January 26, 1990
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 4-90
RE: VIRGINIA LEGISLATIVE UPDATE
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As you know, the Institute has been working with the
Virginia Corporations Commission and the Virginia Securities
Commission to eliminate the requirement that unit trusts pay an
annual amendment fee. Attached is a draft copy of House Bill
1039 of the Virginia General Assembly that is being sponsored by
Delegate George Heilig. The bill amends the Virginia Securities
Act as follows:
1. increases the minimum registration fee to $400 and
the maximum fee to $1,000 (currently set at $200
and $700) in Section 509(b) of the Act,
2. provides that the annual amendment fee in Section
512 need not be paid by or on behalf of any unit
investment trust, and
3. provides that unit investment trusts are not liable
for any fees incurred during fiscal year 1990 (July
1, 1989 through June 30, 1990) and that if a trust
paid the $300 annual renewal fee during that
period, such will be refunded.
However, it is my understanding that an amendment will be
introduced to the bill that requires a unit trust to apply for
the refund of the $300 annual renewal fee.
The bill is scheduled to be considered by the Corporations,
Insurance and Banking Committee of the Virginia House of
Delegates on Tuesday, January 31, 1990 at 10:00 a.m.
The Chairman of the Corporations Commission has also agreed
to administratively reinstate registration statements of the
trusts that have been withdrawn since July 1, 1989 without
payment of any additional fees.
We will keep you informed of further developments.
Patricia Louie
Assistant General Counsel
Attachment