[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