<PAGE> 1
File Nos. 33-60523 and 811 5979
As filed with the Securities and Exchange Commission on October 11, 1995.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / /
Pre-Effective Amendment No. ___ / /
Post-Effective Amendment No. 1 /X/
(Check appropriate box or boxes)
JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
101 HUNTINGTON AVENUE, BOSTON, MASSACHUSETTS 02199-7603
- --------------------------------------------------------------------------------
(Address of principal executive office) Zip Code
(617) 375-1700
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(Registrant's Telephone Number, including Area Code)
With a copy to:
---------------
Thomas H. Drohan Jeffrey N. Carp, Esq.
John Hancock Advisers, Inc. Hale and Dorr
101 Huntington Avenue 60 State Street
Boston, MA 02199 Boston, MA 02109
- --------------------------------------------------------------------------------
(Name and address of agent for service)
No filing fee is required because an indefinite number of shares have
previously been registered pursuant to Rule 24f-2 under the Investment
Company Act of 1940, as amended.
It is proposed that this filing will become effective immediately upon
filing pursuant to paragraph (b) of Rule 485.
<PAGE> 2
JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
STATEMENT OF INCORPORATION BY REFERENCE
The Cross-Reference Sheet, Part A, Part B and Part C of the registrant's
registration statement on Form N-14, File Nos. 33-60523 and 811-5979, dated June
23, 1995, are incorporated by reference in their entirety herein.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it meets all of the requirements for effectiveness of
this post-effective amendment No. 1 ("PEA No.1") to the Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has caused this
PEA No. 1 to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Boston and The Commonwealth of Massachusetts, on the
11th day of October, 1995.
JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND
By: *
----------------------------
Edward J. Boudreau, Jr.
Chairman and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933, this PEA
No. 1 has been signed below by the following persons in the capacities and on
the dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
* Chairman and Chief Executive
- ------------------------- Officer (Principal Executive Officer)
Edward J. Boudreau, Jr.
/s/ James B. Little Senior Vice President and Chief October 11, 1995
- ------------------------- Financial Officer (Principal
James B. Little Financial and Accounting Officer)
* Trustee
- -------------------------
James F. Carlin
* Trustee
- -------------------------
William H. Cunningham
* Trustee
- -------------------------
Charles L. Ladner
</TABLE>
C-1
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<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
* Trustee
- -------------------------
Leo E. Linbeck, Jr.
* Trustee
- -------------------------
Patricia P. McCarter
* Trustee
- -------------------------
Steven R. Pruchansky
* Trustee
- -------------------------
Norman H. Smith
* Trustee
- -------------------------
John P. Toolan
*By: /s/Thomas H. Drohan October 11, 1995
-------------------
Thomas H. Drohan,
Attorney-in-Fact
</TABLE>
C-2
<PAGE> 5
EXHIBIT INDEX
Exhibit 12
Opinion and consent of counsel supporting the tax matters and
consequences to shareholders.
<PAGE> 1
[HALE AND DORR LETTERHEAD]
September 15, 1995
Board of Trustees
John Hancock Tax-Exempt Series Fund, on behalf of
California Portfolio
101 Huntington Avenue
Boston, Massachusetts 02199
Board of Trustees
John Hancock California Tax-Free Income Fund
101 Huntington Avenue
Boston, Massachusetts 02199
Dear Members of the Boards of Trustees:
You have requested our opinion regarding the federal income tax
consequences of the acquisition by John Hancock California Tax-Free Income Fund
("Acquiring Fund") of all of the assets of California Portfolio ("Acquired
Fund"), a series of John Hancock Tax-Exempt Series Fund (the "Trust"), in
exchange solely for (i) the assumption by Acquiring Fund of all of the
liabilities of Acquired Fund and (ii) the issuance of Class A voting shares of
beneficial interest of Acquiring Fund (the "Acquiring Fund Shares") to Acquired
Fund, followed by the distribution by Acquired Fund, in liquidation of Acquired
Fund, of the Acquiring Fund Shares to the shareholders of Acquired Fund and the
termination of Acquired Fund (the foregoing together constituting the
"reorganization" or the "transaction").
In rendering this opinion, we have examined and relied upon (i) the
prospectus for Acquired Fund, dated January 1, 1995, (ii) the statement of
additional information for Acquired Fund, dated January 1, 1995, (iii) the
prospectus for the Class A shares of Acquiring Fund, dated May 1, 1995, as
supplemented July 3, 1995, (iv) the statement of additional information for the
Class A shares of Acquiring Fund, dated May 1, 1995, (v) the registration
statement on Form N-14 of Acquiring Fund relating to the
<PAGE> 2
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 2
transaction (the "Registration Statement") filed with the Securities and
Exchange Commission (the "SEC"), (vi) the proxy statement and prospectus
relating to the transaction dated July 28, 1995 (the "Proxy Statement"), (vii)
the Agreement and Plan of Reorganization, made July 14, 1995, between Acquiring
Fund and the Trust, on behalf of Acquired Fund (the "Agreement"), (viii) the
representation letters on behalf of Acquiring Fund and Acquired Fund referred to
below and (ix) such other documents as we deemed appropriate. We have assumed
that all parties to the Agreement have acted and will act in accordance with the
terms of the Agreement and all other documents relating to the transaction.
The conclusions expressed herein represent our judgment regarding the
proper treatment of Acquiring Fund, Acquired Fund and the shareholders of
Acquired Fund on the basis of our analysis of the Internal Revenue Code of 1986,
as amended (the "Code"), case law, Treasury regulations and the rulings and
other pronouncements of the Internal Revenue Service (the "Service") which exist
at the time this opinion is rendered, all of which are subject to prospective or
retroactive change. Our opinion represents our best judgment regarding the
issues presented and is not binding upon the Service or any court. Moreover, our
opinion does not provide any assurance that a position taken in reliance on such
opinion will not be challenged by the Service and does not constitute any
representation or warranty that such position, if so challenged, will not be
rejected by a court.
FACTS
-----
Acquiring Fund is a business trust established under the laws of The
Commonwealth of Massachusetts in 1989 and is registered as an open-end
investment company under the Investment Company Act of 1940, as amended (the
"1940 Act").
Acquiring Fund commenced investment operations in 1990. The investment
objective of Acquiring Fund is to provide as high a level of current income
exempt from both federal income taxes and California personal income taxes as is
consistent with preservation of capital. Acquiring Fund pursues its objective by
investing, under normal market conditions, at least 80% of its total assets in
municipal bonds and notes and other debt instruments the interest on which is
excluded from gross income for federal income tax purposes and is exempt from
California personal income tax. Acquiring Fund's investments are subject to
certain quality standards described in Acquiring Fund's prospectus. Acquiring
Fund may also invest to a limited extent in obligations issued by or on behalf
of states other than
<PAGE> 3
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 3
California, obligations issued or guaranteed by the U.S. Government or one of
its agencies or instrumentalities, commercial paper, repurchase agreements,
certain options and futures contracts, and certain other investments described
in its prospectus.
Acquired Fund is a series of a business trust, the Trust, which was
established under the laws of The Commonwealth of Massachusetts in 1987 and is
registered as an open-end investment company under the 1940 Act. The Trust has
three series, including Acquired Fund, and may create additional series in the
future. Each series of the Trust has separate assets and liabilities from those
of each other series. Each such series is treated as a separate corporation and
regulated investment company pursuant to Section 851(h) of the Code.
Acquired Fund commenced investment operations in 1987. The investment
objective of Acquired Fund is to provide current income that is excludable from
gross income for federal income tax purposes and is exempt from the personal
income tax of California. Acquired Fund seeks to provide the maximum level of
tax-exempt income that is consistent with preservation of capital. As a
fundamental policy, at least 80% of Acquired Fund's net assets (taken at market
value) will consist of municipal bonds and notes and other debt instruments
whose interest is excludable from federal gross income and exempt from
California personal income tax. Acquired Fund's investments are subject to
certain quality standards described in its prospectus. Acquired Fund may also
invest, to a limited extent, in repurchase agreements, certain options and
futures contracts, and certain other obligations or instruments described in its
prospectus.
The steps comprising the reorganization, as set forth in the Agreement,
are as follows:
(i) Acquired Fund will transfer to Acquiring Fund all of its
assets (consisting, without limitation, of portfolio securities and instruments,
dividend and interest receivables, cash and other assets). In exchange for the
assets transferred to it, Acquiring Fund will (A) assume all of the liabilities
of Acquired Fund (comprising all of its known and unknown liabilities and
referred to hereinafter as the "Acquired Fund Liabilities") and (B) issue
Acquiring Fund Shares to Acquired Fund that have an aggregate net asset value
equal to the value of the assets transferred to Acquiring Fund by Acquired Fund,
less the value of the Acquired Fund Liabilities assumed by Acquiring Fund.
<PAGE> 4
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 4
(ii) Promptly after the transfer of its assets to Acquiring
Fund, Acquired Fund will distribute in liquidation the Acquiring Fund Shares it
receives in the exchange to Acquired Fund shareholders pro rata in exchange for
their surrender of their shares of Acquired Fund ("Acquired Fund Shares"). In
these exchanges, holders of Acquired Fund Shares, which are of only one class
and have not been given a class designation, will receive Acquiring Fund Shares
designated as Class A ("Class A Acquiring Fund Shares").
(iii) After such exchanges, liquidation and distribution, the
existence of Acquired Fund will be promptly terminated in accordance with
Massachusetts law.
The Agreement and the transactions contemplated thereby were approved
by the Board of Trustees of Acquiring Fund at a meeting held on May 1, 1995.
Acquiring Fund shareholders are not required and were not asked to approve the
transaction. The Agreement and the transactions contemplated thereby were
approved by the Board of Trustees of the Trust, on behalf of Acquired Fund, at a
meeting held on May 16, 1995, subject to the approval of the shareholders of
Acquired Fund. Acquired Fund shareholders approved the transaction at a meeting
held on September 8, 1995.
Massachusetts law does not provide dissenters' rights for Acquired Fund
shareholders in the transaction. Additionally, it is the position of the
Division of Investment Management of the SEC that appraisal rights, in contexts
such as the reorganization, are inconsistent with Rule 22c-1 under the 1940 Act
and are therefore preempted and invalidated by such rule. Consequently, Acquired
Fund shareholders will not have dissenters' or appraisal rights in the
transaction.
Our opinions set forth below are subject to the following factual
assumptions being true on the date the transaction is consummated, i.e., the
date of this opinion letter. Authorized representatives of Acquiring Fund and
Acquired Fund have represented to us by letters of even date herewith that the
following assumptions are true on this date:
(a) Acquiring Fund has no plan or intention to redeem or otherwise
reacquire any of the Acquiring Fund Shares received by shareholders of Acquired
Fund in the transaction except in connection with its legal obligation under
Section 22(e) of the 1940 Act as a registered open-end investment company to
redeem its own shares.
<PAGE> 5
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 5
(b) After the transaction, Acquiring Fund will continue the historic
business of Acquired Fund and will use all of the assets acquired from Acquired
Fund in the ordinary course of a business.
(c) Acquiring Fund has no plan or intention to sell or otherwise
dispose of any assets of Acquired Fund acquired in the transaction, except for
dispositions made in the ordinary course of its business or to maintain its
qualification as a regulated investment company under Subchapter M of the Code.
(d) The shareholders of Acquiring Fund and the shareholders of Acquired
Fund will bear their respective expenses, if any, in connection with the
transaction.
(e) Acquiring Fund and Acquired Fund will each bear its own expenses
incurred in connection with the transaction. Any liabilities of Acquired Fund
attributable to such expenses that remain unpaid on the closing date of the
transaction and are assumed by Acquiring Fund in the transaction are
attributable to Acquired Fund's expenses that are solely and directly related to
the transaction in accordance with the guidelines established in Rev. Rul.
73-54, 1973-1 C.B. 187.
(f) There is no indebtedness between Acquiring Fund and Acquired Fund.
(g) Acquired Fund has elected to be treated as a regulated investment
company under Subchapter M of the Code, has qualified as a regulated investment
company for each taxable year since its inception, and qualifies as such for its
final taxable year ending on the closing date of the transaction.
(h) Acquiring Fund has elected to be treated as a regulated investment
company under Subchapter M of the Code, has qualified as a regulated investment
company for each taxable year since its inception, and qualifies as such as of
the date of the transaction.
(i) Neither Acquiring Fund nor Acquired Fund is under the jurisdiction
of a court in a Title 11 or similar case within the meaning of Section
368(a)(3)(A) of the Code.
(j) Acquiring Fund does not own and since its inception has not owned,
directly or indirectly, any shares of Acquired Fund.
(k) Acquiring Fund will not pay cash in lieu of fractional shares in
connection with the transaction.
<PAGE> 6
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 6
(l) As of the date of the transaction, the fair market value of the
Acquiring Fund Shares issued to Acquired Fund in exchange for the assets of
Acquired Fund is approximately equal to the fair market value of the assets of
Acquired Fund received by Acquiring Fund, minus the value of the Acquired Fund
Liabilities assumed by Acquiring Fund.
(m) Acquired Fund shareholders will not be in control (within the
meaning of Sections 368(a)(2)(H) and 304(c) of the Code, which provide that
control means the ownership of shares possessing at least 50% of the total
combined voting power of all classes of shares that are entitled to vote or at
least 50% of the total value of shares of all classes) of Acquiring Fund after
the transaction.
(n) The principal business purposes of the transaction are to combine
the assets of Acquiring Fund and Acquired Fund in order to capitalize on
economies of scale in expenses such as the costs of accounting, legal, transfer
agency, insurance, custodial, and administrative services and to increase
diversification.
(o) As of the date of the transaction, the fair market value of the
Class A Acquiring Fund Shares received by each holder of Acquired Fund Shares is
approximately equal to the fair market value of the Acquired Fund Shares
surrendered by such shareholder.
(p) There is no plan or intention on the part of any shareholder of
Acquired Fund that owns beneficially 5% or more of the Acquired Fund Shares and,
to the best knowledge of management of Acquired Fund, there is no plan or
intention on the part of the remaining shareholders of Acquired Fund to sell,
redeem, exchange or otherwise dispose of a number of the Acquiring Fund Shares
received in the transaction that would reduce the aggregate ownership of the
Acquiring Fund Shares by former Acquired Fund shareholders to a number of shares
having a value, as of the date of the transaction, of less than fifty percent
(50%) of the value of all of the formerly outstanding Acquired Fund Shares as of
the same date. Shares of Acquired Fund and Acquiring Fund held by Acquired Fund
shareholders and sold, redeemed, exchanged or disposed of prior or subsequent to
the transaction as part of the plan of reorganization are taken into account for
purposes of this representation.
(q) Acquired Fund assets transferred to Acquiring Fund comprise at
least ninety percent (90%) of the fair market value of the net assets and at
least seventy percent (70%) of the fair market value of the gross assets held by
Acquired Fund immediately prior to the transaction. For purposes of this
representation,
<PAGE> 7
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 7
amounts used by Acquired Fund to pay its outstanding liabilities, including
reorganization expenses, and all redemptions and distributions (except for
redemptions in the ordinary course of business upon demand of a shareholder that
Acquired Fund is required to make as an open-end investment company pursuant to
Section 22(e) of the 1940 Act and regular, normal dividends, which dividends
include any final distribution of previously undistributed investment company
taxable income and net capital gain for Acquired Fund's final taxable year
ending on the closing date of the transaction) made by Acquired Fund immediately
preceding the transaction are taken into account as assets of Acquired Fund held
immediately prior to the transaction.
(r) The Acquired Fund Liabilities assumed by Acquiring Fund plus the
liabilities, if any, to which the transferred assets are subject were incurred
by Acquired Fund in the ordinary course of its business or are expenses of the
transaction.
(s) The fair market value of the Acquired Fund assets transferred to
Acquiring Fund equals or exceeds the sum of the Acquired Fund Liabilities
assumed by Acquiring Fund and the amount of liabilities, if any, to which the
transferred assets are subject.
(t) The total adjusted basis of the Acquired Fund assets transferred to
Acquiring Fund equals or exceeds the sum of the Acquired Fund Liabilities
assumed by Acquiring Fund and the amount of liabilities, if any, to which the
transferred assets are subject.
(u) Acquired Fund does not pay compensation to any
shareholder-employee.
(v) Acquired Fund has no outstanding warrants, options, convertible
securities or any other type of right pursuant to which any person could acquire
Acquired Fund Shares.
OPINION
-------
On the basis of and subject to the foregoing and in reliance upon the
representations described above, we are of the opinion that
(a) The acquisition by Acquiring Fund of all of the assets of Acquired
Fund solely in exchange for the issuance of Acquiring Fund Shares to Acquired
Fund and the assumption of all of the Acquired Fund Liabilities by Acquiring
Fund, followed by the distribution by Acquired Fund, in liquidation of Acquired
Fund, of
<PAGE> 8
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 8
Acquiring Fund Shares to Acquired Fund shareholders in exchange for their
Acquired Fund Shares and the termination of Acquired Fund, will constitute a
"reorganization" within the meaning of Section 368(a)(1)(C) of the Code.
Acquiring Fund and Acquired Fund will each be "a party to a reorganization"
within the meaning of Section 368(b) of the Code.
(b) No gain or loss will be recognized by Acquired Fund upon (i) the
transfer of all of its assets to Acquiring Fund solely in exchange for the
issuance of Acquiring Fund Shares to Acquired Fund and the assumption of all of
the Acquired Fund Liabilities by Acquiring Fund and (ii) the distribution by
Acquired Fund of such Acquiring Fund Shares to the shareholders of Acquired Fund
(Sections 361(a) and 361(c) of the Code).
(c) No gain or loss will be recognized by Acquiring Fund upon the
receipt of the assets of Acquired Fund solely in exchange for the issuance of
Acquiring Fund Shares to Acquired Fund and the assumption of all of the Acquired
Fund Liabilities by Acquiring Fund (Section 1032(a) of the Code).
(d) The basis of the assets of Acquired Fund acquired by Acquiring Fund
will be, in each instance, the same as the basis of such assets in the hands of
Acquired Fund immediately prior to the transfer (Section 362(b) of the Code).
(e) The tax holding period of the assets of Acquired Fund in the hands
of Acquiring Fund will, in each instance, include Acquired Fund's tax holding
period for those assets (Section 1223(2) of the Code).
(f) The shareholders of Acquired Fund will not recognize gain or loss
upon the exchange of all of their Acquired Fund Shares solely for Acquiring Fund
Shares as part of the transaction (Section 354(a)(l) of the Code).
(g) The basis of the Acquiring Fund Shares received by the Acquired
Fund shareholders in the transaction will be the same as the basis of the
Acquired Fund Shares surrendered in exchange therefor (Section 358(a)(1) of the
Code).
(h) The tax holding period of the Acquiring Fund Shares received by
Acquired Fund shareholders will include, for each shareholder, the tax holding
period for the Acquired Fund Shares surrendered in exchange therefor, provided
the Acquired Fund Shares were held as capital assets on the date of the exchange
(Section 1223(1) of the Code).
<PAGE> 9
Boards of Trustees
John Hancock Tax-Exempt Series Fund
John Hancock California Tax-Free Income Fund
September 15, 1995
Page 9
No opinion is expressed or implied regarding the federal income tax
consequences to Acquiring Fund, Acquired Fund or Acquired Fund shareholders of
any conditions existing at the time of, effects resulting from, or other aspects
of the transaction except as expressly set forth above.
Very truly yours,
/s/ Hale and Dorr
Hale and Dorr
