Reserve Municipal Money-Market Trust, et al.; Notice of Application and Temporary Order, 64993-64994 [E8-25862]
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Federal Register / Vol. 73, No. 212 / Friday, October 31, 2008 / Notices
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securities and have no proxy record to
file.
The Commission requires the
dissemination of this information in
order to meet the filing and disclosure
requirements of the Investment
Company Act and to enable Funds to
provide investors with the information
necessary to evaluate an investment in
the Fund. The information filed with
the Commission also permits the
verification of compliance with
securities law requirements and assures
the public availability and
dissemination of the information.
Requiring a Fund to file its annual
reports on Form N–PX has the
advantages of making each Fund’s proxy
voting record available within a
relatively short period of time after the
proxy voting season, and of providing
disclosure of all Funds’ proxy voting
records over a uniform period of time.
There are approximately 3,800 Funds
registered with the Commission,
representing approximately 9,400 Fund
portfolios, which are required to file
Form N–PX.1 The 9,400 portfolios are
comprised of 6,200 portfolios holding
equity securities and 3,200 portfolios
holding no equity securities. The staff
estimates that portfolios holding no
equity securities require approximately
a 0.17 hour burden per response and
those holding equity securities require
14.4 hours per response. The overall
estimated annual burden is therefore
89,824 hours ((6,200 responses × 14.4
hours per response for equity holding
portfolios) + (3,200 responses × 0.17
hours per response for non-equity
holding portfolios)).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
1 The estimate of 3,800 Funds is based on the
number of management investment companies
currently registered with the Commission. We
estimate, based on data from the Investment
Company Institute and other sources, that there are
approximately 5,700 Fund portfolios that invest
primarily in equity securities, 500 ‘‘hybrid’’ or bond
portfolios that may hold some equity securities,
2,400 bond Funds that hold no equity securities,
and 800 money market Funds, for a total of 9,400
portfolios required to file Form N–PX.
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15:31 Oct 30, 2008
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in writing within 60 days of this
publication.
Please direct your written comments
to Lewis W. Walker, Acting Director/
CIO, Securities and Exchange
Commission, c/o Shirley Martinson,
6432 General Green Way, Alexandria,
VA 22312; or send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: October 22, 2008.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25865 Filed 10–30–08; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–28466; 812–13585]
Reserve Municipal Money-Market
Trust, et al.; Notice of Application and
Temporary Order
October 24, 2008.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of application and a
temporary order under Section 22(e)(3)
of the Investment Company Act of 1940
(the ‘‘Act’’).
AGENCY:
Summary of Application: Applicants
request a temporary order to permit
certain of their series to suspend the
right of redemption of their outstanding
redeemable securities and to postpone
payment for shares which have been
submitted for redemption for which
payment has not been made.
Applicants: Reserve Municipal
Money-Market Trust on behalf of two of
its series, Arizona Municipal MoneyMarket Fund and Minnesota Municipal
Money-Market Fund; Reserve Municipal
Money-Market Trust II, on behalf of
nine of its series, Interstate Tax-Exempt
Fund, California Municipal MoneyMarket Fund, Connecticut Municipal
Money-Market Fund, Florida Municipal
Money-Market Fund, Michigan
Municipal Money-Market Fund, New
Jersey Municipal Money-Market Fund,
Ohio Municipal Money-Market Fund,
Pennsylvania Municipal Money-Market
Fund and Virginia Municipal MoneyMarket Fund; Reserve New York
Municipal Money-Market Trust on
behalf of its single series, New York
Municipal Money-Market Fund; and
Reserve Short-Term Investment Trust on
behalf of one of its series, Reserve Yield
Plus Fund (Reserve Municipal MoneyMarket Trust, Reserve Municipal
Money-Market Trust II, Reserve New
York Municipal Money-Market Trust,
and Reserve Short-Term Investment
Trust, collectively, the ‘‘Applicants’’ or
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64993
the ‘‘Trusts,’’ and each such series of
Reserve Municipal Money-Market Trust,
Reserve Municipal Money-Market Trust
II and Reserve New York Municipal
Money-Market Trust, a ‘‘Money Market
Fund’’).
Filing Date: The application was filed
on October 14, 2008 and amended on
October 24, 2008.
Hearing or Notification of 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 November 17, 2008, 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, 1250 Broadway, New
York, NY 10001–3701.
FOR FURTHER INFORMATION CONTACT:
Brian P. Murphy, Senior Counsel, at
(202) 551–6825 (Division of Investment
Management, Office of Chief Counsel).
SUPPLEMENTARY INFORMATION: The
complete application may be obtained
for a fee at the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549–1520 (tel. 202–
551–5850).
Applicants’ Representations
1. Each of the Money Market Funds
and the Reserve Yield Plus Fund
(collectively, the ‘‘Funds’’) is an openend management investment company
registered with the Commission under
the Act. Each Money Market Fund is a
money market fund that operates in a
manner consistent with Rule 2a–7 under
the Act and that seeks a high level of
short-term interest income exempt from
certain taxes as is consistent with the
preservation of capital and liquidity.
The Reserve Yield Plus Fund seeks as
high a level of current income as is
consistent with the preservation of
capital and liquidity.
2. The Funds have been subject to a
heavy level of redemption requests. For
example, from September 12, 2008 to
October 8, 2008, the total net assets of
some of the Funds have declined as
follows: (1) The Interstate Tax-Exempt
Fund’s total net assets declined from
$1.78 billion to $154.6 million; (2) the
Michigan Municipal Money-Market
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64994
Federal Register / Vol. 73, No. 212 / Friday, October 31, 2008 / Notices
Fund’s total net assets declined from
$29.1 million to $5.3 million; (3) the
New Jersey Municipal Money-Market
Fund’s total net assets declined from
$72.2 million to $20.9 million; (4) the
Ohio Municipal Money-Market Fund’s
total net assets declined from $30.9
million to $5.6 million; (5) the
Pennsylvania Municipal Money-Market
Fund’s total net assets declined from
$74.4 million to $2.6 million; and (6)
the New York Municipal Money-Market
Fund’s total net assets declined from
$180.7 million to $91.8 million. The
decline of each Fund’s total net assets
was largely caused by heavy redemption
requests and not declining values
associated with portfolio holdings.
There has been no abatement of the
redemptions, and there is no reasonable
basis for believing that redemptions will
abate.
3. The Funds’ have made efforts to
raise cash to satisfy redemptions from
the Funds through the sale of certain
short-term portfolio securities or
maturation of other portfolio securities.
The Funds are or soon will be limited
in the amount of portfolio securities that
can be sold at or above amortized cost
or that will mature in seven days or less.
The Funds’ other portfolio securities
can only be sold at below amortized cost
(possibly at fire-sale prices) due to the
extreme illiquidity and limited bids in
the markets. In the view of the boards
of trustees of each Trust, including a
majority of the trustees who are not
interested persons of such Trust within
the meaning of Section 2(a)(19) of the
Act, (the ‘‘Boards’’), and the investment
adviser (the ‘‘Adviser’’), such sales
would be inconsistent with the Funds’
investment objectives of preservation of
capital and harmful to non-redeeming
shareholders.
4. In response to these developments,
on October 8, 2008, the Boards, taking
into account the recommendations of
the Adviser, determined to liquidate the
Funds.
5. On October 8, 2008, the Boards also
determined that it would be in the best
interest of each Fund’s shareholders to
suspend the right of redemption and
postpone the date of payment or
satisfaction upon redemption for more
than seven days to allow Applicants the
ability to liquidate the portfolio
securities of the Funds in an orderly
manner and allow the additional
securities held by each Fund to mature.
In addition, the Boards determined to
request an order under Section 22(e)(3)
of the Act.
Applicants’ Legal Analysis
1. Section 22(e)(1) of the Act generally
provides that a registered investment
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Jkt 217001
company may not suspend the right of
redemption or postpone the date of
payment or satisfaction upon
redemption of any redeemable security
in accordance with its terms for more
than seven days after the tender of such
security to the company or its
designated agent except for any period
during which the New York Stock
Exchange (‘‘NYSE’’) is closed other than
customary week-end and holiday
closings, or during which trading on the
NYSE is restricted.
2. Section 22(e)(2) of the Act provides
that the seven-day redemption period
does not apply for any period during
which an emergency exists, as
determined by Commission rules and
regulations, as a result of which the
disposal by a registered investment
company of portfolio securities is not
reasonably practicable or it is not
reasonably practicable for the registered
investment company fairly to determine
the value of its net assets.
3. Section 22(e)(3) of the Act provides
that redemptions may be suspended by
a registered investment company for
such other periods as the Commission
may by order permit for the protection
of security holders of the registered
investment company.
4. Applicants submit that granting the
requested relief is for the protection of
each Fund’s shareholders, as provided
in Section 22(e)(3) of the Act.
Applicants assert that, in requesting an
order by the Commission, the Boards’
goal is to ensure that each of the Funds’
shareholders will be treated
appropriately in view of the otherwise
detrimental effect on each Fund of the
recent unprecedented illiquidity of the
markets and extraordinary levels of
redemptions that the Funds have
experienced. Current market conditions
continue to be extraordinary, and the
requested relief is intended to cause an
orderly liquidation of each of the Funds’
portfolio securities and ensure that all of
their respective shareholders are
protected in the process.
5. Applicants further submit that the
relief is appropriate because: (1) The
Boards: (a) Taking into account the
recommendations of the Adviser,
determined on October 8, 2008 to
liquidate the Funds, (b) determined, on
October 8, 2008, that a suspension of
redemption is in the best interest of
each Fund’s shareholders, (c)
determined, on October 8, 2008, that a
postponement of payment for shares
which have been submitted for
redemption for which payment has not
been made is in the best interest of each
Fund’s shareholders, and (d) promptly
will create plans for the orderly
liquidation of each Fund’s assets and for
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Frm 00088
Fmt 4703
Sfmt 4703
the appropriate payments to each
Fund’s shareholders, including those
whose redemption orders have been
received but not yet paid, which plans
will be subject to Commission
supervision and which plans will
include a planned schedule of possible
payments to Fund shareholders that is
based on the maturities of the portfolio
securities held by each Fund; (2) each
Fund has previously suspended sales as
of September 18, 2008; (3) each Fund
will make and keep appropriate records
surrounding these events; and (4) each
Fund continuously will provide timely
and appropriate information, including
initial and ongoing disclosure about the
plan and its implementation, to its
shareholders, via Web site or otherwise.
Commission Finding
Based on the representations in the
application, including those relating to
the current extraordinary market
conditions and the Boards’ October 8,
2008 determinations, the Commission
permits the temporary suspension of the
right of redemption and postponement
of payment for shares which have been
submitted for redemption for which
payment has not been made by the
Funds for the protection of the Funds’
security holders. Under the
circumstances described in the
application, which require immediate
action to protect the Funds’ security
holders, the Commission concludes that
it is not practicable to give notice or an
opportunity to request a hearing before
issuing the order. In addition, under the
circumstances described in the
application, the Commission concludes
that the order should be effective as of
the date of the actions of the Boards.
It is ordered, pursuant to Section
22(e)(3) of the Act, that the requested
relief from Section 22(e) of the Act is
granted with respect to each Fund until
that Fund has liquidated, or until the
Commission rescinds the order granted
herein. This order shall be in effect as
of October 8, 2008.
By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–25862 Filed 10–30–08; 8:45 am]
BILLING CODE 8011–01–P
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]]>Agencies
[Federal Register Volume 73, Number 212 (Friday, October 31, 2008)]
[Notices]
[Pages 64993-64994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25862]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-28466; 812-13585]
Reserve Municipal Money-Market Trust, et al.; Notice of
Application and Temporary Order
October 24, 2008.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of application and a temporary order under Section
22(e)(3) of the Investment Company Act of 1940 (the ``Act'').
-----------------------------------------------------------------------
Summary of Application: Applicants request a temporary order to
permit certain of their series to suspend the right of redemption of
their outstanding redeemable securities and to postpone payment for
shares which have been submitted for redemption for which payment has
not been made.
Applicants: Reserve Municipal Money-Market Trust on behalf of two
of its series, Arizona Municipal Money-Market Fund and Minnesota
Municipal Money-Market Fund; Reserve Municipal Money-Market Trust II,
on behalf of nine of its series, Interstate Tax-Exempt Fund, California
Municipal Money-Market Fund, Connecticut Municipal Money-Market Fund,
Florida Municipal Money-Market Fund, Michigan Municipal Money-Market
Fund, New Jersey Municipal Money-Market Fund, Ohio Municipal Money-
Market Fund, Pennsylvania Municipal Money-Market Fund and Virginia
Municipal Money-Market Fund; Reserve New York Municipal Money-Market
Trust on behalf of its single series, New York Municipal Money-Market
Fund; and Reserve Short-Term Investment Trust on behalf of one of its
series, Reserve Yield Plus Fund (Reserve Municipal Money-Market Trust,
Reserve Municipal Money-Market Trust II, Reserve New York Municipal
Money-Market Trust, and Reserve Short-Term Investment Trust,
collectively, the ``Applicants'' or the ``Trusts,'' and each such
series of Reserve Municipal Money-Market Trust, Reserve Municipal
Money-Market Trust II and Reserve New York Municipal Money-Market
Trust, a ``Money Market Fund'').
Filing Date: The application was filed on October 14, 2008 and
amended on October 24, 2008.
Hearing or Notification of 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 November
17, 2008, 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, 1250 Broadway, New
York, NY 10001-3701.
FOR FURTHER INFORMATION CONTACT: Brian P. Murphy, Senior Counsel, at
(202) 551-6825 (Division of Investment Management, Office of Chief
Counsel).
SUPPLEMENTARY INFORMATION: The complete application may be obtained for
a fee at the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549-1520 (tel. 202-551-5850).
Applicants' Representations
1. Each of the Money Market Funds and the Reserve Yield Plus Fund
(collectively, the ``Funds'') is an open-end management investment
company registered with the Commission under the Act. Each Money Market
Fund is a money market fund that operates in a manner consistent with
Rule 2a-7 under the Act and that seeks a high level of short-term
interest income exempt from certain taxes as is consistent with the
preservation of capital and liquidity. The Reserve Yield Plus Fund
seeks as high a level of current income as is consistent with the
preservation of capital and liquidity.
2. The Funds have been subject to a heavy level of redemption
requests. For example, from September 12, 2008 to October 8, 2008, the
total net assets of some of the Funds have declined as follows: (1) The
Interstate Tax-Exempt Fund's total net assets declined from $1.78
billion to $154.6 million; (2) the Michigan Municipal Money-Market
[[Page 64994]]
Fund's total net assets declined from $29.1 million to $5.3 million;
(3) the New Jersey Municipal Money-Market Fund's total net assets
declined from $72.2 million to $20.9 million; (4) the Ohio Municipal
Money-Market Fund's total net assets declined from $30.9 million to
$5.6 million; (5) the Pennsylvania Municipal Money-Market Fund's total
net assets declined from $74.4 million to $2.6 million; and (6) the New
York Municipal Money-Market Fund's total net assets declined from
$180.7 million to $91.8 million. The decline of each Fund's total net
assets was largely caused by heavy redemption requests and not
declining values associated with portfolio holdings. There has been no
abatement of the redemptions, and there is no reasonable basis for
believing that redemptions will abate.
3. The Funds' have made efforts to raise cash to satisfy
redemptions from the Funds through the sale of certain short-term
portfolio securities or maturation of other portfolio securities. The
Funds are or soon will be limited in the amount of portfolio securities
that can be sold at or above amortized cost or that will mature in
seven days or less. The Funds' other portfolio securities can only be
sold at below amortized cost (possibly at fire-sale prices) due to the
extreme illiquidity and limited bids in the markets. In the view of the
boards of trustees of each Trust, including a majority of the trustees
who are not interested persons of such Trust within the meaning of
Section 2(a)(19) of the Act, (the ``Boards''), and the investment
adviser (the ``Adviser''), such sales would be inconsistent with the
Funds' investment objectives of preservation of capital and harmful to
non-redeeming shareholders.
4. In response to these developments, on October 8, 2008, the
Boards, taking into account the recommendations of the Adviser,
determined to liquidate the Funds.
5. On October 8, 2008, the Boards also determined that it would be
in the best interest of each Fund's shareholders to suspend the right
of redemption and postpone the date of payment or satisfaction upon
redemption for more than seven days to allow Applicants the ability to
liquidate the portfolio securities of the Funds in an orderly manner
and allow the additional securities held by each Fund to mature. In
addition, the Boards determined to request an order under Section
22(e)(3) of the Act.
Applicants' Legal Analysis
1. Section 22(e)(1) of the Act generally provides that a registered
investment company may not suspend the right of redemption or postpone
the date of payment or satisfaction upon redemption of any redeemable
security in accordance with its terms for more than seven days after
the tender of such security to the company or its designated agent
except for any period during which the New York Stock Exchange
(``NYSE'') is closed other than customary week-end and holiday
closings, or during which trading on the NYSE is restricted.
2. Section 22(e)(2) of the Act provides that the seven-day
redemption period does not apply for any period during which an
emergency exists, as determined by Commission rules and regulations, as
a result of which the disposal by a registered investment company of
portfolio securities is not reasonably practicable or it is not
reasonably practicable for the registered investment company fairly to
determine the value of its net assets.
3. Section 22(e)(3) of the Act provides that redemptions may be
suspended by a registered investment company for such other periods as
the Commission may by order permit for the protection of security
holders of the registered investment company.
4. Applicants submit that granting the requested relief is for the
protection of each Fund's shareholders, as provided in Section 22(e)(3)
of the Act. Applicants assert that, in requesting an order by the
Commission, the Boards' goal is to ensure that each of the Funds'
shareholders will be treated appropriately in view of the otherwise
detrimental effect on each Fund of the recent unprecedented illiquidity
of the markets and extraordinary levels of redemptions that the Funds
have experienced. Current market conditions continue to be
extraordinary, and the requested relief is intended to cause an orderly
liquidation of each of the Funds' portfolio securities and ensure that
all of their respective shareholders are protected in the process.
5. Applicants further submit that the relief is appropriate
because: (1) The Boards: (a) Taking into account the recommendations of
the Adviser, determined on October 8, 2008 to liquidate the Funds, (b)
determined, on October 8, 2008, that a suspension of redemption is in
the best interest of each Fund's shareholders, (c) determined, on
October 8, 2008, that a postponement of payment for shares which have
been submitted for redemption for which payment has not been made is in
the best interest of each Fund's shareholders, and (d) promptly will
create plans for the orderly liquidation of each Fund's assets and for
the appropriate payments to each Fund's shareholders, including those
whose redemption orders have been received but not yet paid, which
plans will be subject to Commission supervision and which plans will
include a planned schedule of possible payments to Fund shareholders
that is based on the maturities of the portfolio securities held by
each Fund; (2) each Fund has previously suspended sales as of September
18, 2008; (3) each Fund will make and keep appropriate records
surrounding these events; and (4) each Fund continuously will provide
timely and appropriate information, including initial and ongoing
disclosure about the plan and its implementation, to its shareholders,
via Web site or otherwise.
Commission Finding
Based on the representations in the application, including those
relating to the current extraordinary market conditions and the Boards'
October 8, 2008 determinations, the Commission permits the temporary
suspension of the right of redemption and postponement of payment for
shares which have been submitted for redemption for which payment has
not been made by the Funds for the protection of the Funds' security
holders. Under the circumstances described in the application, which
require immediate action to protect the Funds' security holders, the
Commission concludes that it is not practicable to give notice or an
opportunity to request a hearing before issuing the order. In addition,
under the circumstances described in the application, the Commission
concludes that the order should be effective as of the date of the
actions of the Boards.
It is ordered, pursuant to Section 22(e)(3) of the Act, that the
requested relief from Section 22(e) of the Act is granted with respect
to each Fund until that Fund has liquidated, or until the Commission
rescinds the order granted herein. This order shall be in effect as of
October 8, 2008.
By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-25862 Filed 10-30-08; 8:45 am]
BILLING CODE 8011-01-P
