64088 Federal Register / Vol. 60, No. 239 / Wednesday, December 13, 1995 / Notices

5 17 CFR 200.30–3(a)(12) (1994).

1Rule 17a–7 exempts purchase or sales

transactions between an investment company and

other affiliated investment companies provided that

certain conditions are met.

to the proposed rule change and none

were received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

ninety 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 OCC consents, the

Commission will:

(a) By order approve such 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 submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of the

submissions, 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

public in accordance with the

provisions of 5 U.S.C. § 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room, 450 Fifth Street, N.W.,

Washington, D.C. 20549. Copies of such

filings will also be available for

inspection and copying at the principal

office of OCC. All submissions should

refer to the file number SR–OCC–95–13

and should be submitted by January 3,

1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.5

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–30299 Filed 12–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC–21571; 811–7105]

CUNA Mutual Funds, Inc.; Notice of

Application

December 6, 1995.

AGENCY: Securities and Exchange

Commission (‘‘SEC’’).

ACTION: Notice of Application for

Deregistration under the Investment

Company Act of 1940 (the ‘‘Act’’).

APPLICANT: CUNA Mutual funds, Inc.

RELEVANT ACT SECTION: Section 8(f).

SUMMARY OF APPLICATION: Applicant

seeks an order declaring that it has

ceased to be an investment company.

FILING DATE: The application was filed

on July 28, 1995 and amended on

October 27, 1995, and December 1,

1995.

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

January 2, 1996, and should be

accompanied by proof of service on

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 5th

Street, N.W., Washington, D.C. 20549.

Applicant, 100 East Pratt Street,

Baltimore, MD 21202.

FOR FURTHER INFORMATION CONTACT:

Elaine M. Boggs, Staff Attorney, at (202)

942–0572, or Alison E. Baur, 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 at the SEC’s

Public Reference Branch.

Applicant’s Representations

1. Applicant is an open-end

diversified management investment

company that was organized under the

laws of Maryland. Applicant consists of

three portfolios, CUNA Mutual U.S.

Government Income Fund, CUNA

Mutual Cornerstone Fund, and Mutual

Tax-Free Intermediate-Term Fund. On

October 8, 1993, applicant registered

under the Act as an investment

company, and filed a registration

statement to register its shares under the

Securities Act of 1933. The registration

statement was declared effective on

December 30, 1993 and applicant began

a public offering thereafter.

2. On March 27, 1995, applicant’s

board of directors approved the

liquidation and dissolution of applicant.

The board of directors approved the

liquidation because, among other things,

they did not expect assets under

management to rise to a level that would

allow applicant to operate productively.

At all times, affiliated persons of

applicant held a majority of the

outstanding shares of each portfolio.

3. Between March 17 and March 30,

1995, letters were sent to all public

shareholders notifying them of

applicant’s intent to liquidate all

accounts effective May 12, 1995. On

May 12, 1995, the remaining public

shareholders of each portfolio received

cash distributions equal to the net asset

value of their accounts as of the close of

business on that day. CMC–T.Rowe

Price Management, LLC (‘‘CMC’’),

applicant’s administrator and a

shareholder of applicant, made the

decision to absorb all the expenses and

costs of the liquidation and winding up

of the business of applicant.

Accordingly, applicant’s affiliated

persons received their distributions after

the public shareholders to ensure that

all costs and expenses of the liquidation

(such as brokerage, taxes, etc.) would be

absorbed by the affiliated parties and

not the public shareholders. CMC was

the sole remaining shareholder on May

26, 1995, and did in fact bear all

expenses and costs of winding up the

business of applicant. CMC also paid all

of applicant’s organizational expenses.

4. The liquidation was approved by

CMC, the sole remaining shareholder of

applicant’s stock, on May 26, 1995. On

that date, CMC redeemed its shares at

net asset value and received applicant’s

remaining assets.

5. With one exception, all portfolio

securities were sold in the usual course.

A total of $2,071.17 in brokerage

commissions was incurred. The one

exception involved a cross transaction

with an affiliated mutual fund which

followed the procedures set forth in rule

17a–7 under the Act.1

6. Applicant has no debts or other

liabilities that remain outstanding.

Applicant is not a party to any litigation

or administrative proceeding.

7. On June 30, 1995, applicant filed

articles of dissolution with Maryland

authorities.

8. Applicant is not now engaged, nor

does it propose to engage, in any

business activities other than those

necessary for the winding up of its

affairs.
Federal Register / Vol. 60, No. 239 / Wednesday, December 13, 1995 / Notices 64089

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 95–30298 Filed 12–12–95; 8:45 am]

BILLING CODE 8010–01–M

[Rel. No. IC–21586; File No. 812–9386]

Massachusetts Mutual Life Insurance

Company, et al.

December 7, 1995.

AGENCY: U.S. Securities and Exchange

Commission (‘‘Commission’’).

ACTION: Notice of Application for

Exemption under the Investment

Company Act of 1940 (‘‘1940 Act’’).

APPLICANTS: Massachusetts Mutual Life

Insurance Company (‘‘MassMutual’’),

Massachusetts Mutual Variable Life

Separate Account I (‘‘Separate

Account’’) and MML Investors Services,

Inc. (‘‘MMLISI’’).

RELEVANT 1940 ACT SECTIONS: Order

requested pursuant to Section 6(c) of the

1940 Act for exemptions from Sections

27(a)(3) and 27(c)(2) of the 1940 Act and

Rules 6e–3(T)(b)(13)(ii) and 6e–

3(T)(c)(4)(v) thereunder.

SUMMARY OF THE APPLICATION:

Applicants seek an order: (1) to permit

them to deduct from premium payments

received in connection with certain

flexible premium variable life insurance

policies (‘‘Policies’’) issued by

MassMutual and any other flexible

premium variable life insurance policies

(‘‘Other Policies’’) issued by

MassMutual in the future and made

available through the Separate Account

or any other separate account

established in the future by MassMutual

to support flexible premium variable life

insurance contracts (‘‘Future

Accounts’’), an amount less than or

approximately equal to the amount by

which MassMutual’s federal tax

liabilities will be increased as a result of

its receipt of those premium payments;

and (2) to permit the deduction from

premium payments in amounts less

than or equal to the minimum planned

premium under the Policies of a sales

load that is greater than the sales load

previously deducted from premium

payments in amounts exceeding the

minimum planned premium.

FILING DATES: The application was filed

on December 23, 1994, and amended on

June 28, 1995, and September 12, 1995.

HEARING OR NOTIFICATION OF HEARING: An

order granting the application will be

issued unless the Commission orders a

hearing. Interested persons may request

a hearing by writing to the

Commission’s Secretary and serving

Applicants with a copy of the request,

personally or by mail. Hearing requests

should be received by the Commission

by 5:30 p.m. on January 2, 1996, and

should be accompanied by proof of

service on 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 may request

notification of a hearing by writing to

the Commission’s Secretary.

ADDRESSES: Secretary, U.S. Securities

and Exchange Commission, 450 Fifth

Street, NW., Washington, DC 20549.

Applicants, Thomas F. English, Esq.,

Massachusetts Mutual Life Insurance

Company, 1295 State Street, Springfield,

Massachusetts 01111.

FOR FURTHER INFORMATION CONTACT:

Joyce Merrick Pickholz, Senior Counsel,

or Wendy Finck Friedlander, Deputy

Chief, Office of Insurance Products

(Division of Investment Management), at

(202) 942–0670.

SUPPLEMENTARY INFORMATION: Following

is a summary of the application. The

complete application is available for a

fee from the Commission’s Public

Reference Branch.

Applicants’ Representations

1. MassMutual is a mutual life

insurance company organized under

Massachusetts law.

2. The Separate Account was

established as a separate investment

account of MassMutual for the purpose

of investing net premium payments

received under variable life insurance

contracts. It is registered under the 1940

Act as a unit investment trust.

3. MMLISI serves as the principal

underwriter for the Policies. MMLISI is

registered with the Commission as a

broker-dealer under the Securities

Exchange Act of 1934, and is a member

of the National Association of Securities

Dealers, Inc. MMLISI may serve as

principal underwriter for Other Policies

issued by MassMutual in the future.

4. The Policies are flexible premium

variable life insurance policies available

on a ‘‘Case’’ or on an individual basis.

Insureds purchasing a Policy on a ‘‘Case

basis’’ share a common employment or

other institutional relationship. All

Policies in any Case are aggregated for

purposes of determining issue dates,

policy dates, underwriting requirements

and sales load percentages. Individual

insureds with Case Policies may

exercise all rights and privileges under

the Policy through their employer or

other sponsoring entity acting as Case

administrator. After termination of the

employment or other relationship, an

individual Policy owner may exercise

such rights and privileges directly. The

minimum Case premium is $250,000 of

first year annualized premiums for all

Policies in a Case.

5. The sales load component of the

premium deduction is based on the

aggregate initial premiums paid for all

Policies in a Case (‘‘Initial Case

Premium’’). For Policies issued in a

Case with an Initial Case Premium of at

least $1,000,000, the sales load remains

level over the life of the Policies. For

Policies issued in a Case with an Initial

Case Premium of less than $1,000,000,

the sales load applied to any premium

payment not exceeding the minimum

planned Policy premium amount will be

set at one level for the first five Policy

years, and then reset at a lower, level

amount after the fifth Policy year.

During the first five Policy years,

premiums are tracked on an annual

cumulative basis for each Policy, and

the sales load will be assessed at a

higher level for premium payments

made at or below the specified

minimum planned Policy premium.

6. No surrender charge is imposed

under the Policies.

7. MassMutual deducts a state

premium tax charge from each premium

payment made under the Policies. The

level of such charge varies from state to

state. Currently, state premium tax rates

range from 2% to 3.5%.

8. MassMutual proposes to deduct

from premium payments a charge for

the federal tax burden imposed by

deferred acquisition costs (‘‘DAC tax’’)

in the amount of 1% of premium

payments. This amount is, at most,

approximately equal to or less than the

increase in MassMutual’s federal

income tax obligations based upon

premiums received under the Policies.

9. In the Omnibus Budget

Reconciliation Act of 1990 (‘‘OBRA’’),

Congress amended Section 848 of the

Internal Revenue Code of 1986 (the

‘‘Code’’). In relevant part, Section 848

requires insurance companies to

capitalize and amortize over a period of

ten years certain general expenses for

the current year. Under prior law, those

expenses would have been deductible in

full from an insurance company’s gross

income in the current tax year.

10. The amount of deductions that

would have to be capitalized and

amortized over ten years is based upon

‘‘net premiums’’ received in connection

with certain types of insurance contracts

(‘‘specified contracts’’). More

specifically, an amount of expenses

equal to a percentage of the current

year’s net premiums (i.e., gross

premiums minus return premiums and