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SIGNATURE STAN PITTMAN
TITLE SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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lEGAL PROCEEDINGS EX-99
The Securities and Exchange Commission ("SEC") filed an administrative action
against the Fund's President because of certain trading activity in his personal
accounts during 1994. A hearing was held in November 1998 during which the
Fund's President vigorously defended his position before a SEC Administrative
Law Judge ("ALJ"). The ALJ's decision is not expected until 2000. Management
does not believe an unfavorable outcome of this action will materially affect
the Fund or management of the Fund; however, it is uncertain to what extent an
unfavorable outcome would affect the Fund.
Pursuant to an examination of the Fund by the Securities and Exchange Commission
("SEC"), the SEC has issued a letter to the Fund identifying various asserted
deficiencies and violations of rules and regulations. The Fund has reviewed the
asserted deficiencies and violations and is currently preparing its response.
The Fund's management does not believe that the outcome of these matters will
have a material impact on the Fund's financial condition or operations. However,
the ultimate outcome of these matters is not determinable at this time.
