[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Notices]
[Pages 21214-21215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11538]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 21936; 811-4502]
Pierre Funding Corporation; Notice of Application
May 2, 1996.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of Application for Deregistration under the Investment
Company Act of 1940 (the ``Act'').
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APPLICANT: Pierre Funding Corporation.
RELEVANT ACT SECTION: Order requested under Section 8(f).
SUMMARY OF APPLICATION: Applicant seeks an order declaring it has
ceased to be an investment company.
FILING DATE: The application was filed on December 18, 1995, and was
amended on April 30, 1996.
[[Page 21215]]
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 May 27, 1996,
and should be accompanied by proof of service on the 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 may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street, N.W., Washington, D.C.
20549. Applicant, 805 Third Avenue, New York, New York 10022.
FOR FURTHER INFORMATION CONTACT: Sarah A. Wagman, Staff Attorney, at
(202) 942-0654, or Alison E. Baur, 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 from
the SEC's Public Reference Branch.
Applicant's Representations
1. Applicant, a New York corporation, registered as a closed-end
investment company under the Act by filing with the SEC a notification
of registration on Form N-8A on November 26, 1985. On July 25, 1986,
applicant filed a registration statement on Form N-5, which became
effective in December, 1986. In June, 1987, applicant issued shares of
its common stock through a public offering. There has been no other
public offering of applicant's securities, and applicant presently does
not intend to make any other public offering of its securities.
Applicant is licensed and regulated as a Specialized Small Business
Investment Company by the United States Small Business Administration
(``SBA'') under the Small Business Investment Company Act of 1958
(``SBICA'').
2. Applicant states that there are 22 beneficial holders of its
shares. As of November 30, 1995, applicant also had outstanding SBA-
guaranteed debentures in an aggregate principal amount of approximately
$4.1 million. These Debentures are not convertible into, exchangeable
for, or accompanied by, any equity security. Applicant's common stock
is not traded on an active market.
3. As of November 30, 1995, applicant had assets aggregating
$11,335,023. Of that amount, $10,894,910 is attributable to applicant's
loan portfolio, $85,813 is attributable to real estate acquired in
foreclosure of delinquent loans, $40,906 is cash, $195,317 is accrued
interest, and $118,077 represents the value of other assets.
Applicant's liabilities consisted of approximately $4.1 million in SBA
debentures, $250,000 in deferred income, and $1.7 million in other
liabilities. As of November 30, 1995, shareholders' equity consisted of
approximately $5.4 million in paid-in capital.
4. Applicant presently is not a party to any litigation or
administrative proceeding.
Applicant's Legal Analysis
1. Section 8(f) of the Act provides that whenever the SEC, upon
application or its own motion, finds that a registered investment
company has ceased to be an investment company, the SEC shall so
declare by order. The registration of the investment company ceases to
be in effect upon the taking effect of the order.
2. Section 3(c)(1) of the Act provides that an issuer is not an
investment company within the meaning of the Act if (a) its outstanding
securities (other than short-term paper) are beneficially owned by not
more than 100 persons, and (b) it is not making and does not presently
propose to make a public offering of securities.
3. Rule 3c-3 under the Act provides that, for purposes of section
3(c)(1), the holders of any debt securities offered and sold by a small
business investment company licensed under the SBICA shall be deemed to
be one person if the securities are (a) not convertible into,
exchangeable for, or accompanied by any equity security and (b)
guaranteed as to timely payment of principal and interest by the SBA
and backed by the full faith and credit of the United States. Applicant
believes that the holders of its debentures are considered one person
under the provisions of rule 3c-3.
4. Applicant believes that, pursuant to section 3(c)(1), it is no
longer an investment company as defined in section 3 because, for
purposes of the Act, only 23 persons are beneficial holders of its
securities: 22 persons hold its common stock, and one holds debentures.
Applicant is not making and does not presently propose to make a public
offering of its securities. Accordingly, applicant requests that the
SEC issue an order under section 8(f) declaring that it has ceased to
be an investment company.
For the SEC, by the Division of Investment Management, under
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-11538 Filed 5-8-96; 8:45 am]
BILLING CODE 8010-01-M
