64190 Federal Register / Vol. 60, No. 240 / Thursday, December 14, 1995 / Notices

other two Portfolios, the Hudson Trust

Aggressive Stock Portfolio had an

exceptional return of 86.87% in 1991,

and in the other case the VIP Trusts

Overseas Portfolio experienced a

significant loss in 1992 (10.72%) when

compared to the Hudson Trust Global

Portfolio’s return (0.50%). Applicants

note further that, as of December 31,

1994, the Hudson Trust Contract owners

only had $68,285 in the Hudson Trust

Aggressive Stock Portfolio and $154,454

in the Hudson Trust Overseas Portfolio.

Applicants submit that this

demonstrates that performance is

comparable or better in the VIP Trusts

Portfolios as compared to the Hudson

Trust.

11. Applicants state that the

Substitution would permit a Contract

owner to remain in the VIP Trusts

Portfolios or transfer Contract account

values to any other available Investment

Division or to the Guaranteed Interest

Division without cost and without such

transfer counting as a transfer for

purposes of assessing a transfer fee.

Applicants represent that the notice of

Substitution provided to Contract

owners will inform them of their rights.

Accordingly, Applicants submit that the

terms of the proposed Substitution are

consistent with the purpose underlying

Section 26(b) of preventing investors

from being forced to forfeit a sales load

already deducted or perhaps to incur

additional sales loads upon redemption

and purchase of another investment

company security.

12. Applicants represent that the

Substitution will not alter or affect the

Contract. All the terms and conditions

of the Contract are the same after the

Substitution as before, including

surrender and transfer rights.

Applicants also represent that after the

Substitution, insurance benefits to

Contract owners and the contractual

obligations of SAFECO are exactly the

same as before the Substitution.

Contract owners will continue to look to

SAFEC with regard to their rights under

the Contracts. Applicants further

represent that no surrender, transfer or

other charge will be imposed at the time

of the Substitution or for the first

transfer made during the 30 day period

following mailing of the confirmation

and notice.

13. Applicants note that the

Commission has approved a number of

substitutions where contract owners

assets were reinvested in large funds or

investment portfolios in order to

mitigate the adverse impact of operating

expenses on very small asset bases.

Such substitutions have been permitted

even where the investment objectives,

policies and restrictions of the two

portfolios involved were not nearly as

similar as in this application, including

permitting the substitution of money

market portfolio shares for the shares of

zero coupon bond, real estate securities

and bond portfolios. Further, the

Commission also has permitted a

substitution which represented a

negotiated settlement of a dispute

between the parties.

14. Applicants submit that Section

26(b) was designed to forestall the

ability of a depositor to present holders

of interests in a unit investment trust

with situations in which a holder’s only

choice would be to continue an

investment in an unsuitable,

unbargained for underlying security, or

to elect a costly, and, in effect, forced

redemption. Applicants submit that the

proposed Substitution does not present

this type of situation. Moreover, under

the Contracts, each Contract owner now

has the ability to make transfers among

a range of underlying investments, and

Contract owners will have an ever

greater choice of investment options

after the Substitution. Further, each

Contract owner can make the proposed

Substitution temporary, without cost or

adverse tax consequences, by

transferring the Contract account value

to any other Investment Division.

Conditions

Applicants consent to the following

terms of and conditions to the issuance

of an order granting the requested

exemptions:

1. All administrative or other costs of

the transactions, except brokerage fees,

relating to the Substitution will be borne

by SAFECO. SAFECO will assume all

expenses and transaction costs

(including, among others, legal and

accounting fees) relating to the

Substitution in a manner that attributes

all transaction costs to SAFECO.

2. SAFECO will mail a notice to the

affected Contract owners which will

include a supplement to the Contract

prospectus and a prospectus for the VIP

Trusts. The notice and the supplement

will describe the proposed Substitution.

3. Upon effecting the Substitution,

SAFECO will mail a notice and

confirmation to each affected Contract

owner informing the Contract owner

that the Substitution has been

completed and the Contract account

value involved. Such confirmation and

notice will be mailed to Contract owners

within five (5) days after the

Substitution.

4. SAFECO will provide that, during

a period of 30 days after the date of the

mailing of the notice and confirmation

of Substitution to affected Contract

owners (the Free Transfer Period), the

affected Contract owners will have the

right to make a one-time transfer of

Contract account values (at the value

next computed after SAFECO receives

the request for transfer) to any other

Investment Division and to the

Guaranteed Interest Division without

charge and without the transfer

counting as one of the free transfers

permitted in a Contract year. Applicants

represent that this 30-day period is

sufficient time for Contract owners to

determine if they wish to be invested in

another Investment Division or the

Guaranteed Interest Division.

5. The Substitution will, in all cases,

be at net asset value of the respective

shares of the affected Portfolios. All

transfers of Contract account values will

be affected without the imposition of

any transfer or other charge.

6. The Substitution in no way will

alter the insurance benefits to the

Contract owners or the contractual

obligations of SAFECO.

7. The Substitution in no way will

alter the tax benefits to Contract owners.

8. Contract owners may choose to

withdraw amounts credited to them

following the Substitution under

conditions that currently exist under the

Contracts, subject to any applicable

deferred sales charge.

9. The Substitution is expected to

confer certain economic benefits on

Contract owners by virtue of the

increase in investment options, a

reduction in overall administrative costs

thus helping to keep current cost of

insurance rates from increasing, and

because of increased support from the

Manager of the VIP Trusts by way of

consumer information.

Conclusion

Applicants submit that, for the

reasons and upon the facts set forth

above, the exemptive relief requested

under Section 26(b) of the 1940 Act is

consistent with the protection of

investors and the purposes fairly

intended by the policy and provisions of

the 1940 Act, and satisfies the purposes

underlying 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. 95–30493 Filed 12–13–95; 8:45 am]

BILLING CODE 8010–01–M
Federal Register / Vol. 60, No. 240 / Thursday, December 14, 1995 / Notices 64191

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

2 15 U.S.C. 78f(b).

3 15 U.S.C. 78f(b)(5).

[Release No. 34–36566; File No. SR–Amex–

95–46]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the American Stock Exchange, Inc.,

Relating to the Exchange’s Arbitration

Rules

December 8, 1995.

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

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

November 28, 1995, the American Stock

Exchange, Inc. (‘‘Amex’’ or ‘‘Exchange’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change as described in

Items I, II, and III below, which Items

have been prepared by the selfregulatory organization. The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The Exchange is proposing to amend

Amex Rules 600 (Arbitration), 606

(Initiation of Proceedings), 607 (General

Provision Governing Prehearing

Proceeding), 620 (Schedule of Fees), and

add a new rule, 624 (Failure to Honor

Award). The text of the proposed rule

change is available at the Office of the

Secretary, the Amex, and at the

Commission.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

self-regulatory organization included

statements concerning the purpose of

and basis for the proposed rule change

and discussed any comments it received

on the proposed rule change. The text

of these statements may be examined at

the places specified in Item IV below.

The self-regulatory organization has

prepared summaries, set forth in

Sections A, B, and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

The Exchange is proposing to amend

its rules and procedures governing the

administration of arbitration. These

amendments codify modifications to the

Uniform Code of Arbitration already

approved by the Securities Industry

Conference on Arbitration.

The Exchange is proposing to amend

Amex Rule 600 to clarify that all class

action claims, including claims

involving members, allied members,

member organizations, and associated

persons, are ineligible for submission to

the Exchange’s arbitration facility.

Currently, Amex Rule 606(c)(6)

provides that decisions concerning the

right to arbitrate are made by the

Director of Hearings, subject to appeal to

the Exchange’s Board of Governors. In

order to conform the Exchange’s rules

with the Uniform Code of Arbitration,

adopted by the Amex in 1980, the

Exchange proposes to delete Amex Rule

606(c)(6). The Exchange believes

decisions concerning the right to

arbitrate a claim should be made by the

panel of arbitrators selected to hear the

matter.

The Exchange’s proposed amendment

to Amex Rule 607(c) would allow

parties to provide a list of documents

they intend to present at the hearing

instead of exchanging copies of

documents that have previously been

produced to the other side. This would

provide for more efficient prehearing

exchanges by not requiring the parties to

again exchange those documents that

have previously been produced.

Another aspect of this amendment

would require the list identifying

witnesses include the address and

business affiliation of the witnesses

listed. This would allow the parties to

receive advance notice as to the

background of witnesses and the

location of nonparty witnesses. The

final aspect of the proposed amendment

to Amex Rule 607(c) would require

prehearing exchanges to occur twenty

calendar days in advance of the hearing,

instead of ten days in advance as is

presently required. This would serve to

avoid surprise and provide the parties

with time to organize and present their

cases in an efficient manner.

The Exchange is proposing to amend

Amex Rule 620 to provide that the filing

fee for an industry party shall be $500

when the dispute does not specify a

money claim. This would unify the

filing fee for all industry claims at $500.

The Exchange is proposing to add a

new rule, Amex Rule 624. This new rule

would provide that the failure of a

member firm or registered

representative to honor an arbitration

award, including those issued at another

self-regulatory organization or by the

American Arbitration Association,

would subject the firm or registered

representative to disciplinary

proceedings at the Exchange. This

would recognize the enforceability of

arbitration awards issued by other selfregulatory organizations and by the

American Arbitration Association.

2. Statutory Basis

The proposed rule changes are

consistent with Section 6(b)2 of the Act

in general and furthers the objectives of

Section 6(b)3 in particular in that they

are designed to promote just and

equitable principles of trade and to

protect investors and the public interest

by improving the administration of an

impartial forum for the resolution of

disputes relating to the securities

industry.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange believes the proposed

rule change will impose no burden on

competition.

C. Self-Regulatory Organization’s

Statement on comments on the

Proposed Rule Change Received From

Members, Participants, or Others

The Exchange has neither solicited

nor received written comments.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the publication of

this notice in the Federal Register or

within such other period (i) as the

Commission may designate up to 90

days of such date if it finds such longer

period to be appropriate and publishes

its reasons for so finding or (ii) as to

which the self-regulatory organization

consents, the Commission will:

(A) By order approve the proposed

rule change, or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, D.C. 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the
64192 Federal Register / Vol. 60, No. 240 / Thursday, December 14, 1995 / Notices

4 17 C.F.R. 200.30-3(a)912).

public in accordance with the

provisions of 5 U.S.C. § 552, will be

available for inspection and copying at

the Commission’s Public Reference

Section, 450 Fifth Street NW.,

Washington, D.C. 20549. Copies of such

filing also will be available for

inspection and copying at the principal

office of the American Stock Exchange.

All submissions should refer to File No.

SR-Amex-95-46 and should be

submitted by January 4, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.4

[FR Doc. 95–30492 Filed 12–13–95; 8:45 am]

BILLING CODE 8010–01–M

[File No. 500–1]

In the Matter of Environmental

Chemicals Group, Inc.; Order

Suspending Trading

December 12, 1995.

It appears to the Securities and

Exchange Commission that questions

have been raised about the adequacy

and accuracy of publicly-disseminated

information about Environmental

Chemicals Group, Inc. concerning,

among other things, its product lines,

business prospects and relationships,

and the assets recorded on its financial

statements.

The Commission is of the opinion that

the public interest and the protection of

investors require a suspension of trading

in the securities of Environmental

Chemicals Group, Inc.

Therefore, it is ordered, pursuant to

Section 12(k) of the Securities Exchange

Act of 1934, that trading in the

securities of Environmental Chemicals

Group, Inc. is suspended for the period

commencing 9:00 a.m. (EST) on

December 12, 1995 and terminating on

11:59 p.m. (EST) on December 26, 1995.

By the Commission.

Jonathan G. Katz,

Secretary.

[FR Doc. 95–30563 Filed 12–12–95; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2811;

Amendment #2]

U.S. Territory of the Virgin Islands;

Declaration of Disaster Loan Area

The above numbered Declaration is

hereby amended, effective November

14, 1995 to extend the termination date

for filing applications for physical

damage until December 15, 1995. The

termination date for economic injury

remains the same, June 17, 1995, at the

previously designated location.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: December 7, 1995.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 95–30448 Filed 12–13–95; 8:45 am]

BILLING CODE 8025–01–P

[Declaration of Disaster Loan Area #2813;

Amendment #2]

Florida; Declaration of Disaster Loan

Area

The above numbered Declaration is

hereby amended on November 14 and

November 28, 1995, respectively, to

close the incident period for Lee and

Collier Counties effective October 31,

1995; and to extend the deadline for

filing applications for physical damage

until December 26, 1995. All other

information remains the same; i.e., the

termination date for filing applications

for economic injury, the deadline is July

5, 1996.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: December 7, 1995.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 95–30447 Filed 12–13–95; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF STATE

[Public Notice No. 2303]

Shipping Coordinating Committee,

Subcommittee on Safety of Life at Sea,

Working Group on

Radiocommunications and Search and

Rescue; Notice of Meetings

The Working Group on

Radiocommunications and Search and

Rescue of the Subcommittee on Safety

of Life at Sea will conduct open

meetings at 9:30 am on Thursday,

January 18, and Wednesday, February

14, 1996. These meetings will be held in

the Department of Transportation

Headquarters Building, 400 Seventh

Street SW., Washington, DC 20950. The

purpose of these meetings is to discuss

the papers received and the draft U.S.

positions in preparation for the 1st

Session of the International Maritime

Organization (IMO) Subcommittee on

Radiocommunications and Search and

Rescue which is scheduled for February

19, 1996, at the IMO headquarters in

London, England.

Among other things, the items of

particular interest are:

—The implementation of the Global

Maritime Distress and Safety Systems

(GMDSS).’

—Maritime Search and Rescue matters.

Further information, including

meeting agendas, minutes, and input

papers, can be obtained from the Coast

Guard Navigation Information Center

computer bulletin board, accessible by

modem by dialing: (703) 313–5910. The

computer is also accessible through

Internet by entering: ‘‘http://

www.navcen.uscg.mil.’’

Members of the public may attend

these meetings up to the seating

capacity of the rooms. Interested

persons may seek information,

including meeting room numbers, by

writing: Mr. Ronald J. Grandmaison,

U.S. Coast Guard Headquarters,

Commandant (G–TTM), Room 6306,

2100 Second Street SW., Washington,

DC 20593–0001, by calling: (202) 267–

1389, or by sending Internet electronic

mail to:

cgcomms/g-t@cgsmtp.comdt.uscg.mil.

Dated: December 6, 1995.

Charles A. Mast,

Chairman, Shipping Coordinating Committee.

[FR Doc. 95–30473 Filed 12–13–95; 8:45 am]

BILLING CODE 4710–07–M

STATE JUSTICE INSTITUTE

Grant Guideline

AGENCY: State Justice Institute.

ACTION: Final Grant Guideline.

SUMMARY: This Guideline sets forth the

administrative, programmatic, and

financial requirements attendant to

Fiscal Year 1996 State Justice Institute

grants, cooperative agreements, and

contracts.

EFFECTIVE DATE: December 14, 1995.

FOR FURTHER INFORMATION CONTACT:

David I. Tevelin, Executive Director, or

Richard Van Duizend, Deputy Director,

State Justice Institute, 1650 King St.

(Suite 600), Alexandria, VA 22314, (703)

684–6100.

SUPPLEMENTARY INFORMATION: Pursuant

to the State Justice Institute Act of 1984,

42 U.S.C. 10701, et seq., as amended,

the Institute is authorized to award

grants, cooperative agreements, and

contracts to State and local courts,

nonprofit organizations, and others for

the purpose of improving the

administration of justice in the State

courts of the United States.