Federal Register / Vol. 66, No. 86 / Thursday, May 3, 2001 / Notices 22273

interest in any Excess Credit allocated to

a Contract within the first Contract Year

is not vested. Rather, Equitable retains

the right to, and interest in, the Excess

Credit, although not any earnings

attributable to the Excess Credit.

4. Applicants state that because a

Contract owner’s interest in any

recapturable Excess Credit is not vested,

the owner will not be deprived of a

proportionate share of the applicable

Account’s assets, i.e., a share of the

applicable Account’s assets

proportionate to the Contract owner’s

annuity account value (taking into

account the investment experience

attributable to any Excess Credit). The

amounts recaptured will never exceed

the Credits (or any Excess Credit)

provided by Equitable from its own

general account assets, and Equitable

will not recapture any gain attributable

to the Credit (or any Excess Credit).

5. Furthermore, Applicants submit

that permitting a Contract owner who

withdraws contributions, or who fails to

fulfill his or here Letter of Intent

obligations to retain any Excess Credit,

would be patently unfair and would

deny the Applicants a reasonable

measure of protection against ‘‘antiselection.’’ The risk here is that rather

than investing contributions over a

number of years, a Contract owner could

make an initial contribution, receive

Credits, then later, during the first

Contract Year, withdraw monies

(perhaps by taking advantage of the 15%

free withdrawal feature), thereby

enabling the Contract owner to retain

Credit amounts that otherwise would

not have been applied. Similarly, a

Contract owner could execute a Letter of

Intent with no intention of fulfilling it,

in order to obtain higher Credit

amounts. Like the recapture of Credits

permitted by the Existing Order, the

amounts recaptured will equal the

Excess Credits provided by Equitable

from its own general account assets, and

any gain associated with the Credit will

remain part of the Contract owner’s

Contract value.

6. For the foregoing reasons,

Applicants submit that the provisions

for recapture of any Credit or Excess

Credit under the Contracts does not

violate Section 2(a)(32), 22(c), and

27(i)(2)(A) of the Act, and Rule 22c–1

thereunder, and that the requested relief

therefrom is consistent with the

exemptive relief provided under the

Existing Order.

7. Applicants submit that their

request for an order that applies to the

Accounts or any Future Account, in

connection with the issuance of

Contracts and Future Contracts that are

substantially similar in all material

respects to the Contracts described

herein and underwritten or distributed

by AXA Advisors, LLC, Equitable

Distributors, Inc., or Equitable BrokerDealers, is appropriate in the public

interest for the same reasons as those

given in support of the Existing Order.

Conclusion

Applicants submit, based on the

grounds summarized above, that their

exemptive request meets the standards

set out in Section 6(c) of the Act,

namely, that the exemptions requested

are 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, and that,

therefore, the Commission should grant

the requested order.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11048 Filed 5–2–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. IC–24964]

Notice of Applications for

Deregistration Under Section 8(f) of the

Investment Company Act of 1940

April 27, 2001.

The following is a notice of

applications for deregistration under

section 8(f) of the Investment Company

Act of 1940 for the month of April,

2001. A copy of each application may be

obtained for a fee at the SEC’s Public

Reference Branch, 450 Fifty St., NW.,

Washington, DC 20549–0102 (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 22, 2001, 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, NW., Washington, DC 20549–

0609. For Further Information Contact:

Diane L. Titus, at (202) 942–0564, SEC,

Division of Investment Management,

Office of Investment Company

Regulation, 450 Fifth Street, NW.,

Washington, DC 20549–0506.

Firstmark Partners Contrarian Value

Fund [File No. 811–9109]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On December 21,

2000, applicant made a liquidating

distribution to its shareholders based on

net asset value. Expenses of

approximately $3,800 incurred in

connection with the liquidation were

paid by applicant’s investment adviser,

Firststock Financial Services, Inc.

Filing Dates: The application was

filed on March 7, 2001, and amended on

April 18, 2001.

Applicant’s Address: 5212

Underwood Ave., Omaha, NE 68132.

Circle Income Shares, Inc.

[File No. 811–2378]

Summary: Applicant, a closed-end

investment company, seeks an order

declaring that it has ceased to be an

investment company. On January 22,

2001, applicant transferred its assets to

One Group Mutual Funds based on net

asset value. Expenses of $123,169 were

incurred in connection with the

reorganization. Applicant and the

acquiring fund each were responsible

for their own reorganizational expenses.

Bank One Investment Advisors

Corporation, the acquiring fund’s

investment adviser, assumed the costs

of certain expenses, including proxy

solicitation and legal expenses.

Filing Date: The application was filed

on April 6, 2001.

Applicant’s Address: PO Box 77004,

Indianapolis, IN 46277–7004.

Imperial Special Investments, Inc.

[File No. 811–9919]

Summary: Applicant, a closed-end

investment company, seeks an order

declaring that it has ceased to be an

investment company. On March 26,

2001, applicant made a liquidating

distribution to its shareholders based on

net asset value. Expenses of $16,600

incurred in connection with the

liquidation were paid by applicant.

Filing Date: The application was filed

on April 4, 2001.

Applicant’s Address: 9920 S. La

Cienega Blvd., Suite 636, Inglewood, CA

90301.

Bearguard Funds, Inc.

[File No. 811–9291]

Summary: Applicant seeks an order

declaring that it has ceased to be an

22274 Federal Register / Vol. 66, No. 86 / Thursday, May 3, 2001 / Notices

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3Amendment No. 1 clarified that if the equity in

a customer’s margin account falls below applicable

requirements, an NASD member firm can force the

sale of any of the securities in any of the customer’s

accounts held at the firm and such liquidations are

not limited to the customer’s margin account.

Additionally, NASD Regulation deleted the phrase

‘‘under the law’’ from its original filing to clarify

that maintenance margin requirements are

requirements of self-regulatory organizations. See

Letter from Alden S. Adkins, General Counsel and

Senior Vice President, NASD Regulation, to

Katherine A. England, Assistant Director, Division

of Market Regulation (‘‘Division’’), Commission,

dated September 25, 2000.

4See Securities Exchange Act Release No. 43441

(October 12, 2000), 65 FR 63275 (‘‘Notice’’).

5See letter from Bill Singer, Attorney, Singer

Frumento LLP, to Jonathan G. Katz, Secretary,

Commission, dated October 26, 2000 (‘‘Singer

Letter’’); letter from J. Scott Colesanti, Senior

Compliance Attorney, Edward D. Jones & Co., Inc.

to Jonathan G. Katz, Secretary, Commission, dated

November 10, 2000 (‘‘Edward Jones Letter’’); letter

from Professor Barbara Black and Adjunct Professor

Jill Gross, Co-Directors, Securities Arbitration

Clinic, John Jay Legal Services, Inc., Pace University

School of Law, to Jonathan G. Katz, Secretary, dated

November 8, 2000 (‘‘John Jay Letter’’); letter from

investment company. On April 2, 2001,

applicant made a liquidating

distribution to its shareholders based on

net asset value. Expenses of $8,500

incurred in connection with the

liquidation were paid by applicant’s

investment adviser, Skye Investment

Advisers LLC.

Filing Date: The application was filed

on April 4, 2001.

Applicant’s Address: 985 University

Avenue, Suite 26, Los Gatos, CA 95032.

Kemper Bond Enhanced Securities

Trust, Series 1 and Subsequent Series

[File No. 811–4382]

Summary: Applicant, a unit

investment trust, seeks an order

declaring that it has ceased to be an

investment company. On September 8,

1999, applicant made a final liquidating

distribution to its shareholders based on

net asset value. Applicant incurred no

expenses in connection with the

liquidation.

Filing Date: The application was filed

on March 30, 2001.

Applicant’s Address: 250 North Rock

Road, Suite 150, Wichita, KA 67206–

224.

IGAM Group Funds

[File No. 811–9493]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On February 15,

2001, applicant made a liquidating

distribution to its shareholders based on

net asset value. Applicant incurred no

expenses in connection with the

liquidation.

Filing Date: The application was filed

on March 27, 2001.

Applicant’s Address: 24 Salt Pond

Road, South Kingstown Office Park,

Suite A5, Wakefield, RI 02879.

Income Opportunities Fund 2000, Inc.

[File No. 811–7240]

Summary: Applicant, a closed-end

investment company, seeks an order

declaring that it has ceased to be an

investment company. On December 27,

2000, applicant made a liquidating

distribution to its shareholders based on

net asset value. As of April 6, 2001,

applicant still had 20 shareholders who

have not redeemed their shares. The

Bank of New York is holding any

unclaimed funds, which will escheat to

each shareholder’s state of residence

after the applicable holding period.

Expenses of $35,133 incurred in

connection with the liquidation were

paid by applicant.

Filing Dates: The application was

filed on February 23, 2001, and

amended on April 18, 2001,

Applicant’s Address: Merrill Lynch

Investment Managers, LLP, 800

Scudders Mill Road, Plainsboro, NJ

08536.

State Farm Balanced Fund, Inc.

[File No. 811–1520]

State Farm Interim Fund, Inc.

[File No. 811–2726]

State Farm Municipal Bond Fund, Inc.

[File No. 811–2727]

Summary: Each applicant seeks an

order declaring that it has ceased to be

an investment company. On April 1,

2001, each applicant transferred its

assets to a corresponding series of State

Farm Associates’ Funds Trust based on

net asset value. Expenses of $66,928,

$7,878, and $25,025, respectively,

incurred in connection with the

reorganizations were paid by each

applicant.

Filing Dates: The applications were

filed on April 6, 2001, and amended on

April 25, 2001.

Applicant’s Address: Three State

Farm Plaza, Bloomington, IL 61710–

0001.

Composite Deferred Series, Inc.

[File No. 811–4962]

Summary: Applicant seeks an order

declaring that it has ceased to be an

investment company. On April 21,

2000, Applicant distributed all of its

shares at net asset value to its sole

shareholder in connection with

Applicant’s liquidation. Total expenses

of approximately $4,000.00 were

incurred in connection with the

liquidation and were paid by WM

Advisors, Inc.

Filing Date: The application was filed

on February 1, 2001.

Applicant’s Address: John T. West,

c/o WM Advisors, Inc., 1201 Third

Avenue, Suite 1400, Seattle, WA 98101.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11087 Filed 5–2–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44223; File No. SR–NASD–

00–55]

Self-Regulatory Organizations; Order

Approving and Notice of Filing and

Order Granting Accelerated Approval

to Amendment Nos. 2 and 3 to the

Proposed Rule Change by the National

Association of Securities Dealers, Inc.

Relating to the Delivery Requirement

of a Margin Disclosure Statement to

Non-Institutional Customers

April 26, 2001.

I. Introduction

On September 5, 2000, the National

Association of Securities Dealers, Inc.

(‘‘NASD’’ or ‘‘Association’’), through its

wholly owned subsidiary, NASD

Regulation, Inc. (‘‘NASD Regulation’’),

filed with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’),

pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a

proposed rule change to require NASD

member firms to deliver a margin

disclosure statement to their noninstitutional customers with margin

accounts. On September 26, 2000,

NASD Regulation submitted

Amendment No. 1 to the proposed rule

change.3 The proposed rule change and

Amendment No. 1 were published for

comment in the Federal Register on

October 23, 2000.4 The Commission

received eight comment letters with

respect to the proposed rule change and

Amendment No. 1.5 On March 28, 2001,