nycirc_1977_08173a.pdf

F f d e p a l R e s e r v e B a n k o f N e w Y o r k

N e w Y o r k , N . Y . 1 0 0 4 5

AREA CODE 212-791-5000

August 31, 1977

MISSING, LOST, COUNTERFEIT, OR STOLEN SECURITIES Implementation of SEC Rule 17f-l

TO THE CHIEF EXECUTIVE OFFICERS OF ALL STATE MEMBER BANKS IN THE SECOND FEDERAL RESERVE DISTRICT:

In our Circular No. 81^3, dated July 11, 1977, we indicated that the Securities and Exchange Commission has adopted regulations— Rule 17f-l— to monitor missing, lost, counterfeit, or stolen securities. Enclosed is a Federal Register notice containing an Interpretative Release of the SEC explaining those regulations, which will require all State member banks, among others, to make certain reports and inquiries involving these securities.

The requirements regarding reporting and inquiry procedures will be implemented in two phases, as outlined in our Circular No. 81U3. The first phase involves the reporting requirement, the effective date of which is October 3 , 1977* To comply with this requirement it is necessary first to register with the SEC’s designee, Securities Information Center, Inc., a subsidiary of ITEL AutEx, Inc., by September 23, 1977, using the enclosed Registration Form. In the case of Government and Agency securities, reports and inquiries will be made through the Federal Reserve Bank of New York as previously explained in Circular No. 8l^3. Reports and inquiries regarding other instances to which the rule applies will be made through the SEC's designee. The effective date of the inquiry requirement, the second phase of the program, is January 2, 1978.

It is important that those responsible for processing securities transactions be familiar with the material to assure compliance. For this reason, please apprise those departments likely to be affected, e.g., trust, investment, transfer, clearing, or dealer departments, and lending areas involved with collateral loans.

Edwin R. Powers, Vice President Government Bond and Safekeeping

of Securities Function

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FRIDAY, AUGUST 12, 1977P A R T II

n l SECURITIES ANDEXCHANGE

COMMISSION

LO ST AN D STOLEN SECURITIES PROGRAM

I m p l e m e n t a t i o n


Title 17— Commodity and Securities Exchanges

CHAPTER II— SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-13832}

PART 241— INTERPRETATIVE RELEASES RELATING TO THE SECURITIES EXCHANGE ACT OF 1934 AND GENERAL RULES AND REGULATIONS THEREUNDER

Lost and Stolen SecuritiesA G E N C Y : Securities and ExchangeCom m ission.

A C T IO N : Im plem entation of program fo r reporting and inquiry w ith respect to m issing, lost, counterfeit or stolen securities.

S U M M A R Y : T h is action provides notification of the im plem entation of the Lost and Stolen Securities Program , sets forth the procedures for m aking reports and inquiries with respect to m issing, lost, stolen or counterfeit securities, and dissem inates a Registration Form which m ust be com pleted by all reporting institutions before access to the data base m aintained by the C om m ission ’s designee is authorized. T h is release is in tended to aid reporting institutions in com plying with the Com m ission ’s regulations prom ulgated in an effort to reduce securities th efts and traffic in spurious securities. T his action also republishes § 2 4 0 .1 7 f-l and reporting Form X - 17 F -1A in their final, am ended versions and is necessary to provide reporting in stitutions with all substantive requirem ents of the Lost and Stolen Securities Program in a single docum ent.

E F F E C T IV E D A T E S : R eporting and record keeping requirem ents: O ctober 3, 1977. Inquiry requirem ents and rem aining provisions: January 2, 1978.

F O R F U R T H E R IN F O R M A T IO N C O N T A C T :

G regory C. Yadley, Division of M arket R egulation, Securities and Exchange Com m ission, W ash ington D .C . 20549. 20 2 -755 -7826 .

S U P P L E M E N T A R Y IN F O R M A T IO N : In order to avoid duplication and to im plem ent the Lost and Stolen Securities Program in a more efficient m anner, the Securities and Exchange Com m ission has am ended § 2 4 0 .1 7 f-l to require th at copies of reports o f m issing, lost, stolen or counterfeit securities be filed with a registered transfer agent for the issue. T h is release provides notification of this action and also sets forth the procedures for im plem entation o f the Lost and Stolen Securities Program , including in form ation regarding access to the data bases m aintained by the Com m ission's designee and the Federal Reserve Banks, billing arrangem ents, and submission of registration form s. T h e release republishes § 2 4 0 -1 7 f - l and R eporting Form X -1 7 F -1 A in their final, am ended versions.

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B ackground

T h e problem s relating to missing, lost, counterfeit or stolen securities have been described by the C om m ission 1 and were the subject o f a series o f Congressional hearings.* T h e recom m endation fo r a system for the receipt o f reports and in quiries concerning m issing, lost, stolen or counterfeit securities has been supported widely. Section 17 (f) of the A ct established the legislative fram ework for such a system by providing th at every national securities exchange, m em ber thereof, registered securities association, broker, dealer, m unicipal securities dealer, registered transfer agent, registered clearing agency and participant therein, m em ber of the Federal Reserve System and bank whose deposits are in sured by the Federal Deposit Insurance Corporation shall report and inquire with respect to missing, lost, counterfeit or stolen securities in accordance with rules prom ulgated by the Com m ission.

O n Decem ber 6, 1976, the Com m ission adopted § 2 4 0 .1 7 f-l , establishing reporting and inquiry requirements with respect to missing, lost, stolen or counterfeit securities.® Certain technical am endm ents to the section were m ade on F ebruary 18, 1977,1 2 * 4 * * and further am endm ents regarding the role of transfer agents in the Lost and Stolen Securities Program were proposed.® -

Implementation of the P rogram and A p propriate I nstrumentalities

In order to im plem ent § 2 4 0 .1 7 f-l in the m ost efficient m anner, the C om m ission determ ined th at it would be appropriate to institute a pilot program to m onitor the effectiveness of the section and the system designed to carry out its provisions. Accordingly, the Lost and Stolen Securities Program will be im plem ented on a pilot basis until Decem ber 31, 1978. In accordance with the inquiry and reporting requirements o f paragraphs (b) and (c) o f § 2 4 0 .1 7 f-l , any Federal Reserve B ank or B ranch is an appropriate instrum entality with respect to United States G overnm ent or Agency securities. A description of the general operating procedures of the Federal R e serve Banks is attached as Appendix III.

Section 1 7 ( f ) ( 1 ) ( A ) of the A ct states th at reports and inquiries shall be m ade to the Com m ission or “ other person designated by the Com m ission.” T h e C om

RULES AND REGULATIONS

1 S tu d y -o f Unsafe and Unsound Practices o f Brokers and Dealers, Report and Recommendations of the Securities and Exchange Commission (pu rsuan t to Section 11(h) of the Securities Investor P ro tection Act of 1970), December 1970.

2 Organized Crime—Stolen Securities, Hearings Before the Permanent Subcom m ittee on Investigations, Senate Com mittee on Governm ent Operations, 92nd Cong., 1st Sess. (1971); 93rd Cong., 1st Sess. (1973); 93rd Cong., 2d Sess. (1974).

s Securities Exchange A ct Release No. 13053, 41 PR 54923 (December 16, 1976).

4 Securities Exchange A ct Release No.13280, 42 FR 11829 (March 1, 1977).

r> Securities Exchange Act Release No.13281, 42 FR 11844 (March 1, 19771.

m ission determined that a m anual, com puter-assisted system would best achieve the purposes of the pilot program and that the goals of the A ct would best be fulfilled by the designation of a private entity to perform certain functions under the Com m ission’s direction. A c cordingly, the Com m ission published “ Criteria for a Lost and Stolen Securities Reporting and Inquiry System ” and solicited submissions o f proposed systems from entities interested in serving as the C om m ission’s designee during the pilot program . The plans which were received were analyzed, and the Securities In form ation Center, Inc. (“ S IC ” or the “ C om m ission’s designee” ) , a subsidiary of IT E L AutE x, Inc. was designated to receive reports and respond to inquiries on behalf of the Com m ission.8 All reports and inquiries required_to be m ade with the Com m ission, therefore, shall be m ade w ith SIC. A description of S IC ’s general operating procedures is attached as A p pendix IV .

O n February 13, 1977,7 the C om m ission adopted Form X -1 7 F -1 A , “ Lost, M issing, Stolen, Counterfeit Securities R eport,” (17 C F R 249.1200) which, pursuant to paragraph (b) (6) o f § 2 4 0 .1 7 f-l , shall be used for all reports. W h ere reports are m ade by telephone, telex or other m eans, a hardcopy confirm ation of the report m ust still be filed with the appropriate instrum entality within the tim e periods specified in paragraph (b) of this section. Certain technical m odifications to Form X -1 7 F -1 A and the accom panying instructions have been m ade, and the Form is attached as A p pendix n.

S e c tio n 2 4 0 .1 7 f - l8

(a) Definitions. Paragraph (a) defines the term s “ reporting institution” and “ appropriate instrum entality.”

(b) Reporting requirements. P aragraph (b) requires financial institutions and others to report missing, lost, counterfeit or stolen securities within specified tim e periods. Reports with respect to U .S. G overnm ent or Agency securities or securities of certain international organizations are to be m ade to the n earest Federal Reserve Bank or B ran ch ; reports with respect to all other securities are to be m ade to the C om m ission ’s designee. Copies of all reports m ust be sent to a registered transfer agent for the issue involved.® W h ere there is a

* In Securities Exchange Act Release No. 13538, 42 FR 26495 (May 24, 1977), AutEx, Inc. was named as the designee. Subsequently, as a consequence o f the acquisition o f AutEx by ITE L Corporation, SIC was created as a wholly-owned subsidiary o f ITEL AutEx, Inc.

7 Securities Exchange Act Release No. 13280. 42 FR 11829 (March 1. 1977).

8 Section 240.17f-l is attached as AppendixI.

* Where more than one registered transfer agent performs transfer agent functions fo r the issue, n o tifica tion to any of them w ill satisfy the requirements of th is section. I t is expected th a t where there are co-transfer agents, in te rn a l procedures w ill be established to ensure prom pt no tifica tion o f losses to a ll co-transfer agents.

FEDERAL REGISTER. VOL. 42, NO. 156— FRIDAY, AUGUST 12, 1977


substantia] b elie ! th at crim inal activity is involved, an additional report m ust be m ade to the appropriate law enforcem en t agency.1*

Unissued certificates which are lost or stolen are also required to be reported, an d appropriate instructions are provided for such reports in the Instructions to F orm X -1 7 F -1 A . Coupons, however, are n ot required to be reported. A report is also required if a security previously reported missing, lost or stolen is recovered.

T h e inform ation required to be reported is set forth in paragraph <b) (5) o f this section “ and shall be provided on FOrm X —17F -1A . A copy of Form X - 1 7 F - IA is annexed to this release as Appendix n , and additional copies of the Form are available from the Publication Office o f the Com m ission or the C om m ission ’s R e gional Offices. T h e form m ay be reproduced in any m anner by entities subject to the section so long as the graphics and form a t o f the Form are not altered and

x 11” paper is used. In order to avoid duplication, the Com m ission en courages transfer agents to utilize FOrm X —17 F -1A as their stop transfer form s,

T his section requires reporting institutions to report: (1 ) Those securities m issing, lost, or stolen from their possession or control and (2) those securities which are missihg, lost or stolen from the possession or control o f a person w hich is not a reporting institution and which securities have not been reported by another reporting institution. For ex am ple, if securities are m issing from the control of a broker, the broker would be * 1 2 3

’♦The fo llow ing general guidelines may be usefu l in deciding w hich law enforcem ent agencies to n o tify in certa in instances:

(1) L o c a l P o l ic e D e p a r t m e n t — A ll cases in vo lv ing the fts or mysterious disappearances o f securities o r discoveries o f securities reported stolen.

(2) F e d e r a l B u r e a u o f I n v e s t i g a t i o n — A ll cases invo lv ing securities the fts o f $5,000 or over, a ll the fts from banks, a ll the fts o f Governm en t securities, a ll counterfe its o f non- Governm ent securities, a ll counterfe its presented as co lla tera l fo r a bank loan, a ll stolen or coun te rfe it securities involved in in te rstate commerce, and a ll coun te rfe it securities used in a v io la tion of a Federal law.

(3) U .S . S e c r e t S e r v ic e — A ll cases invo lv ing ooxinterfeits o f securities w hich are d irec t obligations o f the U n ited States Government or are issued w ith Governm ent backing. The Secret Service reportedly has a general in terest in a ll co un te rfe it a c tiv ity .These are general guidelines. Good fa ith dete rm in a tio n and n o tifica tion to any o f the above agencies sha ll be deemed compliance w ith paragraph (b )(1 ) o f § 240.17f-l.

11 One item o f in fo rm a tio n required is the reporting in s t itu t io n ’s FINS num ber. FINS ( “ F inanc ia l In d u s try Num ber Standard” ) numbers are compiled in the 1976 FINS D irectory (F irs t E d itio n ), published by the Depository T rus t Company. I f an in s t itu t io n 1» unce rta in as to w hether i t has a FINS nu m ber, i t should consu lt th is D irectory, Its se lf- regu la to ry organization or its trade association . I f an In s titu tio n has no t been assigned a FINS number, a num ber may be obtained a t no cost by w r it in g the Depository T ru s t Company. A tte n tio n : FINS P ub lica tion, 55 W ater Street, New York, New York 10041,

required to report. T h e transfer agent who receives a copy of Form X -1 7 F -1 A concerning such securities would not be required to report. In contrast, where a loss o f securities is reported to the transfer agent by a non-reporting entity such as an individual, the transfer agent would be required to m ake a report when it receives the inform ation.

Unless the Com m ission announces to the contrary, transfer agents will not be required to report stops received prior to October 3, 1977. However, the C om m ission m ay obtain and include in the data base such inform ation obtained from insurance com panies and law en forcem ent sources. For the purpose o f paragraph (b) (2) only, but n ot paragraphs (b) (2) (D -c i i i ) , the tim e periods for reporting begin to run when, on the basis o f all relevant circum stances, the reporting institution believes a certificate to be lost or m issing as opposed to a belief th at the certificate is m erely m isplaced or misfiled by the institution. R eporting institutions should diligently follow up on indications of non-receipt subm itted by receiving institutions in order to determ ine their responsibilities under this section.

C ounterfeit securities, including a ltered or forged securities, are required to be reported to the appropriate law en forcem ent agency as well as to the appropriate instrum entalities. Reports o f recoveries o f lost, m issing, or stolen securities are required to be m ade to the appropriate instrum entality and to a registered transfer agent for the issue. W h ere stolen securities were reported to a law enforcem ent agency, a report of recovery is required to be m ade to such agency. Recovery m ay only be reported by the institution which reported the security as missing, lost or stolen. H ow ever, report o f recovery m ay be m ade by a successor institution, trustee or the recovering institution where the reporting institution no longer exists. For certain exem ptions applicable until D ecem ber 31, 1978, see the section below en titled “Pilot Program .”

(c) Inquiry requirements. Paragraph(c) o f Section 2 4 0 .1 7 f-l requires fin an cial institutions to determ ine w hether securities com ing into their possession or keeping under certain circum stances have been reported as m issing, lost, counterfeit or stolen. Inquiry w ith the appropriate instrum entality is required whenever securities are received, whether by pledge, transfer or in som e other m anner, unless they are received (1) from the issuer on original issue, (2) from another reporting institution, or(3) from a custom er and are registered in the nam e o f such custom er or its nom inee. Coupons are n ot required to be the subject o f inquiry.

U nder the section, inquiry would, be required o f a reporting institution w henever a non-reporting institution such as an individual subm its securities in bearer form , street nam e or registered to a third person. A ll securities delivered to a reporting Institution by the issuer or another reporting institution are ex


em pt from inquiry regardless o f the form o f registration.1*

T h e inquiry requirements as set forth in the section m ust be follow ed even though a reporting institution m ay determ ine through other m eans th at the security is n ot lost or stolen. For exam ple, if a bank takes a bearer security from a custom er as collateral for a loan and the bank sends the security to the transfer agent for transfer to the bank’s nam e or the custom er’s nam e, the bank m ust still m ake inquiry with the appropriate instrum entality.

As a practical m atter, however, a reporting institution m ay assum e the in quiry responsibility o f another reporting institution. This m ay be a com m on practice where Broker A clears on a fully disclosed basis for Broker B, and Broker B ’s custom ers deliver their securities to Broker A . I f Broker A , as part of its clearing arrangem ent, undertakes to m ake the required inquiry, Broker B would not have to m ake the inquiry.

T hese exceptions are intended to m ake inquiry unnecessary in the m ajority of instances and to require inquiry in those circum stances m ost likely to involve missing, lost, counterfeit or stolen securities. T h e system has been designed to avoid undue disruption to the course of norm al com m ercial transactions.

W h e n an inquiry reveals th at the security in question has been reported as m issing, lost or stolen, the inquiring in stitution will be provided with the nam e of the institution which reported the loss. In such instances, the section does not set forth any further requirements. C onsequently, the inquiring institution would be expected to follow current business practices in dealing with securities which it knows to be lost or stolen.

As a part of the design of the C om m ission ’s system , inquiries will be recirculated against reports o f loss which m ay have com e in subsequent to the inquiry. T hrough this procedure, the system will be able to identify those securities which were negotiated before a lost or stolen securities report was received.

For certain exem ptions which will be applicable until D ecem ber 31, 1978, see th e section below entitled “Pilot Program .”

(d) Permissive inquiry. Paragraph(d) describes the availability o f the reporting and inquiry system to any reporting entity whether or n ot § 2 4 0 .1 7 f-l would require a report or inquiry. W ith respect to the granting of authority to m ake permissive inquiries, it should be pointed out th at this authority is provided to allow sufficient flexibility when an inquiry is n ot m andated but suspicious circum stances are involved. T h e Com m ission, in allowing permissive in - 12

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12 I t bears emphasis th a t n o t a ll financ ia l in s titu tio n s are reporting in s titu t io n s as defined by § 240.17f—I. I f in doubt as to whether an e n tity is a reporting in s titu tio n , i t is suggested th a t reporting in s titu tio n s check the available reference works to der te rm ine whether the e n tity is an FDIC in sured bank or o ther reporting in s t itu t io n enumerated in th is section.

FEDERAL REGISTER, VOL. 42 , NO. 156— FRIDAY, AUGUST 12, 1977


quiries, does not intend to incorporate an inquiry requirem ent into the bona fide purchaser doctrine each tim e a reporting institution receives a security certificate. T h e Com m ission recognizes that to require or suggest inquiry in all cases would seriously jeopardize the ability of financial institutions to function in an efficient m anner.

Section 2 4 0 .1 7 f-l also provides that the Com m ission m ay grant other persons access to the system upon such term s or conditions as it deem s necessary and appropriate in the public interest and for the protection of investors. T h e C om m ission recognizes th at a num ber of fo r eign banks and other financial institutions, such as insurance com panies, are not included in the definition of “ reporting institutions.” Consequently, securities received from such institutions which are n ot registered in the nam es o f those in stitutions or their nom inees are required to be the subject of inquiry under § 2 4 0 .1 7 f-l .

T h e Com m ission is aware th at this m ay cause hardship to certain reporting institutions. In order to alleviate this hardship and to allow those reporting institutions dealing w ith these n o n -re porting financial institutions the exem ption allowed under paragraph (c) (1) (ii> of this section, the Com m ission encourages financial institutions n ot within the jurisdiction of this section to apply under paragraph (d> to becom e so included. T h e Com m ission, as a condition to granting such a status, will require those institutions to undertake to com ply with § 2 4 0 .1 7 f-l on the sam e basis as a reporting institution. Letters requesting participation in the Lost and Stolen Securities Program should be denom inated “ Application for D esign ation as a R e porting Institution Pursuant to § 240 .1 7 f- 1” and should be addressed to the D ivision of M arket Regulation.* 1 2 3 4 13 * 15

T h e Com m ission shall have the right to withdraw this designation upon w ritten notice. T h e Com m ission will w ith draw such designation if the financial institutions violates its undertaking to com ply with § 2 4 0 .1 7 f-l , applicable in structions issued by the Com m ission, its designee, or the Federal Reserve Banks, or if it does n ot rem it the appropriate fees which are assessed for the use of the system . Such financial institutions shall not be charged a fee greater than

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The le tte r should id e n tify :1. The p rim ary business of the financia l

In s titu tio n .2. W hether the financia l in s t itu t io n is

registered w ith or regulated by any Federal. State or foreign government or agency thereof.

3. Whether the in s titu t io n engages in a reta il securities business w ith n o n -in s titu - tiona l customers and the po rtion of such in re la tion to the in s t itu t io n ’s to ta l business.

4. The names o f the officers or p rinc ipa l shareholders o f the financ ia l in s titu t io n . In the le tte r the financ ia l in s t itu t io n shall agree to comply w ith a ll applicable provisions of section 240,17f-l and applicable ins truc tions issued by the Commission, its designee or the Federal Reserve Banks and shall agree to pay an appropriate fee fo r pa rtic ipa tion in the system.

that charged a reporting institution of com parable size.

(e) Exemptions. Section 2 4 0 .1 7 f-l provides in paragraph <e) that registered securities for which a Federal Reserve B ank or B ranch is the appropriate in strum entality or counterfeits of such securities are not the subject o f required reporting and inquiry. Reports with respect to such securities should continue to be m ade to the U .S . Treasury D epartm ent or the Federal Reserve B ank of New Y ork , in accordance with outstanding Treasury instructions and current practices in the financial com m unity. W here a stolen security is involved, reports are required to be m ade to the appropriate law enforcem ent agency.

W ith respect to coupons, the C om m ission stated in Release No. 34 -13280 that, as a m atter o f interpretation, § 2 4 0 .1 7 f-l does n ot require reporting and inquiry with respect to coupons.

(f> Recordkeeping. Paragraph (f) of section 2 4 0 .1 7 f-l codifies the recordkeeping and record retention procedures established by the Lost and Stolen Securities Program .14 Essentially, copies o f all Form s X -1 7 F -1 A filed pursuant to this section and all confirm ations of inquiry or other inform ation received from the appropriate instrum entality m ust be retained for a period o f three years in an easily accessible place. Sections 240 .17a - 3 and 240 .17a-4 have also been amended to incorporate these requirem ents into the general recordkeeping and retention provisions applicable to certain exchange m embers, brokers, and dealers.

P ilot P rogram

In order to im plem ent § 2 4 0 .1 7 f-l in the m ost efficient m anner, the C om m ission determ ined that it would be appropriate to institute a pilot program to m onitor the effectiveness o f the section and the system designed to carry out its provisions. Accordingly, § 2 4 0 .1 7 f-l will be im plem ented on a pilot basis until D ecem ber 31 ,1978.

D uring the pilot program , the C om m ission will not require certain reports and inquiries to be m ade which otherwise would be required under the section.

1. Corporate and m unicipal securities not assigned C U SIP num bers will be ex em pt from required reporting and in quiry. Consequently, short term securities such as com m ercial paper are not subject to the requirements of § 240.1 7 f- 1 during the pilot program .1"

2. Transactions involving securities of less than $10,000 face value in the case of bonds and $10,000 m arket value in the case of stocks will be exem pt from in quiry only. All losses, including those of less than $10,000. m ust be reported.

3. Registered transfer agents are ex em pt from inquiry during the pilot program .


14 S e e Securities Exchange Act Release No. 13831 (August 5, 1977).

13 A certifica te is no t exempt under th is provision because the certificate itse lf does no t have a CUSIP num ber on it. In order tobe exempt, the issue o f which the pa rticu la rcertifica te is a pa rt m ust no t have been assigned a CUSIP number.

On the basis of the im pact studies conducted and the com m ent letters received, the Com m ission believes th at allowing these additional exem ptions from re porting and inquiry during the pilot program will allow the efficient im plem entation of a system to carry out the m andate of the A ct. In ad dition, these exem ptions will allow financial institutions subject to this section an opportunity to adapt to the operation of the section w ithout undue disruption to the course of norm al com m ercial transactions. During the pilot program , the Com m ission intends to m onitor the appropriateness of these special exem ptions in order to determine whether they should be retained perm anently. These exem ptions will expire on Decem ber 31, 1978 unless they are extended by the Com m ission.

A ppropriate I nstrumentalities and O peration of S ystems

Attached as Appendices I II and IV to this release are descriptions of the general operations of the appropriate in strum entalities, including procedures for m aking reports and inquiries. W ith respect to securities for which a Federal Reserve Bank or Branch is the appropriate instrum entality, telephone nu m bers and m ailing addresses pertinent for com pliance with § 2 4 0 .1 7 f-l are included in Appendix III . A m ap of the twelve Federal Reserve D istricts is also in cluded to assist reporting institutions in locating the closest Federal Reserve Bank or Branch.

Appendix IV contains the operating procedures and a description of the system of the Securities Inform ation C enter, Inc., the C om m ission’s designee for receipt of reports and inquiries for which the Com m ission is the appropriate in strum entality. Included in these m aterials as Appendix V is a R egistration Form which m ust be com pleted and returned to the C om m ission’s designee no later than Septem ber 23, 1977. Each reporting institution m ust determ ine whether it will be a D irect or Indirect Inquirer of the System and so indicate on the R egistration Form .

The Com m ission has determ ined that the m ethod of allocating fees and the fees to be charged are reasonable in m aking available to reporting institutions inform ation regarding missing, lost, counterfeit or stolen securities pursuant to Section 17 (f) (1) fA ) of the Act. Authorized signatures and an indication as to whether the entity will be a Direct or Indirect Inquirer m ust be provided to the C om m ission’s designee by Septem ber 23. 1977 in order for the reporting institution to be able to fulfill the requirem ents of § 2 4 0 .1 7 f-l . T h e Com m ission wishes to em phasize that failure to subm it the R egistration Form , and if a D irect Inquirer to remit applicable fees when billed, will prevent access by a given reporting institution to the system and hence cause the reporting institution to be in violation of § 2 4 0 .1 7 f-l .

T he Com m ission will study the operation of § 2 4 0 .1 7 f-l and the system for

FEDERAL REGISTER, VOL. 42, NO 156— FRIDAY, AUGUST 12, 1977


RULES AND REGULATIONS 41025

reporting and inquiry during the pilot program and will m ake m odifications where appropriate.

E ffective D ates and R esponsibilities of A ppropriate I nstrumentalities

T h e reporting and recordkeeping requirem ents o f § 2 4 0 .1 7 f-l will becom e effective on O ctober 3, 1977; the inquiry requirements and the rem aining provisions o f the section will become effective on January 2 ,1 977 .

T he appropriate instrum entalities u n dertake no responsibility with regard to any party in m aintaining the lists of m issing, lost, counterfeit or stolen securities or responding to inquiries pertaining thereto and will n ot be liable for any act or failure to act with respect to any procedures set forth in § 2 4 0 .1 7 f-l .

I m m o bilization and E lim in ation of C ertificates

I t should be noted th at this program is not intended to be a substitute for other steps which are being undertaken to im prove securities processing, prevent losses and reduce the risk o f theft. T h e Com m ission continues to endorse the concepts o f im proved securities processing and certificate im m obilization and elim ination through greater use of depositories and book entry system s. I t is expected th at this program will be developed in a m anner appropriate to m eet existing needs and will be flexible enough to adjust to changing circum stances.

B y the Com m ission.

S h irley E. H o llis , Assistant Secretary.

August 5,1977.§ 240.17f—I Requirements for reporting

and inquiry with respect to missing, lost, counterfeit or stolen securities.

(a) Definitions— (1) Reporting institution. For purposes o f this section, the term “ reporting institution” shall include every national securities exchange, m em ber thereof, registered securities association, broker, dealer, m unicipal securities dealer, registered transfer agent, registered clearing agency, participant therein, m em ber o f the Federal Reserve System and bank whose deposits are in sured by the Federal Deposit Insurance Corporation.

(2) Appropriate instrumentality. For purposes o f this section the term “ appropriate instrum entality” shall m ea n :

(i) A n y Federal Reserve B ank or B ranch thereof with respect to securities issued by:

<A) T he U nited States G overnm ent,<B) A n y agency or instrum entality of

the U nited States G overnm ent,(C ) T he International B ank for R e

construction and Developm ent,<D) T he In ter-A m erican Bank, or(E ) T he Asian D evelopm ent B ank ;

and(ii) T he Securities and Exchange C om

m ission with respect to all other securities.

(b) Reporting requirements— (1) Stolen securities, (i) Every reporting in stitution shall report to the appropriate

instrum entality and to a registered transfer agent for the issue the discovery of the th eft or loss o f any security where there is substantial basis for believing th at crim inal activity was in volved. Such report shall be m ade w ithin one business day of the discovery and, if the certificate num bers of the securities cannot be ascertained at th at tim e, they shall be reported as soon thereafter as possible.

(ii) Every reporting institution shall prom ptly report to the appropriate law enforcem ent agency upon the discovery of the th eft or loss of any security where there is substantial basis for believing th at crim inal activity was involved.

(2) Missing or lost securities. Every reporting institution shall report to the appropriate instrum entality and to a registered transfer agent for the issue the discovery of the loss of any security where crim inal actions are n ot suspected when the security has been m issing or lost for a period of two business days. Such report shall be m ade within one business day of the end of such period except th a t :

(i) Securities lost in transit to custom ers, transfer agents, banks, brokers or dealers shall be reported by the delivering institution no later th an two business days after notice of non-receipt or as soon after such notice as the certificate num bers of the securities can be ascertained.

(ii) Securities considered lost or m issing as a result of securities counts or verifications required by rule, regulation or otherwise (e.g. dividend record date verification m ade as a result of firm policy or internal audit function report) shall be reported no later th an ten business days after com pletion of such securities count or v erificatio n or as soon after such count or verification as the certificate num bers of the securities can be ascertained.

(iii) Securities n ot received during the com pletion of a delivery, deposit or w ithdraw al shall be reported in the fo llowing m an n e r:

(A ) W h ere delivery o f securities is through clearing agency, the delivering institution shall supply the receiving in stitution the certificate num ber of the security within two business days from the date of request from the receiving institution. T h e receiving institution shall report within one business day of notification of the certificate num ber;

< B) W h ere the delivery of securities is over the window and where the delivering institution has a receipt, the delivering institution shall supply the receiving institution the certificate num bers of the securities within two business days from the date of request from the receiving institution. T h e receiving institution shall report within one business day of notification of the certificate num ber;

(C ) W h ere the delivery of securities is over the window and where the delivering institution has no receipt, the delivering institution shall report within two business days o f notification o f n o n -re ceipt by the receiving institution; or

«D) W h ere delivery of securities is m ade by m ail or via draft, if paym ent is n ot received within ten business days, the delivering institution shall confirm with the receiving institution the failure to receive such delivery; if confirm ation shows non-receipt, the delivering institution shall report within two business days o f such confirm ation

(3) Counterfeit securities. Every reporting institution shall report the discovery of any counterfeit security to the appropriate instrum entality and the ap propriate law enforcem ent agency w ithin one business day of such discovery.

(4) Recovery. Every reporting institution shall report the recovery or finding of any security previously reported m issing, lost or stolen pursuant to this section to the appropriate instrum entality and to a registered transfer agent for the issue within one business day o f such recovery or finding. I f a report of stolen securities was m ade to the appropriate law enforcem ent agency, a report of such recovery shall also be m ade to such agency. Recovery m ay only be reported by the institution w hich reported the security as m issing, lost or stolen.

(5) Information to be reported. All reports m ade pursuant to this section shall include, if applicable or available, the follow ing inform ation with respect to each security:

(i) Issuer;(ii) Type of security and series;(iii) Date of issue;<iv) Maturity date;(v) Denomination;(vi) Interest rate;(vii) Certificate number, including al

phabetical prefix or suffix;(viii) N am e in which registered;(ix) Distinguishing characteristics, if

counterfeit;(x) Date of discovery of loss or recov

ery;(xi) CUSIP number; and(xii) FINS number.< 6) Forms. All reports m ade pursuant

to this section sh a ll be m ade on Form X -1 7 F -1 A .

(c) Required inquiries. (1) Every reporting institution shall inquire of the appropriate instrum entality with respect to every security which comes into its possession or keeping, whether by pledge, transfer, or otherwise, to ascertain whether such security has been reported as missing, lost, counterfeit or stolen, unless

(1) T h e security is received directly from the issuer or issuing agent at issuance;

< ii) The security is received from an other reporting institution or Federal Reserve Bank in its capacity as fiscal agent;

(iii) The security is received from a custom er of the reporting institution and is registered in the nam e o f such custom er or its nom inee.

(2) Form of inquiry. Inquiries shall be m ade in such m anner as prescribed by the appropriate instrum entality.

(d) Permissive reports and inquiries. Every reporting institution m ay report to or inquire of the appropriate instru

FEDERAL REGISTER, VOL. 42, NO. 156— FRIDAY, AUGUST 12, 1977


41026 RULES AND REGULATIONS

m entality w ith respect to any security n ot otherwise required by tills section to be the subject o f a report or inquiry. T h e Com m ission on written request or upon its own m otion m ay perm it reports to and inquiries o f the system h y any other person or entity upon such term s and conditions as it deem s appropriate and necessary in the public interest and for the protection of investors.

(e) Exemptions. Registered securities of the U nited States G overnm ent, any agency or instrum entality o f the U nited States G overnm ent, the International B an k for Reconstruction and D evelopm ent, th e In ter-A m erican D evelopm ent B ank, or the A sian Developm ent B ank, and counterfeit securities o f such en tities are not subject to the provisions of this section relating to reporting and in

quiry with the appropriate instrum entality.

( f ) Recordkeeping. Every reporting in stitution shall m aintain and preserve in an easily accessible place for three years copies o f all Form s X -1 7 F -1 A filed pursuant to this section and all confirm ations or other inform ation received from the appropriate instrum entality or its designee as a result of inquiry.

FEDERAL REGISTER, VOL. 4 2 , NO. 156— FRIDAY, AUGUST 12, 1977


RULES AND REGULATIONS 41027APPENDIX I I

P I ease T y p e o r P rin t Clearly

I , ’REPORTING INSTITUTION: NAMIT,

FORM X-17F-1AMISSiHG/LOST/STOlEH/COUNTERiEIT

SECURITIES REPORT

Designee’s Use Only

Date /File Number

A D D R E SS.

. ZIP CODE

ATTENTION:,

FINS,SICIDKNTinEnNfMBF.tl □ □ □ □ □ □ / ( ) ( ) ( )

S» TYPE OF REPORT □ LOSS □ RECOVERY O UPDATE □ CONFIRMATION

9i DATE OF LOSS/RECOVERY

4* TYPE OF SECURITY □ COMMON f l PREFERRED f l CORPORATESTOCK L- J STOCK *—1 BONO

□ MUNICIPAL n CONVERTIBLE F I DEBENTURE P I NOTE f l WARRANTBOND ■—1 DEBENTURE *-* i - J U

□ RIGHT □ OPTION* □ OTHER „ .................... ...... . ............ . ..

&NAME OF ISSUER

6* INTEREST RATE___ 7. MATURITY DATE

& CUSIP NUMBER □ □ □ □ □ □ □ □ □% NAME OF REGISTERED HOLDER ,

10. CERTIFICATE/SEFIAL NUMBERS IT . DENOMINATION/SHARES 12. ISSUE D ATE

13. TOTAL CURRENT MARKET OR FACE YALUE S ,

14. □ C R IM IN A L IT Y in d ic a t e d

15. □ C O U N T E R F E IT

13d. ADDITIONAL PACES ATTACHED.

If Counterfeit • Dinlin/iuiuhinil ClutrartmHlimREPORTS FILED WITH: IS. □ DATA HANK 17. □ TRANSFER AGENT 18. □ LAW ENFORCEMENT

19. AUTHORIZED SIGNATURE 20. — PATEitt HW (1-77*

FEDERAL REGISTER, VOL. 42 , NO. 156— FRIDAY, AUGUST 12, 1977



Instructions

Note.—Section 240.171-1 does n o t require reporting o f coupons. M un ic ipa l or corporate securities n o t assigned CUSIP Numbers are n o t the subject o f reporting and in q u iry d u rin g the p ilo t program.

Forms fo r w h ich the Commission is the appropriate in s tru m e n ta lity should be m ailed to the Commission’s designee:Securities In fo rm a tio n Center, Inc., Post

Office Box 421, Wellesley H ills , Mass. 02181.1. R e p o r t i n g I n s t i t u t i o n —Enter reporting

in s t itu t io n name, address and FINS number, w ith Securities In fo rm a tio n Center-assigned suffix, i f any.

2. T y p e o f R e p o r t — Check whether report is a new report (“ Loss” ), repo rt o f recovery o f previously reported loss (“ Recovery” ), or update or correction o f report o ther th a n recovery ( “ Update” ) . A dd itiona lly , i f the re po rt is a con firm a tion o f a loss, recovery, or update made by telex or telephone, also check the box marked “ C onfirm ation .”

3. D a t e —Enter date when loss was noticed, th e ft occurred, when coun te rfe it was d is covered or suspected, or when security was found or recovered. When su b m ittin g up dates, corrections or confirm ations, enter date o f loss or recovery.

4. T y p e o f S e c u r i t ie s — Check the box which most nearly describes the type o f security. I f none o f the classifications adequately describes the security, check “ O ther” and describe the security in the space provided.

5. Issuer—P rin t or type the name o f issuing company, agency or organ ization as set ou t on the security even though the security may have been lost, stolen, or m issing p rio r to being “ issued" by the appropriate a u th o rity .

6. In te rest Rate— I f in terest rate was in d icated, enter th is in fo rm a tion .

7. M a t u r i t y D a t e —Enter m a tu r ity date where applicable.

8. C U S I P N u m b e r —Enter en tire CUSIP Number.

9. N a m e of R e g is t e r e d H o ld e r — Clearly p r in t or type th e fu l l name o f person ( in d ividua l, company, bank, brokerage house, etc.) to whom the security is registered exactly as i t appears on the security. Enter the word “ Bearer” when document is a bearer security.

10. C e r t i f i c a t e / S e r i a l N u m b e r s —Enter certifica te or serial num ber(s) in c lud ing a ll suffixes and prefixes. I f certificates have n o t been issued, enter the con tro l num ber. Series m ay be ind icated by the firs t and last nu m bers separated by a dash and fo llow ed by the word “ Series” . Certificate or serial numbers o f certificates o f the same CUSIP num ber w hich are no t in sequentia l order should be lis ted separately on each line. I f add itiona l space is required, attach a sheet con ta in ing in fo rm a tio n in the same fo rm a t as Ite m 10 and check Ite m 13a.

11. D e n o m i n a t i o n / S h a r e s — Enter in nu merical fo rm the am ount o f money represented by bonds, debentures, notes and o ther securities (except stock warrants and righ ts) as ind icated on the certificates. I f am ount was no t ind icated on the certificate, enter the word “ B lank.”

For stocks, enter the num ber of shares represented by the certificates, no t the par value o f the stock. I f num ber o f shares is no t represented, enter the word “ B lank.”

For warrants and rights, enter in num erica l fo rm the num ber o f shares w hich the docum ent en titles the owner to purchase.

12. Is s u e D a t e —Enter issue date o f security . I f certificates have no t yet been issued, ind icate th is fact.

13. T o t a l C u r r e n t M a r k e t o r F a c e V a lu e — For stocks, rig h ts and warrants, enter the approxim ate to ta l cu rren t m arket value. For bonds, enter the face value o f the certificate.

13a. A d d i t i o n a l P a g e s A t t a c h e d —For a nonsequentia l series o f certificates having the same CUSIP number, add itiona l pages lis t in g securities to be reported may be a ttached. (See In s tru c tio n 10). I f add itiona l pages are attached, check th is Item .

14. C r i m i n a l i t y I n d i c a t e d —I f reporting a loss, check when a substantia l be lie f o f c r im in a lity is indicated.

15. C o u n t e r f e i t —Describe d is tingu ish ing characteristics o f suspected coun te rfe it securities.

16. F i l e d w i t h D a t a B a n k —Check i f filed w ith the Commission’s Designee or a Federal Reserve Bank or Branch as appropriate.

17. F i l e d w i t h T r a n s f e r A g e n t— Check to indicate th a t you have sent a copy o f th is report to a Transfer Agent fo r the issue.

18. F i l e d w i t h L a w E n f o r c e m e n t —Check o f you sent a copy of th is report to the approp ria te law enforcement agency when re quired.

19. A u t h o r i z e d S i g n a t u r e —Form X-17F-1A m ust have an authorized signature to be accepted by the System. W ith respect to those reports filed w ith the Commission’s designee, such signatures m ust be on file w ith the designee. Copies o f reports sent to a transfer agent and the appropriate law enforcement agency should conta in an o rg ina l signature.

20. D a t e —Enter date when fo rm is signed.A p p e n d i x I I I

R E P O R T S A N D IN Q U IR IE S R E G A R D IN G L O S T OR S T O L E N U N IT E D S T A T E S G O V E R N M E N T A N D A G E N C Y S E C U R IT IE S F O R W H I C H T H E FE D E R A L R E SE R V E B A N K S ARE T H E A P P R O P R IA T E I N S T R U M E N T A L IT Y

On December 16, 1976, the Securities and Exchange Commission adopted 17 CFR 240.- 17f~l, w h ich requires a ll financ ia l in s t itu tions covered by the section to report to the appropriate in s tru m e n ta lity any instance o f loss o r th e ft o f ce tra in securities and, w ith certa in exceptions, to make in q u iry p rio r to the com pletion o f any transaction invo lv ing these securities. The section w ill be im p le m ented in tw o phases. The firs t pa rt to be im plem ented w ill be the reporting requ ire m ent, w h ich w ill go in to effect on October 3, 1977. The second part, the in q u iry requ ire ment, w il l go in to effect on January 2, 1978.

The Federal Reserve Banks have been designated as the “ appropria te in s tru m e n ta li t y ” fo r receiving reports o f and inqu iries as to lost, m issing, coun te rfe it or stolen U n ited States Governm ent and Agency securities. As used in th is c ircu la r, the te rm “ Governm ent and Agency securities” includes secu rities issued by the :U n ited States Treasury Banks fo r Cooperatives D is tr ic t o f Colum bia A rm ory Board E xp o rt-Im p ort Bank o f the United States Farm C redit A d m in is tra tion Farmers Home A d m in is tra tion Federal F inancing Bank Federal Home Loan Banks Federal Home Loan Mortgage Corporation Federal Housing A dm in is tra tion Federal In te rm edia te C redit Banks Federal Land Banks Federal N ationa l Mortgage Association Governm ent N ationa l Mortgage Association

(does n o t include Pass-Through Securities)

Sm all Business A d m in is tra tion S tudent Loan M arketing Association Tennessee Valley A u th o rity Un ited States Postal Service W ashington M etropo litan Area T rans it A u

th o r ityAsian Development Bank In te r-A m erican Development Bank In te rn a tio n a l Bank fo r Reconstruction and

Development

Since late 1970, the Federal Reserve Banks have been operating a checklist procedure designed to assist in the id e n tifica tion of lost and stolen Government and Agency securities. The development o f the checklist procedure had been spurred in la te 1969 by by a marked increase in the incidence and m agnitude o f the fts o f U n ited States Governm ent and Agency securities from banks and o ther financia l in s titu tio ns .

The reporting and in q u iry phases of § 240.- 1 7 f- l w ill be operated on a one-year p ilo t basis beginning January 2, 1978, when the in q u iry requ irem ent becomes effective. The section covers every na tiona l securities exchange, member thereof, registered securities association, broker, dealer, m nu ic ipa l secu rities dealer, registered transfer agent, registered clearing agency, pa rtic ipan t therein, member o f the Federal Reserve System, and bank whose deposits are insured by the Federal Deposit Insurance Corporation W hile the section requires reports and in quiries on Government and Agency securities from those financia l In s titu tion s , the Federal Reserve Banks w ill also accept reports from and respond to inqu iries from any other financia l in s titu t io n .

I t should be noted th a t the Federal Reserve Banks undertake no responsib ility w ith regard to any pa rty in m a in ta in ing the lis t of lost or stolen securities or responding to in quiries pe rta in ing thereto and w il l n o t be liab le fo r any act or fa ilu re to act w ith respect to any procedures set fo r th in § 240.- 17f—1. Furtherm ore, the lis t m ainta ined by the Federal Reserve Banks pursuant to such section is no t a “ caveat” or “ stop paym ent” lis t.

R E P O R T S (B E G IN N IN G O C T O B E R 3 , 1 9 7 7 )

Reports of lost, missing, coun te rfe it or stolen securities should be made in w ritin g , using SEC Form X-17F-1A. A copy o f the fo rm is included in SEC Release No. 34-to w hich th is m ateria l is appended. Copies of the fo rm w ill be available a t a ll SEC Regional Offices a fte r September 1, 1977. A ll re coveries m ust also be p rom ptly reported in w ritin g , using the same form , by the in s t itu t io n th a t reported the loss. A lis t o f m ailing addresses to w h ich reports may be sent follows th is description o f reporting and in q u iry procedures. A map o f the twelve Federal Reserve D is tric ts is also included to assist reporting in s titu tio n s in locating the nearest Federal Reserve Bank,

IN Q U IR IE S (B E G IN N IN G J A N U A R Y 2 , 1 9 7 8 )

A ll financia l in s titu tio n s covered by 5 240 - 17f—1 w ill also be required to make in q u iry w ith respect to every bearer Government or Agency security (inc lud ing registered securities assigned in b la n k ), w hich comes in to its possession or keeping, w hether by pledge, transfe r or otherwise, to ascertain whether th a t security has been reported as lost, missing. coun te rfe it or stolen unless:

(1) The security is received d irec tly from the issuer or issuing agent a t issuance, or

(2) The security is received from another reporting in s titu t io n or from a Federal Reserve Bank in its capacity as fiscal agent. (A ll securities received from a Federal Reserve Bank are exempt from the § 240.17f-l in q u iry requ irem ent except securities received on a w ithdraw a l from a safekeeping or o ther custodial acount where the securities were n o t held in book-entry form .)

Inquiries, as well as requests fo r general in fo rm a tion regarding the use o f the Federal Reserve Bank checklist procedure, may be made by telephone as ind icated in the lis t which follows. Response by the Federal Reserve Office w ill be In the fo rm o f a re tu rn call, w h ich w ill be p rom ptly confirmed in w riting .

FEDERAL REGISTER, VOL. 42, NO. 1S6— FRIDAY, AUGUST 12, 1977


RULES AND REGULATIONS 11029

Reports o f and inqu iries as to registered Governm ent and Agency securities (unless assigned in b lank) are n o t covered by 5 240.- I7 f—1 b u t may be made to the appropriate transfe r agent (e ithe r the U.S. Treasury Departm ent fo r Treasury and Federal Land Bank issues, or the Federal Reserve Bank o f New Y ork fo r o ther Agency issues, inc lud ing securities issued by in te rn a tio n a l organizations) . Any reports o f or inqu iries as to counte rfe it securities should be directed to the appropriate law enforcem ent agencies.

Tire checklist procedure is designed to help recover lost or stolen securities and to prevent th e ir use in norm al commerce. O f even greater im portance are measures designed to m in im ize the r isk o f loss or th e f t o f securities. In th is respect, the book-en try procedure fo r G overnm ent and Federal Agency secu rities affords the op tim a l so lu tion to the problem o f securities the fts . C u rren tly more than 87 percent o f the e lig ib le m arketable Governm ent and Federal Agency issues are held in book-entry form . However, about $63 b illio n s t i l l remains ou tstand ing in de fin itive fo rm —m uch o f i t in the custody of banks. B o th the Federal Reserve System and the Treasury have been w ork ing to extend the use o f the book-entry-procedure, and banks are urged to u tiliz e the procedure to the m axim um extent possible.R E P O R T S A N D IN Q U IR IE S R E G A R D IN G L O S T O R S T O

L E N U N IT E D S T A T E S G O V E R N M E N T A N D A C E N C Y S E C U R IT IE S

FE D ERAL R E SE R V E B A N K A N D B R A N C H AD D RESSES A N D T E L E P H O N E N U M B E R S

F i r s t F e d e r a l R e s e r v e D i s t r i c t

Securities Departm ent, Federal Reserve Bank o f Boston, 30 Pearl Street, Boston, Mass. 02106, 617-426-7100 Ext. 351.

S e c o n d F e d e r a l R e s e r v e D i s t r i c t

Government Bond D ivision, Federal Reserve Bank of New York, New York, N.Y. 10045, 212-791-5359.

Buffalo Branch (inqu iries o n ly ), Collection Loans, and Fiscal Agency D ivision, 716- 849-5043 or 716-849-5130.

T h i r d F e d e r a l R e s e r v e D i s t r i c t

James B. Duffy, Manager, Governm ent Bond D ivision, Federal Reserve Bank o f P h ila delphia, P.O. Box 90, Philadelphia, Pa. 19105, 215-574-6190, Robert Carey 215-574- 6191.

F o u r t h F e d e r a l R e s e r v e D i s t r i c t

Securities Departm ent, Federal Reserve Bank o f Cleveland, P.O. Box 6387, Cleveland, Ohio 44101. 216-241-2800.

Securities Departm ent, C inc inna ti Branch, P.O. Box 999. C inc inna ti, Ohio 45201, 513- 721-4787.

Securities Departm ent, P ittsburgh Branch, Federal Reserve Bank, P.O. Box 867. P itts burgh. P a .15230, 412-261-7912.

F i f t h F e d e r a l R e s e r v e D i s t r i c t

Federal Reserve Bank o f R ichm ond. P.O. Box 27622, R ichmond, Va. 23261, 804-649-3611 Ext. 290.

Baltim ore Branch, Federal Reserve Bank, P.O. Box 1378. Baltim ore, Md. 21203, 301- 539-6552 Ext. 275.

C harlotte Branch, Federal Reserve Bank. P.O. Box 300. Charlotte . N.C. 28230, 704-373- 0200 Ext. 266,

S i x t h F e d e r a l R e s e r v e D i s t r i c t

Federal Reserve Bank of A tlan ta , 104 M arie tta Street N W „ A tlan ta , Ga. 30303 , 404^586- 8647.

B irm ingham Branch, Federal Reserve Bank, P.O. Box 10447, B irm ingham , Ala. 35202. 205-252-3141 Ext. 215.

Jacksonville Branch, Federal Reserve Bank, 515 Ju lia Street. Jacksonville, Fla. 32231.904-632-4243.

M iam i Branch, Federal Reserve Bank, P.O. Box 520847. M iam i. Fla. 33152, 305-445-6281 Ext. 192.

Nashville Branch, Federal Reserve Bank, 301 E ighth Avenue N orth , Nashville, Tenn. 37203. 615-259-4006 Ext. 281.

New Orleans Branch, Federal Reserve Bank, P.O. Box 61630, New Orleans, La. 70161, 504-586-1505 Ext. 240.

S e v e n t h F e d e r a l R e s e r v e D i s t r i c t

Government Securities D ivision, Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, 111. 60690, 312-322-5941 or 312-322-5947.

Government Securities D ivision, D e tro it Branch, Federal Reserve Bank, 160 West Fort Street, D e tro it, M ich. 48226, 313-961- 6880 Ext. 292 or 293.

E i g h t h F e d e r a l R e s e r v e D i s t r i c t

Federal Reserve Bank o f St. Louis, P.O. Box 442, St. Louis, Mo. 63116, A t t : Treasury Issues D ivision, 314-421-1700 Ext. 203.

L it t le Rock Branch, Federal Reserve Bank, P.O. Box 1261, L it t le Rock Ark. 72203, A tt : Securities Departm ent, 501-372-5451.

Lou isville Branch, Federal Reserve Bank, P.O. Box 899, Louisville , Ky. 40201, A t t : Securities Departm ent, 502-7351.

Memphis Branch, Federal Reserve Bank, P.O, Box 407, Memphis, Tenn. 38101, A t t : Securities Department, 901-523-7171.

N i n t h F e d e r a l R e s e r v e D i s t r i c t

Gerald J. Mallen, Manager, Securities Custody D ivision, Securities Departm ent, Federal Reserve Bank o f M inn., M inneapolis, M inn. 55480.

. T e n t h F e d e r a l R e s e r v e D i s t r i c t

Fiscal Agency Departm ent, Federal Reserve Bank of Kansas C ity, Federal Reserve Station , Kansas C ity, Mo. 64198, Delores Forman 816-881-2783.

Denver Branch, Federal Reserve Bank, 1020 16th Street, P.O. Box 5228, T. A., Denver, Colo. 80217, Bob Lundgren 303-292-4020 Ext. 253.

Oklahoma C ity Branch. Federal Reserve Bank, P.O. Box 25129, Oklahoma C ity, Okla. 73125, Sherman H u ff 405-235-1721 Ext. 181.

Omaha Branch. Federal Reserve Bank. 102 South 17th, Omaha, Nebr. 68102. Iva r An- dreasen 402-341-3610 Ext. 241.

E l e v e n t h F e d e r a l R e s e r v e D i s t r i c t

Federal Reserve Bank o f Dallas. Securities Departm ent, M arketable Issues D ivision, S ta tion K, Dallas, Tex. 75222, Mary M. Rosas 214-651-6384, Donald E. C urtis 214- 651-6360.

Houston Branch, Federal Reserve Bank, F iscal Agency Departm ent, P.O. Box 2578, Houston, Tex. 77001, K . S. Savage 713-659- 4433 Ext. 74. J. W. Lockhart 713-659-4433 Ext. 75.

San Anton io Branch, Federal Reserve Bank. Cash-Fiscal Agency Departm ent, P.O. Box 1471, San Antonio, Tex. 78295. A. G. Valencia. Jr. 512-224-2141 Ext. 60. M. E. S teh ling 512-224-2141 Ext. 62.

El Paso Branch, Federal Reserve Bank. Cash- Fiscal Agency Department. P.O. Box 100. El Paso, Tex. 7999.

T w e l f t h F e d e r a l R e s e r v e D i s t r i c t

Federal Reserve Bank o f San Francisco, F iscal Department, P.O. Box 7702, San F ran cisco, Calif. 94120. 415-544-2330 or 2331.

Los Angeles Branch, Federal Reserve Bank. Fiscal Department, P.O. Box 2077, Los A ngeles, C a lif. 90051, 213-683-8377.

Portland Branch, Federal Reserve Bank. F iscal Department, P.O. Box 3436, Portland. Ore. 97208, 503-228-7584.

Salt Lake C ity Branch, Federal Reserve Bank, Fiscal Department, P.O. Box 780, Salt Lake C ity, U tah 84110, 801-355-3131.

Seattle Branch, Federal Reserve Bank. Fiscal Department, P.O Box 3567. Seattle. Wash., 206-442-7269

FEOEftAl REGISTER, V O t 42, NO. 156— FRIDAY, AUGUST 12, 1977



The Federal Reserve SystemBoundaries of Federal Reserve Districts and Their Branch Territories •

LEGEND

Boundaries of Federal Reserve Districts © Federal Reserve Bank Cities

— • Boundaries of Federal Reserve Branch Territories

© Board of Governors of the Federal Reserve System

♦ Federal Reserve Branch Cities

4 Federal Reserve Bank Facility

FEDERAL REGISTER, VOL. 4 2 , NO. 156— FRIDAY, AUGUST 12, T977


A p p e n d i x IVT H E L O S T , M IS S I N G , S T O L E N A N D C O U N T E R F E IT

S E C U R IT IE S IN F O R M A T I O N S Y S T E M

D e s c r ip t i o n o f t h e S y s te m

The Securities and Exchange Commission designated the Securities In fo rm a tio n Center, Inc . (the “ Designee” ), a subsidiary o f IT E Ii AutEx, Inc., to operate the Lost, Stolen, M issing and C oun te rfe it Securities In fo rm a tio n System (the "system” ) to receive and process reports and inqu iries fo r w h ich the Commission is the appropriate ins trum enta lity under 17 CFR 240.17f-l. The system is to operate as a p ilo t program w ith Reports to the system beginning on October 3, 1977, and inqu iries to the system commencing on January 2, 1978. The p ilo t program w ill end on December 31, 1978.

I t is the in te n tio n o f the Commission and the designee to operate a system w hich w ill, w ith suffic ient f le x ib ility and a t the lowest possible cost, meet the needs o f the in dus try and fu l f i l l the in te n t o f Congress. I t is estimated th a t du ring the p ilo t year the system w ill on the average process 10,000 reports and inqu iries a day. In the early m onths o f the p ilo t, users should an tic ipa te m ino r p roblems w hich usua lly accompany the s ta rt-u p o f a new system. As experience is gained w ith the operation o f the system, user requirem ents w ill be better defined and procedures w ill be m odified to improve the operatio n o f the system and insure the u ltim a te success o f the program.

This m ateria l b rie fly describes how the system w ill operate, defines terms and service options, and provides a schedule o f fees which w ill be charged in connection w ith the service.

R E P O R T IN G R E Q U IR E M E N T S

Securities and Exchange Commission Release Nos. 34-13053, 34-13280, and 13831 define the organizations (repo rting in s t itu tions) w hich are required to report to and make inqu iries o f the system. The releases also specify when reports and inqu iries are required. The ru le provisions and im p o rta n t explanatory in fo rm a tio n has been republished in SEC Release No. 34-13832, to which th is Descrip tion o f the system is an appendix.

R E P O R T S

A report is a notice to the system and to a transfe r agent fo r the issue o f (1) securities lost, stolen, m issing, or discovered to be coun te rfe it; (2) recovery o f securities p rev iously reported lost, stolen, or m issing; or (3) a correction or update o f a previous report o ther than recovery.

A ll reporting in s titu tio n s are required to make reports enumerated in paragraph (b) o f ru le 1 7 f- l d irec tly to the appropriate in s trum en ta lity . A ll reports m ust be made on Form X-17F-1A and signed by an authorized in d iv id u a l whose signature is on file w ith the designee. Reports fo r w hich the Commission is the appropriate in s tru m e n ta lity should be mailed to P.O. Box 421, Wellesley H ills , Mass. 02181.

Reports can be made vo lu n ta rily fo r s itu a tions in w hich reporting in s titu t io n s are exempt from reporting requirements. However. a ll reports m ust relate to securities w hich have a CUSIP num ber and m ust show th a t num ber to be accepted by the system.

P re lim inary reports m ay also be made by telephone or telex. P re lim ina ry reports should include the reporting In s t itu t io n ’s

FINS number,1 the CUSIP num ber and certifica te numbers ( inc lud ing a ll prefixes and suffixes) of the securities, and ind ica tion of whether or no t c r im in a lity is suspected. Prelim in a ry reports m ust be fo llowed by a w r it ten report on Form X-17F-1A signed by an authorized in d iv id u a l and m ailed to P.O. Box 421, Wellesley H ills , Mass. 02181.

The designee w ill send a w r itte n report con firm ation to the reporting in s t itu t io n on a weekly basis.

On October 3, 1977, the system w ill be in operation to receive reports and in s titu tio n s required to report m ust begin doing so onth a t date.

IN Q U IR IE S

Inqu iries are made o f the system to determ ine i f securities coming in to the possession or con tro l o f a reporting In s t itu tio n have been previously reported as lost, stolen, m issing, o r coun te rfe it.

Reporting in s titu tio n s m ust e ither be d irect inqu ire rs or in d irec t inqu ire rs o f the system. D irect inqu ire rs make inqu iries o f the system by using telephone, telex, m ail, or magnetic tape sent to the designee. A lternative ly , a reporting in s t itu t io n can pa rtic ip a te as an Ind irec t in q u ire r by arranging w ith a d irec t in q u ire r to act on its behalf in m aking inqu iries o f the system.

Upon registering w ith the system as a d irect inqu ire r, the repo rting in s t itu t io n w il l be assigned appropriate access codes. Each tim e the reporting in s t itu t io n makes an in q u iry o f the system, whether on its own beh a lf or on behalf o f another in s titu t io n , the code w ill be used to insure th a t on ly authorized d irec t inqu ire rs have access to the system.

In add ition to the reporting in s t itu t io n ’s access code, the in q u iry m ust include the in s t itu t io n ’s FINS num ber and the securities’ CUSIP and certificate numbers ( in c lu d ing a ll suffixes and prefixes). M u ltip le in quires can be made in a single m ailing , telephone call, or telex transmission.

In s titu tio n s th a t an tic ipa te a large volume of inqu iries or reports on a regular basis may elect to in p u t to the system via magne tic tape. Such repo rting in s titu tio n s should contact the designee fo r specifications and procedures.

A d irec t in q u ire r can access the system from various s ta tions w ith in its organization . A s ta tion is a departm ent or branch location th a t w ill have its own access code and telephone contact.

D irect inqu iries m aking inqu iries from more than one sta tion can register the add itio n a l sta tions as e ither p rim ary or secondary access stations. A secondary sta tion makes inqu iries of the system d irec tly b u t has its w ritte n con firm ations directed by the designee to a p rim ary access s ta tion o f the in s titu t io n . A p rim ary access s ta tion receives confirm ations fo r its own use o f the system and fo r use by its secondary access sta tions, i f any. A t least one location o f each d irec t in q u ire r m ust be registered as a p r im ary access sta tion. No other stations are required. Every secondary s ta tion m ust be associated w ith one and on ly one p rim ary station.

P R O C E S S IN G O F IN Q U IR IE S

A fte r authorized access fo r purposes o f m aking an in q u iry has been established, the system w il l assign the in q u iry a va lida tion num ber w hich confirm s fo r the d irect in qu ire r th a t the in q u iry was made.


1 In fo rm a tion on where your FINS number can be located Is contained in SEC Release No. 34-13832. to w hich th is m ateria l is appended.

'The system w ill then search the data base to determ ine i f the CUSIP and certificate numbers in th e in q u iry m atch those in a repo rt previously subm itted. I f so, the in q u ir ing in s t itu t io n w il l be no tified im m ediate ly o f the match. This positive con firm ation w ill include ins truc tions on how to contact the reporting in s t itu t io n w h ich subm itted the m atch ing report and notice, i f any, of suspected c r im in a lity .

W ritte n confirm ations o f inqu iries th a t d id no t resu lt in a m atch (negative confirm a tio n ) w ill be m ailed to the d irec t in qu ire r m on th ly along w ith report confirm ations. Confirm ations w ill be m ailed to the p rim ary access sta tion.

An optiona l p rom pt w r itte n confirm ation service w ill be available to d irect inqu ire rs a t add itiona l cost. W ith th is service, the p r im ary access sta tion w ill receive p rom pt confirm a tio n by m a il o f a ll inqu iries (and whether positive or negative) and o f a ll reports received by the system from th a t statio n or its secondary access stations. There w ill be one such m a iling fo r each day on w h ich reports and /o r inqu iries were received from the sta tion or its secondary access stations.

On January 2, 1978, the system w ill be in operation to receive inqu iries, and in s t itu tions required to make inqu iries m ust begin doing so on th a t date.

S C H E D U L E O F C H A R G E S

Under a p ric ing s truc tu re and schedule o f fees approved by the Commission, organ izations th a t are d irec t inqu ire rs w ill be charged (1) an annual reg is tra tion fee, (2) a one-tim e assessment to cover system development, and (3) usage fees. An ind irec t in q u ire r m ust make separate arrangements w ith the In s t itu tio n th a t makes inqu iries on its behalf to compensate th a t d irect inqu ire r fo r its costs and services.

Fees do n o t cover p a rtic ip a n t’s use of the mails, telephone, or telex fo r m aking reports or inqu iries, nor any tra in in g or education o f employees o f d irec t or in d irec t inqu ire rs in connection w ith the use o f the system.

R e g i s t r a t i o n .—This annual fee fo r d irect inqu ire rs covers the cost of m a in ta in ing reg is tra tion data, assignment o f access codes, and b illin g of a ll charges.

F o r t h e p i l o t y e a r

41031

For each p rim ary access s ta tio n____ $18. 00For each secondary access s ta tio n — 9. 00S y s te m d e v e lo p m e n t .—There w ill be a one

tim e assessment to cover the costs o f development of software and hardware to operate the system. The costs o f developm ent w ill be divided evenly among a ll d irect inqu ire rs and the per user charge w ill depend on the num ber of d irect inquirers.Estim ated one-tim e a s s e s s m e n t

(based on antic ipa ted 5,000 d irect users) __________________________$30.00U s a g e .— These fees w ill cover the costs of

ve rifica tion o f authorized system access, m atch ing of reports and inqu iries, n o tifica t io n of matches, and confirm ation of in quiries.

Usage charges w ill be b illed quarte rly in advance to a single p rim ary access station. The charges ou tlined below are based on estim ates o f the num ber o f d irec t inqu ire rs in each size classification (5,000 to ta l) and of the aggregate num ber of Inquiries (10,000 per day). The firs t qua rte rly b ill in g w ill be adjusted to reflect the actual num ber of d irect inqu ire rs in each size classification. Subsequent quarte rly b illings w ill be adjusted to reflect actual aggregate volume of inquiries.

FEDERAL REGISTER, VOL. 42, NO. 156— FRIDAY, AUGUST 12, 1977



Type S iz e E stim a ted Usage Charges

Banks Amount o f D e p o s its Annual Quarterlyo v er $1 B i l l i o n $ 2 ,4 0 0 .0 0 $ 6 0 0 .0 0

$500 M i l l io n to $1 B i l l i o n

1 ,2 0 0 ,0 0 3 0 0 .0 0

L ess than $500 M ill io n

5 0 .0 0 1 2 .5 0

S e c u r it ie sAnnual Kevenue (H ost 'recent Annual Q u a rterly

o rg a n iza tio n s

------- :-—*— — T—over $25 M i l l i o n $ 2 ,4 0 0 .0 0 $ 6 0 0 .0 0

$5 M i l l io n to $25 M i l l io n

1 , 650.00 412.5O

$ 5 0 0 ,0 0 0 .to- $5 M i l l i o n ' '. . 3.60, 00. 9O.CC

Loss than $ 5 0 0 ,0 0 0 100.00 25.00

Mon-BankT ran sfer

Number o f Sh ares issu e d h ast Year

Annual* Quarterlyagents 100,000 shares

Dr Jiiore$ 9 0 .0 0 $ 2 2 .5 0

L ess th an 1 0 0 ,0 0 0 sh ares

5 0 .0 0 1 2 .5 01 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

P R O M P T W R IT T E N C O N F IR M A T IO N S E R V IC E (O P T I O N A L )

For m a iling o f p rom p t w r itte n confirm ations o f a ll inqu iries and reports received from a d irec t in q u ire r each day v ia m ail, telephone or te lex:Each p rim a ry access s ta tio n usingthe service (per quarter)------- $16. COA dd itiona l in fo rm a tion , in c lu d in g p ro

cedural in s truc tions and telephone and telex numbers, w il l be m ailed to d irec t inqu ire rs a fte r reg is tra tion form s have been received and processed.

Appendix VL O S T , S T O L E N , M I S S I N G , A N D C O U N T E R F E IT SE

C U R IT IE S I N F O R M A T I O N S Y S T E M

R e g i s t r a t i o n F o r m

Organizations required by Securities and Exchange Commission Rule 1 7 f- l (under section 17(f) o f the Securities and Exchange A ct o f 1934, as amended by Pub. L. 94-29 (June 4, 1975)), to make reports to and in

qu iries o f the lost, stolen, m issing, and coun te rfe it securities in fo rm a tio n system are shown by categories below. A ll such o rgan izations m ust complete and re tu rn th is fo rm to the Securities In fo rm a tio n Center, Inc. ( “ designee” ) by September 23, 1977, in order to be able to fu l f i l l th e ir responsibilities under the law.

F i l l o u t and re tu rn th is fo rm to : Securities In fo rm a tio n Center, Inc., Post Office Box 421, Wellesley H ills , Mass. 02181.

E n titie s ( “ reporting in s titu t io n s ” ) requ ired to make reports o f and inqu iries to the system (check each classification approp ria te to y o u ):

( ) 1. Federal Reserve System member.

( ) 2. Bank whose deposits are insuredby the Federal Deposit Insurance Corporatio n .

( ) 3. N ational Securities Exchange.( ) 4. N ational Securities Exchange mem

ber.( ) 5. N ational Securities Exchange mem

ber firm .( ) 6. Registered Securities Association.( ) 7. Registered Securities Association

member.( ) 8. Securities broker.( ) 9. Securities dealer.( ) 10. M un ic ipa l securities dealer.*( ) 11. Registered transfer agent.( ) 12. Registered clearing agency.( ) 13. P a rtic ipan t in a registered clear

ing agency.Name o f reporting in s t itu t io n :_________ _

Address:

A t te n t io n :______________________________FINS Id e n t if ic a t io n No.1 □ □ □ □ □ □Telephone No. ( ) ___________________

S ize of In stitu tio n

Check one o f the fo llow ing th a t describes the size o f your organization.

Bank (a ll those who have checked e ither classification 1 or 2 above). □ More th a n $1 b illio n in deposits; □ w ith $500 m illio n to $1 b illio n in deposits; □ less than $500 m illio n in deposits.

1 In fo rm a tion on where your FINS nu m ber can be located is contained in SEC Release No. 34- , to which th is m ateria l isappended.

Securities organization: □ W ith over $25 m illio n in annual revenue; □ w ith more th a n $5 m illio n b u t less th a n $25 m illio n in annual revenue; □ w ith $500,000 to $5 m illio n in annual revenue; □ w ith less than $500,000 in annual revenue.

N on-bank transfe r agents (those who check on ly classification 11 above): □ That issue 100,000 shares or more per year; Q th a t issue less th a n 100,000 shares per year.

M e t h o d o f i n q u i r y .—In it ia l one o f the two statements below to ind icate whether you w ill make inqu iries o f the system as a “ di-. rec t in q u ire r” or " in d ire c t in q u ire r.” D irect inqu ire rs should also ind icate whether they w ill use m u ltip le access stations and /o r the p rom pt con firm ation service. These usage options and the charges related to each are ou tlined in the “ descrip tion o f the system.”

D irect Inqu ire r: Beginning January 2,1978, we w ill make inqu iries of the system d irec tly . We agree to pay to the designee the annual reg is tra tion fees o f $18 fo r each p r im ary access s ta tion and $9 fo r each secondary access sta tion. We also agree to pay the advance quarte rly usage charges and the one-tim e assessment fo r system development costs approved by the Commission and o u tlin e d in the “ Description o f the System,” w h ich Is appended to SEC Release No. 34------ .

D irect inqu ire rs should use the boxes below to ind icate the num ber o f stations they w i l l use to make inqu iries to the system. I f these boxes are n o t filled , i t w il l be presumed th a t there w ill be 1 p rim ary and no seconda ry access stations, the m andatory m in im um .

□ Num ber o f p rim ary access stations.□ Num ber o f secondary access stations.D irect inqu ire rs th a t w ish to have the

p rom pt w r itte n con firm ation service should check the b lock below:

□ We w ish to have the p rom pt w ritte n con firm ation service as ou tlined in the “ Descrip tion o f the System.” We agree to pay $16 per quarte r fo r th is service.

We agree to pay amounts equal to a ll sales, use and excise taxes, or o ther taxes w hich may be levied upon or in connection w ith the fu rn ish in g o f the fac ilities or service o f the system.

Terms: A ll fees are due and payable w ith in ten days o f date o f invoicing.

I n d i r e c t i n q u i r e r : We have made arrangements w i t h ______________________________

(Name of d irec t in q u ire r)who w ill make inqu iries of the system on our behalf. We are aware th a t we w il l receive no d irec t confirm ations from the designee and th a t the in s t itu t io n th a t makes inqu iries fo r us may pass th rough to us the costs o f using the system on our behalf as w ell as add itiona l service charges.

We understand th a t the Lost, Stolen, Missing, and C oun terfe it Securities In fo rm a tio n System w il l operate as a one-year p ilo t program. In add ition to m aking reports and inqu iries to the designee, we w ill take a ll o ther steps necessary fo r reporting to the appropriate in s tru m e n ta lity and law enforcem ent agencies in fo rm a tion re la ting to lost, stolen, m issing, and coun te rfe it securities.

The designee w ill perform its work in a businesslike m anner and in accordance w ith reasonable standards of care. The designee does no t, however, guarantee the accuracy of any in fo rm a tio n contained in the records of the system or o f the responses to inqu iries concerning lost, stolen, missing, or counterfe it securities fu rn ished by it . The designee sha ll n o t be liab le fo r any u n in ten tio n a l delays, inaccuracies, errors, or omissions in said responses or fo r any damages aris ing therefrom or occasioned thereby. TTie designee shall n o t be liab le fo r non-perform ance or in te rru p tio n o f services due to fire, storms,

FEDERAL REGISTER, VOL. 4 2 , NO. 156— FRIDAY, AUGUST 12, 1977



strikes, labor disputes, or any cause beyond its con tro l or due to the act or omission o f any o ther person, firm , or corporation.

Authorized s ig n a tu re (s ):(Signed) --------- --------------------(Typed) -------------- ---------------,

(T itle )D a te d :__ _____ ________

(Signed) -----------------------------(Typed) _________________ _

(T itle )D a te d :__________________Please sign and re tu rn th is registration

form to the Securities In fo rm a tion Center, Inc., the Commission’s designee, a t P.O. Box 421, Wellesley H ills , Mass. 02181, by September 23, 1977, The Securities In fo rm a tion Center w ill send to a ll d irect inqu ire rs by October 3, 1977, fu rth e r in fo rm a tion on how to access the system.

(FR Doc.77-23188 F iled 8-11-77:8:45 am]

FEOERAL REGISTER, V O t. 42, NO 156— FRIDAY, AUGUST 12, 1977


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Lost, Stolen, Missing and Counterfeit Securities Information System

REGISTRATION FORMORGANIZATIONS REQUIRED BY SECURITIES AND EXCHANGE COMMISSION RULE 17f-l (UNDER SECTION 17(f) OF THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED BY PUBLIC LAW NO. 94-29 (JUNE 4, 1975) TO MAKE REPORTS TO AND INQUIRIES OF THE LOST, STOLEN, MISSING AND COUNTERFEIT SECURITIES INFORMATION SYSTEM ARE SHOWN BY CATEGORIES BELOW. ALL SUCH ORGANIZATIONS MUST COMPLETE AND RETURN THIS FORM TO THE SECURITIES INFORMATION CENTER, INC. ("DESIGNEE") BY SEPTEMBER 23, 1977 IN ORDER TO BE ABLE TO FULFILL THEIR RESPONSIBILITIES UNDER THE LAW.FILL OUT AND RETURN THIS FORM TO:

Securities Information Center, Inc.Post Office Box 421Wellesley Hills, Massachusetts 02181

Entities ("Reporting Institutions") required to make Reports of and Inquiries to the System (check each classification appropriate to you):

( ) 1. Federal Reserve System Member( ) 2. Bank whose deposits are insured by the

Federal Deposit Insurance Corporation

(

(

(

(

(

(

(

(

) 3. National Securities Exchange) 4. National Securities Exchange Member) 5. National Securities Exchange Member Firm) 6. Registered Securities Association) 7. Registered Securities Association Member) 8. Securities Broker) 9. Securities Dealer) 10. Municipal Securities Dealer

( ) 11. Registered Transfer Agent ( ) 12. Registered Clearing Agency( ) 13. Participant in a Registered Clearing Agency


2

Name of Reporting Institution:

Address:

Attention: __________________________________ ____________FINS Identification No. * ___ ___ ___ ___Telephone N o . ( ) __________________________

SIZE OF INSTITUTIONCheck one of the following that describes the size of your organization.Bank (All those who have checked either classification

1 or 2 above)

_____ More than $1 billion in deposits

_____r With $500 million to $1 billion in deposits

_____ Less than $500 million in depositsSecurities Organization

_____With over $25 million in annual revenue

_____ With more than $5 million but less than $25million in annual revenue

_____ With $500,000 to $5 million in annual revenue

___ With less than $500,000 in annual revenue

* Information on where your FINS Number can be located is contained in SEC Release No. 34-13832, to which this material is appended.


*

Non-Bank Transfer Agents (Those who check onlyclassification 11 above)

- 3 -

That issued 100,000 shares or more last year

1 1 That issued less than 100,000 shares last year

METHOD OF INQUIRYInitial one of the two statements below to indicate whether you will make Inquiries of the System as a ’’Direct Inquirer” or ’’Indirect Inquirer." Direct Inquirers should also indicate whether they will use multiple access stations and/or the Prompt Confirmation Service. These usage options and the charges related to each are outlined in the "Description of the System," Appendix IV to SEC Release No. 34-13832._____ DIRECT INQUIRER: Beginning January 2, 1978,

we will make Inquiries of the System directly.We agree to pay to the Designee the annual registration fees of $18.00 for each Primary Access Station and $9.00 for each Secondary Access Station. We also agree to pay the advance quarterly usage charges and the one-time assessment for system development costs approved by the Commission and outlined in the "Description of the System," which is appended to SEC Release No. 34-13832,Direct Inquirers should use the boxes below to indicate the number of stations they will use to make Inquiries to the System. If these boxes are not filled, it will be presumed that there will be 1 Primary and no Secondary Access Stations, the mandatory minimum.

Number of Primary Access Stations

_____Number of Secondary Access StationsDirect Inquirers that wish to have the Prompt Written Confirmation Service should check the block below.

We wish to have the Prompt Written Confirmation Service as outlined in the "Description of the System." We agree to pay $16.00 per quarter for this service.


We agree to pay amounts equal to all sales, use and excise taxes, or other taxes which may be levied upon or in connection with the furnishing of the facilities or service of the System.Terms: All fees are due and payable within

ten days of date of invoicing.

INDIRECT INQUIRER: We have made arrangementswith _________________________ __________________

Name of Direct Inquirer who will make Inquiries of the System on our behalf. We are aware that we will receive no direct confirmations from the Designee and that the Institution that makes Inquiries for us may pass through to us the costs of using the System on our behalf as well as additional service charges.

- 4 -

We understand that the Lost, Stolen, Missing and Counterfeit Securities Information System will operate as a one year pilot program. In addition to making Reports and Inquiries to the Designee, we will take all other steps necessary for reporting to the appropriate instrumentality and law enforcement agencies information relating to lost, stolen, missing and counterfeit securities.The Designee will perform its work in a businesslike manner and in accordance with reasonable standards of care.The Designee does not, however, guarantee the accuracy of any information contained in the records of the System or of the responses to inquiries concerning lost, stolen, missing or counterfeit securities furnished by it. The Designee shall not be liable for any unintentional delays, inaccuracies, errors or omissions in said responses or for any damages arising therefrom or occasioned thereby.The Designee shall not be liable for non-performance or interruption of services due to fire, storms, strikes, labor disputes or any cause beyond its control or due to the act or omission of any other person, firm or corporation.Authorized Signature(s)/s/ ___________ ____________ / s / ________________________

Print or Type Name Print or Type Name

Title Title

Date DateTHE SECURITIES INFORMATION CENTER WILL SEND TO ALL DIRECT INQUIRERS BY OCTOBER 3, 1977 FURTHER INFORMATION ON HOW TO ACCESS THE DATA SYSTEM.


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