[Federal Register Volume 62, Number 117 (Wednesday, June 18, 1997)]
[Notices]
[Page 33145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15938]



[[Page 33145]]

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SECURITIES AND EXCHANGE COMMISSION

[Investment Company Act Release No. 22705; 811-5737]


American Government Term Trust Inc.; Notice of Application

June 12, 1997.
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: American Government Term Trust 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 DATES: The application was filed on March 18, 1997, and an 
amendment thereto on June 3, 1997.

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 July 7, 1997, 
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, 222 South Ninth Street, Piper Jaffray Tower, 
Minneapolis, Minnesota 55402.

FOR FURTHER INFORMATION CONTACT: Diane L. Titus, Paralegal Specialist, 
at (202) 942-0584, or Elizabeth G. Osterman, Assistant Director, 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 closed-end diversified management investment 
company, organized under the laws of the State of Minnesota. On 
December 7, 1988, applicant filed a notification or registration on 
Form N-8A under section 8(a) of the Act. On the same date, applicant 
filed a registration statement on Form N-2 under section 8(b) of the 
Act and under the Securities Act of 1933. Applicant's registration 
statement was declared effective on January 19, 1989, and the initial 
public offering commenced on that date.
    2. At a meeting held August 18, 1995, applicant's board of 
directors considered a written report of the Adviser recommending the 
liquidation and dissolution of applicant and approved the Adviser's 
recommendation. The Adviser determined that applicant would not be able 
to meets its investment objective of reaching $10 per share on August 
31, 2001. The Adviser researched alternatives to liquidation including 
(a) changing investment policies, (b) reducing applicant's dividends, 
and (c) converting to an open-end investment company. In the Adviser's 
opinion, the first alternative would significantly increase the risk in 
applicant's portfolio; the second alternative would most likely still 
not attain the $10 per share objective; and the third alternative would 
transform applicant into a significantly different investment vehicle 
than originally selected by shareholders. The board determined that it 
would not be in the best interests of shareholders to pursue any of 
these alternatives and the alternatives to liquidation did not afford 
shareholders sufficient promise of additional value to justify pursuing 
the alternatives. The board noted that liquidation and dissolution 
would permit shareholders to receive the net asset value underlying 
their shares, rather than the discounted market price that they would 
be able to receive upon a sale of those shares in the open market, and 
to invest that amount in investment vehicles of their own choice.
    3. At a meeting held on October 9, 1995, applicant's board of 
directors approved the terms of the Plan of Liquidation and Dissolution 
(the ``Plan''). A Proxy Statement for a special meeting of shareholders 
was filed with the SEC and mailed to applicant's shareholders on or 
about November 1, 1997. Applicant's shareholders approved the Plan at a 
meeting held on December 7, 1995.
    4. On December 21, 1995, applicant paid shareholders a liquidating 
distribution. As of that date, applicant had 8,005,700 shares of common 
stock outstanding with an aggregate net asset value of $71,401,807 and 
per share net asset value of $8.91887.
    5. In connection with its liquidation and dissolution, applicant 
incurred approximately $53,073 in expenses. Expenses of liquidation, 
other than taxes, were paid by applicant's investment adviser. No 
brokerage commissions were paid in connection with the liquidation, 
because the portfolio securities consisted of U.S. Treasury securities.
    6. Applicant's transfer agent, Investors Fiduciary Trust Company, 
has established a non-interest bearing bank account for security 
holders who have not surrendered their share certificates for payment. 
As of March 2, 1997, applicant had 17 security holder accounts 
totalling 9,045,856 shares at a value of approximately $80,643. The 
transfer agent will continue to mail letters to these accounts until 
they submit their certificates or other requested information so that 
payment can be made. The address and identity of the security holders 
is not in question.
    7. Applicant is a party to litigation, however, Piper Jaffray 
Companies Inc. (``Piper'') and Piper Capital Management Incorporated 
(``Piper Capital'') have agreed, pursuant to an Assumption Agreement 
between and among Piper, Piper Capital, and applicant, to assume all 
liabilities of applicant in connection with the lawsuit.
    8. Applicant has no debts or liabilities. Applicant is not engaged 
in and does not propose to engage in any business activities other than 
those necessary for the winding up of its affairs.
    9. Applicant filed a Notice of Intent to Dissolve and Articles of 
Dissolution with the Minnesota Secretary of State on December 7, 1995, 
and January 9, 1996, respectively.

    For the SEC, by the Division of Investment Management, under 
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-15938 Filed 6-17-97; 8:45 am]
BILLING CODE 8010-01-M