Xxxxxxx Xxxxxxx & Xxxxxxxx
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
February 16, 2001
Mutual Fund Investment Trust
0000 Xxxxxx xx xxx Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Mutual Fund Group
0000 Xxxxxx xx xxx Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, XX 00000
Re: Agreement and Plan of Reorganization dated as of October 31,
2000 by and between Mutual Fund Investment Trust and Mutual
Fund Group
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Ladies and Gentlemen:
We have acted as legal counsel for Mutual Fund Investment Trust
("Transferor Trust"), a Massachusetts business trust, Chase Short-Intermediate
Term U.S. Government Securities Fund ("Transferor Portfolio"), Mutual Fund Group
("Acquiring Trust"), a Massachusetts business trust, and Chase Vista Short-Term
Bond Fund ("Acquiring Portfolio") in connection with the proposed transfer of
the assets and liabilities of Transferor Portfolio to Acquiring Portfolio
pursuant to the Agreement and Plan of Reorganization by Transferor Trust and
Acquiring Trust, dated as of October 31, 2000 (the "Plan"). Except as otherwise
provided, any capitalized term not defined herein shall have the meaning given
to such term in the Plan.
In that connection, you have requested our opinion regarding the
material United States federal income tax consequences of the Reorganization. In
providing our opinion, we have examined the Plan, the Registration Statement
under the Securities Act of 1933 on form N-14, dated as of February 16, 2001,
related to the Plan, the Representation Letters (as hereinafter defined), and
such other documents and corporate records as we have deemed necessary or
appropriate for purposes of our opinion. In our examination of such documents
and in our reliance upon them in issuing this opinion, we have assumed, with
your consent, that all the
2
documents submitted to us as photocopies or by telecopy faithfully reproduce the
originals thereof; that the originals are authentic; that all such documents
submitted to us have been or will be duly executed and validly signed (or filed,
where applicable) to the extent required in substantially the same form as they
have been provided to us; and that each executed document will constitute the
legal, valid, binding, and enforceable agreement of the signatory parties.
In rendering our opinion, we have also assumed that (i) the
Reorganization will be consummated in accordance with the provisions set forth
in the Plan, (ii) the statements concerning the Reorganization set forth in the
Plan and the Registration Statement are and will remain true, correct and
complete, (iii) the factual representations made to us by Acquiring Trust and
Transferor Trust in their respective letters to us each dated the date hereof,
and delivered to us for purposes of this opinion are and will remain true,
correct and complete (such letters, collectively, the "Representation Letters"),
and (iv) all obligations imposed on, or covenants agreed to by, the parties
pursuant to any of the documents have been or will be performed or satisfied in
accordance with their terms in all material respects.
Based upon the foregoing, in our opinion, for United States federal
income tax purposes:
(i) the Reorganization will constitute a reorganization within the
meaning of Section 368(a)(1) of the Internal Revenue Code of 1986, as amended
(the "Code"), with respect to Acquiring Portfolio and Transferor Portfolio;
(ii) no gain or loss will be recognized by Acquiring Portfolio or
Transferor Portfolio upon the transfer of all the assets and liabilities, if
any, of Transferor Portfolio to Acquiring Portfolio solely in exchange for
shares of Acquiring Portfolio or upon the distribution of the shares of
Acquiring Portfolio to the holders of the shares of Transferor Portfolio solely
in exchange for all of their shares of Transferor Portfolio;
(iii) no gain or loss will be recognized by the shareholders of
Transferor Portfolio upon the exchange of shares of Transferor Portfolio solely
for shares of Acquiring Portfolio pursuant to the Reorganization;
(iv) the tax basis of the shares of Acquiring Portfolio received by a
holder of shares of Transferor Portfolio pursuant to the Reorganization will be
the same as the tax basis of the Transferor Portfolio shares held by such holder
immediately prior to the Reorganization;
(v) the holding period of the shares of Acquiring Portfolio received
by a holder of the shares of Transferor Portfolio pursuant to the Reorganization
will be determined by including the period for which such holder held the shares
of Transferor Portfolio exchanged therefor (provided the shares of Transferor
Portfolio were held as a capital asset on the date of the Reorganization);
(vi) the tax basis of the assets acquired by Acquiring Portfolio from
Transferor Portfolio will be the same as the tax basis of those assets in the
hands of Transferor Portfolio immediately prior to the Reorganization; and
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(vii) the holding period of the assets acquired by Acquiring Portfolio
from Transferor Portfolio will be determined by including the period such assets
were held by Transferor Portfolio.
The payment by The Chase Manhattan Bank of certain expenses of
Transferor Trust and Transferor Portfolio and Acquiring Trust and Acquiring
Portfolio which are directly related to the Reorganization (referred to in
Section 9 of the Plan) will not affect the opinions set forth above regarding
the United States federal income tax consequences of the Reorganization.
However, no opinion is expressed as to any other United States federal income
tax consequences to any of the parties of the payment of such expenses by The
Chase Manhattan Bank.
The opinions expressed herein are based upon existing statutory,
regulatory and judicial authority, any of which may be changed at any time with
retroactive effect. Nevertheless, we undertake no responsibility to advise you
of any new developments in the application or interpretation of the United
States federal income tax laws. Our opinions are not binding upon the Internal
Revenue Service or the courts, and there is no assurance that the Internal
Revenue Service will not successfully assert a contrary position. In addition,
our opinions are based solely on the documents that we have examined, the
additional information that we have obtained, and the assumptions referred to
above, all of which we have assumed (without independent verification) are and
will be true, correct and complete as of the Effective Time of the
Reorganization. Our opinions may be adversely affected and cannot be relied upon
if any facts pertinent to the United States federal income tax treatment of the
Reorganization stated in such documents or in such additional information is, or
later becomes, inaccurate. Finally, our opinions are limited to the tax matters
specifically covered hereby, and we have not been asked to address, nor have we
addressed, any other tax consequences of the Reorganization or any other
transactions.
This opinion is given for the purpose of satisfying mutual closing
conditions set forth in Sections 6(d) and 7(f) of the Plan and is intended
solely for the benefit of Transferor Trust and Acquiring Trust; it may not be
relied upon for any other purpose or by any other person or entity (other than
shareholders of Transferor Portfolio who are receiving shares of Acquiring
Portfolio pursuant to the terms of the Plan), and may not be made available to
any other person or entity without our prior written consent.
We consent to the filing of this opinion as Exhibit 12 to the
Registration Statement and to the reference to our firm name in the section of
the Combined Prospectus/Proxy Statement contained in the Registration Statement
under the heading "Federal Income Tax Consequences." In giving such consent, we
do not admit that we are an "expert" within the meaning of the Securities Act of
1933, as amended, or the rules and regulations of the Securities and Exchange
Commission promulgated thereunder.
Sincerely,
/s/ Xxxxxxx Xxxxxxx & Xxxxxxxx
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Xxxxxxx Xxxxxxx & Xxxxxxxx
