On November 23, 1988, a notice (Investment tion of low and moderate income housing pro Company Act Release No. IC-16653) was issued of the filing of the application ("Notice”). The notice gave interested persons an opportunity to request a hearing and stated that an order disposing of the application would be issued unless a hearing should be ordered. No request for a hearing has been filed, and the Commission has not ordered a hearing. The matter having been considered, and it is found that the granting of the requested order is appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. Accordingly, IT IS ORDERED, pursuant to Section 11(a) of the 1940 Act, that the offers of exchange be, and hereby are, approved effective forthwith, subject to those conditions set forth in Investment Company Act Release No. IC-16653. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz Secretary jects. A notice of filing of the application was issued on November 25, 1988 (Investment Company Act Release No. 16654). The notice gave interested persons ar opportunity to request a hearing, and stated that an order disposing of the matter would be issued as a matter of course unless a hearing should be ordered. No request for a hearing has been filed and the Commission has not ordered a hearing. The matter has been considered, and it is found, on the basis of the information stated in the application, that the granting of the requested exemption is appropriate in the public interest and consistent with the protection of investors and the purposes fairly intended by the policy and provisions of the 1940 Act. Accordingly, IT IS ORDERED, pursuant to Section 6(c) of the 1940 Act, that the requested exemption from all provisions of the 1940 Act, to the extent requested, be and hereby is granted, effective forthwith. For the Commission, by the Division of Investment Management, under delegated authority. Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Release No. IC-16699/December 20, 1988 812-7116 In the Matter of BOSTON FINANCIAL QUALIFIED Boston, MA 02110 ORDER PURSUANT TO SECTION 6(c) OF THE 1940 ACT GRANTING EXEMPTION FROM ALL PROVISIONS OF THE 1940 ACT Boston Financial Qualified Housing Tax Credits L.P. III ("Partnership") and its managing general partner, Arch Street III, Inc., filed an application on September 8, 1988, and an amendment thereto on November 10, 1988, for an order of the Commission, pursuant to Section 6(c) of the Investment Company Act of 1940 (“1940 Act"), exempting the Partnership from all provisions of the 1940 Act to permit it to invest in other limited partnerships that in turn will engage in the development, rehabilitation, ownership and opera INVESTMENT COMPANY ACT OF 1940 Release No. IC-16700/December 20, 1988 811-2449 In the Matter of BULLOCK MONTHLY INCOME SHARES, % Alliance Bond Fund 1345 Avenue of the Americas New York, NY 10105 ORDER TERMINATING REGISTRATION PURSUANT TO SECTION 8(f) OF THE 1940 ACT Bullock Monthly Income Shares, Inc. ("Applicant") filed an application on October 18, 1988, for an order of the Commission, pursuant to Section 8(f) of the Investment Company Act of 1940 ("1940 Act"), declaring that Applicant has ceased to be an investment company. On November 15, 1988, a notice was issued of the filing of the application (Investment Company Act Rel. Nc. 16635). The notice gave interested persons an opportunity to request a hearing and Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Release No. IC-16701/December 20, 1988 811-4223 In the Matter of BULLOCK U.S. GOVERNMENT INCOME SHARES INC. % Alliance Bond Fund 1345 Avenue of the Americas New York, NY 10105 ORDER TERMINATING REGISTRATION PURSUANT TO SECTION 8(f) OF THE 1940 ACT Bullock U.S. Government Income Shares Inc. ("Applicant") filed an application on October 18, 1988, for an order of the Commission, pursuant to Section 8(f) of the Investment Company Act of 1940 (“1940 Act"), declaring that Applicant has ceased to be an investment company. On November 18, 1988, a notice was issued of the filing of the application (Investment Company Act Rel. No. 16645). The notice gave interested persons an opportunity to request a hearing and stated that an order disposing of the matter would be issued as of course unless a hearing should be ordered. No request for a hearing has been filed and the Commission has not ordered a hearing. The matter has been considered, and it is found that the Applicant has ceased to be an investment company. Accordingly, IT IS ORDERED, pursuant to Section 8(f) of the 1940 Act, that the registration of Bullock U.S. Government Income Shares Inc. under the 1940 Act shall forthwith cease to be in effect. 722 SEC DOCKET ORDER TERMINATIING REGISTRATION PURSUANT TO SECTION 8(f) OF THE 1940 ACT Bullock Aggressive Growth Shares, Inc. (“Applicant") filed an application on October 18, 1988, for an order of the Commission, pursuant to Section 8(f) of the Investment Company Act of 1940 (“1940 Act”), declaring that Applicant has ceased to be an investment company. On November 18, 1988, a notice was issued of the filing of the application (Investment Company Act Rel. No. 16643). The notice gave interested persons an opportunity to request a hearing and stated that an order disposing of the matter would be issued as of course unless a hearing should be ordered. No request for a hearing has been filed and the Commission has not ordered a hearing. The matter has been considered, and it is found that the Applicant has ceased to be an investment company. Accordingly, IT IS ORDERED, pursuant to Section 8(f) of the 1940 Act, and that the registration of Bullock Aggressive Growth Shares, Inc. under the 1940 Act shall forthwith cease to be in effect. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Release No. IC-16703/December 20, 1988 811-2985 Volume 42, No. 10 In the Matter of BULLOCK HIGH INCOME SHARES, INC. % Alliance Bond Fund 1345 Avenue of the Americas New York, NY 10105 ORDER TERMINATING REGISTRATION PURSUANT TO SECTION 8(f) OF THE 1940 ACT Bullock High Income Shares, Inc. ("Applicant”) filed an application on October 18, 1988, for an order of the Commission, pursuant to Section 8(f) of the Investment Company Act of 1940 ("1940 Act"), declaring that Applicant has ceased to be an investment company. On November 18, 1988, a notice was issued of the filing of the application (Investment Company Act Rel. No. 16644). The notice gave interested persons an opportunity to request a hearing and stated that an order disposing of the matter would be issued as of course unless a hearing should be ordered. No request for a hearing has been filed and the Commission has not ordered a hearing. The matter has been considered, and it is found that the Applicant has ceased to be an investment company. Accordingly, IT IS ORDERED, pursuant to Section 8(f) of the 1940 Act, that the registration of Bullock High Income Shares, Inc. under the 1940 Act shall forthwith cease to be in effect. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Release No. IC-16704/December 20, 1988 812-5442 In the Matter of THE GUARDIAN GENERATION SERIES 201 Park Avenue South New York, New York 10003 ORDER TERMINATING INVESTMENT Guardian Generation Series Trust ("Applicant"), registered under the Investment Company Act of 1940 (the "1940 Act") as an open-end, diversified, management investment company, filed an application on October 21, 1988, for an order, pur suant to Section 8(f) of the 1940 Act, declaring that Appl cant has ceased to be an investment company. On November 21, 1988, a notice was issued of the filing of the application (Investment Company Act Release No. 16646). The notice gave interested persons the opportuntiy to request a hearing and sated that an order disposing of the application would be issued unless a hearing should be ordered. No request for a hearing has been filed, and the Commission has not ordered a hearing. The matte: has been considered, and it is found that Applicant has ceased to be an investment company. Accordingly, IT IS ORDERED, pursuant to Section 8(f) of the 1940 Act, that the registration of The Guardian Generatior Series Trust under the 1940 Act shall forth with cease to be in effect. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Western Reserve Life Assurance Co. of Ohio, et al. Action: Notice of Application for Exemption under the Investment Company Act of 1940 ("1940 Act"). Applicants: Western Reserve Life Assurance Co. of Ohio ("Western Reserve"), WRL Series Annuity Acccunt of Western Reserve Life Assurance Cc. of Ohio ("Series Account") and Pioneer Western Distributors, Inc. (“PWD”). Relevant 1940 Act Sections: Exemption requested pursuant to Section 6(c) from Sections 26(a)(2)(C) and 27(c)(2). Summary of Application: Applicants seek an order to the extent necessary to permit the deduction of a mortality and expense charge from the assets of the Series Account in connection with the sale of certain variable annuity contracts (the "Contract"). Filing Date. The Application was filed on October 11, 1988. Hearing or Notification of Hearing: If no hearing is ordered, the requested exemption will be granted. Any interested person may request a hearing on this Application or ask to be notified if a hearing is ordered. Any request must be received by the SEC by 5:30 p.m. on January 17, 1989. Request a hearing in writing, giving the nature of your interest, the reasons for the request, and the issues you contest. Serve the Applicants with the request either personally or by mail, and also send a copy to the Secretary of the SEC along with proof of service by affidavit or, in the case of an attorney-at-law, by certificate. Request notification of the date of a hearing by writing to the Secretary of the SEC. Addresses: Secretary, SEC, 450 5th Street, N.W., Washington, D.C. 20549; Applicants, % Western Reserve Life Assurance Co. of Ohio, 201 Highland Avenue, Largo, Florida 34640. For Further Information Contact: Wendell M. Faria, Staff Attorney, at (202) 272-3450 or Clifford E. Kirsch, Special Counsel, at (202) 272-2061 (Division of Investment Management, Office of Insurance Products and Legal Compliance). Supplementary Information: Following is a summary of the Application; the complete Applica tion is available for a fee from either the SEC's Public Reference Branch in person or the SEC's commercial copier (800) 231-3282 (in Maryland (301) 258-4300). Applicants' Representations: 1. Western Reserve is a stock life insurance company organized under the laws of the State of Ohio. The Series Account is a separate investment account of Western Reserve established to act as a funding entity of variable annuity contracts. It was established under Ohio law pur suant to a resolution of the Board of Directors of Western Reserve adopted on April 12, 1988. The Series Account is registered with the SEC as a unit investment trust; a registration statement on Form N-4 has been filed with the SEC. 2. The Series Account is currently divided into three Sub-Accounts. Each Sub-Account will invest in shares of a single portfolio of the WRL Series Fund (the "Fund"). The Fund, a registered open-end management investment company, is a series mutual fund which currently contains three portfolios. 3. Pursuant to a distribution agreement between Western Reserve and PWD, an affiliate of Western Reserve and the principal underwriter of the Contract, PWD will act as distributor of the Contract. 4. The Contract is an individual flexible purchase payment contract which provides for an initial purchase payment and for subsequent purchase payments as frequently as the Owner desires. Contract values may accumulate on a fixed or variable basis, while payment of annuity benefits will be on a fixed basis only. An Owner makes investment decisions under the Contract by directing the allocation of purchase payments and contract value to the Sub-Accounts and the Fixed Account. Contract values allocated to the Fixed Account are combined with all General Account assets of Western Reserve. 5. A Contingent Deferred Sales Charge may be assessed against contract values when withdrawn or surrendered. The length of time from receipt of a Purchase Payment to the time of a withdrawal or Surrender determines whether the Contingent Deferred Sales Charge will be deducted. The charge is a percentage of the amount withdrawn or surrendered (not to exceed the aggregate amount of Purchase Payments made during the five years immediately preceding the withdrawal or Surrender request). The charge is as follows: For the first withdrawal or Surrender during each Contract Year, the Contingent Deferred Sales Charge is waived for the first 10% of the Contract Value that is subject to the charge. 6. On each Anniversary through the Maturity Date, Western Reserve will deduct an annual Administration Fee of $30 as partial compensation for the cost of providing administrative services under the Contracts. The Administration Fee is deducted from each Sub-Account and the Fixed Account in proportion to the value each bears to the Contract Value. Western Reserve does not expect to earn a profit on the Administration Fee. Even if administrative expenses increase, Western Reserve guarantees that it will not increase the amount of the Administration Fee. 724 SEC DOCKET Volume 42, No. 10 7. A collection fee of $1.25 will be charged to the Contract Owners. Western Reserve will keep process any Purchase Payment under payment and make available to the Commission upon modes other than annual or single pay plans, unless such fee is waived by Western Reserve. Western Reserve may waive the collection fee when circumstances result in a savings of administrative expenses, such as when multiple contracts are billed on a group basis resulting in administrative efficiencies. 8. The Contract provides that during the accumulation period a mortality and expense risk charge will be deducted daily by Western Reserve in an amount equal on an annual basis to 1.25% of the average daily net assets of the Series Account. Of such charges, approximately .60% is for assuming the mortality risk and .65% is for assuming the expense risk. Western Reserve assumes the mortality risk that the Annuitants under the Contract as a class may live longer than expected (necessitating a greater number of annuity payments) and that it may have to pay a death benefit in excess of a Contract's cash value. Western Reserve assumes the expense risk that its expenses may be higher than the deduction for such expenses. The rate imposed for the mortality and expense risk charge is contractual and may not be changed by Western Reserve. 9. Applicants represent that they have reviewed publicly available information about the level of the mortality and expense risk charges under comparable variable annuity contracts currently being offered in the industry, taking into consideration such factors as current charge levels, the manner in which charges are imposed, presence of charge level or annuity rate guarantees and the markets in which the Contract will be offered. Based upon the foregoing, Applicants represent that the maximum charges under the Contract are within the range of industry practice for comparable contracts. Applicants will maintain and make available to the Commission upon request a memorandum outlining the methodology underlying this representation. 10. Applicants do not believe that the sales load imposed under the Contract will necessarily cover the expected costs of distributing the Contract. Any "shortfall" will be made up from the general account assets which may include profits from the mortality and expense risk charge. Western Reserve has concluded that there is a reasonable likelihood that the distribution financing arrangement being used in connection with the Contract will benefit the Series Account and request a memorandum setting forth the basis for this representation. 11. Applicants further represent that the Series Accoun: will invest only in underlying fund(s) which have undertaken to have a board of directors/trustees, a majority of whom are not interested persons of the fund, formulate and approve any plan under Rule 12b-1 under the Act to finance distribution expenses. For the Commission, by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz Secretary INVESTMENT COMPANY ACT OF 1940 Release No. IC-16706/December 21, 1988 812-7119 In the Matter of CHEMICAL MORTGAGE ACCEPTANCE CORPORATION 277 Park Avenue New York, New York 10172 ORDER UNDER SECTION 6(c) OF THE ACT GRANTING AN EXEMPTION FROM ALL PROVISIONS OF THE ACT Chemical Mortgage Acceptance Corporation ("Applicant"), a wholly-owned limited purpose subsidiary of Chemical Acceptance Corporation, which in turn is an indirect wholly-owned subsidiary of Chemical Banking Corporation, filed an application on September 13, 1988, and amendments thereto on November 4, 10, and 18 and December 12, 1988 for an order, under Section 6(c) of the Investment Company Act of 1940 (the "Act"), exempting it from all provisions of the Act. |