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Federal R eserve B ank OF DALLAS W IL L IA M H. W ALLACE DALLAS, TEXAS 75222 FIRST V IC E P R ES ID EN T AND CH IE F O PER ATING O FFIC ER May 14, 1987 Circular 87-34 TO: The Chief Executive Officer of all member banks and others concerned in the Eleventh Federal Reserve District SUBJECT Over-The-Counter (OTC) Margin S tocks 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 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 February 10, 1987, is available from the Public Affairs Department. ATTACmENTS The Board's press release and the material as published in the Federal Register announcing revisions to the list of OTC stocks effective May 12, 1987, are attached. M R INFORMATION OE 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 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) FEDERAL RESERVE press release For use in morning papers April 27, 1987 April 24, 1987... The Federal Reserve Board today published a revised list of over-the-counter (OTC) stocks that are subject to its margin regulations, effective May 12, 1987. This List of Marginable OTC Stocks supersedes the revised List of Marginable OTC Stocks that was effective on February 10, 1987. Changes that have been made in the List, which now includes 3,103 OTC stocks, are as follows: — 181 stocks have been included for the first time, 163 under NMS designation* — 29 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing. — 37 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 May 12 and those in Tier 2 through April 21r I987. Additional OTC securities may be designated as NMS securities in the interim between the Board's 2 quarterly publications and will be immediately marginable. The next publication of the Board's list is scheduled for July 1987. 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 OTC stocks not on the List or in the NMS group 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 3 connection with the List or any stocks thereon in any advertisement or similar communications is unlawful. The List is published by the Board for the information of lenders and the general public. -o- Federal Register / VoL 52, No. 84 / Friday; May 1, 1987 / Roles and Regulations 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 effective February 10,1987 and will serve to give notice to the public about the changed status of certain stocks. EFFECTIVE DATE: May 12,1987. su m m a ry : FOR FURTHER INFORMATION CONTACT: Peggy Wolffrum. Research A ssistant Division of Banking Supervision and Regulation. (202}-452-2781. For the hearing impaired only, Eamestine Hill or Dorothea Thompson. Telecommunications Device for the Deaf (TOD) (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 th ese. additions and deletions is available from the Federal Reserve Banks. This List supersedes the last complete List which w as effective February 10,1987. (Additions and deletions for that List were published a t 52 FR 3217, February 3,1987). The current List includes those stocks that meet the criteria specified by the Board of Governors in Regulations G, T, U and X (12 CFR Parts 207, 220, 221 and 224, respectively). These stocks have the degree of national investor interest the depth and breadth of m arket 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 an 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 FEDERAL RESERVE SYSTEM automatically marginable at broker12 CFR Parts 207,220,221 and 224 dealers upon the effective date of their NMS designation. The names of these Regulations G, T, U and X; Securities stocks are available at the Board and Credit Transactions; List of Marginable the Securities and Exchange OTC Stocks Commission and will be incorporated into the Board’s next quarterly List. AGENCY: Board of Governors of the The requirements of 5 U.S.C. 553 with Federal Reserve System. respect to notice and public a c t i o n : Final rule; determination of participation were not followed in applicability of regulations. connection with the issuance of this 15941 amendment due to the objective character of the criteria for inclusion and continued inclusion on the List specified in 12 CFR 207.8 (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. section 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. C redit 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 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(c) (Regulation G), 12 CFR 220.2(s) and 220.17(c) (Regulation T), and 12 CFR 221.2(j) and 221.7(c) (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 American Aggregates Corporation No par common Bio-Medicua. Inc. Warrants (expire 08-31-88) 15942 Federal Register / Vol. 52, No. 84 / Friday, May 1, 1987 / Rules and Regulations Calumet Industries. Inc. Warrants (expire 02-27-87) Commerce Bancorp, inc. (New jersey) Series A. no par cumulative convertible preferred Computone Systems, Inc. $.10 par common The Congress Video Group. Inc. $.10 par common Warrants (expire 07-1592) Electronic Mail Corporation of America $J)1 par common Finalco Group. Inc $.01 par common Home Intensive Care. Inc. Warrants (expire 02-29-89) Horizon Air Industries Inc. $.01 par common $1.20 cumulative convertible preferred Hosposabie Products. Inc. Warrants (expire 02-02-89) Integrity Financial Group. Inc. $.01 par common International Lease Finance Corporation Series A. no par convertible preferred Kennington Ltd., Inc. $10 par common Machine Vision international Corporation No par common Midway Airlines. Inc. Series B, convertible exchangeable preferred New Century Entertainment Corporation Series B. par convertible prefeiTed QT*T, Inc. $10 par common Savers. Inc. $01 par common Scientific Communications. Inc. $.10 par common Sky Express. Inc. $.01 par common Spartan Motors. Inc. Series A warrants (expire 05-10-871 Skyes Datatronics $.10 par common Top Brass Enterprises, Inc. $.01 par common U.S. Playing Card Corp. Warrants (expire 06-25-90) Unibancorp Inc. Series A no par cumulative convertible preferred Westworid Community Healthcare. Inc. $1.00 par common Stocks Removed for Listing on a National Securities Exchange or Being Involved in an Acquisition A.T.&E. Corporation $.01 par common ACA joe Eastern. Ltd. $.01 par common Accuray Corporation $1.00 par common Adams-Russell Electronics Company, Inc $01 par common American Adventure, Inc. No par common American Barrick Resources Corporation No par common American Fletcher Corporation $5.00 par common American Security-Corporation $1.00 par common AMPAD Corporation $.59% par common ARC International Corporation No par common ARK Restaurants Corp. $01 par common Citizens Fidelity Corporation $5.00 par common Coastal Bancorp Class A $1.00 par common Color Tile. inc. $1.00 par common Computer Task Group. Inc $.01 par common Continental Bancorp, Inc. $5.00 par common Ehrlich Bober Financial Corporation $1.00 par common Fair Lanes. Inc. $1.00 par common FundseL inc. $01 par common Genova. Inc. $66% par common Hygenia Sciences, Inc. $01 par common Jeffrey Martin. Inc. $01 par common Liebert Corporation No par common Nashville City Bank and Trust Company $2.00 par common Nelson Research h Development Company No par common COASTAL On-Line Software International. Inc. $01 par common Oxford Energy Company, The $.01 par common Paco Pharmaceuticals Services, inc. SMI par common Popular Bancshares Corporation $1.00 par common Sovereign Corporation $1.00 par common Tandem Computers. Inc. $025 par common United Bank. A Savings Bank (Washington) $5.00 par common U.S. Medical Enterprises $.10 par common United Presidential Corporation $50 par common Uslico Corporation $1.00 par common Valtek Inc. $.20 par common Walbaum. Inc Class A $1.00 par common Additions to the list of Marginable OTC Stocks 3CI Incorporated $4)001 par common Abraham Lincoln Federal Savings Bank (Pennslyvania) $1.00 par common Action Auto Rental Inc $01 par common Adobe Systems Incorporated No par common A dteclnc $01 par common Airship Industries, Limited American Depository Receipts representing 80 ordinary shares Alcide Corporation $01 par common Altai. Inc No par common A.M&. inc No par common Ameriana Savings Bank. F.S.B. (Indiana) SI .00 par common America First Tax Exempt Mortgage Fund 2 L P. Beneficial Unit Certificates representing limited partnership interest American Federal Savings Bank of Duval County (Florida) $1.00 par common Amity Bancorp, Inc. $2.50 par common Amre. Inc $.01 par common Anchor Savings Bank. F.SJL (New York) $1.00 par common Antonovich, Inc G ass A $JJ1 par common Applied Bioscience International Inc $.01 par common Asarco Incorporated Warrants (expire 08-16-91) Badger Paper Mills, Inc No par common Bamberger Polymers. Inc $i)l par common Banks of Mid-America. Inc $250 par cumulative convertible preferred Barry Blau & Partners, inc No par common Bell Savings Bank (Pennsylvania) $1.00 par common Biotherapeutics. Incorporated $002 par common Brandon Systems Corporation $10 par common Branford Savings Bank (Connecticut) $1.00 par common Brinkmann Instruments. Inc $01 par common Bristol Federal Savings Bank (Connecticut) $01 par common Bryn Mawr Bank Corporation (Pennsylvania) $5.00 par common Burnham American Properties Units of limited partnership interest Burnham Pacific Properties. Inc No par common California Energy Company. Inc $.0675 par common California Micro Devices Corporation No par common Camera Platforms International inc $.001 par common Capital Associates, inc $.008 par common Carlton Communications, PLC American Depository Receipts CB &T Financial Corp. $1.00 par common CEM Corporation $05 par common Centennial Savings Bank, FiLfl. (Colorado) $1.00 par common Central Bank for Savings, The (Connecticut) $1.00 par common Central jersey Savings * Loan Association $1.00 par common Cemer Corporation $01 par common Chemclear, in c $01 par common Federal Register / VoL 52, No. 84 / Friday, May 1, 1987 / Rules and Regulations Cheshire Financial Corporation $1.00 par common Circle Fine Art Corporation $.10 par common Citizens Savings Bank. F.S.B. (Maryland) $.01 par common Citizens Savings Bank. P.SJ3. (New York) $1.00 par common Clabir Corporation Class B, $.10 par common Clinical Data. Inc $01 par common Clinical Sciences. Inc. $01 par common Commercebank (California) No par common Continental Home* Holding Company $.01 par common Corrections Corporation $1.00 par common Cottage Savings Association (Ohio) $1.00 par common Country Wide Transport Services, Inc. $.01 par common County Savings Bank (California) $1.00 par common CR/PL. Inc. $01 par common Crop Genetics International N.V. $.10 par common Daily Journal Corporation $01 par common Deerfield Savings and Loan Association (Illinois) $1.00 par common Delta Woodside Industries, Inc. $.01 par common Dominguez Water Corporation $1.00 par common Eagle Financial Corporation $.01 par common ElcoteL Inc. $4)1 par common Elexis Corporation $01 par common Enviropact Inc $j 01 par common Essex Communications Corporation Class A. 101 par common Evergreen Bancorp, Inc. $SJ)0 par common Exceian. Inc $01 par common FBX Corporation $.01 par common Federated Financial Savings ft Loan Association (Wisconsin) $10 par common First Federal Savings ft Loan Association of Harrisburg $1.00 par common First Federal Savings ft Loan Association of LaGrange (Georgia) S!J0 par common First Federal Savings Bank (Alabama) $.01 par common First Federal Savings Bank (Puerto Rico) $1.00 par common First Federal Savings Bank (Tennessee) SLOO par common First Financial Savings Association (Pennsylvania) $1DOpar common Kirst Georgia Savings Bank. F.S.B, $54)0 par common First National- Pennsylvania Corporation. The $4,166 par common Fisher Scientific Group. Inc $.01 par common Flamemaster Corporation. The $471 par common Flexible Computer Corporation $.001 par common Florida Rock and Tank Lines. Inc $10 par common F.N.B. Corporation $2.00 par common FNB Rochester Corp. $L00 par ramwirm Fulton Federal Savings ft Loan Association of Atlanta $1.00 par common Gateway Bancorp. Inc (New York) $50 par common General Building Products Corporation $05 par common Geodyne Resources, Inc HO par common Glamis Gold Ltd. No par common Greenwich Pharmaceuticals Inc $10 par common Grossman's Inc $01 par common Group I Software. Inc $4)1 par common Health Images, Inc. Series A. $01 par cumulative convertible preferred H1TK Corporation $001 par common Home Savings Association of Penna. $1.00 par common Homestead Savings Association (Pennsylvania) $1.00 par common' Hunter Environmental Services, Inc $10 par common ICN Biomedicals. Inc $01 par common Immunomedics, Inc $01 par common Independent Bank Corp. (Massachusetts) $01 par common Indiana Federal Savings and Loan Association $01 par common Informix Corporation $01 par common INMAC Corp. $01 par common Insituform Gulf South. Inc $01 par common Insituform Mid-America. Inc Class A. $01 par common Intel Corporation Warrants (expire 03^-15-921 Invention. Design. Engineering Associates, inc. $01 par common Investors Title Company No par common Jefferson Bank (Pennsylvania) $3^0 par common Klinmins Corporation $01 par common Lakeland Industries. Inc. $.01 par common Lakeland Savings ft Loan Association (New Jersey) $UOOpar commoir 15943 Lexington Savings Bank (Massachusetts) $30 par common Major Video Corp. $.001 par common Margo Nursery Farms. Inc $001 par common Markel Corporation No par common Maury Federal Savings Bank (Tennessee) $1.00 par common MBS Textbook Exchange. Inc $01 par common MDT Corporation $1.25 par common Medstat Systems. Inc $.01 par common Mesa Airlines, Inc No par common Midconn Bank (Connecticut) $1.00 par common MMR Holding Corporation $01 par common Montclair Savings Bank.(New Jersey) $2.00 par common National Heritage, Inc. $.01 par common National Industrial Bancorp, Inc (Connecticut) $001 par common Network Equipment Technologies. Inc $01 par common New Bedford Institution for Savings (Massachusetts) $.10 par common Nichols Research Corporation $01 par common NMR Centers. Inc $03 par common North American Biologicals. Inc. $10 par common North American Ventures, Inc Warrants (expire 05-09-01) Occupational-Urgent Care Health Systems. Inc No par common Offshore Logistics. Inc. No par common Olympic International Bank ft Trust Company (Massachusetts) $1.00 par common Oriental Federal Savings Bank (Puerto Rico) $1.00 par common Outlet Communications, Inc. Class A. $01 par common Pan Atlantic RE, Inc $10 par common People s Savings Bank of Brockton (Massachusetts) $10 par common Phoenix RE Corporation SL01 par common Photronic Labs, Inc $01 par common Praxis Biologies, Inc $01 par common Pro-Med Capital. Inc $01 par common Profit Technology, Inc $01 par common Psicor, Inc No par common Pulaski Savings ft Loan Association (New Jersey) $14)0 par common 15944 Federal Register / Vol. 52* No. 84 / Friday, May 1, 1987 / Rules and Regulations Rabbit Software Corporation 101 par common Reisterotown Federal Savings Bank (Maryland) $1.00 par common Rhone-Poulenc SA. American Depository Receipts Riverside National Bank (California) $1.25 par common Roosevelt Federal Savings k Loan Association (Missouri) $.01 par common Royalpar Industries. Inc. $.01 par common SBT Corporation No par common Scherer. RJ>. Corporation $1.00 par convertible preferred Seacoast Savings Bank (New Hampshire) $1.00 par common Sonora Gold Corporation No par common Spear Financial Services. Inc. $.05 par common Staodynamics, Inc 101 par common Strober Organization. Inc. The 101 par common Sunrise Federal Savings and Loan Association (Kentucky) $1.00 par common Systems Software Associates, Inc 10033 par common Telematics International Inc 101 par common Thermo Process Systems, Inc 110 par common Todd-Ao Corporation. The 125 par common Total Health Systems. Inc 101 par common Unico American Corporation No par common United Companies Financial Corporation $2.00 par common Universal Medical Buildings, Inc Depository Receipts for units of shares of beneficial interest Village Super Market, Inc Class A No par common Vivigen. Inc 101 par common Washington Bancorporation (Washington, DC) $2.50 par common Waterford Glass Group. Pic American Depository Receipts representing 10 Units, each unit consists of ordinary shares and income shares Webb. Del EL, Corporation Warrants (expire 02-01-90) West Newton Savings Bank (Massachusetts) 110 par common Western Auto Supply Company 101 par common Weston. Roy F., Inc Class A. 110 par common WTD Industries. Inc No par common Xylogics. Inc 110 par common Yorkridge-Calvert Savings and Loan Association (Maryland) $1.00 par common ZZZ7. Best Company. Inc Warrants (expire 12-15-48) 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 1 6.()1) delegated authority ( 2CFR 2 5 2 c ( 8 , April 24.1987. Barbara R. Lowrey, Associate Secretary ofthe Board. [FR Doc 87-0725 Filed 4-30-87; 8:45 am) NJJNQ O O IM 414I OC