September 29, 1989
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 66-89
RE: RESALES OF UNITS AFTER REPEAL OF THE VIRGINIA
MANUAL EXEMPTION
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As the Institute has previously informed you, the Virginia
Division of Securities recently issued a procedure for annually
amending the registration of unit trusts that a sponsor wishes to
sell in Virginia after July 1, 1989 as well as a procedure for
withdrawing other trusts. (See Memorandum to Unit Investment
Trust Committee No. 63-89, dated September 18, 1989) Under the
procedure, the Director will allow trusts with current
anniversary dates of registration to amend or withdraw their
registration. For example, trusts that were initially registered
in Virginia in October of any year before 1989 may be amended and
thus currently sold in Virginia or withdrawn from registration.
Unfortunately, there is some question as to whether the Director
of the Division will allow trusts with anniversary dates between
July 1, 1989 and the current date to be withdrawn although they
may be amended.
The Director has indicated that he will not object to using
the following or similar language in connection with the
amendment or withdrawal of such trusts:
The filing of these documents and the act of paying a fee
to amend the registration of a trust or the act of
withdrawing a trust from registration shall not operate as
a waiver of any rights, claims or defenses available to any
party. In addition, such filings and acts may not be
introduced into evidence in any judicial or administrative
proceeding based on events occurring prior to July 1, 1989.
To amend the registration of a trust, the sponsor should
submit a current prospectus and a $300 fee. To withdraw a trust
the sponsor should submit a letter to the Division expressing
such intention and provide the following or similar undertaking:
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The broker-dealers with which XYZ sponsor conducts business
relating to the resale of units of unit trusts in Virginia
has been notified by such sponsor that ABC trusts have been
withdrawn from registration in Virginia and that in the
event such broker wishes to conduct a resale of a unit of
such trust in Virginia, the trust must be re-registered in
Virginia.
The Institute will keep you informed of developments.
Natalie Shirley
Associate General Counsel