rule texting

§ 270.27d–2

17 CFR Ch. II (4–1–07 Edition)

(2) To refund to a certificate holder
exercising the right of withdrawal
specified in section 27(f) of the Act the
difference between the amount of his
gross payments and the net amount invested; or
(3) For any other purpose: Provided,
however, That such withdrawal shall
not reduce the segregated trust account to an amount less than the sum
of (i) 130 percent of the amount required to be maintained by paragraph
(d) of this section, if any, and (ii) 100
percent of that amount required to be
maintained by paragraph (e) of this
section, if any.
(g) The minimum amounts required
to be maintained by paragraphs (d) and
(e) of this section shall be computed at
least monthly. Any additional deposits
required by paragraph (d) or (e) of this
section shall be made immediately
after such computation, and any withdrawals permitted by paragraph (f)(3)
of this section may be made only at
such time.
(h) Nothing in this section shall be
construed to prohibit a depositor or
principal underwriter, acting as such
for two or more registered investment
companies issuing periodic payment
plan certificates, from combining in a
single segregated trust account the reserves for such companies required by
this section.
(i) The refunds required to be made
to certificate holders pursuant to sections 27(d) and 27(f) (of the Act) shall be
paid in cash not more than 7 days from
the date the certificate is received in
proper form by the custodian bank or
such other paying agent as may be designated under the periodic payment
plan.
(j) Each depositor or principal underwriter shall file with the Commission,
within the appropriate period of time
specified, an Accounting of Segregated
Trust
Account.
Form
N–27D–1
(§ 274.127d–1 of this chapter) is hereby
prescribed as such accounting form.
[36 FR 13136, July 15, 1971, as amended at 40
FR 50712, Oct. 31, 1975]

§ 270.27d–2 Insurance company undertaking in lieu of segregated trust
account.
(a) Any depositor of or principal underwriter for the issuer of a periodic

payment plan certificate sold subject
to section 27(d) or 27(f) of the Act, or
both, shall be exempt from the requirements of § 270.27d–1 if an insurance
company (as defined in section 2(a)(17)
of the Act) undertakes in writing to
guarantee the performance of all obligations of such depositor or principal
underwriter to refund charges under
sections 27(d) and 27(f) of the Act and
paragraph (b) of this section: Provided,
however, That:
(1) Such insurance company at all
times shall have (i) combined capital
paid-up, gross paid in and contributed
surplus and unassigned surplus, if a
stock company, or (ii) unassigned surplus, if a mutual company, at least
equal to the larger of (a) $1 million or
(b) 200 percent of the amount of the
total refund obligation of the depositor
or underwriter pursuant to sections
27(d) and 27(f) (of the Act) less any liability reserve established by such insurance company to meet such obligations; and
(2) Such depositor or underwriter
shall file or cause to be filed with the
Commission as an exhibit to the registration statement or any amendment
thereto pursuant to the Securities Act
of 1933 of the registered investment
company issuing periodic payment plan
certificates (i) a copy of such written
undertaking, and any amendment
thereto, (ii) an annual statement certified by a responsible officer of the insurance company indicating that at
least on a monthly basis throughout its
fiscal year the insurance company has
met the requirements of the proviso in
paragraph (a)(1) of this section, and
(iii) a Statement of Financial Condition (Balance Sheet) of the insurance
company certified by an independent
public accountant. Such balance sheet
shall be filed at least annually, within
90 days after the close of the insurance
company’s fiscal year.
(b) The refunds required to be made
to certificate holders pursuant to sections 27(d) and 27(f) (of the Act) shall be
paid in cash not more than 7 days from
the date the certificate is received in
proper form by the custodian bank or
such other paying agent as may be designated under the periodic payment
plan.
[36 FR 13137, July 15, 1971]

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VerDate Aug<31>2005

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