[Federal Register Volume 60, Number 32 (Thursday, February 16, 1995)]
[Notices]
[Pages 9072-9073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3883]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 20894; File No. 811-6228]
Putnam Texas Tax Exempt Income Fund; Application for
Deregistration
February 10, 1995.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of application for deregistration under the Investment
Company Act of 1940 (the ``Act'').
-----------------------------------------------------------------------
APPLICANT: Putnam Texas Tax Exempt Income Fund.
RELEVANT ACT SECTION: Section 8(f).
SUMMARY OF APPLICATION: Applicant seeks an order declaring that it has
ceased to be an investment company.
FILING DATES: The application on Form N-8F was filed on December 9,
1994, and amended on February 9, 1995.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the SEC orders a hearing. Interested persons may
request a hearing by writing to the SEC's Secretary and serving
applicant with a copy of the request, personally or by mail. Hearing
requests should be received by the SEC by 5:30 p.m. on March 8, 1995,
and should be accompanied by proof of service on applicant, in the form
of an affidavit or, for lawyers, a certificate of service. Hearing
requests should state the nature of the writer's interest, the reason
for the request, and the issues contested. Persons who wish to be
notified of a hearing may request notification by writing to the SEC's
Secretary.
ADDRESSES: Secretary, SEC, 450 5th Street NW., Washington, DC 20549.
Applicant, One Post Office Square, Boston, Massachusetts 02109.
FOR FURTHER INFORMATION CONTACT: [[Page 9073]]
James J. Dwyer, Staff Attorney, at (202) 942-0581, or C. David Messman,
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
SEC's Public Reference Branch.
Applicant's Representations
1. Applicant is an open-end non-diversified management investment
company that was organized as a Massachusetts business trust. On
November 26, 1990, applicant registered under the Act as an investment
company, and filed a registration statement to register its shares
under the Securities Act of 1933. The registration statement became
effective on March 4, 1992, and applicant's initial public offering
commenced on that date.
2. At a meeting held on January 7, 1994, applicant's trustees
approved an agreement and plan of reorganization (the ``Plan'') whereby
applicant would transfer all of its assets and liabilities to Putnam
Tax Exempt Income Fund (the ``Income Fund''), a Massachusetts business
trust registered under the Act, and subsequently liquidate. Applicant's
trustees determined that the proposed reorganization would achieve
economies of scale, including lower advisory and operating costs, and
result in performance benefits for applicant's shareholders.
3. Applicant and Income Fund share a common investment adviser,
officers, and trustees. Accordingly, applicant and Income Fund may be
deemed to be affiliated persons of each other. Applicant therefore
relied on the exemption provided by rule 17a-8 under the Act to effect
the reorganization. Consequently, in accordance with rule 17a-8,
applicant's trustees determined on January 7, 1994, that the purchase
of the assets of applicant by Income Fund was in the best interests of
applicant's shareholders, and that such purchase would not result in
any dilution to the interests of the existing shareholders.\1\
\1\Rule 17a-8 provides relief from the affiliated transaction
prohibition of section 17(a) of the Act for a merger of investment
companies that may be affiliated persons of each other solely by
reason of having a common investment adviser, common directors, and/
or common officers.
---------------------------------------------------------------------------
4. Proxy materials relating to the Plan were filed with the SEC on
March 14, 1994, and mailed to applicant's shareholders on March 29,
a994. Applicant's shareholders voted to approve the Plan at a special
meeting held on May 5, 1994.
5. As of May 6, 1994, applicant had 1,862,787.75 shares
outstanding, having an aggregate net asset value of $16,314,742.28 and
a per share net asset value of $8.76. On May 9, 1994, pursuant to the
Plan, applicant transferred all of its assets and liabilities to Income
Fund in exchange for a number of full and fractional Class A shares of
Income Fund having an aggregate net asset value equal to the value of
applicant's assets attributable to shares of applicant transferred to
Income Fund. No brokerage commissions were paid in connection with such
transfer. Applicant then distributed to its shareholders pro rata the
Income Fund Class A shares it received, in complete liquidation of
application.
6. The expenses applicable to the Plan, consisting of accounting,
printing, administrative, and certain legal expenses, were $76,669.
Applicant paid all expenses in connection with proxy printing and
solicitation. All other expenses were assumed ratably by applicant and
Income Fund in proportion to their net assets as of May 6, 1994.
7. Applicant has no shareholders, assets, or liabilities. Applicant
is not a party to any litigation or administrative proceeding.
Applicant is not engaged in, nor does it propose to engage in, any
business activities other than those necessary for the winding up of
its affairs.
8. On August 5, 1994, applicant filed the necessary documents in
Massachusetts to terminate its existence as a Massachusetts business
trust.
For the SEC, by the Division of Investment Management, under
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-3883 Filed 2-15-95; 8:45 am]
BILLING CODE 8010-01-M
