.

ACTION: Notice.

SUMMARY: This notice lists those forms,

reports, and recordkeeping requirements

imposed upon the public which were

transmitted by the Department of

Transportation to the Office of

Management and Budget (OMB) for its

approval in accordance with the

requirements of the Paperwork

Reduction Act of 1980 (44 U.S.C.

Chapter 35).

DATES: April 14, 1995.

ADDRESSES: Written comments on the

DOT information collection requests

should be forwarded, as quickly as

possible, to Edward Clarke, Office of

Management and Budget, New

Executive Office Building, Room 10202,

Washington, DC 20503. If you anticipate

submitting substantive comments, but

find that more than 10 days from the

date of publication are needed to

prepare them, please notify the OMB

official of your intent immediately.

FOR FURTHER INFORMATION CONTACT:

Copies of the DOT information

collection requests submitted to OMB

may be obtained from Susan Pickrel or

Annette Wilson, IRM Strategies

Division, M–32, Office of the Secretary

of Transportation, 400 Seventh Street,

SW., Washington, DC 20590, (202) 366–

4735.

SUPPLEMENTARY INFORMATION: Section

3507 of Title 44 of the United States

Code, as adopted by the Paperwork

Reduction Act of 1980, requires that

agencies prepare a notice for publication

in the Federal Register, listing those

information collection requests

submitted to OMB for approval or

renewal under that Act. OMB reviews

and approves agency submissions in

accordance with criteria set forth in that

Act. In carrying out its responsibilities,

OMB also considers public comments

on the proposed forms and the reporting

and recordkeeping requirements. OMB

approval of an information collection

requirement must be renewed at least

once every three years.

Items Submitted to OMB for Review

The following information collection

requests were submitted to OMB on

April 14, 1995:

DOT No: 4048.

OMB No: 2125–0030.

Administration: Federal Highway

Administration.

Title: Outdoor Advertising and

Junkyard Report.

Need for Information: Title 23 USC

131 and 136 prescribe the requirements

for controlling the erection and

maintenance of outdoor advertising

signs, displays, and devices and the

maintenance of junkyards in areas

adjacent to the Interstate System and the

primary system.

Proposed Use of Information: The

information will be used to administer

and monitor the control of outdoor

advertising and junkyards as

implemented by State highway

agencies.

Frequency: Annually.

Burden Estimate: 6,526 hours.

Respondents: State highway agencies.

Form(s): FHWA 1424.

Average Burden Hours Per Response:

30 minutes reporting.

DOT No: 4049.

OMB No: 2138–0041.

Administration: Research and Special

Programs Administration.

Title: Airline Service Quality

Reporting.

Need for Information: Title 14 CFR

Part 234 prescribes the requirements for

airline service quality performance

reports.

Proposed Use of Information: The

information will be used to produce

reports for the travelling public. DOT

issues a monthly report providing

consumers with the on-time flight

performance and the rate of mishandled

baggage reports for the reporting air

carriers. The FAA will use the data base

for air traffic control modeling.

Frequency: Monthly.

Burden Estimate: 1,440 hours.

Respondents: Large schedule

passenger air carriers.

Form(s): None.

Average Burden Hours Per Response:

12 hours reporting.

DOT No: 4050.

OMB No: 2115–New.

Administration: U.S. Coast Guard.

Title: Boating Statistics Questionnaire.

Need for Information: Under the

mandate of the National Performance

Review and Executive Order 12802,

Coast Guard is conducting this survey to

determine its customer information

needs and to measure the customer’s

satisfaction with the annual published

report on recreational boating accidents.

Proposed Use of Information: The

data collected from this survey will be

used to improve the quality and

customer satisfaction with information

contained in this report.

Frequency: Annually.

Burden Estimate: 320 hours.

Respondents: Recreational boaters.

Form(s): CG–5599.

Average Burden Hours Per Response:

15 minutes reporting.

DOT No: 4051.

OMB No: 2115–0141.

Administration: U.S. Coast Guard.

Title: Reporting and Recordkeeping

Requirements for Firefighting and

Lifesaving Equipment, Marine

Sanitation Devices, and Structural Fire

Protection Material.

Need for Information: Title 46 CFR

Ch. I, Parts 159–164 and 33 CFR Ch. I

prescribe the technical standards for

Coast Guard approval on specific types

of lifesaving and safety equipment

before this equipment can be installed

on vessels. Manufacturers of such

equipment are required to submit

drawings, specifications, and laboratory

test reports.

Proposed Use of Information:

Technical data submitted to the Coast

Guard by manufacturers of lifesaving

and safety equipment will be reviewed

to determine that equipment is in

compliance with applicable regulations.

The information submitted by

laboratories will be used to determine

technical qualifications and

independence.

Frequency: On occasion, one time.

Burden Estimate: 7,140 hours.

Respondents: Manufacturers of safety

equipment, testing laboratories.

Form(s): None.

Average Burden Hours Per Response:

manufacturers: 2 hours reporting; 100

hours recordkeeping; laboratories: 4

hours reporting.

Issued in Washington, DC, on April 14,

1995.

Paula R. Ewen,

Manager, IRM Strategies Division.

[FR Doc. 95–10072 Filed 4–21–95; 8:45 am]

BILLING CODE 4910–62–P

Federal Aviation Administration

[AC No. 1–1]

Advisory Circular on GovernmentOwned Aircraft

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Advisory Circular.

SUMMARY: Advisory Circular (AC) 1–1,

Government Owned Aircraft provides

guidance on whether particular

government-owned aircraft operations

are public aircraft operations or civil

aircraft operations under the new

statutory definition of ‘‘public aircraft.’’

This Advisory Circular contains the