65534 Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 

1Applicants request that any relief granted 

pursuant to the application also apply to any other 

company of which Citigroup is or hereafter may 

become an affiliated person within the meaning of 

section 2(a)(3) of the Act (together with the 

Applicants, the ‘‘Covered Persons’’). 

Policy, 202–205–7426 

george.solomon@sba.gov Curtis B. Rich, 

Management Analyst, 202–205–7030 

curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: The Office 

of Entrepreneurial Development (ED) 

needs to collect information on the 

impact of training programs delivered 

by both its resource partners—SCORE, 

SBDC and WBCs and focused initiatives 

like E200 using a uniform methodology 

in order to provide generally accepted 

outcome measures and to report to 

Congress and the President on these 

programs. Respondents are small 

business owners and potential small 

business owners from throughout the 

U.S. and the territories. 

Title: ‘‘Impact of Training Programs.’’ 

Description of Respondents: Small 

business owners and potential small 

business owners from throughout the 

U.S. and the territories. 

Form Number: N/A. 

Annual Responses: 600,000. 

Annual Burden: 100,000. 

Jacqueline White, 

Chief, Administrative Information Branch. 

[FR Doc. 2010–26790 Filed 10–22–10; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

Immediate Disaster Assistance 

Program (IDAP) 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice of IDAP loan program 

interest rates. 

SUMMARY: This Notice announces the 

maximum allowable rates for Immediate 

Disaster Assistance Program (IDAP) 

loans. 

DATES: Effective Date: The interest rate 

is effective October 25, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Grady Hedgespeth, Director of Financial 

Assistance, at (202) 205–7562 or 

Grady.Hedgespeth@sba.gov. 

SUPPLEMENTARY INFORMATION: The Food, 

Conservation, and Energy Act of 2008 

(the Farm Act), Public Law 110–246, 

enacted June 18, 2008, amended the 

Small Business Act (the Act) and 

authorized changes to make SBA’s 

disaster assistance program more 

accessible to disaster victims. One 

provision included in the Farm Act 

requires SBA to implement an 

Immediate Disaster Assistance Program 

(IDAP) to provide interim loans to 

businesses affected by a disaster that 

meet the basic eligibility standards for a 

disaster loan authorized under section 

7(b) of the Act. The provision authorizes 

SBA to provide an 85 percent guarantee 

on loans made by participating lenders 

for up to $25,000. The intent of the 

IDAP loan program is to provide bridge 

financing as quickly and as prudently as 

possible following a declared disaster 

while the business is awaiting approval 

for permanent financing through a 

direct disaster loan from SBA. 

Agency regulations implementing the 

IDAP loan program state that the 

maximum interest rates an IDAP Lender 

may charge an IDAP Borrower during 

the Initial Period and Term Period will 

be published in the Federal Register 

from time to time. 13 CFR 123.703(e). 

This notice establishes the maximum 

interest rates for IDAP loans as follows: 

Initial Period: The maximum interest 

rate an IDAP Lender may charge an 

IDAP Borrower during the Initial Period 

(as defined in 13 CFR 123.700(b)(1)) is 

the prime rate in effect on the first 

business day of the month in which 

SBA receives the IDAP loan application, 

as printed in a national financial 

newspaper published each business 

day, plus one percentage point. The 

interest rate must remain fixed while 

the IDAP loan is in the Initial Period. 

Term Period: In the event that the 

IDAP loan enters the Term Period (as 

defined in 13 CFR 123.700(b)(17)), the 

interest rate may remain fixed at a rate 

not to exceed the maximum rate for the 

Initial Period as described above or may 

begin to fluctuate at a variable rate that 

is not more than the prime rate in effect 

on the first business day of the month 

in which the Term Period begins, as 

printed in a national financial 

newspaper published each business 

day, plus one percentage point. If the 

rate during the Term Period is a variable 

rate, the lender must specify in the Note 

the frequency at which the interest rate 

adjustment will occur (the ‘‘adjustment 

period’’), and such adjustments may not 

occur more frequently than monthly. 

The lender shall adjust the interest rate 

on the first calendar day of each 

adjustment period using the prime rate 

in effect on the first business day of the 

adjustment period, plus one percentage 

point. The change in interest rate is 

effective on that day whether or not the 

lender gives the borrower notice of the 

change. The adjustment period may not 

be changed without the written 

agreement of the borrower. 

Any future change to interest rates on 

IDAP Loans will be published in the 

Federal Register. 

Authority: 15 U.S.C. 657n and 13 CFR 

§ 123.703(e). 

Eric R. Zarnikow, 

Associate Administrator, Office of Capital 

Access. 

[FR Doc. 2010–26921 Filed 10–22–10; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. IC– 

29464; 812–13808] 

Citigroup Global Markets Inc., et al.; 

Notice of Application and Temporary 

Order 

October 19, 2010. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Temporary order and notice of 

application for a permanent order under 

section 9(c) of the Investment Company 

Act of 1940 (‘‘Act’’). 

SUMMARY: Summary of Application: 

Applicants have received a temporary 

order exempting them from section 9(a) 

of the Act, with respect to an injunction 

entered against Citigroup Inc. 

(‘‘Citigroup’’) on October 19, 2010 by the 

United States District Court for the 

District of Columbia (the ‘‘Injunction’’), 

until the Commission takes final action 

on an application for a permanent order. 

Applicants also have applied for a 

permanent order. 

Applicants: Citigroup Global Markets 

Inc. (‘‘CGMI’’), CEFOF GP I Corp. 

(‘‘CEFOF’’), CELFOF GP Corp. 

(‘‘CELFOF’’), Citibank, N.A. (‘‘Citibank’’), 

Citigroup Alternative Investments LLC 

(‘‘Citigroup Alternative’’), Consulting 

Group Advisory Services LLC 

(‘‘Advisory Services’’), Citigroup Capital 

Partners I GP I Corp. (‘‘CCP I’’), and 

Citigroup Capital Partners I GP II Corp. 

(‘‘CCP II’’) (collectively, ‘‘Applicants’’).1

DATES: Filing Date: The application was 

filed on July 29, 2010 and amended on 

July 30, 2010, and amended on October 

19, 2010. 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 65535 

2 Greenwich Street Employees Fund, L.P., et al., 

Investment Company Act Release Nos. 25324 (Dec. 

21, 2001) (notice) and 25367 (Jan. 16, 2002) (order) 

(‘‘ESC Order’’). 

3Securities and Exchange Commission v. 

Citigroup Inc., Judgment on Consent Against 

Defendant Citigroup Inc., Civil Action No. 1:10–cv– 

01277 (ESH) (D.D.C. October 19, 2010). 

by 5:30 p.m. on November 12, 2010, 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 who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549– 

1090. Applicants: CGMI, CEFOF, 

CELFOF, CCP I and CCP II, 388 

Greenwich Street, New York, NY 10013; 

Citibank, 399 Park Avenue, New York, 

NY 10043; Citigroup Alternative, 731 

Lexington Avenue, 28th Floor, New 

York, NY 10022; and Advisory Services, 

222 Delaware Avenue, Wilmington, DE 

19801. 

FOR FURTHER INFORMATION CONTACT: 

Laura J. Riegel, Senior Counsel, at (202) 

551–6873, or Mary Kay Frech, Branch 

Chief, at (202) 551–6821 (Division of 

Investment Management, Office of 

Investment Company Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a temporary order and a 

summary of the application. The 

complete application may be obtained 

via the Commission’s Web site by 

searching for the file number, or for an 

applicant using the Company name box, 

at http://www.sec.gov/search/ 

search.htm, or by calling (202) 551– 

8090. 

Applicants’ Representations 

1. Each of the Applicants is either an 

indirect wholly-owned subsidiary of 

Citigroup or is owned by an entity in 

which Citigroup has an indirect interest. 

Citigroup is a global financial holding 

company whose businesses provide a 

broad range of financial services. CGMI 

is registered as a broker-dealer under the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) and serves as principal 

underwriter for one or more registered 

investment companies (‘‘Funds’’). 

Citigroup Alternative and Advisory 

Services are registered as investment 

advisers under the Investment Advisers 

Act of 1940 and serve as investment 

advisers for one or more Funds. CEFOF, 

CELOF, Citibank, Citigroup Alternative, 

CCP I and CCP II (‘‘ESC Advisers’’) serve 

as investment advisers to certain 

employees’ securities companies within 

the meaning of section 2(a)(13) of the 

Act, which provide investment 

opportunities for certain eligible 

employees, officers, directors and 

persons on retainer of Citigroup and its 

affiliates (‘‘ESCs’’ and included in the 

term ‘‘Funds’’).2

2. On October 19, 2010, the United 

States District Court for the District of 

Columbia (‘‘District Court’’) entered a 

judgment against Citigroup (‘‘Judgment’’) 

in a matter brought by the Commission.3

The Commission alleged in the 

complaint (‘‘Complaint’’) that Citigroup 

had violated section 17(a)(2) of the 

Securities Act of 1933 and section 13(a) 

of the Exchange Act and Exchange Act 

rules 12b–20 and 13a–11 in connection 

with disclosures made between July 

2007 and October 2007 about the 

subprime exposure in Citigroup’s 

investment banking unit. Without 

admitting or denying the allegations in 

the Complaint, except as to jurisdiction, 

Citigroup consented to the entry of the 

Judgment that included, among other 

things, the entry of the Injunction, a 

civil penalty of $75 million, and certain 

undertakings requested by the District 

Court. 

Applicants’ Legal Analysis 

1. Section 9(a)(2) of the Act, in 

relevant part, prohibits a person who 

has been enjoined from engaging in or 

continuing any conduct or practice in 

connection with the purchase or sale of 

a security or in connection with 

activities as an underwriter, broker or 

dealer, from acting, among other things, 

as an investment adviser or depositor of 

any registered investment company or a 

principal underwriter for any registered 

open-end investment company, 

registered unit investment trust or 

registered face-amount certificate 

company. Section 9(a)(3) of the Act 

makes the prohibition in section 9(a)(2) 

applicable to a company, any affiliated 

person of which has been disqualified 

under the provisions of section 9(a)(2). 

Section 2(a)(3) of the Act defines 

‘‘affiliated person’’ to include any person 

directly or indirectly controlling, 

controlled by, or under common control 

with, the other person. Applicants state 

that Citigroup is an affiliated person of 

each of the Applicants within the 

meaning of section 2(a)(3) of the Act. 

Applicants state that the entry of the 

Injunction results in Applicants being 

subject to the disqualification 

provisions of section 9(a) of the Act. 

2. Section 9(c) of the Act provides that 

the Commission shall grant an 

application for exemption from the 

disqualification provisions of section 

9(a) if it is established that these 

provisions, as applied to the Applicants, 

are unduly or disproportionately severe 

or that the Applicants’ conduct has been 

such as not to make it against the public 

interest or the protection of investors to 

grant the exemption. Applicants have 

filed an application pursuant to section 

9(c) seeking a temporary and permanent 

order exempting them and Covered 

Persons from the disqualification 

provisions of section 9(a) of the Act. 

3. Applicants believe they meet the 

standard for exemption specified in 

section 9(c). Applicants state that the 

prohibitions of section 9(a) as applied to 

the Applicants would be unduly and 

disproportionately severe and that the 

conduct of Applicants has been such as 

not to make it against the public interest 

or the protection of investors to grant 

the exemption from section 9(a). 

4. Applicants state that the alleged 

conduct giving rise to the Injunction did 

not involve any of the Applicants acting 

in the capacity of investment adviser, 

subadviser or depositor to a Fund, or 

principal underwriter for any Fund, and 

no such Funds bought or held any 

securities issued by Citigroup during the 

period of misconduct alleged in the 

Complaint, other than with respect to 

index Funds. Applicants also state that 

none of the current or former directors, 

officers, or employees of the Applicants 

participated in the violative conduct 

alleged in the Complaint, with the 

exception of one employee of an 

Applicant. Applicants further state that 

the personnel at Citigroup who were 

involved in the violations alleged in the 

Complaint are either no longer 

employed at Citigroup or have had no 

and will not have any future 

involvement in providing advisory, 

subadvisory or depository services to 

the Funds, or principal underwriting 

services to the Funds. 

5. Applicants state that the inability of 

the Applicants to continue to serve as 

investment adviser, depositor or 

principal underwriter to the Funds 

would result in potentially severe 

financial hardships for the Funds and 

their shareholders. The Applicants have 

distributed, or will distribute as soon as 

reasonably practical, written materials, 

including an offer to meet in person to 

discuss the materials, to the board of 

directors of each Fund, including the 

directors who are not ‘‘interested 

persons,’’ as defined in section 2(a)(19) 

of the Act, of such Fund, and their 

independent legal counsel as defined in 

rule 0–1(a)(6) under the Act, if any, 

regarding the Judgment, any impact on 

the Funds, and the application. The 

Applicants state they will provide the 


emcdonald on DSK2BSOYB1PROD with NOTICES
65536 Federal Register / Vol. 75, No. 205 / Monday, October 25, 2010 / Notices 

1 15 U.S.C. 78k–1(a)(3). 

2 17 CFR 242.608. 

3On July 30, 2009, the Commission approved a 

national market system plan relating to Options 

Order Protection and Locked/Crossed Markets 

proposed by Chicago Board Options Exchange, 

Incorporated (‘‘CBOE’’), International Securities 

Exchange, LLC (‘‘ISE’’), The NASDAQ Stock Market 

LLC (‘‘Nasdaq’’), NASDAQ OMX BX, Inc. (‘‘BOX’’), 

NASDAQ OMX PHLX, Inc. (‘‘Phlx’’), NYSE Amex, 

LLC (‘‘NYSE Amex’’), and NYSE Arca, Inc. (‘‘NYSE 

Arca’’). See Securities Exchange Act Release No. 

60405 (July 30, 2009), 74 FR 39362 (August 6, 

2009). See also Securities Exchange Act Release No. 

61546 (February 19, 2010), 75 FR 8762 (February 

25, 2010) (adding BATS Exchange, Inc. (‘‘BATS’’) as 

a Participant). 

4The term ‘‘Participant’’ is defined as an Eligible 

Exchange whose participation in the Plan has 

become effective pursuant to Section 3(c) of the 

Plan. 

5Section 2(6) of the Plan defines an ‘‘Eligible 

Exchange’’ as a national securities exchange 

registered with the Commission pursuant to Section 

6(a) of the Act, 15 U.S.C. 78f(a), that: (a) Is a 

‘‘Participant Exchange’’ in the Options Clearing 

Corporation (‘‘OCC’’) (as defined in OCC By-laws, 

Section VII); (b) is a party to the Options Price 

Reporting Authority (‘‘OPRA’’) Plan (as defined in 

the OPRA Plan, Section 1); and (c) if the national 

securities exchange chooses not to become part to 

this Plan, is a participant in another plan approved 

by the Commission providing for comparable 

Trade-Through and Locked and Crossed Market 

protection. C2 has represented that it has met the 

requirements for being considered an Eligible 

Exchange. See letter from Edward J. Joyce, President 

and Chief Operating Officer, C2, to Elizabeth 

Murphy, Secretary, Commission, dated October 6, 

2010. 

6 17 CFR 242.608(b)(3)(iii). 

7 17 CFR 242.608(b)(1). 

Funds with all information concerning 

the Judgment and the application that is 

necessary for the Funds to fulfill their 

disclosure and other obligations under 

the Federal securities laws. 

6. Applicants also state that, if they 

were barred from continuing to serve as 

investment adviser or principal 

underwriter to the Funds, the effect on 

their businesses and employees would 

be severe. Applicants state that they 

have committed substantial resources to 

establish an expertise in providing 

services covered by section 9(a) of the 

Act to Funds. Applicants further state 

that prohibiting them from continuing 

to serve as investment adviser or 

principal underwriter to Funds would 

not only adversely affect their 

businesses, but would also adversely 

affect approximately 250 employees that 

are involved in those activities. 

Applicants also state that disqualifying 

the ESC Advisers from continuing to 

provide investment advisory services to 

ESCs is not in the public interest or in 

furtherance of the protection of 

investors. Because the ESCs have been 

formed for certain eligible, officers, 

directors and persons on retainer of 

Citigroup and its affiliates, it would not 

be consistent with the purposes of the 

ESC provisions of the Act or the ESC 

Order to require another entity not 

affiliated with Citigroup to manage the 

ESCs. In addition, participating 

employees of Citigroup and its affiliates 

subscribed for interests with the 

expectation that the ESCs would be 

managed by an affiliate of Citigroup. 

7. Applicants previously have 

received exemptions under section 9(c) 

as the result of conduct that triggered 

section 9(a) as described in greater 

detail in the application. 

Applicants’ Condition 

Applicants agree that any order 

granting the requested relief will be 

subject to the following condition: 

Any temporary exemption granted 

pursuant to the application shall be 

without prejudice to, and shall not limit 

the Commission’s rights in any manner 

with respect to, any Commission 

investigation of, or administrative 

proceedings involving or against, 

Covered Persons, including without 

limitation, the consideration by the 

Commission of a permanent exemption 

from section 9(a) of the Act requested 

pursuant to the application or the 

revocation or removal of any temporary 

exemptions granted under the Act in 

connection with the application. 

Temporary Order 

The Commission has considered the 

matter and finds that Applicants have 

made the necessary showing to justify 

granting a temporary exemption. 

Accordingly, 

It is hereby ordered, pursuant to 

section 9(c) of the Act, that the 

Applicants and any other Covered 

Persons are granted a temporary 

exemption from the provisions of 

section 9(a), solely with respect to the 

Injunction, subject to the condition in 

the application, from October 19, 2010, 

until the Commission takes final action 

on their application for a permanent 

order. 

By the Commission. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–26870 Filed 10–22–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63119; File No. 4–546] 

Joint Industry Plan; Notice of Filing 

and Immediate Effectiveness of 

Amendment to the Options Order 

Protection and Locked/Crossed Market 

Plan To Add the C2 Options Exchange, 

Incorporated as a Participant 

October 15, 2010. 

Pursuant to Section 11A(a)(3) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 608 thereunder,2

notice is hereby given that on October 

7, 2010, C2 Options Exchange, 

Incorporated (‘‘C2’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) an 

amendment to the Options Order 

Protection and Locked/Crossed Market 

Plan (‘‘Plan’’).3 The amendment 

proposes to add C2 as a Participant 4 to 

the Plan. The Commission is publishing 

this notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Description and Purpose of the 

Amendment 

The current Participants in the 

Linkage Plan are CBOE, BATS, ISE, 

Nasdaq, BOX, Phlx, NYSE Amex, and 

NYSE Arca. The proposed amendment 

to the Plan would add C2 as a 

Participant in the Plan. C2 has 

submitted a signed copy of the Plan to 

the Commission in accordance with the 

procedures set forth in the Plan 

regarding new Participants. Section 3(c) 

of the Plan provides for the entry of new 

Participants to the Plan. Specifically an 

Eligible Exchange 5 may become a 

Participant in the Plan by: (i) Executing 

a copy of the Plan, as then in effect; (ii) 

providing each current Participant with 

a copy of such executed Plan; (iii) 

effecting an amendment to the Plan, as 

specified in Section 4(b) of the Plan. 

Section 4(b) of the Plan puts forth the 

process by which an Eligible Exchange 

may effect an amendment to the Plan. 

Specifically, an Eligible Exchange must: 

(a) Execute a copy of the Plan with the 

only change being the addition of the 

new participant’s name in Section 3(a) 

of the Plan; and (b) submit the executed 

Plan to the Commission. The Plan then 

provides that such an amendment will 

be effective when the amendment is 

approved by the Commission or 

otherwise becomes effective pursuant to 

Section 11A of the Act and Rule 608 

thereunder. 

II. Effectiveness of the Proposed 

Linkage Plan Amendment 

The foregoing proposed Plan 

amendment has become effective 

pursuant to Rule 608(b)(3)(iii) of the 

Act 6 because it involves solely 

technical or ministerial matters. At any 

time within sixty days of the filing of 

this amendment, the Commission may 

summarily abrogate the amendment and 

require that it be refiled pursuant to 

paragraph (b)(1) of Rule 608,7 if it 

appears to the Commission that such 


emcdonald on DSK2BSOYB1PROD with NOTICES