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Investment Advisers plot of 1940 – ar 206(4) and Rule 206(4)-3BAC home Loans Servicing, LP (formerly Countrywide home Loans Servicing LP)

June 2, 2011

RESPONSE the THE OFFICE OF chef COUNSELDIVISION OF invest MANAGEMENT

IM Ref. No. 2011481558File No. 132-3

We would not recommend enforcement action to the United states betterworld2016.orgurities and also Exchange board of directors (“Commission”) under ar 206(4) of the investment Advisers act of 1940 (“Advisers Act”) and Rule 206(4)-3 thereunder if any type of investment adviser that is required to be registered pursuant to ar 203 the the Advisers Act, pays to BAC home Loans Servicing, LP (“HLS” or the “Settling Firm”) or any type of of its connected persons, as characterized in betterworld2016.orgtion 202(a)(17) of the Advisers Act, a cash solicitation fee, straight or indirectly, for the solicitation the advisory clients in accordance with ascendancy 206(4)-3,1 nevertheless an injunctive stimulate issued through the United claims District Court for the central District the California (the “Judgment”) the otherwise would preclude together an investment adviser from paying such a fee, directly or indirectly, come the stable Firm.2

Our place is based upon the facts and also representations in your letter date June 1, 2011, particularly the depictions of the settling Firm that:

it will certainly conduct any kind of cash solicitation setup entered into with any investment adviser registered or required to it is in registered under betterworld2016.orgtion 203 the the Advisers act in compliance through the state of dominion 206(4)-3, except for the invest adviser"s payment the cash solicitation fees, directly or indirectly, to the stable Firm, i beg your pardon is topic to the Judgment; it will comply with the terms of the Judgment, including, but not limited to, the payment of compensation to Servicemembers polite Relief plot eligible servicemembers; and for ten year from the date of the entry of the Judgment, the settling Firm or any investment adviser through which it has a solicitation setup subject to ascendancy 206(4)-3 will disclose the referee in a written file that is yielded to each human whom the settling Firm solicits (a) not less than 48 hours prior to the human enters into a written or oral investment advisory contract with the investment adviser or (b) at the moment the person enters right into such a contract, if the person has actually the right to terminate such contract there is no penalty in ~ 5 organization days after entering right into the contract.

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This position uses only come the Judgment and also not to any type of other basis for disqualification under rule 206(4)-3 that may exist or arise through respect to the stable Firm.

Stephen N. PacksSenior Counsel

Endnotes

1 ascendancy 206(4)-3 prohibits any kind of investment adviser that is required to it is in registered under the Advisers action from paying a cash fee, directly or indirectly, to any solicitor v respect come solicitation activities if, among other things, the solicitor is subject to one order, judgment or decree the is defined in betterworld2016.orgtion 203(e)(4) of the Advisers Act.

2 United says of America v. BAC residence Loans Servicing, LP f/k/a/ Countrywide residence Loans Servicing LP and also Any successors in Interest, CV11-04534 (C.D. Cal. Might 31, 2011).

3 betterworld2016.orgtion 9(a)(2) that the Investment company Act the 1940 (the “Investment company Act”) provides, in pertinent part, the a person may not serve or act as, among other things, an investment torture or depositor of any investment company registered under the Investment firm Act or a major underwriter for any kind of registered open-end investment company or registered unit investment trust if, amongst other things, the person, by factor of any kind of misconduct, is permanently or temporarily enjoined native acting, among other things, together an underwriter, broker, dealer or investment adviser, or native engaging in or continuing any type of conduct or exercise in connection with any type of such activity, or in connection with the acquisition or sale of any betterworld2016.orgurity. Ar 9(a)(3) extends the prohibition come any agency any affiliated person of which is disqualified pursuant to betterworld2016.orgtion 9(a)(2).

The entry of the Judgment, lacking the issuance that an bespeak by the board of directors pursuant to betterworld2016.orgtion 9(c) of the Investment company Act that exempts the stable Firm native the provisions of betterworld2016.orgtion 9(a) of the Investment firm Act, would effectively prohibit the stable Firm and companies of which the is one affiliated human being from exhilaration in any of the capacities collection forth in ar 9(a) that the Investment firm Act. Girlfriend state that, pursuant to betterworld2016.orgtion 9(c) the the Investment agency Act, the details affiliated persons, on instead of of themselves and also future affiliated persons, submitted an application to the the supervisory board requesting (i) an order of short-term exemption from ar 9(a) the the Investment agency Act and (ii) a long-term order exempting such persons indigenous the provisions of betterworld2016.orgtion 9(a) of the Investment company Act.

On June 1, 2011, the Division, acting under delegated authority, authorize an order providing the settling Firm and particular affiliated people a short-lived exemption from betterworld2016.orgtion 9(a) the the Investment firm Act pursuant to ar 9(c) that the Investment firm Act, with respect come the Judgment, until the day the Commission take away final action on the applications for a irreversible order or, if earlier, July 29, 2011. In re BAC residence Loans Servicing, LP, betterworld2016.org Rel. No. IC-29688 (June 1, 2011). Therefore, such persons room not currently barred or suspended from acting in any type of capacity stated in betterworld2016.orgtion 9(a) of the Investment agency Act together a an outcome of the Judgment.

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