33722 Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices

2To ensure the continued registration of a

surviving multi-series fund, ten applications for

deregistration should have been filed, not eleven.

1By Commission order dated August 25, 1995

(HCAR No. 26362) (‘‘Money Pool Order’’), Cinergy

was authorized to organize and operate the Money

Pool. The Applicants do not propose to change any

of the terms and conditions governing its operation

from those approved in the Money Pool Order.

2While CG&E is a utility subsidiary and will be

treated like the other utilities for all purposes under

the Money Pool, it is exempt from the filing

requirements of sections 6(a) and 7 under the Act,

under rule 52(a), as discussed below.

stated that the reason for deregistration

was the merger of the registrant into a

successor investment company and

identified that successor as Group of

Funds (file number 811–3752). Eleven

applications were filed, and, upon

filing, each was assigned one of the

eleven file numbers that had been

assigned to the original eleven

registrants in the Management of

Managers complex.2 The application for

the Capital Appreciation Fund was

assigned the file number 811–3752,

which was the file number under which

its filings were recorded prior to the

Reorganization. Because this file

number was ultimately assigned to the

filings of Group of Funds, and is the file

number under which the Managers

Funds’ filings are currently being

recorded, the Prior Order, when issued

by the Commission, effectively

deregistered Managers Funds.

5. Applicants request an order to

rescind the Prior Order to ensure that

Managers Funds is reflected on the

Commission’s records as a continuously

reporting, active registered investment

company.

Applicants’ Legal Analysis

1. Section 8(f) of the Act provides, in

relevant part, that whenever the

Commission finds that a registered

investment company has ceased to be an

investment company, it shall so declare

by order. On the effective date of the

order, the registration of the company

shall cease to be in effect.

2. Section 38(a) of the Act states, in

relevant part, that the Commission shall

have the authority to rescind an order if

necessary or appropriate to the exercise

of the powers conferred upon the

Commission by the Act.

3. The Commission issued the prior

Order in response to an application filed

under section 8(f), which sought

deregistration for the Capital

Appreciation Fund, one of the former

stand-alone funds that merged into, and

now operates as a series of, the

Managers Funds. Applicants submit that

the Prior Order was issued in error

because Managers Funds has not ceased

to be an investment company.

Applicants state that since its

organization, its acquisition of the

former stand-alone Management of

Managers funds, and its succession to

the registration statements of each of

those funds, Managers Funds has at all

times been and remained an active

investment company, operating

pursuant to the Act and the rules

thereunder and complying with the

reporting and filing requirements for

registered investment companies.

4. Applicants submit that the

requested relief is necessary to conform

the records of the Commission to the

fact that Managers Funds is an active

investment company complying with

the Act and the rules thereunder and the

reporting and filing requirements for

registered investment companies.

5. Applicants request that the

Commission rescind the Prior Order

pursuant to section 38(a) of the Act,

effective as of the date of the Prior

Order. Applicants submit that the

requested relief is necessary and

appropriate to the exercise of the

Commission’s powers under the Act.

By the Commission.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15944 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 35–27420]

Filings Under the Public Utility Holding

Company Act of 1935, as Amended

(‘‘Act’’)

June 19, 2001.

Notice is hereby given that the

following filing(s) has/have been made

with the Commission pursuant to

provisions of the Act and rules

promulgated under the Act. All

interested persons are referred to the

application(s) and/or declaration(s) for

complete statements of the proposed

transaction(s) summarized below. The

application(s) and/or declaration(s) and

any amendment(s) is/are available for

public inspection through the

Commission’s Branch of Public

Reference.

Interested persons wishing to

comment or request a hearing on the

application(s) and/or declaration(s)

should submit their views in writing by

July 13, 2001, to the Secretary,

Securities and Exchange Commission,

Washington, D.C. 20549–0609, and

serve a copy on the relevant applicant(s)

and/or declarant(s) at the address(es)

specified below. Proof of service (by

affidavit or, in the case of an attorney at

law, by certificate) should be filed with

the request. Any request for hearing

should identify specifically the issues of

facts or law that are disputed. A person

who so requests will be notified of any

hearing, if ordered, and will receive a

copy of any notice or order issued in the

matter. After July 13, 2001, the

application(s) and/or declaration(s), as

filed or as amended, may be granted

and/or permitted to become effective.

Cinergy Services, Inc., et al. (70–9879)

Cinergy Services, Inc. (‘‘Services’’), a

wholly owned service company

subsidiary of Cinergy Corporation

(‘‘Cinergy’’), a registered public utility

holding company; The Cincinnati Gas &

Electric Company (‘‘CG&E’’), an electric

and gas utility subsidiary company of

Cinergy; CG&E’s utility subsidiaries,

The Union Light, Heat and Power

Company (‘‘ULH&P’’), and electric and

gas utility company, Lawrenceburg Gas

Company (‘‘Lawrenceburg’’), a gas

utility company, and Miami Power

Corporation (‘‘Miami’’), an electric

utility company; CG&E’s nonutility

subsidiaries, KO Transmission

Company (‘‘KO’’), and Tri-State

Improvement Company (‘‘Tri-State’’), all

located at 130 East Fourth Street,

Cincinnati, Ohio 45202; and PSI Energy,

Inc. (‘‘PSA’’), 1000 East Main Street,

Plainfield, Indiana 46168, an electric

utility subsidiary company of Cinergy

(‘‘Applicants’’), have filed an

application-declaration under sections

6(a), 7, 9(a) and 10 of the Act and rule

54 under the Act.

By order dated May 30, 1997 (HCAR

No. 26723) (‘‘1997 Order’’), the

Commission authorized Applicants,

through December 31, 2002, to

undertake a short-term debt financing

program. Among other things,

Applicants were authorized to continue

to operate a system money pool

(‘‘Money Pool’’) to provide short-term

cash and working capital requirements

for associate companies, other than

Cinergy.1 The 1997 Order authorized

the utility subsidiaries, ULH&P,

Lawrenceburg, Miami and PSI (‘‘Utility

Subsidiaries’’),2 to make loans to and

incur borrowings from each other under

the terms of the Money Pool. The 1997

Order also authorized Cinergy, CG&E,

Services, KO and Tri-State to make

loans to ULH&P, Lawrenceburg, Miami

and PSI through the Money Pool.

Additionally, ULH&P, Lawrenceburg,

Miami and PSI were authorized to incur

short-term bank borrowings from third

Federal Register / Vol. 66, No. 122 / Monday, June 25, 2001 / Notices 33723

3 It is stated that the short-term borrowing

authority requested in the application-declaration

for ULH&P, Lawrenceburg, Miami and PSI

(‘‘Nonexempt Subsidiaries’’) is not subject to state

jurisdiction. Therefore, the filing exemption

provided by rule 52(a) under the Act is not

available to these companies. However, the Public

Utilities Commission of Ohio does have authority

over short-term borrowings by CG&E, which,

therefore, may issue short-term debt under the

exemption provided by rule 52(a).

parties and PSI was also authorized to

issue and sell commercial paper.3

Under the 1997 Order, the maximum

allowable outstanding principal amount

of short-term borrowing from all

available sources was $50 million for

ULH&P; $3 million for Lawrenceburg;

$100,000 for Miami; and $400 million

for PSI. Applicants state that these debt

limitations established under the 1997

Order are no longer appropriate in light

of current capital requirements.

Therefore, Applicants propose to

supersede the 1997 Order by replacing

the short-term debt finance program and

extending the authorization period

through June 30, 2006.

Specifically, the Nonexempt

Subsidiaries propose to make loans to

and incur borrowings from each other

the Money Pool; Services, CG&E, KO

and Tri-State and KO proposes to make

loans to the Nonexempt Subsidiaries;

the Nonexempt Subsidiaries propose to

incur short-term borrowings from banks

or other financial institutions; and PSI

proposes to issue and sell commercial

paper. As proposed, the maximum

allowable outstanding principal amount

of short-term borrowings from all

available sources will not exceed $65

million for ULH&P; $5.5 million for

Lawrenceburg; $100,000 for Miami; and

$600 million for PSI.

The Nonexempt Subsidiaries propose

to borrow short-term funds from banks

and other financial institutions through

formal or informal credit facilities. Bank

borrowings would be evidenced by

promissory notes, each of which would

be issued on or before June 30, 2006 and

would mature no later than one year

from the date of issuance, except in the

case of borrowings by ULH&P, which

would mature no later than two years

from the date of issuance. The notes will

bear interest at a rate no higher than the

greater of: (1) 400 basis points over the

comparable London interbank offered

rate or (2) a rate that is consistent with

similar securities of comparable credit

quality and maturities issued by other

companies. The Nonexempt

Subsidiaries may be required to pay fees

to the lender not to exceed 100 basis

points per annum on the total

commitment; and, except for borrowings

on uncommitted credit lines, may be

prepayable in whole or in part, with or

without a premium.

PSI proposes to issue and sell

commercial paper at market rates (either

on an interest bearing or discount basis)

with varying maturities not to exceed

270 days. The commercial paper will be

in the form of book-entry unsecured

promissory notes with varying

denominations of not less than $25,000

each. In commercial paper sales effected

on a discount basis, the purchasing

dealer may re-offer the commercial

paper at a rate less that the rate to PSI.

The discount rate to dealers will not

exceed the maximum discount rate per

annum prevailing at the date of issuance

for commercial paper of comparable

quality and the same maturity. The

purchasing dealer will re-offer the

commercial paper in such a manner as

not to constitute a public offering within

the meaning of the Securities Act of

1933.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–15848 Filed 6–22–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Investment Company Act Release No.

25005; 811–5982]

Hawthorne Investment Trust; Notice of

Application

June 19, 2001.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Deregistration under section 8(f) of the

Investment Company Act of 1940 (the

‘‘Act’’).

SUMMARY OF APPLICATION: Applicant

requests an order declaring that it has

ceased to be an investment company.

FILING DATE: The application was filed

on December 11, 2000.

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 July

13, 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 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 A. John Pappalardo, Esq.,

and K. Robert Bertram, Esq., Eckert

Seamans Cherin & Mellott, LLC, 213

Market Street, 8th Floor, Harrisburg, PA

17101.

FOR FURTHER INFORMATION CONTACT:

Diane L. Titus, Paralegal Specialist, at

(202) 942–0584, or Mary Kay Frech,

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

Commission’s Public Reference Branch,

450 Fifth Street, NW, Washington, DC

20549 (telephone (202) 942–8090).

Applicant’s Representations

1. Applicant is an open-end, nondiversified management investment

company organized as a trust under the

laws of the State of Delaware. On

December 19, 1989, applicant filed a

notification of registration under section

8(a) of the Act on Form N–8A. SEC

records indicate that on December 19,

1989, applicant filed a registration

statement on Form N–1A that became

effective on June 4, 1990.

2. As of the date of the application,

beneficial interests in applicant were

held by one natural person, Mr. Charles

G. Dyer.

3. As of December 7, 2000, the assets

of applicant totaled approximately

$3,000. Applicant’s liabilities totaled

approximately $36,000, consisting

primarily of investment advisory fees,

custodian and administrator charges,

and legal and accounting expenses.

4. Applicant currently is not a party

to any litigation or administrative

proceeding, except the administrative

proceeding instituted by the SEC’s

Division of Enforcement and captioned:

In the Matter of Hawthorne Investment

Trust, Hawthorne Associates, Inc.,

Mustang Capital, LLC and Charles G.

Dyer. The application is submitted in

connection with that proceeding.

Applicant’s Legal Analysis

1. Section 8(f) of the Act provides that

whenever the SEC, upon application or

its own motion, finds that a registered

investment company has ceased to be an

investment company, the SEC shall so

declare by order and upon the taking