20 NCAC 01G .0107. MERGERS OF ADDITIONAL INVESTMENT PORTFOLIOS

(a)  After the initial establishment of an investment fund, all transfers of investment securities to an investment fund either directly or indirectly through an existing participant shall be considered to be mergers.  Mergers will not be effected unless the investment securities are eligible for inclusion in a specific investment fund and are valued at market in accordance with (b) of this Rule.

(b)  Market price is the price at which the security sold in an arms length cash transaction during the preceding 10 working days, providing no event occurred during the time between sale and valuation which could be expected to materially affect the securities price.  If no such market price is available, market price shall be the average of the appraised values of the security by three competent appraisers.  One appraiser will be appointed by the State Treasurer and one by the former owner of the securities.  If the appraisals vary by more than five percent of the smaller appraisal, a third appraiser will be appointed by the mutual agreement of the State Treasurer and the former owner.

(c)  The eligible investment securities may be transferred to the investment fund by the former owner, at his option.  Such securities shall be valued at market in accordance with (b) of this Rule and ownership units issued in proportion to the total such value of the eligible investment securities transferred.

 

History Note:        Filed as an Emergency Regulation Eff. July 1, 1979, for a

Period of 120 Days to Expire on October 29, 1979;

Statutory Authority G.S. 147‑69.3;

Made Permanent Eff. October 29, 1979.