July 25, 1990
TO: UNIT INVESTMENT TRUST COMMITTEE NO. 32-90
RE: CALIFORNIA PROPOSES RULE EXEMPTING RESALES OF UNITS OF
UNIT TRUSTS
__________________________________________________________
As we previously informed you, the Institute requested that
the California Corporations Commission consider adopting an
exemption for resales of units of a unit trust. (See Memorandum
to Unit Investment Trust Committee No. 13-90, dated April 3,
1990).
We are pleased to inform you that the California
Corporations Commission has proposed a rule to exempt resales of
units in a unit trust by the sponsor, provided that (1) the
initial offer and sale of the units was previously qualified in
California, (2) the resales will be under circumstances
substantially the same as that used in the initial public
offering, (3) the units are redeemed and the offer and sale is in
accordance with the Securities Act of 1933 and the Investment
Company Act of 1940, and (4) the sponsor is a licensed broker-
dealer in California. A copy of the proposed rule is attached.
Comments are due no later than Friday, August 31, 1990 and
should be addressed to Robert M. Arhelger, Senior Corporations
Counsel, Office of Policy, Department of Corporations, 1107 Ninth
Street, Room 800, Sacramento, California 95814.
We will keep you informed of developments.
Patricia Louie
Assistant General Counsel
Attachment