COLONIAL TRUST VII
N-18F1, 1996-05-24
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                                                             File No.: 811-6347

                      SECURITIES AND EXCHANGE COMMISSION
                                       
                            Washington, D.C.  20549
                                       
                NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1
                   UNDER THE INVESTMENT COMPANY ACT OF 1940
                                       
                                       
                                       
                              COLONIAL TRUST VII
                          (Exact Name of Registrant)
                                       
                                       
                                       
                           NOTIFICATION OF ELECTION
                                       
     The undersigned registered open-end investment company hereby notifies the
Securities and Exchange Commission that it elects to commit itself to pay in
cash all redemptions by a shareholder of record as provided in Rule 18f-1 under
the Investment Company Act of 1940.  It is understood that this election is
irrevocable while such Rule is in effect unless the Commission by order upon
application permits the withdrawal of this Notification of Election.

                                   SIGNATURE

     Pursuant to the requirements of Rule 18f-1 under the Investment Company
Act of 1940, the registrant has caused this notification of election to be duly
executed on its behalf in the city of Boston and the Commonwealth of
Massachusetts, on the 21st day of May, 1996.

                                 COLONIAL TRUST VII


                             By: /s/ HAROLD W. COGGER
                                   Harold W. Cogger
                                    President

Attest: /s/ MICHAEL H. KOONCE
            Michael H. Koonce
             Asst. Secretary




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