[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30361]
[[Page Unknown]]
[Federal Register: December 9, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-20754; File No. 811-5246]
East Coast Venture Capital, Inc.: Notice of Application for
Deregistration
December 5, 1994.
AGENCY: Securities and Exchange Commission (``SEC'').
.ACTION: Notice of Application for Deregistration under the Investment
Company Act of 1940 (``Act'').
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APPLICANT: East Coast Venture Capital, Inc.
RELEVANT ACT SECTION: Section 8(f).
SUMMARY OF APPLICATION: Applicant requests an order declaring that it
has ceased to be an investment company.
FILING DATE: The application was filed on September 13, 1994, and
amended on December 2, 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 December 30,
1994, 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 may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street, NW., Washington, DC 20549;
applicant, 313 West 53rd Street, New York, New York, 10019.
FOR FURTHER INFORMATION CONTACT: Bradley W. Paulson, Staff Attorney, at
(202) 942-0147 or Robert A. Robertson, 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 is available 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 July 21, 1987. On February 26, 1988,
applicant filed a registration statement on Form N-5, which became
effective on November 16, 1989. In July 1990, applicant conducted its
only public offering. 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. On September 9, 1994, 84 shareholders of record (79 beneficial
shareholders) held approximately 160,105 shares of applicant's common
stock. As of that date, applicant also had outstanding 1 million shares
of 3% cumulative preferred stock with a par value of $1.00 per share,
all of which were held by the SBA. Additionally, applicant had
outstanding SBA-guaranteed debentures in an aggregate principal amount
of $2 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 July 31, 1994, applicant had assets aggregating
$4,007,018. Of that amount, $2,713,873 is attributable to applicant's
loan portfolio, $619,455 is attributable to real estate acquired in
foreclosure of delinquent loans, $540,845 is cash, $124,174 is accrued
interest, and $8,671 represents the value of other assets. Applicant's
liabilities consisted of $2,000,000 in SBA debentures, $99,595 in
deferred income, and $79,319 in other liabilities. As of July 31, 1994,
the stockholders' equity consisted of $1,000,000 of preferred stock,
$1,601 in paid-in capital, $1,009,637 of additional paid-in capital,
and a retained earnings deficit of $183,134. Applicant's retained
earnings deficit is due to net operating losses for the last three
fiscal years that were attributable primarily to written-off delinquent
loans. As a result of its retained earnings deficit, applicant has not
declared dividends on its shares or preferred stock and, as of July 31,
1994, was in arrearage in the payment of its preferred stock dividends
in the amount of $135,000.
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 the 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 the
purposes of the Act, only 81 persons are beneficial holders of its
securities: 79 persons hold its common stock, one holds preferred
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, pursuant
to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-30361 Filed 12-8-94; 8:45 am]
BILLING CODE 8010-01-M