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Federal R eser ve Bank
OF DALLAS
WILLIAM

H. W A L L A C E

FIRST VICE PR ESID ENT
AND CH IEF O PER ATIN G O FFICER

DALLAS, TEXAS 7 5 2 2 2

August 11, 1989

Circular 89-47

TO:

The Chief Executive Officer of all
member banks and others concerned in
the Eleventh Federal Reserve District
SUBJECT
Over-the-Counter (OTC) Margin Stocks
DETAILS

The Board of Governors of the Federal Reserve System has revised
the list of over-the-counter (OTC) stocks, effective August 14, 1989, that are
subject to its margin regulations. Federal Reserve Banks publish a complete
list once a year and supplements of additions to and deletions from the list
three times a year. The complete list of OTC stocks effective February 13,
1989, and the supplement of additions and deletions effective May 8, 1989, are
available from the Public Affairs Department.
ATTACHMENTS
The material as published in the Federal Register announcing
revisions to the list of OTC stocks effective August 14, 1989 is attached.
MORE INFORMATION
For further information regarding marginable OTC stock
requirements, please contact Dean A. Pankonien at (214) 651-6228. For
additional copies, please contact the Public Affairs Department at
(214) 651-6266.
Sincerely yours,

For ad d ition al c o p ie s of any circ u la r please co n ta ct the P u b lic A ffa irs Departm ent at (214) 651-6289. B anks and others are
encouraged to use the fo llo w in g incom ing W A T S num bers in co n tactin g th is B ank (800) 442-7140 (intrastate) and (800)
527-9200 (interstate).

This publication was digitized and made available b j the Federal Reserve Bank ofD allas' Historical Library (FedHistoiy@dal.frb.otg)

31646

Federal Register / Vol. 54, No. 146 / Tuesday, August 1, 1989 / Rules and Regulations

FEDERAL RESERVE SYSTEM
12 CFR Parts 207, 220, 221, and 224
Regulations G, T, U and X; Securities
Credit Transactions; List of Marginable
OTC Stocks
a g e n c y : Board of Governors of the

Federal Reserve System.
ACTION: Final rule; determination of
applicability of regulations.
su m m a ry: The List of Marginable OTC

Stocks is comprised of stocks traded
over-the-counter (OTC) that have been
determined by the Board of Governors
of the Federal Reserve System to be
subject to the margin requirements
under certain Federal Reserve
regulations. The List is published four
times a year by the Board as a guide for
lenders subject to the regulations and
the general public. This document sets
forth additions to or deletions from the
previously published List which was
effective May 8,1989, and will serve to
give notice to the public about the
changed status of certain stocks.
EFFECTIVE DATE: August 14, 1989.
FOR FURTHER INFORMATION CONTACT:

Peggy Wolffrum, Securities Regulation
Analyst, Division of Banking
Supervision and Regulation, (202) 4522781. For the hearing impaired on ly,
Eamestine Hill or Dorothea Thompson,
Telecommunications Device for the Deaf
(TDD) (202) 452-3544, Board of
Governors of the Federal Reserve
System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION: Set forth

below are stocks representing additions
to or deletions from the Board’s List of
Marginable OTC Stocks. This
supersedes the last List which was
effective May 8,1989. Additions and
deletions for the List were published on
April 24,1989 (54 FR 16357). A copy of
the complete List incorporating these
additions and deletions is availablefrom the Federal Reserve Banks.
The List of Marginable OTC Stocks
includes those stocks that meet the
criteria in Regulations G, T and U (12
CFR Parts 207, 220 and 221,
respectively). This determination also
affects the applicability of Regulation X
(12 CFR Part 224). These stocks have the
degree of national investor interest, the
depth and breadth of market, and the
availability of information respecting
the stock and its issuer to warrant
regulation in the same fashion as
exchange-traded securities. The List
also includes any stock designated

under a Securities and Exchange
Commission (SEC) rule as qualified for
trading in the national market system
(NMS security). Additional OTC stocks
may be designated as NMS securities in
the interim between the Board’s
quarterly publications. They will
become automatically marginable at
broker-dealers upon the effective date of
their NMS designation. The names of
these stocks are available at the Board
and the SEC and will be incorporated
into the Board's next quarterly List.
The requirements of 5 U.S.C. 553 with
respect to notice and public
participation were not followed in
connection with the issuance o f this
amendment due to the objective
character of the criteria for inclusion
and continued inclusion on the List
specified in 12 CFR 207.6 (a) and fb),
220.17 (a) and (b), and 221.7 (a) and (b).
No additional useful information would
be gained by public participation. The
full requirements of 5 U.S.C. 553- with
respect to deferred effective date have
not been followed in connection with
the issuance of this amendment because
the Board finds that it is in the public
interest to facilitate investment and
credit decisions based in whole or in
part upon the composition of this List as
soon as possible. The Board has
responded to a request by the public and
allowed a two-week delay before the
List is effective.
List of Subjects
12 CFR P art 207
Banks, Banking, Credit, Federal
Reserve System, Margin, Margin
requirements, National Market System
(NMS Security), Reporting and
recordkeeping requirements. Securities.
12 CFR P art 220
Banks, Banking, Brokers, Credit,
Federal Reserve System, Margin, Margin
requirements. Investments, National
Market System (NMS Security),
Reporting and recordkeeping
requirements. Securities.
12 CFR P art 221
Banks, Banking, Credit, Federal
Reserve System, Margin, Margin
requirements, National Market System
(NMS Security), Reporting and
recordkeeping requirements. Securities.
12 CFR P art 224
Banks, Banking, Borrowers, Credit,
Federal Reserve System, Margin, Margin
requirements, Reporting and
recordkeeping requirements, Securities.
Accordingly, pursuant to the authority
of sections 7 and 23 of the Securities
Exchange Act of 1934, as amended (15
U.S.C. 78g and 78w), and in accordance

with 12 CFR 207.2(k) and 207.6(eJ
(Regulation G}, 12 CFR
220.2fsJ and
220.17(c) (Regulation T), and 12 CFR
221.2(j) and 221.7(c) (Regulation UJ,
there is set forth below a listing of
deletions from and additions to the
Board's List of Marginable OTC Stocks:
Deletions From List
S to cks R em ov ed F o r F ailin g C ontinued
Listing R equ irem en ts
American Carriers, Inc.
No par common
American Continental Corporation
$.01 par common
$1.00 par exchangeable preferred
American Insured Mortgage Investors
’84
Depository units of limited
partnership interest
Animed, Inc.
$.01 par common
Applied Data Communications, Inc.
$.01 par common
Aris Corporation
$.01 par common
ASK Corporation
No par common
Associated Companies, Inc.
No par common
Avant-Garde Computing, Inc.
No par common
BI Incorporated
No par common
Big Bear, Inc.
$.01 par common
Bio-Technology General Corp.
$.01 par common
Biomerica Inc.
$.04 par common
Bombay Palace Restaurants, Inc.
$.01 par common
BSD Medical Corporation—Delaware
$.01 par common
Butler National Corporation
$.10 par common
Candela Laser Corporation
$.01 par common
Carolin Mines, Ltd.
Class A, no par common
Celina Financial Corporation
Class A, $.50 par common
Chaparral Resources, Inc.
$.10 par common
Charlotte Charles, Inc.
$.10 par common
Charter-Crellin, Inc.
$.01 par common
Chemex Pharmaceuticals, Inc.
Warrants (expire 05-29-89)
Class 1, warrants (expire 05-20-90)
Circle Express, Inc.
No par common
CMS Advertising, Inc.
$.01 par common
Colorocs Corporation
Class D, warrants (expire 05-04-89)

Federal Register / Vol. 54, No. 146 / Tuesday, August 1, 1989 / Rules and Regulations
Comcast Corporation
5%% convertible subordinated
debentures
Commonwealth Mortgage Company, Inc.
$.10 par common
Comp-U-Check, Inc.
$.10 par common
Costco Wholesale Corporation
7Vi% convertible subordinated
debentures
Crescott, Inc.
$.001 par common
De Tomaso Industries, Inc.
$2.50 par common
Dest Corporation
$.01 par common
Digitech, Inc.
$.10 par common
Eagle Telephonies, Inc.
$.01 par common
Electro-Catheter Corporation
$.10 par common
EMS Systems, Ltd.
No par common
Energy Conversion Devices, Inc.
$.01 par common
Exovir, Inc.
$.01 par common
F«rm House Foods Corporation
$.05 par common
Great Southern Federal Savings Bank
(Georgia)
$1.00 par common
GTS Corporation
$.01 par common
Haber, Inc.
$.01 par common
Voting, $2.00 par cumulative
convertible preferred
Harvard Group, PLC
American Depository Receipts for
ordinary shares (par value 2pJ
Health Images, Inc.
Series A, $.01 par cumulative
convertible preferred
Integrated Resources American Insured
Mortgage Investors ’85
Depository units of limited
partnership interest
Kaypro Corporation
No par common
Kenilworth Systems Corporation
$.01 par common
Kimbark Oil & Gas Company
$.10 par common
Kings Road Entertainment, Inc.
$.01 par common
Kreisler Manufacturing Corporation
$.50 par common
Lund Enterprises, Inc.
Warrants (expire 04-30-91)
Margaux, Inc.
$.01 par common
Maxicare Health Plans, Inc.
No par common
7% convertible subordinated
debentures
Municipal Development Corporation
$.01 par common
National Business Systems, Inc.

No par common
New Visions Entertainment Corporation
$.001 par common
Series A, par cumulative convertible
preferred
Nucorp, Inc.
Warrants (expire 10-31-89)
OCG Technology, Inc.
$.10 par common
Olson Industries, Inc.
$3.00 par common
Paper Corporation of America
Series B, $.01 par preferred stock
Ragen Corporation
$.125 par common
Regina Company, Inc., The
$.0001 par common
Reliable Life Insurance Company, Inc.
Class A, $1.00 par common
Ridgewood Properties, Inc.
$.01 par common
Royal Business Group, Inc.
$1.00 par common
RTI, Inc.
$.01 par common
Sahlen & Associates, Inc.
$.001 par common
Scherer, R.P. Corporation
$1.00 par convertible preferred
Scribe Systems, Inc.
$.01 par common
Southland Financial Corporation
$1.00 par common
Staar Surgical Company
$.01 par common
Status Game Corporation
$.01 par common
Sun State Savings and Loan Association
(Arizona)
$1.00 par common
Total Health Systems, Inc.
$.01 par common
TS Industries, Inc.
$.02 par common
United Building Services Corporation of
Delaware
$.01 par common
United States Antimony Corporation
$.01 par common
Vicon Fiber Optics Corporation
$.10 par common
Vipont Pharmaceutical, Inc.
Warrants (expire 06-25-89)
S tocks R em ov ed fo r Listing on a
N ation al S ecu rities E xchan ge o r B eing
In v olv ed in an A cquisition
American Income Life Insurance
Company
$1.00 par common
Apollo Computer, Inc.
$.02 par common
7Vi% convertible subordinated
debentures
Bank of Redlands
$1.25 par common
Berry Petroleum Company
Class A, $.01 par common
Blockbuster Entertainment Corp.

31647

$.10 par common
Brandywine Savings & Loan Association
(Pennsylvania)
$1.00 par common
Brinkman Instruments, Inc.
$.01 par common
Brintec Corporation
$.01 par common
Cadnetix Corp.
$.01 par common
Cherokee Group, The
No par common
Colonial American Bankshares
Corporation
$5.00 par common
Component Technology Corp.
$.01 par common
Conversion Industries, Inc.
No par common
CPI Corporation
$.40 par common
Criterion Group, Inc.
Class A, $.01 par common
Enseco Incorporated
$.01 par common
Envirodyne Industries, Inc.
$.10 par common
Excelan, Inc.
$.01 par common
Falstaff Brewing Corporation
$1.00 par common
General Ceramics, Inc.
$1.00 par common
Holmes, D.H. Company, Limited
$2.50 par common
HWC Distribution Corp.
$.01 par common
Irwin Magnetic Systems, Inc.
$.001 par common
ISC Systems Corporation
No par common
Itel Corporation
$1.00 par common
Class B, Series C, $1.00 par
convertible perferred
Kemper Corporation
$5.00 par common
Krueger, W.A. Company
$.20 par common
Land of Lincoln Savings and Loan
$1.00 par common
Mayfair Industries, Inc.
$.01 par common
MBS Textbook Exchange, Inc.
$.01 par common
National FSI, Inc.
$.01 par common
Network Equipment Technologies, Inc.
$.01 par common
Pacific Western Bancshares
No par common
Plant Genetics, Inc.
$.01 par common
Poly-Tech, Inc.
No par common
Polymer International Corp.
$.01 par common
Princeville Corp.
$.20 par common

31648

Federal Register / Vol. 54, No. 146 / Tuesday, August 1. 1989 / Rules and Regulations

Property Trust of America
$1.00 par shares of beneficial interest
Rowe Furniture Corporation
$1.00 par common
Servico, Inc.
$.10 par common
Sound Warehouse, Inc.
$.01 par common
Stocker & Yale, Inc.
$1.00 par common
Stotler Group Inc.
$1.00 par common
Superior Electric Company, The
$1.00 par common
TCF Financial Corporation
$.01 par common
Thrifty Rent-a-Car System, Inc.
$.05 par common
Timberjack Corporation
$.01 par common
Total System Services, Inc.
$.10 par common
United Artists Communications, Inc.
$.01 par common
Universal Furniture Limited
$.01 par ordinary shares
Vitronics Corporation
$.01 par common
Waxman Industries, Inc.
No par common
Additions to the List
Akzo, N.V.
American Depository Receipts
Alameda Bancorporation
$2.50 par common
America First Financial Fund 1987—A
Limited Partnership
Beneficial unit certificates,
representing limited partnership
interest
Bank Maryland Corp.
$.05 par common
Biogen, Inc.
$.01 par convertible exchangeable
preferred
Bytex Corporation
$.10 par common
CCAIR, Inc.
$.01 par common
Cell Technology, Inc.
$.01 par common
Warrantes (expire 08-27-92)
Chemdesign Corporation
$.01 par common
Chempower, Inc.
$.10 par common
Cirrus Logic, Inc.
No par common
Columbia Pictures Entertainment, Inc.
Warrants (expire 06-01-92}
Comptronix Corporation
$.01 par common
Conservative Savings Bank (Nebraska)
$.01 pap common
Consilium, Inc.
No par common
Cooker Restaurant Corporation

No par common
CRH, PLC
American Depository Receipts
Duty Free International, Inc.
$.01 par common
Dyncorp
Class A, 17% redeemable preferred
Eastchester Financial Corporation
$.01 par common
Fidelity Federal Savings Bank (Virginia)
$8.00 par common
First Financial Management Corp.
7% convertible subordinated
debentures
First Merchants Corpora!ion
No par common
First Western Bancorp, Inc.
(Pennsylvania)
$5.00 par common
Fleet Aerospace, Inc.
$.01 par common
Foothill Independent Bancorp
No par common
Goal Systems International, Inc.
No par common
Handex Environmental Recovery, Inc.
$.01 par common
Independent Bankgronp, Inc. (Vermont)
$1X10 par common
James Madison Limited
$1.00 par common
Kentucky Medical Insurance Company
Class A, $2.80 par common
Lifeline Healthcare Group, Ltd.
$.10 par common
Miniscribe Corporation
7l/t% convertible subordinated
debentures
Mission-Valley Bancorp (California)
No par common
Nationwide Cellular Service, Inc.
$.01 par common
Warrants (expire 05-01-92)
New Milford Bank & Trust Company,
The (Connecticut!
$5.00 par common
Pioneer Federal Savings Bank
(Washington)
$1.00 par common
POP Radio Corporation
. $.01 par common
Providence and Worchester Railroad
Company
$.50 par common
Rexhall Industries, Inc.
No par common
Robert Half International, Inc.
7Vi% convertible subordinated
debentures
Schultz Sav-O Stores, Inc.
$.05 par common
Sevenson Environmental Serv ices. Inc.
$.10 par common
Staples, Inc.
$.0006 par common
Symantec Corporation
$.01 par common
Synetic, Inc.
$.01 par common

Tele-Communications, Inc.
Rights (expire 01-31-95)
Tocor, Inc.
Units (expire 12-31-94)
Tseng Labs, Inc.
$.005 par common
United Artists Entertainment Company
Class A, $.001 par common
Class B, $.001 par common
Unitog Company
$.01 par common
UNR Industries, Inc.
Warrants (expire 05-31-95}
Xsirius Scientific, Inc.
$.01 par common
Yankee Energy System, Inc.
$5.00 par common
By order of the Board of Governors of
the Federal Reserve System, acting by
its Staff Director of the Division of
Banking Supervision and Regulation
pursuant to delegated authority (12 CFR
265.2(c)(18)}, July 28,1989.
William W. Wiles,
Secretary o f the Board.
[FR Doc. 89-17887 Filed 7-31-89; 8:45 am)
BILLING CODE 6210-01-M


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102