Federal Register / Vol. 66, No. 93 / Monday, May 14, 2001 / Notices 24413

Week of June 11, 2001—Tentative

Thursday, June 14, 2001

9:25 a.m. Affirmation Session (Public

Meeting) (If needed)

9:30 a.m. Meeting with Nuclear Waste

Technical Review Board (Public

Meeting)

1:30 p.m. Briefing on License Renewal

Program (Public Meeting) (Contact:

David Solorio, 301–415–1973)

Week of June 18, 2001—Tentative

There are no meetings scheduled for the

Week of June 18, 2001.

The schedule for Commission

meetings is subject to change on short

notice. To verify the status of meetings

call (recording)—(301) 415–1292.

Contact person for more information:

David Louis Gamberoni (301) 415–1651.

* * * * *

The NRC Commission Meeting

Schedule can be found on the Internet

at: http://www.nrc.gov/SECY/smj/

schedule.htm

* * * * *

This notice is distributed by mail to

several hundred subscribers; if you no

longer wish to receive it, or would like

to be added to the distribution, please

contact the Office of the Secretary,

Washington, DC 20555 (301–415–1969).

In addition, distribution of this meeting

notice over the Internet system is

available. If you are interested in

receiving this Commission meeting

schedule electronically, please send an

electronic message to dkw@nrc.gov.

Dated: May 9, 2001.

David Louis Gamberoni,

Technical Coordinator, Office of the

Secretary.

[FR Doc. 01–12190 Filed 5–10–01; 11:40 am]

BILLING CODE 7590–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Rel. IC–24974; File No. 812–12154]

Western-Southern Life Assurance Co.,

et al.

May 7, 2001.

AGENCY: Securities and Exchange

Commission (‘‘Commission’’).

ACTION: Notice of application for an

order pursuant to Section 26(b) of the

Investment Company Act of 1940 (the

‘‘1940 Act’’) approving substitution of

securities.

SUMMARY OF APPLICATION: Applicants

request an order approving the proposed

substitution of shares of the Touchstone

Variable Series Trust’s (‘‘TVST’’)

Touchstone High Yield Portfolio for

shares of TVST’s Touchstone Income

Opportunity Portfolio held by WesternSouthern Life Assurance Company

Separate Account 1 (‘‘Separate Account

1’’) and Western-Southern Life

Assurance Company Separate Account 2

(‘‘Separate Account 2’’) to support

certain variable annuity contracts (the

‘‘Contracts’’).

APPLICANTS: Western-Southern Life

Assurance Company (‘‘WSLAC’’),

Separate Account 1 and Separate

Account 2.

FILING DATE: The application was filed

on June 30, 2000 and amended on April

13, 2001, and April 27. 2001.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested parties may request a

hearing on this application by writing to

the Secretary of the Commission and

serving Applicants with a copy of the

request, in person or by mail. Hearing

requests must be received by the

Commission by 5:30 p.m. on June 1,

2001, and 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 interest,

the reason for the request and the issues

contested. Persons may request

notification of a hearing by writing to

the Secretary of the Commission.

ADDRESSES: Secretary, Securities and

Exchange Commission, 450 Fifth Street,

NW., Washington, DC 20549–0609.

Applicants, c/o Donald J. Wuebbling,

Esq., Western-Southern Life Assurance

Company, 400 Broadway, Cincinnati,

Ohio 45202, and Kevin L. Cooney, Esq.,

Frost Brown Todd LLC, 2200 PNC

Center, 201 East Fifth Street, Cincinnati,

Ohio 45202.

FOR FURTHER INFORMATION CONTACT:

Joyce M. Pickholz, Senior Counsel, or

Keith E. Carpenter, Branch 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 Public

Reference Branch of the Commission,

450 Fifth Street, NW., Washington, DC

20549 (tel. (202) 942–8090).

Applicants’ Representations

1. WSLAC is a stock life insurance

company organized under the laws of

the State of Ohio on December 1, 1980.

WSLAC is a wholly owned subsidiary of

The Western and Southern Life

Insurance Company, a stock life

insurance company originally organized

under the laws of the State of Ohio on

February 23, 1888 (‘‘WSLIC’’). WSLAC

is in the business of issuing insurance

and annuity contracts. WSLAC is the

depositor and sponsor, as those terms

have been interpreted by the

Commission with respect to variable

annuities separate accounts, of both

Separate Account 1 and Separate

Account 2.

2. Separate Account 1 and Separate

Account 2 (together, the ‘‘Separate

Accounts’’) were established by WSLAC

as separate investment accounts under

Ohio law. The board of directors of

WSLAC established Separate Account 1

on July 27, 1992 and Separate Account

2 on June 1, 1994. The Separate

Accounts are registered under the 1940

Act as unit investment trusts and

interests in the Separate Accounts are

offered through the Contracts which are

registered under the Securities Act of

1933 (the ‘‘1933 Act’’) on Form N–4.

Each Separate Account is currently

divided into 19 sub-accounts. Contract

owners also may invest in a fixed rate

option, backed by the general assets of

WSLAC. Each sub-account invests

exclusively in shares representing an

interest in a separate corresponding

portfolio of (‘‘TVST’’) or certain

unaffiliated investment companies.

3. The Contracts include three

variable annuity contracts identified as

Touchstone Gold Variable Annuity (the

‘‘Gold Contract’’), Touchstone Select

Variable Annuity (the ‘‘Select Contract’’)

and Touchstone Advisor Variable

Annuity (the ‘‘Advisor Contract’’).

4. The Gold Contract is a flexible

purchase payment contract designed for

individual investors and group plans.

Payments made by owners of a Gold

Contract are invested in one more subaccounts of Separate Account 1 or in a

fixed-rate option through WSLAC’s

general account (the ‘‘Fixed Account’’).

The Gold Contract offers four fixed

annuity income options and a death

benefit payable to the designated

beneficiary if the annuitant dies prior to

the Income Date as defined in the Gold

Contract. Withdrawals from a Gold

Contract generally are subject to a

contingent deferred sales charge ranging

from 7% on amounts withdrawn less

than one year after the date of the

purchase payment to 0% on amounts

withdrawn at least seven years after the

date of the purchase payment.

Additional charges related to the Gold

Contract are: a Contract Maintenance

charge of $35 each year during the first

ten years of the Contract and the lesser

of $35 and 0.17% of Contract Value after

the tenth anniversary of the Contract

Date; a Contract Administration charge

at an effective annual rate of 0.15%; and

24414 Federal Register / Vol. 66, No. 93 / Monday, May 14, 2001 / Notices

a Mortality and Expense Risk charge at

an effective annual rate of 1.20%.

5. The Select Contract is a flexible

premium contract designed for

individual investors and group plans.

Payments made by owners of a Select

Contract are invested in one or more

sub-accounts of Separate Account 1 or

in the Fixed Account. The Select

Contract offers five income payment

options and three death benefit options

payable to the designated beneficiary if

the owner dies prior to the Income Date

as defined in the Select contract.

Withdrawals from a Select Contract

generally are subject to a contingent

deferred sales charge ranging from 8%

on amounts withdrawn less than one

year after the date of the purchase

payment to 0% on amounts withdrawn

at least seven years after the date of the

purchase payment. Additional charges

related to the Select Contract are: A

Contract Maintenance charge of $40

each year during the first ten years of

the Contract and the lesser of $40 and

0.14% of Contract Value after the tenth

anniversary of the Contract Date; a

Contract Administration charge at an

effective annual rate of 0.15%; and a

Mortality and Expense Risk charge with

a standard death benefit an effective

annual rate of 1.20%, an annual step up

death benefit an effective annual rate of

1.30%, and a 6% accumulating death

benefit an effective annual rate of

1.40%.

6. The Advisor Contract is a flexible

purchase payment contract designed for

individual investors and group plans.

Payments made by owners of an

Advisor Contract are invested in one or

more sub-accounts of Separate Account

2. Withdrawals from an Advisor

Contract are not subject to a contingent

deferred sales charge. The Advisor

Contract offers four fixed annuity

income options and a death benefit

payable to the designated beneficiary if

the annuitant dies prior to the Income

Date as defined in the Advisor Contract.

Charges related to the Select Contract

are: A Contract Maintenance charge of

$35 each year; a Contract

Administration charge at an effective

annual rate of 0.10%; and a Mortality

and Expense Risk charge at an effective

annual rate of 0.70%.

7. Subject to certain limitations, an

owner of any Contract may transfer all

or part of the Contract Value among the

sub-accounts and, if applicable, the

Fixed Account. The owner of a Contract

is limited to one transfer among subaccounts in a 30-day period, a minimum

transfer amount generally of $250, one

transfer from one or more sub-accounts

to the Fixed Account per Contract Year,

and one transfer from the Fixed Account

to one or more sub-accounts per

Contract Year with a maximum transfer

amount of 25% of the Fixed Account

value.

8. TVST was organized as a

Massachusetts business trust as of

February 7, 1994. TVST is registered

under the 1940 Act as an open-end

diversified management investment

company and the shares offered by

TVST are registered under the 1933 Act.

9. TVST is currently comprised of 11

investment portfolios (each a ‘‘TVST

Portfolio,’’ and together the ‘‘TVST

Portfolios’’): Touchstone Small Cap

Value, Touchstone Emerging Growth,

Touchstone International Equity,

Touchstone Income Opportunity,

Touchstone High Yield, Touchstone

Value Plus, Touchstone Growth &

Income, Touchstone Enhanced 30,

Touchstone Balanced, Touchstone Bond

and Touchstone Standby Income, all of

which are investment options under

each of the Contracts.

10. Touchstone Advisors, Inc.

(‘‘Touchstone’’), an indirect subsidiary

of WSLAC, serves as the investment

advisor and sponsor for the TVST

Portfolios. Touchstone has engaged subadvisers for each TVST Portfolio for

which it acts as adviser and the subadvisers are responsible for the day-today investment management of the

assets of those TVST Portfolios. The

sub-adviser of the Touchstone Income

Opportunity Portfolios is Alliance

Capital management L.P. The subadviser of Touchstone High Yield

Portfolio is Fort Washington Investment

Advisors, Inc. (‘‘Fort Washington’’). Fort

Washington is a subsidiary of WSLIC,

which is also the parent of WSLAC and

Touchstone.

11. The investment objective of the

Touchstone High Yield Portfolio is to

seek to achieve a high level of current

income as a main goal with capital

appreciation as a secondary goal. To

achieve this objective, the Touchstone

High Yield Portfolio invests primarily

(at least 65% of total assets) in noninvestment grade debt securities of

domestic corporations. The Portfolio’s

investments may include: (a) Securities

of foreign companies (up to 15%), but

only up to 5% of its assets in securities

of foreign companies that are

denominated in a currency other than

the U.S. dollar; (b) debt securities of

issuers in emerging market countries

(up to 10%); (c) mortgage-related

securities and other types of loans and

loan participations; and (d) securities

issued by the U.S. government, its

agencies or instrumentalities and

securities of foreign governments.

12. Expense and performance

information for the Touchstone High

Yield Portfolio from the date it

commenced operations (May 1, 1999)

through December 31, 2000, and

information about its size and portfolio

composition at December 31, 1999, and

December 31, 2000, is set forth in the

tables below.

[In percent]

Touchstone high yield portfolio

For the year

ended

12/31/00

For the period

ended

12/31/99

Expense Information:

Expense ratio before waiver and reimbursement ............................................................................................ 1.50 1.53

Expense ratio after waiver and reimbursement ............................................................................................... 0.80 0.80

Contractual Management Fee ................................................................................................................... 0.60 0.60

12b–1 Fees ............................................................................................................................................... None None

Other expenses ......................................................................................................................................... 0.20 0.20

Performance Information:

Total return * ..................................................................................................................................................... (0.70) (8.11)

* Exclusive of charges that apply to the sub-accounts.

Federal Register / Vol. 66, No. 93 / Monday, May 14, 2001 / Notices 24415

Touchstone high yield portfolio

12/31/00 12/31/99

Asset Information:

Net assets ................................................................................................................................................................ $15,748,310 $14,915,932

Portfolio Composition as a percentage of net assets:

Corporate debt (percent) .................................................................................................................................. 87.5 95.6

Convertible debt (percent) ................................................................................................................................ 02.2 00.0

Cash and other assets net of liabilities (percent) ............................................................................................ 10.3 04.4

13. The investment objective of the

Touchstone Income Opportunity

Portfolio is to seek to achieve a high

level of current income as a main goal

and to increase the value of its shares,

if consistent with its main goal. To

achieve this objective, the Touchstone

Income Opportunity Portfolio invests

primarily in debt securities. The debt

securities will generally be more risky

non-investment grade corporate and

government securities (up to 100% of

total assets). Government securities

include both domestic and foreign

government securities. The Touchstone

Income Opportunity Portfolio’s

investment may include: (a) Securities

of foreign companies (up to 100%), but

only up to 30% of its assets in securities

of foreign companies that are

denominated in a currency other than

the U.S. dollar; (b) debt securities that

are emerging market securities (up to

65%); (c) mortgage-related securities,

loans and loan participations; and (d)

currency futures and option contracts.

14. Expense and performance

information for the Touchstone Income

Opportunity Portfolio for the last four

fiscal years, and information about its

size and portfolio composition at

December 31, 1999, and December 31,

2000, is set forth in the tables below.

[In percent]

Touchstone income opportunity portfolio for the year ended

12/31/00 12/31/99 12/31/98 12/31/97

Expense Information:

Expense ratio before waiver and reimbursement .................................... 1.36 1.29 1.25 1.72

Expense ratio after waiver and reimbursement ....................................... 0.85 0.85 0.85 0.85

Contractual Management Fee .................................................................. 0.65 0.65 0.65 0.65

12b–1 Fees ............................................................................................... None None None None

Other Expenses ........................................................................................ 0.20 0.20 0.20 0.20

Performance Information:

Total return * ............................................................................................. (1.10) 2.74 (12.27) 12.03

1Exclusive of charges that apply to the sub-accounts.

Touchstone income opportunity

portfolio

12/31/00 13/21/99

Asset Information:

Net assets ................................................................................................................................................... $18,888,658 ..... $25,487,559

Portfolio Composition as a percentage of net assets:

Corporate debt (percent) ............................................................................................................................ 42.6 .................. 52.2

Sovereign government obligations (percent) ............................................................................................. 41.1 .................. 45.3

Warrants (percent) ...................................................................................................................................... 00.0 .................. 00.0

Cash and other assets net of liabilities (percent) ...................................................................................... 16.3 .................. 02.5

15. WSLAC has been informed that

the Board of Trustees of TVST has

determined that as of an appropriate

date after the issuance of the requested

order from the Commission, it does not

intend to offer the Touchstone Income

Opportunity Portfolio as an available

investment to the sub-accounts of

Separate Account 1 and Separate

Account 2. WSLAC, on behalf of

Separate Account 1 and Separate

Account 2, has determined that it would

be in the best interest of the Contract

owners to effect the proposed

substitution.

16. WSLAC, on its own behalf and on

behalf of Separate Account 1 and

Separate Account 2, proposes to

substitute shares of TVST Touchstone

High Yield Portfolio for shares of TVST

Touchstone Income Opportunity

Portfolio currently held by

corresponding sub-accounts of Separate

Account 1 and Separate Account 2.

Applicant’s Legal Analysis

1. The Applicants request an order

pursuant to section 26(b) of the 1940

Act approving the proposed

substitution. Section 26(b) provides, in

pertinent part, that ‘‘it shall be unlawful

for any depositor or trustee of a

registered unit investment trust holding

the security of a single issuer to

substitute another security for such

security unless the Commission shall

have approved such substitution.’’

Section 26(b) also provides that the

Commission shall approve the

substitution of the evidence establishes

that the substitution is consistent with

the protection of investors and the

purposes fairly intended by the policy

and provisions of the 1940 Act.

2. Applicants submit that the

Touchstone High Yield Portfolio is the

Portfolio with the investment objective

that is most similar to the investment

objective of the Touchstone Income

Opportunity Portfolio. Both Portfolios

seek to achieve a high level of current

24416 Federal Register / Vol. 66, No. 93 / Monday, May 14, 2001 / Notices

income, with capital appreciation as a

secondary consideration.

3. Applicants assert that the

investment strategies of the two

Portfolios are similar in many respects.

Both Portfolios invest primarily in noninvestment grade debt securities. Both

Portfolios may invest in debt securities

of domestic companies, foreign

companies, the U.S. government and

foreign governments. The investment

strategy of the Touchstone High Yield

Portfolio and the Touchstone Income

Opportunity Portfolio differ. For

example, the Touchstone High Yield

Portfolio must invest at least 65% of its

total assets in debt securities of

domestic corporations. The Touchstone

Income Opportunity Portfolio, on the

other hand, may invest up to 100% of

its assets in debt securities of either

foreign companies or foreign

governments or a combination thereof.

In addition, the Touchstone Income

Opportunity Portfolio may invest up to

65% of its assets in debt securities that

are emerging market securities, while

the Touchstone High Yield Portfolio

must limit its investments in debt

securities of issuers in emerging market

countries to 10% of its assets.

4. Applicants state that the proposed

substitution of Contract Values and

Account Values to the Touchstone High

Yield Portfolio will be made in the same

manner as any other transfer among subaccounts, except no transfer charge

otherwise applicable will be made. The

substitution will not count against any

limit on the permitted number of

transfers. In connection with the

substitution, shares remaining in the

Touchstone Income Opportunity subaccounts will be redeemed and the cash

proceeds thereof will be applied to the

purchase of shares of the Touchstone

High Yield Portfolio, in each case at the

net asset value determined in

accordance with the requirements of the

1940 Act.

5. According to the Applicants, the

current expense levels of the

Touchstone High Yield Portfolio are

more favorable to the affected Contract

owners. The current expense ratio of the

Touchstone High Yield Portfolio after

waiver and reimbursement is 0.80%,

which is 0.05% lower than the current

expense ratio of the Touchstone Income

Opportunity Portfolio after waiver and

reimbursement. Touchstone has agreed

to waive its fees under the sponsor

agreement between Touchstone and

TVST or to reimburse certain other fees

and expenses of the Touchstone High

Yield Portfolio, such that after such

waivers and reimbursements, the

aggregate operating expenses of the

Touchstone High Yield Portfolio do not

exceed 0.80% of its average daily net

assets on an annualized basis.

Touchstone has agreed that it will

continue to waive fees and reimburse

the Touchstone High Yield Portfolio as

described above through December 31,

2001.

6. WSLAC or Touchstone will pay all

expenses and transaction costs of the

substitution, including any related

brokerage fees. Contract owners will not

bear any expenses, transaction costs or

fees in connection with the substitution.

7. Applicants submit that the

substitution will not cause the fees and

charges under the Contracts currently

being paid by Contract owners to be

greater after the substitution than before

the substitution. The rights of the

Contract owners and the obligations of

WSLAC under the Contracts will not be

altered in any way.

8. Applicants represent that in the

event that the TVST Touchstone High

Yield Portfolio has operating expenses

(taking into account expense waivers

and reimbursements) for any fiscal

period (not to exceed a fiscal quarter)

during the 24 months following the date

of the proposed substitutions equal on

an annualized basis to an amount

greater than 0.85%, WSLAC will make

adjustments to the expenses for the subaccounts that invest in the TVST

Touchstone High Yield Portfolio for

those Contract owners who were

Contract owners on the date of

substitution. These adjustments will

limits those Contract owners’ expenses

so that the amount of the new portfolio’s

operating expenses together with the

corresponding sub-account’s asset-based

expenses paid during such period on an

annualized basis will be no greater than

the sum of the replaced portfolio’s

expenses after waivers and

reimbursements (i.e., 0.85%) together

with the corresponding sub-account’s

asset-based expenses during the fiscal

year preceding the proposed

substitution, which were as follows:

Contract

Sub-account expense limit (as a

percentage of average daily net

asset sub-account

value on an annual basis)

Gold Contract ................. 1.35

Select Contract:

Option 1 ...................... 1.35

Option 2 ...................... 1.45

Option 3 ...................... 1.55

Advisor Contract ............. .80

In addition, for those Contract owners

who were Contract owners on the date

of the substitution, WSLAC will not

increase asset-based or non-asset-based

expenses for a period of 24 months

following the date of the substitution,

except to the extent of any increase in

premium taxes charged by one or more

states. The non-asset-based expenses

include the Contract Maintenance

Charge and Surrender Charges.

9. Applicants submit that the

proposed substitution will not result in

any adverse tax consequences to any

Contract owner.

10. Applicants state that WSLAC has

notified Contract owners of the

proposed substitution and will permit

Contract owners to make one transfer

from the Touchstone Income

Opportunity sub-account to any of the

other available sub-accounts at any time

before the proposed substitution is

completed without the assessment of

any charge that might otherwise apply.

Within 5 days after the proposed

substitution is completed, WSLAC will

send to Contract owners who were

affected by the substitution a notice

informing them that they may transfer

all amounts that were transferred from

the TVST Touchstone Income

Opportunity sub-account to the TVST

Touchstone High Yield sub-account as

part of the substitution, such additional

transfer will not count against any limit

on the number of permitted transfers,

and no charges that might otherwise

apply will be imposed on such

additional transfer. The Contract owners

who were affected by the substitution

will have 30 days from the date of such

post-substitution notice to make this

additional ‘‘free’’ transfer from the

TVST Touchstone High Yield subaccount.

11. The Applicants submit that the

proposed substitution is consistent with

the protection of investors and the

purposes fairly intended by the policy

and provisions of the 1940 Act and is

not the type of substitution that section

26(b) was designed to prevent. Unlike

traditional unit investment trusts where

a depositor could only substitute an

investment security in a manner that

permanently affected all the investors in

the trust, the Contracts provide each

Contract owner with the right to

exercise his or her own judgment and

transfer account values into other subaccounts. Moreover, WSLAC will offer

contract owners the opportunity to

transfer amounts out of the Touchstone

Income Opportunity sub-account

without cost or other disadvantage. The

proposed substitution, therefore, will

not result in the type of costly forced

redemption that section 26(b) was

designed to prevent. In addition, other

factors that may have influenced a

Contract owner to purchase a Contract,

such as the reputation of WSLAC and

Federal Register / Vol. 66, No. 93 / Monday, May 14, 2001 / Notices 24417

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

2 17 CFR 240.19b–4.

3See Securities Exchange Act Release No. 44101

(March 26, 2001), 66 FR 18126 (April 5, 2001).

4 In approving this proposal, the Commission has

considered the proposed rule’s impact on

efficiency, competition, and capital formation. 15

U.S.C. 78(c)(f).

5 15 U.S.C. 78f(b)(5).

6 15 U.S.C. 78s(b)(2).

7 17 CFR 200.30–3(a)(12).

the type of insurance coverage and

benefits provided by the Contract, will

remain the same.

Conclusion

Applicants assert that, for the reasons

summarized above, the terms of the

proposed substitution meet the

standards set forth in section 26(b) of

the 1940 Act.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–12024 Filed 5–11–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–44269; File No. SR–BSE–

00–22]

Self-Regulatory Organizations; Order

Granting Approval of Proposed Rule

Change by the Boston Stock

Exchange, Inc. Relating to Minimum

Equity Requirements for DerivativeBased Products

May 7, 2001.

On January 3, 2001, the Boston Stock

Exchange, Inc. (‘‘Exchange’’) filed with

the Securities and Exchange

Commission (‘‘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 relating to minimum equity

requirements for derivative-based

products.

The proposal amends the Rules of the

Board of Governors of the Exchange to

reduce from $1,000,000 to $200,000 the

minimum equity requirement for firms

trading Portfolio Depositary Receipts

(‘‘PDRs’’), if the firm arranges to clear its

trades through another forum and

obtains Exchange approval to do so.

Notice of the proposed rule change

was published for comment in the

Federal Register on April 5, 2001.3 No

comments were received on the

proposed rule change.

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange.4 In particular, the

Commission believes that the proposal

is consistent with Section 6(b)(5) of the

Act,5 which requires, among other

things, that the rules of an exchange be

designed to promote just and equitable

principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market,

and to protect investors and the public

interest. The proposed rule change

would reduce capital requirements for

firms trading PDRs pursuant to clearing

arrangements approved by the

Exchange, while ensuring maintenance

of adequate capital.

It is therefore ordered, pursuant to

Section 19(b)(2) of the Act,6 that the

proposed rule change (File No. SR–

BSE–00–12) be, and it hereby is,

approved.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–11988 Filed 5–11–01; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Statement of Organization, Functions

and Delegations of Authority;

Correction

AGENCY: Social Security Administration.

ACTION: Notice; correction.

SUMMARY: The Social Security

Administration published a document

in the Federal Register of April 24,

2001, regarding the Statement of

Organization, Functions and

Delegations of Authority. The document

contained an incorrect title for the

Division of Information Technology

Integration in the Office of Management

in the Office of Hearings and Appeals

(OHA).

Corrections

In the Federal Register of April 24,

2001, in FR Doc. 01–10081, on page

20703, in the first column, H. 5. Correct

the title to read:

5. The ‘‘Office Automation Support

Staff’’ as ‘‘Division of Information

Technology Integration’’ (TAHE7).

In the Federal Register of April 24,

2001, in FR Doc. 01–10081, on page

20703, in the second column, under

‘‘Functions’’ item H.5. Correct the title

to read:

5. The ‘‘Office of Automation Support

Staff’’ as ‘‘Division of Information

Technology Integration’’ (TAHE7).

In the Federal Register of April 24,

2001, in FR Doc. 01–10081, on page

20703, in the third column, line 12:

Remove the period between the word

‘‘needs’’ and the word ‘‘and’’.

Dated: May 4, 2001.

Lewis H. Kaiser,

Director, Center for Classification and

Organization Management.

[FR Doc. 01–11962 Filed 5–11–01; 8:45 am]

BILLING CODE 4191–02–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Notice of Intent to Rule on Application

(01–06–U–00–YKM) to Use the

Revenue From a Passenger Facility

Charge (PFC) at Yakima Air TerminalMcAllister Field, Submitted by the

Yakima Air Terminal Board, Yakima Air

Terminal-McAllister Field, Yakima,

Washington

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Notice of intent to rule on

application.

SUMMARY: The FAA proposes to rule and

invites public comment on the

application to impose and use, PFC

revenue at Yakima Air TerminalMcAllister Field under the provisions of

49 U.S.C. 40117 and part 158 of the

Federal Aviation Regulations (14 CFR

part 158).

DATES: Comments must be received on

or before June 13, 2001.

ADDRESSES: Comments on this

application may be mailed or delivered

in triplicate to the FAA at the following

address: J. Wade Bryant, Manager;

Seattle Airports District Office, SEA–

ADO; Federal Aviation Administration;

1601 Lind Avenue SW., Suite 250,

Renton, Washington, 98055. In addition,

one copy of any comments submitted to

the FAA must be mailed or delivered to

Mr. Bob Clem, Airport Manager, at the

following address: 2400 West

Washington Avenue, Yakima,

Washington 98903.

Air Carriers and foreign air carriers

may submit copies of written comments

previously provided to Yakima Air

Terminal-McAllister Field, under

§ 158.23 of part 158.

FOR FURTHER INFORMATION CONTACT: Ms.

Suzanne Lee-Pang; Seattle Airports

District Office, SEA–ADO; Federal

Aviation Administration; 1601 Lind

Avenue SW., Suite 250, Renton,