[Federal Register Volume 60, Number 203 (Friday, October 20, 1995)]
[Notices]
[Page 54280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25961]



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SECURITIES AND EXCHANGE COMMISSION
[Rel. No. IC-21420; 811-7073]


Sunburst Funds; Notice of Application

October 13, 1995.
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: Sunburst Funds.

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 October 2, 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 November 7, 
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 may request 
notification of a hearing by writing to the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 5th Street, N.W., Washington, D.C. 
20549. Applicant, Federated Investors Tower, Pittsburgh, Pennsylvania 
15222-3779.

FOR FURTHER INFORMATION CONTACT: Deepak T. Pai, Staff Attorney, at 
(202) 942-0574, 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 at the 
SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant is an open-end management investment company organized 
as a Massachusetts business trust. On August 2, 1993, applicant 
registered under the Act as an investment company and filed a 
registration statement under the Securities Act of 1933, registering an 
indefinite number of shares. The registration statement was declared 
effective on October 28, 1993, and applicant's initial public offering 
commenced on November 15, 1993. Sunburst Bank, Mississippi served as 
applicant's investment adviser (``Adviser'').
    2. At a meeting held on February 16, 1995, applicant's Board of 
Trustees approved an Agreement and Plan of Reorganization whereby 
Federated U.S. Government Securities Fund: 1-3 Years (``Federated'') 
would acquire all of the assets of applicant's sole portfolio, Sunburst 
Short-Intermediate Government Bond Fund (``Sunburst''), in exchange for 
Institutional Shares of Federated to be distributed pro rata by 
Sunburst to its shareholders in complete liquidation and dissolution of 
Sunburst. Pursuant to rule 17a-8, the Boards of Trustees of Sunburst 
and Federated determined that such reorganization would be in the best 
interests of their respective shareholders and that the economic 
interests of their respective shareholders would not be diluted as a 
result of the reorganization.\1\ Proxy materials were filed with the 
SEC and were distributed to applicant's shareholders on or about May 
26, 1995. At a special meeting of shareholders held on June 29, 1995, 
applicant's shareholders approved the reorganization.

    \1\ Applicant and Federated may be deemed to be affiliated 
persons of each other by reason of having a common investment 
adviser, common directors, and common officers. Although purchases 
and sales between affiliated persons generally are 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. On the exchange date of June 30, 1995, all of the properties and 
assets of Sunburst were valued and subsequently conveyed to Federated. 
Shareholders in Sunburst received Institutional Shares in Federated 
equal in value to their shares in Sunburst in complete liquidation and 
dissolution of Sunburst. No brokerage commissions were paid as a result 
of the exchange.
    4. The Adviser is responsible for the payment of all expenses of 
the reorganization incurred by either Sunburst or Federated. Such 
expenses include, but are not limited to, accountants' fees, legal 
fees, registration fees, transfer taxes, bank and transfer agent fees, 
the costs of proxy materials and proxy solicitation to shareholders of 
Sunburst and the costs of holding the special meeting of shareholders.
    5. Applicant has no assets or liabilities and is not a party to any 
litigation or administrative proceeding. At the time of the 
application, applicant had no shareholders. Applicant is neither 
engaged in, nor does it propose to engage in, any business activities 
other than those necessary for the winding-up of its affairs.
    6. Applicant will be dissolved under the laws of Massachusetts upon 
receipt of an order from the SEC declaring that applicant has ceased to 
be an investment company.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-25961 Filed 10-19-95; 8:45 am]
BILLING CODE 8010-01-M