Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / Notices 3895

1The DBL Liquidating Trust is the successor to

applicant’s depositor, Drexel Burnham Lambert

Incorporated (‘‘Drexel’’), for the purposes set forth

in its Second Amended and Restated Joint Plan of

Reorganization under Chapter 11 of the United

States Bankruptcy Code.

2According to the terms of the indenture

agreement, the proceeds from the sale of securities

in the trust were credited to an account known as

the principal account. The trustee also collected the

interest on the securities as it became payable and

credited such interest to a separate account known

as the interest account.

SUMMARY OF APPLICATION: Applicant

seeks an order declaring it has ceased to

be an investment company.

FILING DATES: The application was filed

on August 17, 1994 and amended on

December 22, 1994.

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

February 6, 1995, 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 may request notification of a

hearing by writing to the SEC’s

Secretary.

ADDRESSES: Secretary, SEC, 450 Fifth

Street, NW., Washington, DC 20549.

Applicant, c/o The DBL Liquidating

Trust, 450 Lexington Avenue, Suite

1400, New York, NY 10017–3911.1

FOR FURTHER INFORMATION CONTACT:

Marianne H. Khawly, Staff Attorney, at

(202) 942–0562, or C. David Messman,

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.

Applicant’s Representations

1. Applicant is a registered unit

investment trust under the Act and was

organized as a business trust under the

laws of the State of New York. On

March 3, 1982, applicant filed a

Notification of Registration on Form N–

8A pursuant to section 8(a) of the Act

and a registration statement on Form N–

8B–2 under section 8(b) of the Act and

under the Securities Act of 1933. The

registration statement became effective

on April 30, 1982 and applicant’s initial

public offering commenced on that date.

2. Applicant consisted of one series,

the Zero Coupon Series 1 (the ‘‘series’’),

and registered 1,084,287 units of a

single class of securities (the ‘‘unit(s)’’).

As of July 1, 1991, the series had

169,048 units outstanding.

3. The trust terminated in accordance

with the terms of the indenture

pursuant to which it was created with

the maturity of the last security held in

the portfolio of the trust on July 1, 1991.

Upon receipt of the last proceeds of sale

of the securities, the trustee, United

States Trust Company of New York,

paid itself any amounts then owed in

respect of accrued fees and expenses

and distributed to each unit holder who

had surrendered his or her certificate,

by check, such unit holder’s interest in

the balance of the principal and interest

accounts.2

4. On July 16, 1991, applicant made

its final distribution to its remaining

unit holders. The per unit distribution

from the principal and interest accounts

was $12.94 and $0.32, respectively. The

aggregate distribution from the principal

and interest accounts was $2,187,481.12

and $54,095.36, respectively.

5. Applicant bore approximately

$3,859.40 in expenses in connection

with the liquidation. Such expenses

included trustee and evaluator fees, the

cost of preparing tax returns and the

final annual report, and postage charges.

6. As of the date of the application,

applicant had no assets, liabilities, or

unit holders. Applicant is not a party to

any litigation or administrative

proceeding. Applicant is not engaged,

nor proposes to engage, in any business

activities other than those necessary for

the winding-up of its affairs.

7. Applicant terminated its existence

as a business trust under New York law

on July 16, 1991.

For the SEC, by the Division of Investment

Management, under delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–1285 Filed 1–18–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel No. IC–20835; File No. 812–9278]

Hartford Life Insurance Company, et al.

January 12, 1995.

AGENCY: Securities and Exchange

Commission (the ‘‘Commission’’).

ACTION: Notice of application for

exemption under the Investment

Company Act of 1940 (‘‘1940 Act’’).

APPLICANTS: Hartford Life Insurance

Company (‘‘Hartford Life’’), Hartford

Life Insurance Company Separate

Account Three (‘‘HL Separate Account

Three’’), Hartford Life Insurance

Company Separate Account Two (‘‘HL

Separate Account Two’’), Hartford Life

Insurance Company/Putnam Capital

Management Trust Separate Account

(‘‘PCM Separate Account’’), Hartford

Life Insurance Company DC Variable

Account-I (‘‘Separate Account DC–I’’)

(HL Separate Account Three, HL

Separate Account two, PCM Separate

Account, and Separate Account DC–I

referred to collectively as the ‘‘Separate

Accounts’’), and Hartford Securities

Distributors, Inc. (‘‘HSD‘‘).

RELEVANT 1940 ACT SECTIONS: Order

Requested Under Section 6(c)

exempting Applicants from Sections

26(a)(2)(C) and 27(c)(2) of the 1940 Act.

SUMMARY OF APPLICATION: Applicants

seek an order permitting payment to

Hartford Life of a mortality and expense

risk charge from the assets of the

Separate Accounts funding individual

and group variable annuity contracts

issued by Hartford Life and

underwritten by HSD (the ‘‘Contracts’’).

The order would apply to future

separate accounts of Hartford Life

issuing contracts that are materially

similar to the Contracts, and would

permit applicants to substitute HSD for

Hartford Equity Sales Company

(‘‘HESCO’’) as the principal underwriter

of the Contracts.

FILING DATE: The application was filed

on October 12, 1994, and amended on

November 14, 1994, December 22, 1994,

and January 5, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing on the application by writing

to the Secretary of the Commission and

serving the Applicants with a copy of

the request, either personally or by mail.

Hearing requests must be received by

the Commission by 5:30 p.m. on

February 6, 1995, and should be

accompanied by proof of service on the

Applicants in the form of an affidavit or,

for lawyers, by certificate of service.

Hearing requests should state the nature

of the interest, the reason for the

request, and the issues contested.

Persons may request notification of the

date of a hearing by writing to the

Secretary of the Commission.

ADDRESSES: Secretary, Securities and

Exchange Commission, 450 5th Street

NW., Washington, D.C. 20549.

Applicants, c/o Rodney J. Vessels,

Counsel, Hartford Life Insurance

Company, 200 Hopmeadow Street,

Simsbury, CT 06089.
3896 Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / Notices

1Orders granting exemptive relief were issued as

follows:

(a) Hartford Life Insurance Company, Investment

Company Act Release Nos. 20462 (notice) (Aug. 9,

1994) and 20538 (order) (Sept. 8, 1994);

(b) Hartford Life Insurance Company, Investment

Company Act Release Nos. 20207 (notice) (Apr. 8,

1994) and 20281 (order) (May 5, 1994), which

amended a prior order for exemptive relief,

Investment Company Act Release Nos. 15284

(notice) (Sept. 2, 1986) and 15353 (order) (Oct. 9,

1986). Five subaccounts of HL Separate Account

Two were separate accounts for Hartford Variable

Annuity Company (‘‘HVA’’) before being transferred

to HL Separate Account Two. Before that transfer,

the five HVA separate accounts were granted an

exemption from Sections 26(a)(2)(C) and 27(c)(2),

Hartford Variable Annuity Life Insurance Company,

Investment Company Act Release Nos. 12028

(notice) (Nov. 9, 1981) and 12065 (order) (December

1, 1981).

(c) Hartford Life Insurance Company, Investment

Company Act Release Nos. 20223 (notice) (Apr. 15,

1994) and 20292 (order) (May 12, 1994), which

amended a prior order for exemptive relief,

Investment Company Act Release Nos. 16092

(notice) (Oct. 28, 1987) and 16149 (order) (Nov. 27,

1987).

(d) Separate Account DC–I was a separate account

of HVA before it merged with Hartford Life. Before

the merger with Hartford Life, Separate Account

DC–I was granted an exemption from Sections

26(a)(2)(C) and 27(c)(2)1, Hartford Variable Annuity

Life Insurance Company, Investment Company Act

Release Nos. 12028 (notice) (Nov. 9, 1981) and

12065 (order) (Dec. 1, 1981).

FOR FURTHER INFORMATION CONTACT:

Joseph G. Mari, Senior Special Counsel,

or Wendy F. Friedlander, Deputy Chief,

at (202) 942–0670, Office of Insurance

Products (Division of Investment

Management).

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application is

available for a fee from the

Commission’s Public Reference Branch.

Applicants’ Representations

1. Hartford Life is a stock life

insurance company originally

incorporated under Massachusetts law

and redomiciled in Connecticut.

2. HSD will register as a broker-dealer

under the Securities Exchange Act of

1934 and will apply to become a

member of the National Association of

Securities Dealers, Inc. (‘‘NASD’’).

3. Hartford Life and each of the

Separate Accounts filed applications

previously, and others were issued

granting the requested exemptions from

Sections 26(a)(2)(C) and 27(c)(2) of the

1940 Act.1 HESCO, the designated

principal underwriter for the Contracts,

was an applicant in the previous

applications for exemptive relief from

Sections 26(a)(2)(C) and 27(c)(2). This

application seeks relief to permit

Applicants to substitute HSD for HESCO

as the designated principal underwriter

for the Contracts, which would allow

HESCO to continue as broker-dealer

engaged in distribution functions with

respect to HESCO’s own registered

representatives, and would permit HSD

to serve as principal underwriter and

distributor with respect to entering into

sales agreements with independent

broker-dealers.

4. Applicants reaffirm all facts,

representations and undertakings

contained in the applications for

exemptive relief referenced in footnote

1 above, and incorporate those

applications herein by reference. To the

extent that there have been any material

changes in those facts, representations

or undertakings, the changes have been

disclosed herein. Except for the

replacement of the principal

underwriter, there are no material

changes in the Separate Accounts or the

Contracts as described in the previous

applications.

5. The contingent deferred sales

charge, annual maintenance fee and

annual asset charge for providing

mortality and expense risk guarantees

are fully described in the applications

for exemptive relief which were

previously granted.

6. Hartford Life will make a daily

charge at the rate of 1.25% annually

from each Contract held in the Separate

Accounts for providing mortality and

expense guarantees with respect to the

Contracts. Applicants estimate that

between .85% and .90% of the charge is

attributable to mortality risks and

between .35% and .40% of the charge is

attributable to expense risks.

7. The mortality and expense risk

charge will not be increased. If the

charge is insufficient to cover the actual

costs, Hartford Life will bear the loss.

Conversely, if the charge proves more

than sufficient to meet actual expenses,

the excess will be surplus to Hartford

Life and will be available for any proper

corporate purpose. Hartford Life expects

a reasonable profit from the mortality

and expense risk charge.

Applicants’ Legal Analysis and

Representations

1. Applicants request an exemption

from Sections 26(a)(2)(C) and 27(c)(2) of

the 1940 Act to the extent necessary to

permit the deduction of a mortality and

expense risk charge from the Separate

Accounts.

2. Sections 26(a)(2)(C) and 27(c)(2), in

pertinent part, prohibit a registered unit

investment trust and any depositor

thereof or underwriter therefor from

selling periodic payment plan

certificates unless the proceeds of all

payments (other than sales loads) are

deposited with a qualified bank as

trustee or custodian and held under

arrangements which prohibit any

payment to the depositor or principal

underwriter except a fee, not exceeding

such reasonable amount as the

Commission may prescribe, for

performing bookkeeping and other

administrative services of a character

normally performed by the bank itself.

3. Applicants request that the

Commission enter an Order that applies

to the Separate Accounts and to future

separate accounts issuing contracts that

are materially similar to the Contracts

exempting them from the provisions of

Sections 26(a)(2)(C) and 27(c)(2) to the

extent necessary to permit the

deduction by Hartford Life, and the

payment to Hartford Life, of the fee for

providing the mortality and expense

undertakings (deducted on a daily

basis).

4. Applicants represent that:

(a) The mortality and expense risk

charge is reasonable in relation to the

risks assumed by Hartford Life under

the Contracts;

(b) The mortality and expense risk

charge is within the range of industry

practice for comparable annuity

contracts as determined by a survey of

comparable contracts issued by a large

number of other insurance companies.

Hartford Life will undertake to maintain

and make available to the Commission

upon request a memorandum outlining

the methodology and the contracts of

other insurance companies underlying

this representation;

(c) There is the likelihood that the

proceeds from explicit sales loads will

be insufficient to cover the expected

costs of distributing the Contracts. Any

shortfall will be covered from the assets

of the general account, which may

include profit from the mortality and

expense risk charge. Hartford Life has

concluded that there is a reasonable

likelihood that the Separate Accounts’

distribution financing arrangement will

benefit the Separate Accounts and

Contract owners. Hartford Life will

maintain and make available to the

Commission upon request a

memorandum setting forth the basis for

this representation;

(d) The Separate Accounts will invest

only in open-end management

companies which have undertaken to

have a board of directors, a majority of

whom are not interested persons of the

open-end management company,

formulate and approve any plan under

Rule 12b–1 to finance distribution

expenses; and

(e) Future variable annuity contracts

for which class relief is sought will be

materially similar to the existing

Contracts covered by this application.
Federal Register / Vol. 60, No. 12 / Thursday, January 19, 1995 / Notices 3897

1Orders granting exemptive relief were issued as

follows:

(a) Hartford Life and Accident Insurance

Company, Investment Company Act Release Nos.

18738 (notice) (May 29, 1992) and 18812 (order)

(June 25, 1992); and

(b) Hartford Life and Accident Insurance

Company, Investment Company Act Release Nos.

18737 (notice) (May 29, 1992) and 18811 (order)

(June 25, 1992).

Conclusion

Applicants assert that for the reasons

and upon the facts set forth above, the

requested exemptions from Sections

26(a)(2)(C) and 27(c)(2) of the 1940 Act

are appropriate in the public interest

and consistent with the protection of

investors and the purposes fairly

intended by the policy and provisions of

the 1940 Act.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–1287 Filed 1–18–95; 8:45 am]

BILLING CODE 8010–01–M′

[Rel. No. IC–20837; File No. 812–9284]

Hartford Life and Accident Insurance

Company, et al.

January 12, 1995.

AGENCY: Securities and Exchange

Commission (‘‘the Commission’’).

ACTION: Notice of application for

exemption under the Investment

Company Act of 1940 (‘‘1940 Act’’).

APPLICANTS: Hartford Life and Accident

Insurance Company (‘‘Hartford Life and

Accident’’), Hartford Life and Accident

Insurance Company Separate Account

One (‘‘HLA Separate Account One’’) and

Hartford Life and Accident Insurance

Company/Putnam Capital Management

Separate Account One (‘‘HLA/PCM

Separate Account One’’) (HLA Separate

Account One and HLA/PCM Separate

Account One referred to collectively as

the ‘‘Separate Accounts’’), and Hartford

Securities Distributors, Inc. (‘‘HSD’’).

RELEVANT 1940 ACT SECTIONS: Order

requested under Section 6(c) exempting

Applicants from Sections 26(a)(2)(C)

and 27(c)(2) of the 1940 Act.

SUMMARY OF APPLICATION: Applicants

seek an order permitting payment to

Hartford Life and Accident of a

mortality and expense risk charge from

the assets of the Separate Accounts

funding individual and group variable

annuity contracts issued by Hartford

Life and Accident and underwritten by

HSD (the ‘‘Contracts’’). The order would

apply to future separate accounts of

Hartford Life and Accident issuing

contracts that are materially similar to

the Contracts, and would permit

applicants to substitute HSD for

Hartford Equity Sales Company

(‘‘HESCO’’) as the principal underwriter

of the Contracts.

FILING DATE: The application was filed

on October 12, 1994, an amended on

November 14, 1994, December 22, 1994,

and January 5, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing on the application by writing

to the Secretary of the Commission and

serving the Applicants with a copy of

the request, either personally or by mail.

Hearing requests must be received by

the Commission by 5:30 p.m. on

February 6, 1995, and should be

accompanied by proof of service on the

Applicants in the form of an affidavit or,

for lawyers, by certificate of service.

Hearing requests should state the nature

of the interest, the reason for the

request, and the issues contested.

Persons may request notification of the

date of a hearing by writing to the

Secretary of the Commission.

ADDRESSES: Secretary, Securities and

Exchange Commission, 450 5th Street,

N.W., Washington, D.C. 20549.

Applicants, c/o Rodney J. Vessels,

Counsel, Hartford Life and Accident

Insurance Company, 200 Hopmeadow

Street, Simsbury, CT 06089.

FOR FURTHER INFORMATION CONTACT:

Joseph G. Mari, Senior Special Counsel,

or Wendy F. Friedlander, Deputy Chief,

at (202) 942–0670, Office of Insurance

Products (Division of Investment

Management).

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application is

available for a fee from the

Commission’s Public Reference Branch.

Applicants’ Representations

1. Hartford Life and Accident is a

stock life insurance company licensed

to do business in all states except New

York and the District of Columbia.

2. HSD will register as a broker-dealer

under the Securities Exchange Act of

1934 and will apply to become a

member of the National Association of

Securities Dealers, Inc. (‘‘NASD’’).

3. Hartford Life and Accident and

each of the Separate Accounts filed

applications previously, and orders

were issued granting the requested

exemptions from Sections 26(a)(2)(C)

and 27(c)(2) of the 1940 Act.1 HESCO,

the designated principal underwriter for

the Contracts, was an applicant in the

previous applications for exemptive

relief from Sections 26(a)(2)(C) and

27(c)(2). This application seeks relief to

permit Applicants to substitute HSD for

HESCO as the designated principal

underwriter for the Contracts, which

would allow HESCO to continue as

broker-dealer engaged in distribution

functions with respect to HESCO’s own

registered representatives, and would

permit HSD to serve as principal

underwriter and distributor with respect

to entering into sales agreements with

independent broker-dealers.

4. Applicants reaffirm all facts,

representations and undertakings

contained in the applications for

exemptive relief referenced in footnote

1 above, and incorporate those

applications herein by reference. To the

extent that there have been any material

changes in those facts, representations

or undertakings, the changes have been

disclosed herein. Except for the

replacement of the principal

underwriter, there are no material

changes in the Separate Accounts or the

Contracts as described in the previous

applications.

5. The contingent deferred sales

charge, annual maintenance fee and

annual asset charge for providing

mortality and expense risk guarantees

are fully described in the applications

for exemptive relief which were

previously granted.

6. Hartford Life and Accident will

make a daily charge at the rate of 1.25%

annually from each Contract held in the

Separate Accounts for providing

mortality and expense guarantees with

respect to the Contracts, of which .90%

of the charge is attributable to mortality

risks and .35% of the charge is

attributable to expense risks.

7. The mortality and expense risk

charge will not be increased. If the

charge is insufficient to cover the actual

costs, Hartford Life and Accident will

bear the loss. Conversely, if the charge

proves more than sufficient to meet

actual expenses, the excess will be

surplus to Hartford Life and Accident

and will be available for any proper

corporate purpose. Hartford Life and

Accident expects a reasonable profit

from the mortality and expense risk

charge.

Applicants’ Legal Analysis and

Representations

1. Applicants request an exemption

from Sections 26(a)(2)(C) and 27(c)(2) of

the 1940 Act to the extent necessary to

permit the deduction of a mortality and

expense risk charge from the Separate

Accounts.

2. Sections 26(a)(2)(C) and 27(c)(2), in

pertinent part, prohibit a registered unit

investment trust and any depositor

thereof or underwriter therefor from