SEC Division of Investment Management staff letter: Depository Trust Company of Delaware, LLC dba Delaware Depository

D ELAWARE ®
September 8, 2016
VIA FEDERAL EXPRESS
Douglas J. Scheidt, Esq.
Associate Director and Chief Counsel
Division of Inveshnent Management
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549-0504
D EPOSITORY
1940 Act Section 17(1)
1940 Act Section 26(a)
Re: Depository Trust Company of Delaware, LLC dba Delaware Depository Dear Mr. Scheidt:
I w rite on behalf of Depository Trust Company of Delaware, LLC dba Delaware Depository (hereinafter, "Delaware Depository" or "Company"), a privately-held limited liability company organized and existing under the laws of the State of DelawaTe. Delaware Depository provides Precious Metals Bullion1 custody, accounting, and distribution services within the United States. Delaware Depository is a limited purpose trust company2 that is supervised and examined by the State of Delaware, Office of the State Bank Commissioner ("Delaware Bank Commissioner"). Delaware Depository, however, is not a "bank," as defined in Sections 17(f)(l) or 26(a) of the Inveshnent Company Act of 1940, as amended (the "1940 Act"), because the "[exercise of] fiduciaTy powers similar to those permitted to national banks under the authority of the Comptroller of Currency" is outside the scope of Delaware Depository's current lines of business. 3 The Company respectfully requests that the staff of the Division of Inveshnent Management (the "Staff") advise the Company that the Staff will not recommend that the Securities and Exchange Commission (the "Commission") take enforcement action under Section 17(f)(l) against any investment company registered under the 1940 Act (each, a "Fund") due to the fact that the Fund places and maintains custody of its gold or silver bullion4 in a vault or other secure custody faci lity operated by Delaware Depository in the United States. 1 "Precious Metals Bullion" or "Precious Metals" is a term of art used herein to describe gold, silver, and platinum group metals(!&,, platinum, palladium, rhodium, ruthenium, iridium, and osmium) existing in the form of a coin, bar, ingot, plate, or sponge which: (1) has a market value that is derived from its intrinsic metal content, and not from its age, design, subject matter, limited mintage, or rarity; and (2) is not held as an Lnvestment in the dollar value denomination that is ascribed to a certain gold or silver coin by federal law, see, e.g., 31U.S.C.§5112(a)(7) - (11) (setting forth the diameter, weight, and metal content of certain dollar-amOLmt coins that the U.S. Treasury is authorized to mint and issue). 2 In the State of De laware, limited purpose h·ust companies such as Delaware Depository have a ll the powers, rights, and privileges of a trust company (including fiduciary powers), except that they are prohibited from receiving cash deposits, issuing certificates of deposit, or making loans to customers. See, 5 Del.C. § 773(4) (trust company powers). 315 U.S.C § 80a- 2(a)(5) 4 Any gold or silver bullion that is held in custody by the Company for a Fund is investment property that will be based on the intrinsic value of its metal content. 3601 North Market Street, Wilming ron, DE 19802 Page 1of17 T: 302-765-3889 • F: 302-762-2674 • www.delawaredeposicory.com