MBIA Global Funding, LLC; Notice of Application, 7528-7530 [E5-591]
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Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Notices
Department of Environmental
Protection, regarding the environmental
impact of the proposed action. The State
official had no comments.
Finding of No Significant Impact
On the basis of the environmental
assessment, the NRC concludes that the
proposed action will not have a
significant effect on the quality of the
human environment. Accordingly, the
NRC has determined not to prepare an
environmental impact statement for the
proposed action.
For further details with respect to the
proposed action, see the licensee’s letter
dated November 5, 2004. Documents
may be examined, and/or copied for a
fee, at the NRC’s Public Document
Room (PDR), located at One White Flint
North, 11555 Rockville Pike (first floor),
Rockville, Maryland. Publicly available
records will be accessible electronically
from the Agencywide Documents
Access and Management System
(ADAMS) Public Electronic Reading
Room on the NRC Web site, https://
www.nrc.gov/reading-rm/adams.html.
Persons who do not have access to
ADAMS or who encounter problems in
accessing the documents located in
ADAMS, should contact the NRC PDR
Reference staff at 1–800–397–4209 or
301–415–4737, or send an e-mail to
pdr@nrc.gov. (Note: As of the date of
issuance of this letter, public access to
ADAMS has been temporarily
suspended so that security reviews of
publicly available documents may be
performed and potentially sensitive
information removed. Please check the
NRC Web site for updates on the
resumption of ADAMS access.)
Dated in Rockville, Maryland, this 8th day
of February 2005.
For the Nuclear Regulatory Commission.
Darrell J. Roberts,
Chief, Section 2, Project Directorate I, Division
of Licensing Project Management, Office of
Nuclear Reactor Regulation.
[FR Doc. 05–2786 Filed 2–11–05; 8:45 am]
BILLING CODE 7590–01–P
NUCLEAR REGULATORY
COMMISSION
[Docket Nos. 50–325 and 50–324]
Carolina Power & Light Company;
Biweekly Notice; Applications and
Amendments to Facility Operating
Licenses Involving No Significant
Hazards Considerations; Correction
Nuclear Regulatory
Commission.
ACTION: Notice of Issuance; Correction.
AGENCY:
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15:28 Feb 11, 2005
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SUMMARY: This document corrects a
notice appearing in the Federal Register
on February 1, 2005 (70 FR 5233), that
incorrectly listed H. B. Robinson Steam
Electric Plant, Unit No. 2 in addition to
Brunswick Steam Electric Plant, Units 1
and 2 in the title, and garbled the
description of the amendments. This
action is necessary to correct the
erroneous notice in its entirety.
FOR FURTHER INFORMATION CONTACT:
Brenda L. Mozafari, Office of Nuclear
Reactor Regulation, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone (301) 415–
2020, e-mail: blm@nrc.gov.
SUPPLEMENTARY INFORMATION: On page
5251, in the first column, the notice for
Carolina Power & Light Company is
changed in its entirety to read as
follows:
Carolina Power & Light Company,
Docket Nos. 50–325 and 50–324,
Brunswick Steam Electric Plant, Units 1
and 2, Brunswick County, North
Carolina
Date of application for amendments:
December 19, 2003, as supplemented
January 14, 2004.
Brief Description of amendments: The
amendments modify Technical
Specification requirements to adopt the
provisions of Industry/Technical
Specification Task Force (TSTF) change
359, ‘‘Increase Flexibility in Mode
Restraints.’’
Date of issuance: January 11, 2005.
Effective date: January 11, 2005.
Amendment Nos.: 233 and 260.
Facility Operating License Nos. DPR–
71 and DPR–62: Amendments change
the Technical Specifications.
Date of initial notice in Federal
Register: February 17, 2004 (69 FR
7519).
The Commission’s related evaluation
of the amendments is contained in a
Safety Evaluation dated January 11,
2005.
No significant hazards consideration
comments received: No.
Dated in Rockville, Maryland, this 2nd day
of February 2005.
For the Nuclear Regulatory Commission.
Ledyard B. Marsh,
Director, Division of Licensing Project
Management, Office of Nuclear Reactor
Regulation.
[FR Doc. 05–2787 Filed 2–11–05; 8:45 am]
BILLING CODE 7590–01–P
POSTAL RATE COMMISSION
Briefing on Commission Functions and
Procedures
AGENCY:
PO 00000
Postal Rate Commission.
Frm 00061
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ACTION:
Notice of briefing.
SUMMARY: On February 15, 2005, senior
staff will describe the current functions
and procedures of the Postal Rate
Commission to executives of business
mail users that utilize all classes of mail.
Members of the Commission will attend
and participate in discussion following
the presentation.
DATES: February 15, 2005.
ADDRESSES: Postal Rate Commission,
1333 H Street, NW., Suite 300,
Washington, DC 20268–0001.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6818.
Dated: February 9, 2005.
Steven W. Williams,
Secretary.
[FR Doc. 05–2809 Filed 2–11–05; 8:45 am]
BILLING CODE 7710–FW–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–26751; 812–12987]
MBIA Global Funding, LLC; Notice of
Application
February 8, 2005.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application under
section 6(c) of the Investment Company
Act of 1940 (the ‘‘Act’’) for an
exemption from all provisions of the
Act.
AGENCY:
MBIA Global
Funding, LLC (‘‘Applicant’’) requests an
order that would permit it to sell debt
securities and non-voting preferred
stock and use the proceeds to finance
the business operations of its parent
company, MBIA Inc., (‘‘MBIA’’) and
certain companies controlled by MBIA.
FILING DATES: The application was filed
on July 3, 2003, and amended on
November 2, 2004. Applicant has agreed
to file an amendment during the notice
period, the substance of which is
reflected in this notice.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicant with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on March 7, 2005, and
should be accompanied by proof of
service on applicant, in the form of an
affidavit, or for lawyers, a certificate of
SUMMARY OF APPLICATION:
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Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Notices
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, Commission, 450
Fifth Street, NW., Washington, DC
20549–0609. Applicant: 113 King Street,
Armonk, NY 10504.
FOR FURTHER INFORMATION CONTACT:
Laura J. Riegel, Senior Counsel, at 202–
942–0567, or Todd F. Kuehl, 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
Commission’s Public Reference Branch,
450 Fifth Street, NW., Washington, DC
20549–0102 (telephone 202–942–8090).
Applicant’s Representations
1. Applicant is a Delaware limited
liability company and a direct whollyowned subsidiary of MBIA.1 MBIA, a
Connecticut corporation, is an insurance
holding company that, through its
subsidiaries, is engaged primarily in
providing financial guarantee insurance
and investment management and
financial services to public finance
clients and financial institutions on a
global basis.
2. Applicant was formed for the
purpose of financing the operations of
MBIA through the issuance of debt
securities and non-voting preferred
stock. Applicant presently has not
issued any securities other than shares
of its common stock, all of which MBIA
owns, and medium term notes, which
Applicant has offered and sold in
private placement transactions in
reliance on the exemption from the
registration requirements of the
Securities Act of 1933 (the ‘‘Securities
Act’’) provided in section 4(2) of the
Securities Act and pursuant to
Regulations S under the Securities Act.
3. Applicant currently intends to offer
debt securities and non-voting preferred
stock in private placement transactions
in reliance on the exemption from the
registration requirements of the
Securities Act provided in section 4(2)
of the Securities Act or in transactions
1 Applicant also requests that the requested order
apply to any other wholly-owned finance
subsidiary of MBIA that MBIA establishes in the
future provided that any such future finance
subsidiary relying on the order will comply with
the terms and condition stated in the application.
Applicant is the only wholly-owned finance
subsidiary of MBIA that presently intends to rely
on the requested order.
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15:28 Feb 11, 2005
Jkt 205001
pursuant to Regulation S under the
Securities Act. Applicant also seeks the
flexibility to offer debt securities and
non-voting preferred stock to the public
in the United States pursuant to a
registration statement under the
Securities Act (such securities that are
issued to or held by the public are
referred to hereafter as ‘‘Public
Securities’’). Applicant proposes to use
the proceeds from any of the above
offerings to make loans to or invest in
MBIA and certain companies controlled
by MBIA (the ‘‘Controlled Companies’’).
Certain of the Controlled Companies
may be excepted from the definition of
investment company pursuant to certain
provisions of section 3(c) of the Act (the
‘‘Subject Controlled Companies’’). Any
other Controlled Company whose
activities Applicant finances will meet
the definition of ‘‘company controlled
by the parent company’’ in rule 3a–5
under the Act.
4. All Public Securities will be
unconditionally guaranteed by MBIA as
to the payment of, as applicable,
principal, interest, premium, dividends,
liquidation preference and sinking fund
payments. MBIA’s guarantee of the
Public Securities will provide that, in
the event of any default in payment of
any such amount, the holders of Public
Securities may institute legal
proceedings directly against MBIA to
enforce the guarantee without first
proceeding against Applicant.
5. Any convertible or exchangeable
security issued by Applicant will be
convertible or exchangeable only for
securities issued by MBIA or for debt
securities or non-voting preferred stock
of Applicant meeting the applicable
requirements of rule 3a–5(a)(1) through
(a)(3). In addition, Applicant will invest
in or loan at least 85% of any cash or
cash equivalents it raises to either MBIA
or one or more Controlled Companies as
soon as practicable, but in no event later
than six months after Applicant receives
the cash or cash equivalents. Further, if
Applicant borrows amounts in excess of
the amounts required by MBIA or the
Controlled Companies, Applicant will
invest this excess in certain temporary
investments pursuant to rule 3a–5 under
the Act.
Applicant’s Legal Analysis
1. Applicant requests an order under
section 6(c) of the Act for an exemption
from all provisions of the Act. Rule 3a–
5 under the Act provides an exemption
from the definition of investment
company for certain companies
organized primarily to finance the
business operations of their parent
companies or companies controlled by
their parent companies.
PO 00000
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7529
2. Rule 3a–5(b)(2) (i) in relevant part
defines a ‘‘parent company’’ to be any
corporation, partnership, or joint
venture that is not considered an
investment company under section 3(a)
of the Act or that is excepted or
exempted by order from the definition
of investment company by section 3(b)
of the Act or by the rules or regulations
under section 3(a) of the Act. Applicant
states that while MBIA is not an
investment company within the
definition of section 3(a) of the Act
(and/or is excepted from such definition
by section 3(b)(1) of the Act), MBIA may
rely on the exception from investment
company status provided by section
3(c)(6). Applicant states that to the
extent MBIA derives its non-investment
company status from section 3(c)(6) of
the Act, MBIA would not qualify as an
eligible parent company under rule 3a–
5(b)(2).
3. Rule 3a–5(b)(3)(i) in relevant part
defines a ‘‘company controlled by the
parent company’’ to be any corporation,
partnership, or joint venture that is not
considered an investment company
under section 3(a) of the Act or that is
excepted or exempted by order from the
definition of investment company by
section 3(b) of the Act or by the rules
and regulations under section 3(a) of the
Act. Applicant proposes that it be
allowed to provide financing to any
Subject Controlled Company that will
not satisfy the definition of ‘‘company
controlled by the parent company’’
under rule 3a–5(b)(3) solely because it is
excluded from the definition of
investment company under section
3(c)(2), 3(c)(3), 3(c)(4), 3(c)(5)(A),
3(c)(5)(B) or 3(c)(6) of the Act.
4. Applicant states that its primary
business purpose is to engage in
financing activities that will provide
funds for MBIA, the Controlled
Companies and the Subject Controlled
Companies. Applicant also states that
neither MBIA nor any of the Subject
Controlled Companies is engaged
primarily in investment company
activities.
5. Section 6(c) of the Act, in pertinent
part, provides that the Commission, by
order upon application, may
conditionally or unconditionally
exempt any person, security or
transaction, or any class or classes of
persons, securities or transactions, from
any provision or provisions of the Act
to the extent that such exemption is
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act. Applicant submits
that its exemptive request meets the
standards set out in section 6(c).
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Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Notices
Applicant’s Condition
Applicant agrees that any order
granting the requested relief will be
subject to the following condition:
Applicant will comply with all of the
provisions of rule 3a–5 under the Act,
except that:
(1) MBIA will not meet the portion of
the definition of ‘‘parent company’’
under rule 3a–5(b)(2)(i) solely because it
is excluded from the definition of
investment company under section
3(c)(6) of the Act; and
(2) The Subject Controlled Companies
will not meet the portion of the
definition of ‘‘company controlled by
the parent company’’ in rule 3a–
5(b)(3)(i) solely because they are
excluded from the definition of
investment company under section
3(c)(2), 3(c)(3), 3(c)(4), 3(c)(5) or 3(c)(6)
of the Act;
provided that:
(a) Any Subject Controlled Company
excluded from the definition of
investment company under section
3(c)(5) of the Act will fall within section
3(c)(5)(A) or section 3(c)(5)(B) solely by
reason of its holdings of accounts
receivable of either its own customers or
of the customers of other Controlled
Companies, or by reason of loans made
by it to such Controlled Companies or
customers, and
(b) MBIA and any Subject Controlled
Company excluded from the definition
of investment company under section
3(c)(6) of the Act will not be engaged
primarily, directly, or through majorityowned subsidiaries in one or more of
the businesses described in section
3(c)(5) of the Act (except as permitted in
(a) above).
For the Commission, by the Division of
Investment Management, under delegated
authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–591 Filed 2–11–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Information Architects
Corporation; Order of Suspension of
Trading
February 10, 2005.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Information
Architects Corporation (‘‘IACH’’)
because of questions regarding, among
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15:28 Feb 11, 2005
Jkt 205001
other things, (i) the authenticity of the
Report of Independent Certified Public
Accountants included in IACH’s Form
10–KSB/A for the year ended December
31, 2003, filed with the Commission on
April 22, 2004, including whether the
audit report accompanying the financial
statements was prepared and issued by
the auditors identified; and (ii) the
accuracy of statements made in an
amended Form 10–KSB/A for the year
ended December 31, 2003, filed with the
Commission on October 15, 2004,
including the statement that a second
review of the financial statements is
being performed by the company’s
auditors.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in securities related to IACH.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in all
securities, as defined in section 3(a)(10)
of the Securities Exchange Act of 1934,
issued by IACH, is suspended for the
period from 9:30 a.m. e.s.t. on February
10, 2005, and terminating at 11:59 p.m.
e.s.t. on February 24, 2005.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–2864 Filed 2–10–05; 11:33 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Tekron, Inc.; Order of
Suspension of Trading
February 10, 2005.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Tekron, Inc.
(‘‘Tekron’’) because of questions
regarding, among other things, the
authenticity of the Report of
Independent Certified Public
Accountants included in Tekron’s Form
10–KSB for the annual period ended
March 31, 2004, filed with the
Commission on July 23, 2004, including
whether the audit report accompanying
the financial statements was prepared
and issued by the auditors identified.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in securities related to Tekron.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in all
securities, as defined in section 3(a)(10)
PO 00000
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Fmt 4703
Sfmt 4703
of the Securities Exchange Act of 1934,
issued by Tekron, is suspended for the
period from 9:30 a.m. e.s.t on February
10, 2005, and terminating at 11:59 p.m.
e.s.t on February 24, 2005.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–2865 Filed 2–10–05; 11:33 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of Greentech USA, Inc;
Order of Suspension of Trading
February 10, 2005.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Greentech
USA, Inc. (‘‘Greentech’’) because of
questions regarding, among other things,
(i) the authenticity of the Report of
Independent Certified Public
Accountants included in Greentech’s
Form 10–KSB for the year ended
December 31, 2003, filed with the
Commission on April 16, 2004,
including whether the audit report
accompanying the financial statements
was prepared and issued by the auditors
identified; and (ii) the accuracy of
statements made in an amended Form
10–KSB/A for the year ended December
31, 2003, filed with the Commission on
October 15, 2004, including the
statement that a second review of the
financial statements is being performed
by the company’s auditors.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in securities related to Greentech.
Therefore, it is ordered, pursuant to
section 12(k) of the Securities Exchange
Act of 1934, that trading in all
securities, as defined in section 3(a)(10)
of the Securities Exchange Act of 1934,
issued by Greentech, is suspended for
the period from 9:30 a.m. e.s.t. on
February 10, 2005, and terminating at
11:59 p.m. e.s.t. on February 24, 2005.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–2866 Filed 2–10–05; 11:37 am]
BILLING CODE 8010–01–P
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]]>Agencies
[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Notices]
[Pages 7528-7530]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-591]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-26751; 812-12987]
MBIA Global Funding, LLC; Notice of Application
February 8, 2005.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application under section 6(c) of the Investment
Company Act of 1940 (the ``Act'') for an exemption from all provisions
of the Act.
-----------------------------------------------------------------------
Summary of Application: MBIA Global Funding, LLC (``Applicant'')
requests an order that would permit it to sell debt securities and non-
voting preferred stock and use the proceeds to finance the business
operations of its parent company, MBIA Inc., (``MBIA'') and certain
companies controlled by MBIA.
Filing Dates: The application was filed on July 3, 2003, and amended on
November 2, 2004. Applicant has agreed to file an amendment during the
notice period, the substance of which is reflected in this notice.
Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicant with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on March 7, 2005, and should be accompanied by proof of
service on applicant, in the form of an affidavit, or for lawyers, a
certificate of
[[Page 7529]]
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, Commission, 450 Fifth Street, NW., Washington, DC
20549-0609. Applicant: 113 King Street, Armonk, NY 10504.
FOR FURTHER INFORMATION CONTACT: Laura J. Riegel, Senior Counsel, at
202-942-0567, or Todd F. Kuehl, 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
Commission's Public Reference Branch, 450 Fifth Street, NW.,
Washington, DC 20549-0102 (telephone 202-942-8090).
Applicant's Representations
1. Applicant is a Delaware limited liability company and a direct
wholly-owned subsidiary of MBIA.\1\ MBIA, a Connecticut corporation, is
an insurance holding company that, through its subsidiaries, is engaged
primarily in providing financial guarantee insurance and investment
management and financial services to public finance clients and
financial institutions on a global basis.
---------------------------------------------------------------------------
\1\ Applicant also requests that the requested order apply to
any other wholly-owned finance subsidiary of MBIA that MBIA
establishes in the future provided that any such future finance
subsidiary relying on the order will comply with the terms and
condition stated in the application. Applicant is the only wholly-
owned finance subsidiary of MBIA that presently intends to rely on
the requested order.
---------------------------------------------------------------------------
2. Applicant was formed for the purpose of financing the operations
of MBIA through the issuance of debt securities and non-voting
preferred stock. Applicant presently has not issued any securities
other than shares of its common stock, all of which MBIA owns, and
medium term notes, which Applicant has offered and sold in private
placement transactions in reliance on the exemption from the
registration requirements of the Securities Act of 1933 (the
``Securities Act'') provided in section 4(2) of the Securities Act and
pursuant to Regulations S under the Securities Act.
3. Applicant currently intends to offer debt securities and non-
voting preferred stock in private placement transactions in reliance on
the exemption from the registration requirements of the Securities Act
provided in section 4(2) of the Securities Act or in transactions
pursuant to Regulation S under the Securities Act. Applicant also seeks
the flexibility to offer debt securities and non-voting preferred stock
to the public in the United States pursuant to a registration statement
under the Securities Act (such securities that are issued to or held by
the public are referred to hereafter as ``Public Securities'').
Applicant proposes to use the proceeds from any of the above offerings
to make loans to or invest in MBIA and certain companies controlled by
MBIA (the ``Controlled Companies''). Certain of the Controlled
Companies may be excepted from the definition of investment company
pursuant to certain provisions of section 3(c) of the Act (the
``Subject Controlled Companies''). Any other Controlled Company whose
activities Applicant finances will meet the definition of ``company
controlled by the parent company'' in rule 3a-5 under the Act.
4. All Public Securities will be unconditionally guaranteed by MBIA
as to the payment of, as applicable, principal, interest, premium,
dividends, liquidation preference and sinking fund payments. MBIA's
guarantee of the Public Securities will provide that, in the event of
any default in payment of any such amount, the holders of Public
Securities may institute legal proceedings directly against MBIA to
enforce the guarantee without first proceeding against Applicant.
5. Any convertible or exchangeable security issued by Applicant
will be convertible or exchangeable only for securities issued by MBIA
or for debt securities or non-voting preferred stock of Applicant
meeting the applicable requirements of rule 3a-5(a)(1) through (a)(3).
In addition, Applicant will invest in or loan at least 85% of any cash
or cash equivalents it raises to either MBIA or one or more Controlled
Companies as soon as practicable, but in no event later than six months
after Applicant receives the cash or cash equivalents. Further, if
Applicant borrows amounts in excess of the amounts required by MBIA or
the Controlled Companies, Applicant will invest this excess in certain
temporary investments pursuant to rule 3a-5 under the Act.
Applicant's Legal Analysis
1. Applicant requests an order under section 6(c) of the Act for an
exemption from all provisions of the Act. Rule 3a-5 under the Act
provides an exemption from the definition of investment company for
certain companies organized primarily to finance the business
operations of their parent companies or companies controlled by their
parent companies.
2. Rule 3a-5(b)(2) (i) in relevant part defines a ``parent
company'' to be any corporation, partnership, or joint venture that is
not considered an investment company under section 3(a) of the Act or
that is excepted or exempted by order from the definition of investment
company by section 3(b) of the Act or by the rules or regulations under
section 3(a) of the Act. Applicant states that while MBIA is not an
investment company within the definition of section 3(a) of the Act
(and/or is excepted from such definition by section 3(b)(1) of the
Act), MBIA may rely on the exception from investment company status
provided by section 3(c)(6). Applicant states that to the extent MBIA
derives its non-investment company status from section 3(c)(6) of the
Act, MBIA would not qualify as an eligible parent company under rule
3a-5(b)(2).
3. Rule 3a-5(b)(3)(i) in relevant part defines a ``company
controlled by the parent company'' to be any corporation, partnership,
or joint venture that is not considered an investment company under
section 3(a) of the Act or that is excepted or exempted by order from
the definition of investment company by section 3(b) of the Act or by
the rules and regulations under section 3(a) of the Act. Applicant
proposes that it be allowed to provide financing to any Subject
Controlled Company that will not satisfy the definition of ``company
controlled by the parent company'' under rule 3a-5(b)(3) solely because
it is excluded from the definition of investment company under section
3(c)(2), 3(c)(3), 3(c)(4), 3(c)(5)(A), 3(c)(5)(B) or 3(c)(6) of the
Act.
4. Applicant states that its primary business purpose is to engage
in financing activities that will provide funds for MBIA, the
Controlled Companies and the Subject Controlled Companies. Applicant
also states that neither MBIA nor any of the Subject Controlled
Companies is engaged primarily in investment company activities.
5. Section 6(c) of the Act, in pertinent part, provides that the
Commission, by order upon application, may conditionally or
unconditionally exempt any person, security or transaction, or any
class or classes of persons, securities or transactions, from any
provision or provisions of the Act to the extent that such exemption is
necessary or appropriate in the public interest and consistent with the
protection of investors and the purposes fairly intended by the policy
and provisions of the Act. Applicant submits that its exemptive request
meets the standards set out in section 6(c).
[[Page 7530]]
Applicant's Condition
Applicant agrees that any order granting the requested relief will
be subject to the following condition:
Applicant will comply with all of the provisions of rule 3a-5 under
the Act, except that:
(1) MBIA will not meet the portion of the definition of ``parent
company'' under rule 3a-5(b)(2)(i) solely because it is excluded from
the definition of investment company under section 3(c)(6) of the Act;
and
(2) The Subject Controlled Companies will not meet the portion of
the definition of ``company controlled by the parent company'' in rule
3a-5(b)(3)(i) solely because they are excluded from the definition of
investment company under section 3(c)(2), 3(c)(3), 3(c)(4), 3(c)(5) or
3(c)(6) of the Act;
provided that:
(a) Any Subject Controlled Company excluded from the definition of
investment company under section 3(c)(5) of the Act will fall within
section 3(c)(5)(A) or section 3(c)(5)(B) solely by reason of its
holdings of accounts receivable of either its own customers or of the
customers of other Controlled Companies, or by reason of loans made by
it to such Controlled Companies or customers, and
(b) MBIA and any Subject Controlled Company excluded from the
definition of investment company under section 3(c)(6) of the Act will
not be engaged primarily, directly, or through majority-owned
subsidiaries in one or more of the businesses described in section
3(c)(5) of the Act (except as permitted in (a) above).
For the Commission, by the Division of Investment Management,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-591 Filed 2-11-05; 8:45 am]
BILLING CODE 8010-01-P
