<SEC-DOCUMENT>0001193125-11-000389.txt : 20110411
<SEC-HEADER>0001193125-11-000389.hdr.sgml : 20110408
<ACCEPTANCE-DATETIME>20110103161033
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-11-000389
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110103

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DEER VALLEY CORP
		CENTRAL INDEX KEY:			0000095047
		STANDARD INDUSTRIAL CLASSIFICATION:	MOBILE HOMES [2451]
		IRS NUMBER:				205256635
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4218  W. LINEBAUGH AVE.
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33624
		BUSINESS PHONE:		813-885-5998

	MAIL ADDRESS:	
		STREET 1:		4218  W. LINEBAUGH AVE.
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33624

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CYTATION CORP
		DATE OF NAME CHANGE:	20010626

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COLLEGELINK COM INCORP
		DATE OF NAME CHANGE:	19991122

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CYTATION COM INC
		DATE OF NAME CHANGE:	19990318
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>Correspondence</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">December&nbsp;28, 2010 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>VIA EDGAR AND FEDERAL EXPRESS </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Rufus Decker </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F. Street,
N.E., Stop 4631 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Re:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Deer Valley Corporation </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Form
10-K for the Year Ended December&nbsp;31, 2009 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Forms 10-Q for the Periods Ended March&nbsp;31, 2010 and June&nbsp;30, 2010
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">File No. 0-5388 </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Decker: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">On
behalf of Deer Valley Corporation (the &#147;Company&#148;), this letter responds to the comments you provided by letter dated December&nbsp;13, 2010 regarding the Company&#146;s Form 10-K for the fiscal year ended December&nbsp;31, 2009 and Forms
10-Q for the periods ended September&nbsp;30, 2010. Your comments are set forth below in italics, and each comment is followed by the Company&#146;s response. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Form 10-K for the Year Ended December&nbsp;31, 2009 </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Financial Statements
</U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Note 2- Summary of Significant Accounting Policies </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><I>1. We have read your response to comment seven from our letter dated December&nbsp;13, 2010.&nbsp;As previously requested, please provide us with a comprehensive discussion of the specific guarantees
provided under the Letter of Credit issued by your bank.&nbsp;Please specifically address your guarantees as it relates to your ability to redeem your VRDB investments. </I></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Response </U></I></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In future filings we will include the following
comprehensive discussion of the specific guarantees provided under the Letter of Credit issued by our bank similar to below: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company
considers its investment in Variable Rate Demand Bonds (&#147;VRDB&#146;s&#148;) as highly liquid investments. The VRDB&#146;s are issued pursuant to a Trust Indenture between the issuer of the bond and a national bank, acting as trustee (the
&#147;Trustee&#148;). The principal of and interest on the VRDB&#146;s that are not remarketed are paid from funds drawn by the Trustee under an irrevocable </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
direct pay letter of credit issued by Fifth Third Bank, an Ohio banking corporation with its principal place of business in Cincinnati, Ohio (the &#147;Bank&#148;). The interest rate on the
VRDB&#146;s adjusts weekly. During the term of the VRDB&#146;s, each holder of a VRDB has the option to tender its VRDB to the Trustee for purchase on the next business day that the interest rate is subject to adjustment. Whenever VRDB&#146;s are
tendered for purchase by a holder therof, the remarketing agent will use its best efforts to remarket such VRDB&#146;s. If the VRDB&#146;s tendered for purchase are not remarketed by the remarketing agent, the Trustee draws on the irrevocable direct
pay letter of credit issued by the Bank. These investments have maturity dates beyond three months and are considered cash equivalents, because the investor has the right to redeem or &#147;put&#148; the notes back at any time with a maximum of
seven days notice. These investments are not insured by the Federal Deposit Insurance Corporation, but payment of principal and interest is guaranteed by the irrevocable direct pay letter of credit issued by Fifth Third Bank (A1/P-2 Moody&#146;s,
BBB+/A-3 S&amp;P, A/F-1 Fitch). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In providing the responses set forth in this letter, the Company acknowledges that:
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company is responsible for the adequacy and accuracy of the disclosure in the filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the
filings; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of
the United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We hope that this letter is responsive to your comments. If you have any questions
regarding the information set out above or any additional comments, please feel free to call Charlie Masters, Chief Executive Officer, at (813)&nbsp;885-5998 or Brent A. Jones, Esq., Bush Ross, P.A., at (813)&nbsp;204-6420. </FONT></P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>/s/ John S. Lawler</I></FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">John S. Lawler</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">(Principal Accounting Officer)</FONT></TD></TR></TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">cc: Bush Ross, P.A.
</FONT></P>
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