September 18, 1989
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 63-89
RE: RESALES OF UNITS AFTER REPEAL OF THE VIRGINIA
MANUAL EXEMPTION
__________________________________________________________
Effective July 1, 1989, Virginia repealed its manual
exemption. The Institute has been working with the Virginia
Division of Securities to resolve issues concerning the resale of
units of unit trusts that were raised by the repeal of the manual
exemption. Unfortunately, no fully acceptable solution has been
reached.
The Institute recently received the attached letter from
the Division setting forth a procedure for annually amending the
registration of unit trusts that the sponsor wishes to sell in
Virginia after July 1, 1989 by paying a $300 fee and a procedure
for withdrawing other trusts. The letter also stated that the
sponsors would be required to make certain representations
regarding the ability of Virginia unitholders to purchase and
sell units.
However, in subsequent conversations, the Director of the
Division indicated that his office will send each sponsor a list
of all the trusts that the Division believes are currently
effective and will require the sponsor to amend the registration
of every unit trust with an anniversary date between July 1, 1989
and the date of the notice. Thereafter, the sponsor may select
the unit trusts it wishes to amend or withdraw. In addition, the
Director indicated that language other than the representations
set forth in the letter may be acceptable.
The Institute will attempt to clarify the procedure.
Natalie Shirley
Associate General Counsel
Attachment