[Federal Register Volume 59, Number 172 (Wednesday, September 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21925]


[[Page Unknown]]

[Federal Register: September 7, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 20510; 811-1725]

 

State Bond Securities Funds, Inc.; Notice of Application for 
Deregistration

August 30, 1994.
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: State Bond Securities Funds, Inc.

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 DATES: The application was filed on July 28, 1994 and amended on 
August 22, 1994.

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 September 26, 
1994, 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, NW., Washington, DC 20549. 
Applicant, 8400 Normandale Lake Boulevard, Suite 1150, Minneapolis, MN 
55437-3807.

FOR FURTHER INFORMATION CONTACT:
Marianne H. Khawly, Law Clerk, at (202) 942-0562, 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 from 
the SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant is a diversified open-end investment management 
company organized as a Maryland corporation. On August 22, 1968, 
applicant filed a Notification of Registration on Form N-8A pursuant to 
section 8(a) of the Act. On September 16, 1968 applicant filed a 
registration statement on Form N-1A under section 8(b) of the Act and 
under the Securities Act of 1933. The registration statement became 
effective on July 30, 1969, and applicant's initial public offering 
commenced shortly thereafter.
    2. On March 18, 1994, applicant's Board of Directors approved a 
plan of reorganization whereby applicant agreed to transfer all of its 
assets and stated liabilities to State Bond Common Stock Fund (the 
``Acquiring Fund''), in exchange for shares of the Acquiring Fund. In 
accordance with rule 17a-8 of the Act, applicant's directors determined 
that the sale of applicant's assets to the Acquiring Fund was in the 
best interest of applicant's shareholders, and that the interests of 
the existing shareholders would not be diluted as a result.\1\
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    \1\Applicant and the Acquiring Fund may be deemed to be 
affiliated persons of each other by reason of having a common 
investment adviser. Although purchases and sales between affiliated 
persons are generally prohibited by section 17(a) of the Act, rule 
17a-8 provides an exemption for certain purchases and sales among 
investment companies that are affiliated persons of one another 
solely by reason of having a common investment adviser, common 
directors, and/or common officers.
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    3. The directors of applicant concluded that the reorganization 
would benefit applicant's shareholders because the overall fees charged 
to the combined fund should result in lower expense ratios than are 
currently being incurred by the applicant.
    4. A registration statement on Form N-14 was filed with the SEC on 
April 6, 1994. The proxy statement/prospectus contained therein was 
furnished to applicant's shareholders on or about May 9, 1994. At a 
special meeting held on June 21, 1994, holders of a majority of the 
outstanding voting shares of applicant approved the reorganization.
    5. The reorganization was consummated on June 25, 1994 (the 
``Closing Date''). On June 24, 1994, applicant had aggregate net assets 
of $8,605,437 and a net asset value per share of $11.32. On the Closing 
Date, all of the assets and stated liabilities of applicant were 
transferred to the Acquiring Fund in exchange for shares of the 
Acquiring Fund having a net asset value equal to the net assets of 
applicant. Shares of the Acquiring Fund were then distributed to 
applicant's shareholders. Each shareholder received the proportion of 
Acquiring Fund shares received by applicant that the number of 
applicant shares owned by each such shareholder bore to the number of 
outstanding applicant shares.
    6. Applicant bore approximately $23,787 in expenses in connection 
with the reorganization. Such expenses were for legal, accounting, 
proxy solicitation, and liquidation fees.
    7. As of the date of the application, applicant had no 
shareholders, assets, or liabilities. Applicant is not a party to any 
litigation or administrative proceeding. Applicant is neither engaged 
in nor proposes to engage in any business activities other than those 
necessary for the winding-up of its affairs.
    8. Applicant terminated its existence as a Maryland corporation on 
July 25, 1994.

    For the SEC, by the Division of Investment Management, under 
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-21925 Filed 9-6-94; 8:45 am]
BILLING CODE 8010-01-M