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Federal R eserve B ank




May 14, 1987
Circular 87-34


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


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.

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.

For further information regarding marginable OTC stock requirements,
please contact David W. Dixon of this Bank's Legal Department at (214)
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 (

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


quarterly publications and will be immediately marginable.


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.


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


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.

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 :


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.
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
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


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

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)


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
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
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
Westworid Community Healthcare. Inc.
$1.00 par common

Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
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
3CI Incorporated
$4)001 par common
Abraham Lincoln Federal Savings Bank
$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
$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
$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
$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
$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
H1TK Corporation
$001 par common
Home Savings Association of Penna.
$1.00 par common
Homestead Savings Association
$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
$01 par common
Informix Corporation
$01 par common
$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,
$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
$UOOpar commoir


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
$001 par common
Network Equipment Technologies. Inc
$01 par common
New Bedford Institution for Savings
$.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.
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
$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
$14)0 par common


Federal Register / Vol. 52* No. 84 / Friday, May 1, 1987 / Rules and Regulations

Rabbit Software Corporation
101 par common
Reisterotown Federal Savings Bank
$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,
$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
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)

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