4. Are the "rights or other assets" described in § 248.10(c)(8)(i)(B) ("servicing assets") limited to "permitted securities," or can other assets be servicing assets for purposes of the loan securitization exclusion?
19. The staffs also note that foreign funds that sell securities to residents of the United States in an offering that targets residents of the United States will be covered funds under section 248.10(b)(i) of the final rule if such funds are unable to rely on an exclusion or exemption under the Investment Company Act other than section 3(c)(1) or 3(c)(7) of that Act. If the marketing restriction were to apply more generally to the activities of any person (including the covered fund itself), the applicability of the SOTUS covered fund exemption would be significantly limited because a third-party foreign fund's offering that targets residents of the United States would make the SOTUS covered fund exemption unavailable for all foreign banking entity investors in the fund. The Agencies' discussion of the SOTUS covered fund exemption in the preamble does not suggest that the Agencies understood the SOTUS covered fund exemption to have such a limited application.
The conditions to the joint venture exclusion reflect that the exclusion is designed to be used by a banking entity to conduct businesses and operations in conjunction with a limited number of co-venturers and that the exclusion is not intended to include entities that invest in securities for resale or other disposition. Similarly, the exclusion would not apply to entities or arrangements that raise money from investors primarily for the purpose of investing in securities for the benefit of one or more investors and sharing the income, gain or losses on securities acquired by that entity. The limitations in the joint venture exclusion are meant to ensure that the joint venture is not an investment vehicle and that the joint venture exclusion is not used as a means to evade the limitations in the BHC Act on investing in covered funds.32
Staff of the Agencies would not advise the Agencies to treat a RIC or FPF as a banking entity under the implementing rules solely on the basis that the RIC or FPF is established with a limited seeding period, absent other evidence that the RIC or FPF was being used to evade section 13 and the implementing rules. The staffs of the Agencies understand that the seeding period for an entity that is a RIC or FPF may take some time, for example, three years, the maximum period of time expressly permitted for seeding a covered fund under the implementing rules.37 The seeding period generally would be measured from the date on which the investment adviser or similar entity begins making investments pursuant to the written investment strategy of the fund.38 Accordingly, staff of the Agencies would not advise the Agencies to treat a RIC or FPF as a banking entity solely on the basis of the level of ownership of the RIC or FPF by a banking entity during a seeding period or expect an application to be submitted to the Board to determine the length of the seeding period.39
Second and subsequent offenders on probation must install ignition interlock devices on all of the vehicles they own and only operate vehicles equipped with such devices. Use begins when the offender is issued limited driving privileges and must last for at least 12 months.
An ignition interlock device limited driving permit shall be restricted to allow the holder thereof to drive solely; to work, to school, regularly scheduled sessions or meetings of treatment support organizations, and monthly monitoring visits with the permit holder's ignition interlock device service provider.
A person who has had his license revoked for any drunk-driving offense may, after the mandatory revocation period, be issued a restricted license instead of full driving privileges. If a restricted license is issued, the driver is limited to operating motor vehicles that are equipped with an ignition interlock device. The initial period for the use of such device is 1 year.
Second or subsequent offenders may apply for a limited license, subject to the ignition interlock restriction, if the program participant is enrolled in a licensed chemical dependency treatment or rehabilitation program as recommended in a chemical use assessment, and if the participant meets the other applicable requirements of section 171.30.
.10A To assist in obtaining information for identifying and assessing risks ofmaterial misstatement of the financial statements associated with a company'sfinancial relationships and transactions with its executive officers (e.g., executive compensation,including perquisites, and any other arrangements), the auditor should performprocedures to obtain an understanding of the company's financial relationshipsand transactions with its executive officers. The procedures should be designedto identify risks of material misstatement and should include, but not belimited to (1) reading the employment and compensation contracts between thecompany and its executive officers and (2) reading the proxy statements andother relevant company filings with the Securities and Exchange Commission andother regulatory agencies that relate to the company's financial relationshipsand transactions with its executive officers.
A third reason for skepticism is that in practice, and especially in the current tight fiscal environment, performance rewards are likely to come mostly from the redistribution of already-appropriated teacher compensation funds, and thus are not likely to be accompanied by a significant increase in average teacher salaries (unless public funds are supplemented by substantial new money from foundations, as is currently the situation in Washington, D.C.). If performance rewards do not raise average teacher salaries, the potential for them to improve the average effectiveness of recruited teachers is limited and will result only if the more talented of prospective teachers are more likely than the less talented to accept the risks that come with an uncertain salary. Once again, there is no evidence on this point.
Recent survey data reveal that accountability pressures are associated with higher attrition and reduced morale, especially among teachers in high-need schools.58 Although such survey data are limited, anecdotes abound regarding the demoralization of apparently dedicated and talented teachers, as test-based accountability intensifies. Here, we reproduce two such stories, one from a St. Louis and another from a Los Angeles teacher: 2b1af7f3a8