MutualFundWire.com: Reserve Freezes 23 Funds to New Investors

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Thursday, September 18, 2008

Reserve Freezes 23 Funds to New Investors

The Reserve, whose Primary Fund broke the buck on Tuesday, its freezing 23 money market and short-term fixed income funds to new investors. The New York City-based firm issued a statement Thursday night that the funds will not offer any class of shares for purchases, except through dividend reinvestment. Redemptions from the funds will not be transmitted to investors for up to seven days after receipt of the request.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

A Reserve spokesperson was not immediately available for comment.

Company Press Release

NEW YORK, Sep 18, 2008 (BUSINESS WIRE) -- Effective September 18, 2008 and until further notice, each Fund named below will no longer offer any class of shares for purchase, except through dividend reinvestment.
PRIMARY FUND

PRIMARY II FUND

RESERVE LIQUID PERFORMANCE MONEY MARKET FUND

TREASURY & REPO FUND

U.S. GOVERNMENT FUND

U.S. TREASURY FUND

U.S. GOVERNMENT II FUND

of the Reserve Fund

INTERSTATE TAX-EXEMPT FUND
CALIFORNIA MUNICIPAL MONEY-MARKET FUND

CONNECTICUT MUNICIPAL MONEY-MARKET FUND

FLORIDA MUNICIPAL MONEY-MARKET FUND

MASSACHUSETTS MUNICIPAL MONEY-MARKET FUND

MICHIGAN MUNICIPAL MONEY-MARKET FUND

NEW JERSEY MUNICIPAL MONEY-MARKET FUND

OHIO MUNICIPAL MONEY-MARKET FUND

PENNSYLVANIA MUNICIPAL MONEY-MARKET FUND

VIRGINIA MUNICIPAL MONEY-MARKET FUND

of the Reserve Municipal Money-Market Trust II

NEW YORK MUNICIPAL MONEY-MARKET FUND

of the Reserve New York Municipal Money-Market Trust

ARIZONA MUNICIPAL MONEY-MARKET FUND

LOUISIANA MUNICIPAL MONEY-MARKET FUND

MINNESOTA MUNICIPAL MONEY-MARKET FUND

of the Reserve Municipal Money-Market Trust

RESERVE YIELD PLUS FUND

RESERVE YIELD PLUS INSTITUTIONAL FUND

of the Reserve Short-Term Investment Trust

Effective September 18, 2008 and until further notice, the following Funds will each price its shares once a day at the indicated time.

12:00p.m. Eastern Time
Interstate Tax-Exempt Fund, California Municipal Money-Market Fund, Connecticut Municipal Money-Market Fund, Florida Municipal Money-Market Fund, Massachusetts Municipal Money-Market Fund, Michigan Municipal Money-Market Fund, New Jersey Municipal Money-Market Fund, Ohio Municipal Money-Market Fund, Pennsylvania Municipal Money-Market Fund, Virginia Municipal Money-Market Fund, New York Municipal Money-Market Fund, Arizona Municipal Money-Market Fund, Louisiana Municipal Money-Market Fund, Minnesota Municipal Money-Market Fund.

2:00p.m. Eastern Time
U.S. Treasury Fund

5:00p.m. Eastern Time
Primary Fund, Treasury & Repo Fund, U.S. Government Fund, Reserve Yield Plus Fund and Reserve Yield Plus Institutional Fund, Reserve International Liquidity Fund Ltd., Reserve USD International Treasury & Repo Fund Ltd., Reserve USD International Treasury Fund Ltd., Reserve USD International Government Fund Ltd.

5:30 p.m. Eastern Time
Liquid Performance Money-Market Fund, Primary II Fund and the U.S. Government II Fund.

These times will now be the cut-off times for each Fund.

Effective September 18, 2008 and until further notice, proceeds from a redemption request for any Fund listed in this release will not be transmitted to an investor for a period of up to seven calendar days after the receipt of the redemption request. Shares do not earn dividends on the day the redemption is processed, regardless of the time the order is received.

The seven-day redemption delay will not apply to debit card transactions, Automated Clearinghouse transactions or check transactions written against your account in connection with any Fund provided that any such transaction from an investor, individually or in the aggregate, does not exceed $10,000.