[Federal Register Volume 66, Number 50 (Wednesday, March 14, 2001)]
[Notices]
[Pages 14944-14945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6321]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-24888; 812-12450]
Harris & Harris Group, Inc.; Notice of Application
March 8, 2001.
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 of Application: 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, 2000,
principally engaged in the furnishing of capital to other
[[Page 14945]]
corporations which are principally 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 February 16, 2001, and
amended on March 8, 2001.
ADDRESSES: Secretary, SEC, 450 Fifth Street, NW., Washington, DC 20549-
0609; Applicant, One Rockefeller Plaza, 14 West 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 proposes 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,
2000. The application describes certain companies in Harris' portfolio
during the fiscal year ended December 31, 2000, 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 observer 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, 2000, as set forth in the application.
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Assets (at value) Mar. 31, 2000 June 30, 2000 Sept. 30, 2000 Dec. 31, 2000
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Investments representing capital furnished to $51,017,259 $36,296,794 $40,120,025 $26,513,426
corporations believed to be Development
Corporations...................................
Other Investments, Cash and Cash Equivalents\1\. 5,319,554 8,042,797 15,019,980 16,283,802
Other Assets.................................... 536,887 475,704 523,247 546,195
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Total Assets.............................. 56,873,700 44,815,295 55,663,252 43,343,423
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\1\ In this category, the value of ``Other Investments'' was $25,000 at the end of each calendar quarter of
2000.
As reflected in the table above, Development Companies comprised
the following percentages of the total assets less cash and cash
equivalents of Harris at the end of each calendar quarter of 2000:
March 31, 98.9%; June 30, 98.6%; September 30, 95.1%; and December 31,
96.3.%.
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, 2000. 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, 2000, 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.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-6321 Filed 3-31-01; 8:45 am]
BILLING CODE 8010-01-M