[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Notices]
[Pages 21214-21215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11538]



=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 21936; 811-4502]


Pierre Funding Corporation; Notice of Application

May 2, 1996.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Deregistration under the Investment 
Company Act of 1940 (the ``Act'').

-----------------------------------------------------------------------

APPLICANT: Pierre Funding Corporation.

RELEVANT ACT SECTION: Order requested under Section 8(f).

SUMMARY OF APPLICATION: Applicant seeks an order declaring it has 
ceased to be an investment company.

FILING DATE: The application was filed on December 18, 1995, and was 
amended on April 30, 1996.


[[Page 21215]]


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 May 27, 1996, 
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, N.W., Washington, D.C. 
20549. Applicant, 805 Third Avenue, New York, New York 10022.

FOR FURTHER INFORMATION CONTACT: Sarah A. Wagman, Staff Attorney, at 
(202) 942-0654, 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 from 
the SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant, a New York corporation, registered as a closed-end 
investment company under the Act by filing with the SEC a notification 
of registration on Form N-8A on November 26, 1985. On July 25, 1986, 
applicant filed a registration statement on Form N-5, which became 
effective in December, 1986. In June, 1987, applicant issued shares of 
its common stock through a public offering. There has been no other 
public offering of applicant's securities, and applicant presently does 
not intend to make any other public offering of its securities. 
Applicant is licensed and regulated as a Specialized Small Business 
Investment Company by the United States Small Business Administration 
(``SBA'') under the Small Business Investment Company Act of 1958 
(``SBICA'').
    2. Applicant states that there are 22 beneficial holders of its 
shares. As of November 30, 1995, applicant also had outstanding SBA-
guaranteed debentures in an aggregate principal amount of approximately 
$4.1 million. These Debentures are not convertible into, exchangeable 
for, or accompanied by, any equity security. Applicant's common stock 
is not traded on an active market.
    3. As of November 30, 1995, applicant had assets aggregating 
$11,335,023. Of that amount, $10,894,910 is attributable to applicant's 
loan portfolio, $85,813 is attributable to real estate acquired in 
foreclosure of delinquent loans, $40,906 is cash, $195,317 is accrued 
interest, and $118,077 represents the value of other assets. 
Applicant's liabilities consisted of approximately $4.1 million in SBA 
debentures, $250,000 in deferred income, and $1.7 million in other 
liabilities. As of November 30, 1995, shareholders' equity consisted of 
approximately $5.4 million in paid-in capital.
    4. Applicant presently is not a party to any litigation or 
administrative 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. The registration of the investment company ceases to 
be in effect upon the taking effect of the order.
    2. Section 3(c)(1) of the Act provides that an issuer is not an 
investment company within the meaning of the Act if (a) its outstanding 
securities (other than short-term paper) are beneficially owned by not 
more than 100 persons, and (b) it is not making and does not presently 
propose to make a public offering of securities.
    3. Rule 3c-3 under the Act provides that, for purposes of section 
3(c)(1), the holders of any debt securities offered and sold by a small 
business investment company licensed under the SBICA shall be deemed to 
be one person if the securities are (a) not convertible into, 
exchangeable for, or accompanied by any equity security and (b) 
guaranteed as to timely payment of principal and interest by the SBA 
and backed by the full faith and credit of the United States. Applicant 
believes that the holders of its debentures are considered one person 
under the provisions of rule 3c-3.
    4. Applicant believes that, pursuant to section 3(c)(1), it is no 
longer an investment company as defined in section 3 because, for 
purposes of the Act, only 23 persons are beneficial holders of its 
securities: 22 persons hold its common stock, and one holds debentures. 
Applicant is not making and does not presently propose to make a public 
offering of its securities. Accordingly, applicant requests that the 
SEC issue an order under section 8(f) declaring that it has ceased to 
be an investment company.

    For the SEC, by the Division of Investment Management, under 
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-11538 Filed 5-8-96; 8:45 am]
BILLING CODE 8010-01-M