
[Federal Register: September 25, 2008 (Volume 73, Number 187)]
[Notices]               
[Page 55572-55573]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se08-91]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 28386; File No. 812-13576]

 
The Reserve Fund, on Behalf of Two of Its Series, the Primary 
Fund and the U.S. Government Fund; Order Temporarily Suspending 
Redemption of Investment Company Shares and Postponing Payment for 
Investment Company Shares Which Have Been Submitted for Redemption for 
Which Payment Has Not Been Made Pursuant to Section 22(E)(3) of the 
Investment Company Act of 1940

September 22, 2008.
    The Reserve Fund (the ``Trust'' or the ``Applicant''), an open-end 
management investment company registered with the Commission under the 
Investment Company Act of 1940 (the ``Act''), has filed an application 
on behalf of two of its series, the Primary Fund and the U.S. 
Government Fund (the ``Funds''), for a temporary order pursuant to 
section 22(e)(3) of the Act permitting (a) suspension of the right of 
redemption of their outstanding redeemable securities, and (b) 
postponement of payment for shares which have been submitted for 
redemption for which payment has not been made.
    Section 22(e) of the Act provides, in relevant part, that no 
registered investment company shall suspend the right of redemption, or 
postpone the date of payment upon redemption except ``(3) for such * * 
* periods as the Commission may by order permit for the protection of 
security holders of the company.''
    Applicant represents that: (1) The board, including a majority of 
directors that are not interested persons of the Trust: (a) Determined, 
on September 17, 2008, that a suspension of redemption is in the best 
interest of each Fund's shareholders, and (b) determined, on September 
17, 2008, that a postponement of payment for shares which have been 
submitted for redemption for which payment has not been made is in the 
best interest of each Fund's shareholders, and (c) will create a plan 
for the orderly liquidation of each Fund's assets to meet redemption 
requests and for the appropriate payments to each Fund's shareholders, 
including those whose redemption orders have been received but not yet 
paid, which plan is subject to Commission supervision; (2) the Funds 
have suspended sales; and (3) the Funds will make and keep appropriate 
records surrounding these events.
    Based on the representations in the application, including those 
relating to the current extraordinary market conditions, the Commission 
finds that the temporary suspension of the right of redemption and 
postponement of payment for shares which have been submitted for 
redemption for which payment has not been made by the Funds is 
necessary for the protection of their security holders.
    Accordingly, it is ordered, pursuant to section 22(e)(3) of the 
Act, that the requested exemption from section 22(e) of the Act is 
granted until the markets are liquid to a degree that enables each Fund 
to liquidate portfolio securities without impairing the net asset value 
of each Fund, or the Commission, on its own initiative, rescinds the 
order granted herein. This order shall be in effect as of September 17, 
2008.


[[Page 55573]]


    By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-22547 Filed 9-24-08; 8:45 am]

BILLING CODE 8010-01-P
