24168 Federal Register / Vol. 66, No. 92 / Friday, May 11, 2001 / Notices

10:30 A.M.–12:30 P.M.: Members

Attendance at the Commission Meeting

on the Office of Nuclear Regulatory

Research Programs and Performance

(Open)—Drs. Powers and Wallis are

scheduled to participate in this meeting

which will be held in the

Commissioners’ Conference Room, One

White Flint North. Other members will

be attending this meeting as observers.

1:30 P.M.–3 P.M.: Risk-Based

Performance Indicators (Open)—The

Committee will hear presentations by

and hold discussions with

representatives of the NRC staff

regarding the staff’s draft document

entitled,’Risk-Based Performance

Indicators: Results of Phase 1

Development,’’ and related matters.

3:15 P.M.–4:15 P.M.: Discussion of

South Texas Project Nuclear Operating

Company (STPNOC) Exemption Request

(Open)—The Committee will discuss

the South Texas Project Nuclear

Operating Company Exemption Request.

4:15 P.M.–7 P.M.: Discussion of

Proposed ACRS Reports (Open)—The

Committee will discuss proposed ACRS

reports on matters considered during

this meeting, as well as a proposed

ACRS report on Management Directive

6.4 associated with the revised Generic

Safety Issue Process.

Friday, May 11, 2001

8:30 A.M.–8:35 A.M.: Opening

Remarks by the ACRS Chairman

(Open)—The ACRS Chairman will make

opening remarks regarding the conduct

of the meeting.

8:35 A.M.–10 A.M.: Discussion of

Topics for Meeting with the NRC

Commissioners (Open)—The Committee

will discuss topics scheduled for its

meeting with the NRC Commissioners.

10:30 A.M.–12:30 P.M.: Meeting with

the NRC Commissioners (Open)—The

Committee will meet with the NRC

Commissioners, Commissioners’

Conference Room, One White Flint

North to discuss: Proposed framework

for risk-informed changes to 10 CFR Part

50; South Texas Project Exemption

Request; Issues Associated with

Thermal-Hydraulic Codes; Status Report

on Steam Generator Tube Integrity

Issues; and Status of ACRS Activities

Associated with License Renewal.

1:30 P.M.–2:30 P.M.: Discussion of

General Design Criteria (Open)—The

Committee will hear a presentation by

and hold discussions with Mr.

Sorensen, ACRS Senior Fellow,

regarding his views on risk-informing

the General Design Criteria that are

included in Appendix A to 10 CFR Part

50.

2:30 P.M.–3:15 P.M.: Future ACRS

Activities/Report of the Planning and

Procedures Subcommittee (Open)—The

Committee will discuss the

recommendations of the Planning and

Procedures Subcommittee regarding

items proposed for consideration by the

full Committee during future meetings.

Also, it will hear a report of the

Planning and Procedures Subcommittee

on matters related to the conduct of

ACRS business, and organizational and

personnel matters relating to the ACRS.

3:30 P.M.–3:45 P.M.: Reconciliation of

ACRS Comments and

Recommendations (Open)—The

Committee will discuss the responses

from the NRC Executive Director for

Operations (EDO) to comments and

recommendations included in recent

ACRS reports and letters. The EDO

responses are expected to be made

available to the Committee prior to the

meeting.

3:45 P.M.–4 P.M.: Miscellaneous

(Open)—The Committee will discuss

matters related to the conduct of

Committee activities and matters and

specific issues that were not completed

during previous meetings, as time and

availability of information permit.

Procedures for the conduct of and

participation in ACRS meetings were

published in the Federal Register on

October 11, 2000 (65 FR 60476). In

accordance with these procedures, oral

or written views may be presented by

members of the public, including

representatives of the nuclear industry.

Electronic recordings will be permitted

only during the open portions of the

meeting and questions may be asked

only by members of the Committee, its

consultants, and staff. Persons desiring

to make oral statements should notify

Mr. James E. Lyons, ACRS, five days

before the meeting, if possible, so that

appropriate arrangements can be made

to allow necessary time during the

meeting for such statements. Use of still,

motion picture, and television cameras

during the meeting may be limited to

selected portions of the meeting as

determined by the Chairman.

Information regarding the time to be set

aside for this purpose may be obtained

by contacting Mr. James E. Lyons prior

to the meeting. In view of the possibility

that the schedule for ACRS meetings

may be adjusted by the Chairman as

necessary to facilitate the conduct of the

meeting, persons planning to attend

should check with Mr. James E. Lyons

if such rescheduling would result in

major inconvenience.

Further information regarding topics

to be discussed, whether the meeting

has been canceled or rescheduled, the

Chairman’s ruling on requests for the

opportunity to present oral statements,

and the time allotted therefor can be

obtained by contacting Mr. James E.

Lyons (telephone 301–415–7371),

between 7:30 a.m. and 4:15 p.m., EDT.

ACRS meeting agenda, meeting

transcripts, and letter reports are

available for downloading or viewing on

the internet at http://www.nrc.gov/

ACRSACNW.

Videoteleconferencing service is

available for observing open sessions of

ACRS meetings. Those wishing to use

this service for observing ACRS

meetings should contact Mr. Theron

Brown, ACRS Audio Visual Technician

(301–415–8066), between 7:30 a.m. and

3:45 p.m., EDT, at least 10 days before

the meeting to ensure the availability of

this service. Individuals or

organizations requesting this service

will be responsible for telephone line

charges and for providing the

equipment facilities that they use to

establish the videoteleconferencing link.

The availability of

videoteleconferencing services is not

guaranteed.

Dated: May 2, 2001.

Andrew L. Bates,

Advisory Committee Management Officer.

[FR Doc. 01–11942 Filed 5–10–01; 8:45 am]

BILLING CODE 7590–01–P

SECURITIES AND EXCHANGE

COMMISSION

[Rel. No. IC–24973; File No. 812–12386]

Allstate Life Insurance Company, et al.

May 7, 2001.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’).

ACTION: Notice of Applicant for an order

under Section 6(c) of the Investment

Company Act of 1940 (the ‘‘1940 Act’’)

granting exemptions from the provisions

of Sections 2(a)(32) and 27(i)(2)(A) of

the 1940 Act and Rule 22c–1 thereunder

to permit the recapture of credits

applied to contributions made under

certain deferred variable annuity

contracts.

Applicants: Allstate Life Insurance

Company (‘‘Allstate Life’’), Allstate Life

Insurance Company Separate Account A

(‘‘Allstate Life Separate Account’’),

Allstate Life Insurance Company of New

York (‘‘Allstate Life of New York’’),

Allstate Life Insurance Company of New

York Separate Account A (‘‘Allstate Life

of New York Separate Account’’),

Glenbrook Life & Annuity Company

(‘‘Glenbrook’’), Glenbrook Life &

Annuity Company Variable Annuity

Account, Glenbrook Life Multi-Manager

Variable Account, Glenbrook Life &

Annuity Company Separate Account A

Federal Register / Vol. 66, No. 92 / Friday, May 11, 2001 / Notices 24169

(‘‘Glenbrook Separate Account A’’),

Glenbrook scudder Variable Account

(A), Lincoln Benefit Life Company

(‘‘Lincoln Benefit’’), Lincoln Benefit Life

Variable Annuity Account (‘‘Lincoln

Separate Account’’), Northbrook Life

Insurance Company (‘‘Northbrook’’),

Allstate Distributors, LLC, (‘‘Allstate

Distributors’’), ALFS, Inc. (‘‘ALFS’’)

(collectively ‘‘Applicants’’).

Summary of Application: Applicants

seek an order under Section 6(c) of the

1940 Act to the extent necessary to

permit under specified circumstances

the recapture of credits applied to

contributions made (i) under certain

deferred variable annuity contracts and

certificates (the ‘‘Contracts’’ or,

individually, the ‘‘Contract’’) described

herein that Lincoln Benefit, Glenbrook,

and Allstate Life will issue through the

Lincoln Separate Account, Glenbrook

Separate Account A, and the Allstate

Life Separate Account, respectively, and

(ii) under other deferred variable

annuity contracts and certificates

(‘‘Future Contracts’’) that Allstate Life,

Allstate Life of New York, Glenbrook,

Lincoln Benefit and Northbrook (the

‘‘Insurance Company Applicants’’) may

in the future issue through their

respective separate accounts named as

applicants above (the ‘‘Separate

Account Applicants’’) or through other

separate accounts that they may

establish in the future (the ‘‘Future

Accounts’’), which contracts will be

substantially similar in all material

respects to the Contracts. Applicants

request that the order being sought

extend to any other National

Association of Securities Dealers, Inc.

(‘‘NASD’’) member broker-dealer

controlling or controlled by, or under

common control with, Allstate Life

whether existing or created in the future

that serves as a distributor or principal

underwriter for Contracts or Future

Contracts offered through the Separate

Account Applicants or any Future

Account (‘‘Affiliated Broker-Dealer(s)’’).

Filing Date: The Application was filed

on December 26, 2000, and amended on

May 3, 2001.

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, in person or by

mail. Hearing requests should be

received by the SEC by 5:30 p.m. on

June 1, 2001, and should be

accompanied by proof of service on the

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 Secretary of the SEC.

ADDRESSES: Secretary, Securities and

Exchange Commission, 450 Fifth Street,

NW., Washington, DC 20549–0609.

Applicants, c/o Lincoln Benefit Life

Company, 2940 South Eighty-fourth

Street, Lincoln, Nebraska 68506, Attn:

Carol S. Watson, Esq.; copies to Joan E.

Boros, Esq., Jorden Burt LLP, 1025

Thomas Jefferson Street, NW., Suite

400E Washington, DC 20007.

FOR FURTHER INFORMATION CONTACT:

Patrick Scott, Attorney, or Lorna

MacLeod, Branch Chief, Office of

Insurance Products, Divisions of

Investment Management, at (202) 942–

0670.

SUPPLEMENTARY INFORMATION: The

following is a summary of the

application. The complete application is

available for a fee from the SEC’s Public

Reference Branch, 450 Fifth Street, NW.,

Washington, DC 20549–0102 ((202)

942–8090).

Applicant’s Representations

1. Allstate Life is a stock life

insurance company organized under the

laws of the State of Illinois. The Allstate

Life Separate Account is a segregated

asset account of Allstate Life, which is

registered with the Commission as a

unit investment trust under the 1940

Act. Allstate Life serves as depositor of

the Allstate Life Separate Account.

2. Allstate Life of New York is a stock

life insurance company organized under

the laws of the State of New York. The

Allstate Life of New York Separate

Account is a segregated asset account of

Allstate Life of New York, which is

registered with the Commission as a

unit investment trust under the 1940

Act. Allstate Life of New York serves as

depositor of the Allstate Life of New

York Separate Account.

3. Glenbrook is a stock life insurance

company organized under the laws of

the State of Illinois, and re-domesticated

under the laws of the State of Arizona

in 1998. Glenbrook Life & Annuity

Company Variable Annuity Account,

Glenbrook Life Multi-Manager Variable

Account, Glenbrook Separate Account

A, Glenbrook Scudder Variable Account

(A), and Allstate Life of New York

Separate Account A (the ‘‘Glenbrook

Separate Accounts’’) are segregated asset

accounts of Glenbrook, which are

registered with the Commission as unit

investment trusts under the 1940 Act.

Glenbrook serves as depositor of the

Glenbrook Separate Accounts.

4. Lincoln Benefit is a stock life

insurance company organized under the

laws of the State of Nebraska. The

Lincoln Separate Account is a

segregated asset account of Lincoln

Benefit, which is registered with the

Commission as unit investment trust

under the 1940 Act. Lincoln Benefit

serves as depositor of the Lincoln

Separate Account.

5. Northbrook is a stock life insurance

company organized under the laws of

the State of Illinois in 1978.

6. Allstate Distributors is an affiliate

of Lincoln Benefit and serves as

distributor of certain deferred variable

annuity contracts, including certain

Contracts, issued by the Insurance

Company Applicants through the

Separate Account Applicants. Allstate

Distributors is registered with the

Commission as a broker-dealer under

the Securities Exchange Act of 1934 (the

‘‘1934 Act’’) and is a member of the

National Association of Securities

Dealers (‘‘NASD’’). The Contracts issued

by Allstate Life will be offered through

registered representatives of brokerdealers, which are registered under the

1934 Act and members of the NASD,

that have selling agreements with

Allstate Distributors.

7. ALFS is an affiliate of Lincoln

Benefit and serves as distributor of

certain deferred variable annuity

contracts, including certain Contracts,

issued by the Insurance Company

Applicants through the Separate

Account Applicants. ALFS is registered

with the Commission as a broker-dealer

under the 1934 Act, and is a member of

the NASD. The Contracts (other than the

Contracts issued by Allstate Life) will be

offered through registered

representatives of broker-dealers, which

are registered under the 1934 Act and

members of the NASD, that have selling

agreements with ALFS.

8. All of the Insurance Company

Applicants, Allstate Distributors, and

ALFS are direct or indirect whollyowned subsidiaries of Allstate Insurance

Company.

9. The variable portions of the

Contracts issued by Lincoln Benefit,

Glenbrook, and Allstate Life are

registered under the Securities Act of

1933 (the ‘‘1933 Act’’). The variable

portion of Future Contracts also will be

registered under the 1933 Act. That

portion of the assets of each Separate

Account Applicant that is equal to the

reserves and other contract liabilities

with respect to Contracts is not

chargeable with liabilities arising out of

any other business of the corresponding

Insurance Company Applicant. Any

income, gains or losses, realized or

unrealized, from assets allocated to a

Separate Account Applicant will be, in

accordance with such Account’s

24170 Federal Register / Vol. 66, No. 92 / Friday, May 11, 2001 / Notices

Contracts, credited to or charged against

such Separate Account Applicant,

without regard to other income, gains or

losses of the corresponding Insurance

Company Applicant.

10. Each of the Separate Accounts

Applicants are divided into multiple

subaccounts; each subaccount invests in

shares of a corresponding portfolio

(‘‘Portfolio’’), that serves as an

investment option under Contracts

issued through the separate account.

11. Each time Lincoln Benefit receives

a Purchase Payment from an owner of

a Lincoln Benefit Contract, it will add

to the owner’s contract value a Credit

Enhancement of 4% of the Purchase

Payment amount. Lincoln Benefit will

allocate Credit Enhancements among

the available Portfolios, according to the

allocation instructions in effect for the

Purchase Payments. Lincoln Benefit will

fund Credit Enhancements from its

general account assets.

12. The Lincoln Benefit Contract

provides for various surrender options,

annuity benefits and annuity payout

options, as well as transfer privileges

among Sub-accounts, dollar cost

averaging, and other features. The

Lincoln Benefit Contract contains the

following charges: (i) A contingent

deferred sales charge as a percentage of

Purchase Payments surrendered, which

is 8% in year one, 7% in years two and

three, 6% in years four and five, 5% in

year six, 4% in year seven, 3% in year

eight, and 0% thereafter; (ii) a $35

annual administrative charge (which is

waived if total Purchase Payments

exceed $50,000; (iii) a mortality and

expense risk fee of 1.30% annually; (iv)

an administrative charge of 0.10%

annually; and (v) a transfer fee of $10

per transfer with certain exceptions,

which currently is being waived.

Lincoln Benefit also deducts any

applicable state or local premium taxes

up to 4.0%, depending on the owner’s

state of residence or the state in which

the Contract was sold. In addition,

assets invested in the Sub-accounts are

charged with the operating expenses of

the Portfolios.

13. Each time Glenbrook receives a

Purchase Payment from an owner of a

Glenbrook Contract, it will add to the

owner’s contract value a Credit

Enhancement. There are two Credit

Enhancement options available under

the Glenbrook Contract:

• Under option 1, Glenbrook will add

to the owner’s contract value a Credit

Enhancement equal to 4% of the

Purchase Payment amount.

• Under option 2, Glenbrook will add

to the owner’s contract value a Credit

Enhancement equal to 2% of the

Purchase Payment amount. In addition,

on every 5th contract anniversary

during the accumulation phase,

Glenbrook will add to the owner’s

contract value a Credit Enhancement

equal to 2% of the owner’s contract

value as of such contract anniversary.

Glenbrook will allocate Credit

Enhancements among the available

Portfolios, according to the allocation

instructions in effect for the Purchase

Payments. Glenbrook will fund Credit

Enhancements from its general account

assets.

14. The Glenbrook Contract provides

for various surrender options, annuity

benefits and annuity payout options, as

well as transfer privileges among Subaccounts, dollar cost averaging, and

other features. The Contract contains the

following charges: (i) A withdrawal

charge as a percentage of Purchase

Payment surrendered, which is 8% in

years one and two, 7% in years three

and four, 6% in year five, 5% in year

six, 4% in year seven, 3% in year eight,

and 0% thereafter; (ii) a $35 annual

administrative charge (which is waived

if total Purchase Payments exceed

$50,000); (iii) a mortality and expense

risk fee of 1.40% annually; and (iv) a

transfer fee of $10 on transfers in excess

of twelve in any Contract year, which

currently is being waived. Glenbrook

also deducts any applicable state or

local premium taxes up to 4.0%,

depending on the owner’s state of

residence or the state in which the

Contract was sold. In addition, assets

invested in the Sub-accounts are

charged with the annual operating

expenses of the Portfolios.

15. Each time Allstate Life receives a

Purchase Payment from an owner of an

Allstate Life Contract, it will add to the

owner’s contract value a Credit

Enhancement of 4% of the Purchase

Payment amount. Allstate Life will

allocate Credit Enhancements among

the available Portfolios, according to the

allocation instructions in effect for the

Purchase Payments. Allstate Life will

fund Credit Enhancements from its

general account assets.

16. The Allstate Life Contract

provides for various surrender options,

annuity benefits and annuity payout

options, as well as transfer privileges

among Sub-accounts, dollar cost

averaging, and other features. The

Contract contains the following charges:

(i) A withdrawal charge as a percentage

of Purchase Payments surrendered,

which is 8% in years one, two, and

three, 7% in year four, 6% in year five,

5% in year six, 4% in year seven, 3%

in year eight, and 0% thereafter; (ii) a

mortality and expense risk fee of 1.60%

annually; and (iii) a transfer fee of .50%

of the amount transferred on transfers in

excess of twelve within a calendar year.

(The Allstate Life Contract does not

assess an annual contract maintenance

charge or annual administrative fees.)

Allstate Life also deducts any applicable

state or local premium taxes up to 4.0%,

depending on the owner’s state of

residence or the state in which the

Contract was sold. In addition, assets

invested in the Sub-accounts are

charged with the annual operating

expenses of the Portfolios.

17. Each Insurance Company

Applicant will recapture Credit

Enhancements if the owner returns the

Contract for a refund during the free

look period. The free look period is 20

days or such longer period as may be

required under state law. The Insurance

Company Applicants will not seek to

recapture Credit Enhancements under

any other circumstance.

18. The free look period is the period

during which an owner may return a

Contract after it has been delivered and

receive a full refund of the contract

value, less any Credit Enhancements.

No other charges will apply to the

refund, but the owner bears the

investment risk from the time of

purchase until he or she returns the

Contract. The owner also will bear any

expenses charged with respect to the

Credit Enhancement amount incurred

prior to return of the Contract, e.g., any

mortality and expense risk charge. The

refund amount may be more or less than

the Purchase Payment the owner made,

unless state insurance law requires that

the full amount of the Purchase

Payment be refunded.

19. Applicants seek relief pursuant to

Section 6(c) from Sections 2(a)(32) and

27(i)(2)(A) of the 1940 Act and Rule

22c–1 thereunder to the extent

necessary (i) to permit Lincoln Benefit,

Glenbrook, and Allstate Life to

recapture an amount equal to the Credit

Enhancements when an owner returns a

Contract or Future Contract for a refund

during the ‘‘free look’’ period, in which

case the issuing Insurance Company

Applicant will recover the amount of

any Credit Enhancement applicable to

such contribution, and (ii) to permit all

of the Insurance Company Applicants to

recapture Credit Enhancements under

Future Contracts Insurance Company

Applicants may issue through the

Separate Accounts Applicants or

through Future Accounts that contain

Credit Enhancement features, including

recapture provisions, that are

substantially similar in all material

respects to the Contracts. Applicants

also request that the order being sought

extend to any Affiliated Broker-Dealer

that serves as a distributor or principal

underwriter for Contracts or Future

Federal Register / Vol. 66, No. 92 / Friday, May 11, 2001 / Notices 24171

Contracts offered through the Separate

Account Applicants or any Future

Account.

Applicants’ Legal Analysis

1. Section 6(c) the 1940 Act

authorizes the Commission to exempt

any person, security or transaction, or

any class or classes of persons,

securities or transactions from the

provisions of the 1940 Act and the rules

promulgated thereunder, if and 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 1940 Act. Applicants believe that

the requested exemptions 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.

2. Applicants represent that it is not

administratively feasible to track the

Credit Enhancement amount in the Subaccounts after the Credit Enhancement

is applied. Accordingly, the asset-based

charges applicable to the Sub-accounts

will be assessed against the entire

amounts held in the Sub-accounts,

including the Credit Enhancement

amount, during the ‘‘free look’’ period.

As a result, during such period, the

aggregate asset-based charges assessed

against an owner’s annuity account

value will be higher than those that

would be charged if the owner’s

contract value did not include the

Credit Enhancements.

3. Subsection (i) of Section 27

provides that Section 27 does not apply

to any registered separate account

funding variable insurance contracts, or

the sponsoring insurance company and

principal underwriter of such account,

except as provided in paragraph (2) of

the subsection. Paragraph (2) provides

that it shall be unlawful for any

registered separate account funding

variable insurance contracts or a

sponsoring insurance company of such

account to sell a contract funded by the

registered separate account unless,

among other things, such contract is a

redeemable security. Section 2(a)(32)

defines ‘‘redeemable security’’ as any

security, other than short-term paper,

under the terms of which the holder,

upon presentation to the issuer, is

entitled to receive approximately his

proportionate share of the issuer’s

current net assets, or the cash equivalent

thereof.

4. Applicants submit that the Credit

Enhancement recapture provisions of

the Contracts would not deprive an

owner of his or her proportionate share

of the issuer’s current net assets.

Applicants state that an owner’s interest

in the Credit Enhancement amount

allocated to his or her contract value

upon receipt of an initial Purchase

Payment is not vested until the

applicable free-look period has expired

without return of the Contract. Until the

free look period has expired and any

Credit Enhancement amount is vested,

Applicants submit that the issuing

Insurance Company Applicant retains

the right and interest in the Credit

Enhancement amount, although not in

the earnings attributable to that amount.

Thus, Applicants argue that when an

Insurance Company Applicant

recaptures any Credit Enhancement, it is

merely retrieving its own assets, and the

owner has not been deprived of a

proportionate share of the Separate

Account’s assets.

5. In addition, Applicants state that

permitting an owner to retain a Credit

Enhancement under a contract upon the

exercise of the free look period would

not only be unfair, but would also

encourage individuals to purchase a

Contract with no intention of keeping it,

but simply to return it for a quick profit.

6. Applicants state that the Credit

Enhancement will be attractive to and in

the interest of investors because it will

permit owners to put either 102%

(under Credit Enhancement option 2 of

Glenbrook’s Contracts) or 104% (under

Lincoln’s and Allstate Life’s Contracts

and Credit Enhancement option 1 of

Glenbrook’s Contract) of their Purchase

Payments to work for them in the

selected Sub-accounts. In addition, the

owner will retain any earnings

attributable to the Credit Enhancement,

as well as the principal amount of the

Credit Enhancement if he or she does

not cancel the Contract.

7. Applicants submit that the

provisions for recapture of any Credit

Enhancement under the Contracts do

not, and any such Future Contract

provisions will not, violate Section

2(a)(32) and 27(i)(2)(A) of the 1940 Act.

Nevertheless, to avoid any uncertainties,

Applicants request an exemption from

those Sections, to the extent deemed

necessary, to permit the recapture of any

Credit Enhancements under the

circumstances described herein with

respect to the Contracts and any Future

Contracts, without the loss of the relief

from Section 27 provided by Section

27(i).

8. Section 22(c) of the 1940 Act

authorizes the Commission to make

rules and regulations applicable to

registered investment companies and to

principal underwriters of, and dealers

in, the redeemable securities of any

registered investment company,

whether or not members of any

securities association, to the same

extent, covering the same subject matter,

and for the accomplishment of the same

ends as are prescribed in Section 22(a).

Rule 22c–1 thereunder prohibits a

registered investment company issuing

any redeemable security, a person

designated in such issuer’s prospectus

as authorized to consummate

transactions in any such security, and a

principal underwriter of, or dealer in,

such security, from selling, redeeming,

or repurchasing any such security

except at a price based on the current

net asset value of such security which

is next computed after receipt of a

tender of such security for redemption

or of an order to purchase or sell such

security.

9. Arguably, the recapture of a Credit

Enhancement might be viewed as

resulting in the redemption of

redeemable securities for a price other

than one based on the current net asset

value of the Separate Account.

Applicants contend, however, that

recapture does not involve either of the

evils that Rule 22c–1 was intended to

eliminate or reduce, namely: (i) The

dilution of the value of outstanding

redeemable securities of registered

investment companies through their

sale at a price below net asset value or

their redemption or repurchase at a

price above it, and (ii) other unfair

results including speculative trading

practices. To effect a recapture of a

Credit Enhancement the issuing

Insurance Company Applicant will

redeem an owner’s interest in a Subaccount at a price determined on the

basis of current net asset value of the

Sub-account. The amount recaptured

will equal the amount of the Credit

Enhancements paid out of its general

account assets. Although the owner will

be entitled to retain any investment gain

attributable to the Credit Enhancement,

the amount of such gain will be

determined on the basis of the current

net asset value of the relevant Subaccounts. Thus, no dilution will occur

upon the recapture of the Credit

Enhancement. Applicants also submit

that the second harm that Rule 22c–1

was designed to address, namely,

speculative trading practices calculated

to take advantage of backward pricing,

will not occur as a result of the

recapture of the Credit. However, to

avoid any uncertainty as to full

compliance with the 1940 Act,

Applicants request an exemption from

the provisions of Rule 22c–1 to the

extent deemed necessary to permit them

to recapture the Credit Enhancements

24172 Federal Register / Vol. 66, No. 92 / Friday, May 11, 2001 / Notices

under the Contracts and Future

Contracts.

10. Applicants submit that their

request for an order, which applies to

Future Accounts established by the

Insurance Company Applicants, and

Future Contracts that are substantially

similar in all material respects to the

Contracts described herein, is

appropriate in the public interest.

Applicants state that such an order

would promote competitiveness in the

variable annuity market by eliminating

the need to file redundant exemptive

applications in the future, thereby

reducing administrative expenses and

maximizing the efficient use of

Applicants’ resources. Applicants state

that requiring them to file additional

Applications would impair their ability

effectively to take advantage of business

opportunities as they arise, and that

investors would not receive any benefit

or additional protection by requiring

Applicants to repeatedly seek exemptive

relief that would present no issue under

the 1940 Act that has not already been

addressed in this Application.

Conclusion

Applicants submit that their

exemptive request meets the standards

set out in Section 6(c) of the 1940 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 1940 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. 01–11895 Filed 5–10–01; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Reporting and Recordkeeping

Requirements Under OMB Review

AGENCY: Small Business Administration.

ACTION: Notice of reporting requirements

submitted for OMB review.

SUMMARY: Under the provisions of the

Paperwork Reduction Act (44 U.S.C.

Chapter 35), agencies are required to

submit proposed reporting and

recordkeeping requirements to OMB for

review and approval, and to publish a

notice in the Federal Register notifying

the public that the agency has made

such a submission.

DATES: Submit comments on or before

June 11, 2001. If you intend to comment

but cannot prepare comments promptly,

please advise the OMB Reviewer and

the Agency Clearance Officer before the

deadline.

COPIES: Request for clearance (OMB 83–

1), supporting statement, and other

documents submitted to OMB for

review may be obtained from the

Agency Clearance Officer.

ADDRESSES: Address all comments

concerning this notice to: Agency

Clearance Officer, Jacqueline White,

Small Business Administration, 409 3rd

Street, SW., 5th Floor, Washington, DC

20416; and OMB Reviewer, Office of

Information and Regulatory Affairs,

Office of Management and Budget, New

Executive Office Building, Washington,

DC 20503.

FOR FURTHER INFORMATION CONTACT:

Jacqueline White, Agency Clearance

Officer, (202) 205–7044.

SUPPLEMENTARY INFORMATION:

Title: Financing Eligibility StatementSocial Disadvantaged-Economic

Disadvantaged.

No’s: 1941A, 1941B, 1941C.

Frequency: On Occasion.

Description of Respondents: SBA

Businesses seeking financing from

Specialized Small Business Investment

Companies (SSBIC).

Annual Responses: 293.

Annual Burden: 586.

Jacqueline White,

Chief, Administrative Information Branch.

[FR Doc. 01–11930 Filed 5–10–01; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

Reporting and Recordkeeping

Requirements Under OMB Review

AGENCY: Small Business Administration.

ACTION: Notice of reporting requirements

submitted for OMB review.

SUMMARY: Under the provisions of the

Paperwork Reduction Act (44 U.S.C.

Chapter 35), agencies are required to

submit proposed reporting and

recordkeeping requirements to OMB for

review and approval, and to publish a

notice in the Federal Register notifying

the public that the agency has made

such a submission.

DATES: Submit comments on or before

June 11, 2001. If you intend to comment

but cannot prepare comments promptly,

please advise the OMB Reviewer and

the Agency Clearance Officer before the

deadline.

Request for clearance (OMB 83–1),

supporting statement, and other

documents submitted to OMB for

review may be obtained from the

Agency Clearance Officer.

ADDRESSES: Address all comments

concerning this notice to: Agency

Clearance Officer, Jacqueline White,

Small Business Administration, 409 3rd

Street, SW., 5th Floor, Washington, DC

20416; and OMB Reviewer, Office of

Information and Regulatory Affairs,

Office of Management and Budget, New

Executive Office Building, Washington,

DC 20503.

FOR FURTHER INFORMATION CONTACT:

Jacqueline White, Agency Clearance

Officer, (202) 205–7044.

SUPPLEMENTARY INFORMATION:

Title: Portfolio Financing Report.

No: 1031.

Frequency: On Occasion.

Description of Respondents: SBA

Business Investment Companies.

Annual Responses: 293.

Annual Burden: 586.

Jacqueline White,

Chief, Administrative Information Branch.

[FR Doc. 01–11931 Filed 5–10–01; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF STATE

[Public Notice 3670]

Notice of Meeting of the Cultural

Property AdvisoryCommittee

ACTION: Notice.

The Cultural Property Advisory

Committee will meet on Wednesday,

June 13, 2001, from approximately 9

a.m. to 5 p.m., and on Thursday, June

14, from approximately 9 a.m. to 5 p.m.,

at the Department of State, Annex 44,

Room 800–A, 301 4th St., SW.,

Washington, DC. During its meeting the

Committee will review the proposal to

extend the Memorandum of

Understanding between the Government

of the United States of America and the

Government of Peru concerning the

Imposition of Import Restrictions on

Archaeological Material from the

Prehispanic Cultures and Certain

Ethnological Material from the Colonial

Period of Peru. The Committee’s

responsibilities are carried out in

accordance with the provisions of the

Convention on Cultural

PropertyImplementation Act 19 U.S.C.

2601 et seq.). A copy of the Act, the

subject Memorandum of Understanding,

and related information may be found at

this web site: http://exchanges.state.gov/

education/culprop.

During its meeting on June 13, the

Committee will hold an open session,