MEETING ON REGULATED INVESTMENT COMPANY TAX ISSUES INVOLVING SYNTHETIC SHORT-TERM MUNICIPAL OBLIGATIONS

June 27, 1991 TO: MONEY MARKET FUNDS AD HOC COMMITTEE NO. 16-91 ACCOUNTING/TREASURERS COMMITTEE NO. 15-91 TAX COMMITTEE NO. 21-91 RE: MEETING ON REGULATED INVESTMENT COMPANY TAX ISSUES INVOLVING SYNTHETIC SHORT-TERM MUNICIPAL OBLIGATIONS __________________________________________________________ At the meeting on synthetic short-term municipal obligations held on June 19, 1991, members indicated an interest in discussing the tax implications for regulated investment companies ("RICs") which purchase and hold synthetic short-term municipal obligations, commonly referred to as variable rate trust certificates or VRTCs. The Institute indicated that it would prepare a memorandum setting forth and discussing these tax issues. The memorandum concerning RIC-related tax issues will be sent shortly. There will be a meeting at the Institute at 10:00 a.m. on Tuesday, July 16, 1991, to discuss the issues raised in the memorandum. Any new issues can be raised for discussion at that time. Please respond by Friday, July 12, 1991, to Ms. Berlaunder Barnes at (202) 955-3518 if you will be attending the meeting. Lunch will be served after the meeting. David J. Mangefrida, Jr. Assistant Counsel - Tax DJM:bmb