[Federal Register Volume 65, Number 42 (Thursday, March 2, 2000)]
[Notices]
[Pages 11350-11351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4981]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-24314; 812-11904]


Harris & Harris Group, Inc.; Notice of Application

February 24, 2000.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION:  Issuance of Certification Pursuant to Section 851(e) of the 
Internal Revenue Code of 1986, as amended (``Code'').

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SUMMARY: The SEC is issuing a certification pursuant to section 851(e) 
of the Code that applicant Harris & Harris Group, Inc. (``Harris'') 
was, for the fiscal year ended December 31, 1999, principally engaged 
in the furnishing of capital to other corporations which are 
principally

[[Page 11351]]

engaged in the development or exploitation of inventions, technological 
improvements, new processes or products not previously generally 
available.

FILING DATES: The application was filed on December 22, 1999, and 
amended on February 24, 2000.

ADDRESSES: Secretary, SEC, 450 Fifth Street, N.W., Washington, DC 
20549-0609; Applicant, One Rockefeller Plaza, 14 Wast 49th Street, New 
York, New York 10020.

FOR FURTHER INFORMATION CONTACT: Paula L. Kashtan, Senior Counsel, at 
(202) 942-0615, or Mary Kay Frech, 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 and a certification. The complete application may be 
obtained for a fee at the SEC's Public Reference Branch, 450 Fifth 
Street, NW, Washington, DC 20549-0102 (telephone (202) 942-8090).

Applicant's Representations

    1. Harris is a New York corporation. On July 26, 1995, Harris 
elected to become regulated as a business development company pursuant 
to section 54(a) of the Investment Company Act of 1940.
    2. Harris proposed to qualify as a ``regulated investment company'' 
under section 851(a) of the Code pursuant to section 851(e) of the 
Code. Section 851(b) of the Code imposes certain portfolio 
diversification requirements on investment companies that seek to 
qualify as a regulated investment company. Section 851(e) of the Code 
provides an exemption from these diversification requirements if the 
investment company, among other things, obtains a certification from 
the SEC that the investment company is principally engaged in the 
furnishing of capital to other corporations which are principally 
engaged in the development or exploitation of inventions, technological 
improvements, new processes or products not previously generally 
available (collectively, ``Development Corporations'').
    3. Harris has filed an application seeking a certification pursuant 
to section 851(e) of the Code for the fiscal year ended December 31, 
1999. The application describes certain companies in Harris' portfolio 
during the fiscal year ended December 31, 1999, that Harris believes to 
be Development Corporations. Harris states that, in making this 
determination, it relied upon information provided by the portfolio 
companies to Harris and to others, including but not limited to, 
offering circulars, prospectuses, analyst reports, internal company 
memoranda, patent applications and similar documents. In addition, 
Harris generally is represented on the boards of directors of its 
portfolio companies through member or observe status, and also has 
direct access to senior management of the companies.
    4. The following table shows the composition of the total assets of 
Harris as of each of the calendar quarters ended March 31, June 30, 
September 30, and December 31, 1999, as set forth in the application.

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                Assets (at value)                  Mar. 31, 1999   June 30, 1999  Sept. 30, 1999   Dec. 31, 1999
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Investments representing capital furnished to        $14,947,426     $18,845,689     $20,952,249     $59,806,703
 corporations believed to be Development
 Corporations...................................
Other investments, cash and U.S. Government           10,540,419       9,007,741       6,897,452       4,945,693
 securities.....................................
Other Assets....................................         646,226       1,328,451         546,593         568,372
                                                 ---------------------------------------------------------------
    Total Assets................................      26,134,071      29,181,881      28,396,294      65,320,768
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    As reflected in the table above, Development Companies comprised 
the following percentages of the total assets of Harris at the end of 
each calendar quarter of 1999; March 31, 57.2%; June 30, 64.6%; 
September 30, 73.8%; and December 31, 91.6%.

Certification

    On the basis of the information set forth in the application, it 
appears that Harris was principally engaged in the furnishing of 
capital to Development Corporations within the meaning of section 
851(e) of the Code in the fiscal year ended December 31, 1999. IT IS 
THEREFORE CERTIFIED to the Secretary of the Treasury, or his delegate, 
pursuant to section 851(e) of the Code, that Harris was, for the twelve 
months ended December 31, 1999, principally engaged in the furnishing 
of capital to other corporations which are principally engaged in the 
development or exploitation of inventions, technological improvements, 
new processes or products not previously generally available.

    For the SEC, by the Division of Investment Management, pursuant 
to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 00-4981 Filed 3-1-00; 8:45 am]
BILLING CODE 8010-01-M