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Federal R eserve Bank OF DALLAS W ILLIAM H. W ALLACE F IR S T VICE p r e s i d e n t „ DALLAS, TEXAS 75222 , November 17, 1986 Circular 86-95 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 that are subject to its margin regulations. The Federal Reserve Bank of Dallas will be publishing a complete list once a year and publishing supplements of additions to and deletions from the list three times a year. The complete list of OTC stocks effective May 13, 1986 and supplements of additions and deletions effective August 11, 1986 and November 11, 1986 are available from the Public Affairs Department. ATTACHMENTS The Board's press release and the material as published in the Federal Register announcing revisions to the list of OTC stocks effective November 11, 1986 are attached. MORE INFORMATION For further information regarding marginable OTC stock requirements, please contact David W. Dixon of this Bank's Legal Department at (214) 651-6228. Sincerely yours, y . For additional copies of any circular please contact the Public Affairs Department at (214) 651-6289. Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank (800) 442-7140 (intrastate) and (800) 527-9200 (interstate). This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERALRESERVEpres^Blease For use in morning papers October 27, 1986 October 24, 1986 The Federal Reserve Board today published a revised list of over-the-counter (OTC) stocks that are subject to its margin regulations, effective November 11, 1986. This List of Marginable OTC Stocks supersedes the revised List of Marginable OTC Stocks that was effective on August 12, 1986. Changes that have been made in the List, which now includes 2,887 OTC stocks, are as follows; — 219 stocks have been included for the first time, 181 under NMS designation. — 40 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing. — 42 stocks have been removed for reasons such as listing on a national securities exchange or involvement in an acquisition. The list includes all over-the-counter securities designated by the Board pursuant to its established criteria as well as all securities qualified for trading in the national market system (NMS). This list includes all securities qualified for trading in Tier 1 of the NMS through November 11 and those in Tier 2 through October 21, 1986. Additional OTC securities may be designated as NMS securities in the interim between the Board's quarterly publications and will be immediately marginable. The next publication of the Board's list is scheduled for January 1987. 2 In addition to NMS designated securities, the Board will continue to monitor the market activity of other OTC stocks to determine which stocks meet the requirements for inclusion and continued inclusion on the List. Margin regulations generally limit the amount of credit a person or firm may obtain to buy or carry stock. Stocks on the List of Magrinable OTC Stocks are subject to the same margin requirements (currently 50 percent) as stocks listed on national securities exchanges. This means a person or firm buying a stock on credit must make a down payment equal to at least 50 percent of the purchase price of the stock and may obtain credit for the remaining 50 percent. These margin requirements are only applicable to credit extended on OTC Stocks after they are placed on the List and the List has become effective or are designated as NMS Securities. No credit may be extended by broker/dealers on OTC stocks not on the List or in the NMS group. Credit extended by banks and other lenders on the remaining OTC stocks need only conform to the good faith lending limitation contained in Regulations G and U. It is unlawful for any person to cause any representation to be made that inclusion of a stock on this List indicates that the Board or the Securities and Exchange Commission has in any way passed upon the merits of any such stock or transaction therein. Any references to the Board in connection with the List or any stocks thereon in any advertisement or similar communications is unlawful. - 0 - 39642 Federal Register / Vol. 51, No. 210 / Thursday, October 30, 1986 / Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Parts 207,220,221 and 224 Regulations G, T, U, and X; Securities Credit Transactions a g e n c y : Board of Governors of the Federal Reserve System. a c t i o n : Final Rule. SUMMARY: 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 from time to time 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 effective August 12,1986 and will serve to give notice to the public about the changed status of certain stocks. EFFECTIVE DATE: November 11,1986. FOR FURTHER INFORMATION CONTACT: Peggy Wolffrum, Research Assistant, Federal Register / Vol. 51, No. 210 / Thursday, October 30, 1986 / Rules and Regulations Division of Banking Supervision and Regulation, (202)-452-2781, Earnestine 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. A copy of the complete List incorporating these additions and deletions was filed with the original of this document. This List supersedes the last complete List which was effective August 12,1986 (51 FR 27518, August 1,1986). The List includes those stocks that meet the criteria specified by the Board of Governors in Regulations G, T, U, and X (12 CFR 207, 220, 221 and 224, respectively). They 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. It also includes, as a result of an amendment to the margin regulations (49 FR 35756, September 12,1984), any stock designated under an SEC rule as qualified for trading in a national market system (NMS Security). The List of Marginable OTC Stocks, as it is now called, is a composite of the List of OTC Margin Stocks and all NMS securities. Additional OTC securities may be designated as NMS securities in the interim between the Board’s quarterly publications. They will become automatically marginable at brokerdealers upon the effective date of their designation. The names of these securities are available at the Board and the Securities and Exchange Commission and will be subsequently incorporated into the Board’s next quarterly List. Copies of the current List may be obtained from any Federal Reserve Bank. The requirements of 5 U.S.C. 553 with respect to notice and public participation were not followed in connection with the issuance of 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 (b), 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 Part 207 Banks, Banking, Credit, Federal Reserve System, Margin, Margin requirements, National Market System (NMS Security), Reporting and recordkeeping requirements, Securities. 12 CFR Part 220 Banks, Banking, Brokers, Credit, Federal Reserve System, Margin, Margin requirements, Investments, National Market System (NMS Security), Reporting and recordkeeping requirements, Securities. 12 CFR Part 221 Banks, Banking, Credit, Federal Reserve System, Margin, Margin requirements, Securities, National Market System (NMS Security), Reporting and recordkeeping requirements. 12 CFR Part 224 Banks, Banking, Borrowers, Credit, Federal Reserve System, Margin, Margin requirements, Reporting 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 § 207.2(k) and 6(c) of Regulation G, § 220.2(s) and 17(c) of Regulation T, and § 221.2(j) and 7(c) of Regulation U, there is set forth below a listing of deletions from and additions to the Board's List: Deletions From List Stocks Removed for Failing Continued Listing Requirements Alamo Savings Association of Texas $1.50 par capital A M Cable TV Industries, Inc. $.10 par common Amerford International Corporation $.05 par common American Metals Service, Inc. $.01 par common Bancoklahoma Corporation Series A, $2.50 convertible preferred Barber-Greene Company $5.00 par common Birdfinder Corp. $.01 par common Birdview Satellite Communications, Inc. $.01 par common Brooks Satellite, Inc. $.01 par common Colonial Gas Company 39643 $1.80 cumulative convertible preferred Communications Corporation of America $.01 par common Computer Depot, Inc. $.01 par common Computercraft, Inc. $.01 par common D’Lites of America, Inc. $.005 par common Decom Systems, Inc. Warrants (expire 09-30-86) Divi Hotels, N.V. Warrants (expire 03-17-88) EMF Corporation No par common Eastmet Corporation $1.00 par common Endo-Lase, Inc. $.01 par common First Oklahoma Bancorporation, Inc. $5.00 par common Flakey Jake’s, Inc. $.01 par common Forum Group, Inc. Warrants (expire 08-10-86) Founders Financial Corporation $1.00 par common Freedom Savings and Loan Association (Florida) $1.00 par common Henredon Furniture Industries, Inc. $2.00 par common Homecrafters Warehouse, Inc. $.01 par common Infotech Management, Inc. $.01 par common Insituform of North America, Inc. Warrants (expire 08-26-86) Magnetic Technologies Corporation $.10 par common Max & Erma’s Restaurants, Inc. $.10 par common Naugles, Inc. No par common Warrants (expire 0430-89) Novus Property Company $1.00 par shares of beneficial interest Offshore Logistics, Inc. No par common Prodigy Systems, Inc. $.01 par common Progressive Corporation, The (Ohio) 7% convertible subordinated debentures Protocol Computers, Inc. $.001 par common Rand Information Systems, Inc. $.30 par common Scope Inc. $1.00 par common Tipperary Corporation $.50 par common Stocks Removed for Listing on a National Securities Exchange or Being Involved in an Acquisition Ally & Gargano, Inc. 39644 Federal Register / Vol. 61, No. 210 / Thursday, October 30, 1986 / Rules and Regulations $1.00 par common American National Holding Company $5.00 par common Applied Communications, Inc. $.10 par common Athens Federal Savings Bank $1.00 par common Bay Pacific Health Corporation $.01 par common BBDO International, Inc. $.10 par common Citizens Savings and Loan, F.A. (Virginia) $1.00 par common Comdata Network, Inc. $.02 par common Computer Associates International, Inc. $.10 par common Conseco, Inc. No par common Consolidated Capital Income Opportunity Trust No par shares of beneficial interest Warrants (expire 12-19-89) Converse Inc. $1.00 par common DCNY Corporation $1.00 par common Divi Hotels, N.V. $1.00 par common Doxsee Food Corporation $.10 par common Eldon Industries, Inc. $1.00 par common Entertainment Marketing, Incorporated $.01 par common General Shale Products Corporation No par common Graco Inc. $1.00 par common Heritage Federal Savings and Loan Association (Florida) $.01 par common Idle Wild Foods, Inc. $1.00 par common Infrared Industries, Inc. No par common Intecom, Inc. No par common J.P. Industries, Inc. $.10 par common King World Productions, Inc. $.01 par common Monumental Corporation $3.50 par common One Liberty Properties, Inc. $1.00 par common Open Air Markets, Inc. $.05 par common Patriot Bancorporation $3.33 V par common s $1.00 par cumulative convertible preferred Power Conversion, Inc. $.01 par common PT Components, Inc. $.01 par common Quotron Systems, Inc. $.10 par common Rectisel Corporation $.10 par common Republic Health Corporation $.05 par common Stanhome Inc. $1.00 par common Thor Industries, Inc. $.10 par common Ultrasystems Inc. No par common Victory Markets Inc. $.33% par common Warner Computer Systems, Inc. $.01 par common Weschester Financial Services Corporation $.01 par common Additions to the List A.C. Teleconnect Corp. $.015 par common Acme Steel Company $1.00 par common Acuson Corporation No par common Adams-Russell, Electronics Company, Inc. $.01 par common Aero Services International. Inc. No par convertible preferred Aifs, Inc. $.10 par common Alliance Financial Corporation $10.00 par common Alloy Computer Products, Inc. $.01 par common Ambassador Financial Group, Inc. $.01 par common Amcore Financial, Inc. $.50 par common America West Airlines, Inc. 7.5% convertible subordinated debentures American Capacity Group, Inc. $1.00 par common American Consumer Products, Inc. $.10 par common American Reliance Group, Inc. $.01 par common American Television & Communications Corporation Class A, $.01 par common American Woodmark Corporation No par common Amwest Insurance Group, Inc. No par common Andover Savings Bank (Massachusetts) $.10 par common Apollo Computer, Inc. 7h4% convertible subordinated debentures Aritech Corp. $1.00 par common Armor All Products Corporation $.01 par common Associated Inns and Restaurants Company of America $.01 par common A ll Medical, Inc. No par common Atlantic Bancorporation (New Jersey) $2.50 par common Baldwin Piano and Organ Company $.01 par common Banking Center, The $1.00 par common Bio-Medicus, Inc. Warrants (expire 8-31-88) Bio-Technology General Corporation $.01 par common Bombay Palace Restaurants, Inc. $4)1 par common Bonneville Pacific Corporation &01 par common Boulevard Bancorp, Inc. &04 par common Buffets, Inc. $.01 par common Businessland, Inc. 8% convertible subordinated debentures CL Assets, Inc. $1.00 par common Calgene, Inc. No par common Cambridge Analytical Associates, Inc. $4)1 par common Canonie Environmental Services Corp. $.01 par common Cellular Communications, Inc. $.01 par common Chips and Technologies, Inc. $.01 par common Cimco $.01 par common Citizens Insurance Company of America, Inc. Class A, $1.00 par common City Savings Bank of Meriden (Connecticut) $1.00 par common CJI Industries, Inc. Class A, $1.00 par common Clevite Industries, Inc. $4)2 par common Warrants (expire 6-30-91) Commercial Security Bancorporation No par common Commonwealth Mortgage Company, Inc. $.10 par common Community National Bank and Trust Company of New York $.50 par common Community Savings Bank (Massachusetts) $.10 par common C-Tec Corporation Class B, $1.00 par common Cytogen Corporation $.01 par common Datavision. Inc. $4)1 par common Devon Group, Inc. $.01 par common Diagnostic. Inc. $.01 par common Dime Savings Bank of New York, F.S.B. Federal Register / Vol. 51, No. 210 / Thursday, October 30, 1986 / Rules and Regulations $1.00 par common DNA Plant Technology Corporation Warrants (expire 1-17-90) Dominion Federal Savings and Loan Association (Virginia) $.01 par common Dotronix, Inc. $.05 par common Duratek Corporation $.01 par common Eagle Bancshares, Inc. $1.00 par common Ealing Corporation, The $.10 par common East Weymouth Savings Bank (Massachusetts) $.01 par common Edison Control, Inc. $.01 par common Excel Bancorp, Inc. $.10 par common F&M Financial Services Corporation $1.00 par common Federal National Mortgage Association Warrants (expire 2-25-91) FHP Corporation $1.00 par common Fidelcor, Inc. Series B, convertible preferred Fidelity Federal Savings and Loan Association of Tennessee $1.00 par common Financial National Bancshares, Inc. No par common First Banc Securities, Inc. $5.00 par common First Federal of the Carolinas, F.A. $1.00 par common First Fidelity Bancorporation (New Jersey) Series C, $4.00 par cumulative convertible preferred First Home Federal Savings and Loan Association (Florida) $1.00 par common First Service Bank for Savings (Massachusetts) $.10 par common Fiserv, Inc. $.01 par common Frontier Insurance Group, Inc. $.01 par common Gear, L.A., Inc. No par common General Parametrics Corporation $.01 par common Geonex Corporation $.01 par common Golden Poultry Company, Inc. $1.00 par common Granite Cooperative Bank (Massachusetts) $.10 par common Granite State Bankshares, Inc. (New Hampshire) $1.00 par common Great Falls Gas Company $.15 par common Hana Biologies, Inc. $.01 par common Harleysville Group, Inc. $1.00 par common Hamischfeger Corporation Warrants (expire 04-15-89) Harper International, Inc. $.10 par common Healthsouth Rehabilitation Corporation $.01 par common Heritage Entertainment, Inc. Series A, warrants (expire 1989) Hitachi, Ltd. 5%% convertible subordinated debentures Home Federal Savings and Loan Association of San Francisco $1.00 par common Home Federal Savings and Loan Association of Upper East Tennessee $1.00 par common Home Federal Savings Bank, Northern Ohio $.01 par common Home Intensive Care, Inc. $.01 par common $.01 par cumulative convertible preferred Warrants (expire 02-29-89) Horizon Bank (Washington) $1.00 par common Hygeia Sciences, Inc. $.01 par common IDB Communications Group, Inc. $.01 par common Independence Federal Savings Bank (Washington, DC) $.10 par common Insituform Southeast Corporation $.44 par common Interactive Technologies Inc. No par common Interchange State Bank (New Jersey) $2.50 par common International H.R.S. Industries, Inc. No par common Itel Corporation Class B, Series A, $1.00 par convertible preferred Class B, Series B, $1.00 par convertible preferred Jiffy Lube International, Inc. $.05 par common Joule, Inc. $.01 par common Kenan Transport Company No par common Landmark Bank for Savings (Massachusetts) $.10 par common Lands* End, Inc. $.01 par common Lasertechnics, Inc. $.01 par common Laurel Entertainment, Inc. $.001 par common Lawrence Savings Bank (Massachusetts) $.10 par common Life Technologies, Inc. 39645 $.01 par common Lincoln Logs, Ltd. $.01 par common Linear Technology Corporation . No par common Liposome Company, The $.01 par common Long Lake Energy Corporation $.001 par common LoWell Institution for Savings (Massachusetts) $.10 par common M.S. Carriers, Inc. $.01 par common M/I Schottenstein Homes, Inc. $.01 par common Mail Boxes, Etc. No par common Marten Transport Ltd. $.01 par common Martin Lawrence Limited Editions $.001 par common Warrants (expire 12-18-86) Merchants Bank of Boston, a CoOperative Bank Class A, $1.00 par common Meridian Diagnostics, Inc. No par common Merrill Corporation $.01 par common Microbilt Corporation No par common Microwave Laboratories, Inc. $.01 par common MidAmerica Bancsystem, Inc. $1.00 par common MLX Corp. $.01 par common MNX, Incorporated $.10 par common Molecular Biosystems, Inc. $.01 par common Morgan, Olmstead, Kennedy & Gardner Capital Corporation $.01 par common Mutual Federal Savings and Loan Association $1.00 par common National Royalty Corporation $.01 par common National Sanitary Supply Company $1.00 par common Nature’s Sunshine Products, Inc. No par common New Century Productions Ltd. $.001 par common Series A, par convertible preferred Series B, par convertible preferred New England Critical Care, Incorporated $.10 par common New England Savings Bank $1.00 par common New York City Shoes, Inc. $.01 par common NFS Financial Corp. $.01 par common Nichols-Homeshield, Inc. 39646 Federal Register / VoL 51, No. 210 / Thursday, October 30, 1986 / Rules and Regulations $.01 par common Northwest Engineering Company $.01 par common OH Dominion Systems, Inc. $.01 par common OM1 Corp. $1.00 par convertible preferred Oncogene Science, Inc. $.01 par common P & C Foods, Inc. $4)1 par common Pacer Corporation No par common Pacific Southwest Airlines $.25 par common Paco Pharmaceutical Services, Inc. Warrants (expire 12-31-87) Palm Springs Savings Bank $2.50 par common Paris Business Forms, Inc. $.004 par common Pay ’N Save, Inc. $1.00 par common PC Quote, Inc. No par common Penn Savings Bank, F.SJB. $1.00 par common Perception Technology Corporation $.10 par common Peregrine Entertainment, Ltd. No par common Pioneer Financial Services, Inc. $1.00 par common Plexus Corp. $.01 par common Polymer International Corp. $.01 par common Premier Financial Services, Inc. $5.00 par common Prime Capital Corporation $.05 par common Pullman-Peabody Company Warrants (expire 02-24-88) Q-Med, Inc. $.001 par common Quincy Co-Operative Bank, The (Massachusetts) $.10 par common Quipp, Inc. $.01 par common QVC Network, Inc. $.01 par common Republic American Corporation $.01 par common Republic Savings and Loan Association of Wisconsin $.10 par common Republic Savings Financial Corporation (Florida) $.01 par common Rheometrics, Inc. No par common Riverside Group, Inc. $.10 par common Roadrunner Enterprises, Inc. No par common San Francisco Federal Savings ft Loan Association $.01 par common Sandusky Plastics, Inc. $.10 par common Sandwich Co-Operative Bank, The (Massachusetts) $1.00 par common SCS/Compute, Inc. $.10 par common Sealright Co., Inc. $.01 par common Southlife Holding Company $.05 par common Spartan Motors, Inc. No par common Series A, warrants (expire 5-10-87) Stanley Interiors Corporation $.01 par common Student Loan Marketing Association Voting, $.50 par common Suburban Bancorp, Inc. Class A, $1.00 par common Suffolk Bancorp $5.00 par common Summit Holding Corporation $1.25 par common Sim State Savings and Loan Association (Arizona) $1.00 par common Synbiotics Corporation No par common Syntro Corporation $.01 par common Taunton Savings Bank (Massachusetts) $.10 par common Tel/Man, Inc. $.02 par common Telesis Systems Corporation $.10 par common Texstyrene Corporation $.01 par common Thermo Instrument Systems, Inc. $.10 par common Thomson—CSF American depository shares Tipton Centers, Inc. $.10 par common Trans World Airlines, Inc. $6.00 par convertible preferred Transnational Industries, Inc. $.01 par common Transworid Music Corporation $.01 par common Twistee Treat Corporation $.001 par common Video library, Inc. No par common Vista Organization Partnership, L.P., The Depository units of limited partnership interest Waltham Savings Bank (Massachusetts) $.10 par common W atts Industries, Inc. Class A, $.10 par common Wearever-Protosilex $.01 par common Webb, Del E., Corporation Warrants (expire 4-15-88) Westcorp $1.00 par common Westwood Group, Inc., The $.01 par common Wobum Five Cents Savings Bank (Massachusetts) $.10 par common Worchester County Institution for Savings $.10 par common X-Rite, Inc. $.10 par common Zeus Components, Inc. $.01 par common By order of the Board of Governors of the Federal Reserve System acting by its Director of the Division of Banking Supervision and Regulation pursuant to delegated authority (12 CFR section 265.2(c)(18)), October 24,1986. William W. Wiles, Secretary of the Board. [FR Doc. 86-24518 Filed 10-29-86; 8:45 am] BILLING CODE 621CMI1-M
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