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Federal Reserve bank OF DALLAS W IL L IA M H . W ALLACE DALLAS, TEXAS 75222 FIRST VIC E P R ES ID EN T AND CH IEF O PER ATING O FFIC ER August 19, 1987 Circular 87-57 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 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, and the supplement of additions and deletions effective May 12, 1987, 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 August 11, 1987, are attached. MORE INFORMATION For further information regarding marginable OTC stock requirements, please contact Dean A. Pankonien of this Bank's Legal Department at (214) 651-6228. For additional copies of this circular, contact the Public Affairs Department at (214) 651-6289. 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) FED ER A ^R ESER V^pr^s^elease For use in morning papers July 27, 1987 July 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 August 11, 1987. This List of Marginable OTC Stocks supersedes the revised List of Marginable OTC Stocks that was effective on May 12, 1987. Changes that have been made in the List, which now includes 3,237 OTC stocks, are as follows: — 224 stocks have been included for the first time, 195 under NMS designation. — 28 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing. — 61 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 August 11 and those in Tier 2 through July 21, 1987. 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 October 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 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. 28538 Federal Register / Vol. 52, No. 147 / Friday, July 31, 1987 / Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Parts 207,220,221 and 224 Securities Credit Transactions; List of Marginable OTC Stocks; Regulations Q, T, U, and X a g e n c y : Board of Governors of the Federal Reserve System. ACTION: Final rule; Determination of Applicability of 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 May 12,1987 and will serve to give notice to the public about the changed status of certain stocks. EFFECTIVE DATE: August 11, 1987. SUMMARY: FOR FURTHER INFORMATION CONTACT: Peggy Wolffrum, Research Assistant, Division of Banking Supervision and Regulation, (202)-452-2781. For the hearing impaired only, Eamestine Hill or Dorothea Thompson, Telecommunications Device for the Deaf (TDD), (202J-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 is available from the Federal Reserve Banks. This List supersedes the last complete List which was effective May 12,1987. (Additions and deletions for that List were published at 52 FR 15941, May 1, 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 market, and the availability of information respecting the stock and its issuer to warrant regulations 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 brokerdealers upon the effective date of their NMS designation. The names of these stocks are available at the Board and the Securities and Exchange Commission 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 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, National Market System (NMS Security), Reporting and recordkeeping requirements, Securities. 12 CFR Part 224 Banks, Banking, Borrowers, Credit, Federal Reserve System, Margin, Margin requirements, Reporting and recordkeeping requirements, Securities. Federal Register / Vol. 52, No. 147 / Friday, July 31, 1987 / Rules and Regulations_______28539 Accordingly, pursuant to the authority of sections 7 and 23 of the Securities Exchange Act of 1934, as amended (15 U.S.C. sections 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 additons to the Board's List: Deletions From List convertible, preferred North American Ventures, Inc. Warrants (expire 05-09-91) Oliver’s Stores, Inc. $.01 par common Palm Springs Savings Bank $2.50 par common P & F Industries, Inc. Warrants (expire 05-18-87) Walker Telecommunications Corporation Warrants (expire 04-05-90) Stocks Removed for Failing Continued Listing Requirements Stocks Removed for Listing on a National Securities Exchange or Being Involved in an Acquisition Advanced Tobacco Products, Inc. $.01 par common American Restaurants Corporation No par common ANAC Holding Corporation 15.25% cumulative, exchangeable preferred Bluefield Supply Company $2.00 par common Chargit, Inc. $.01 par common Computer Resources, Inc. No par common Energy Conversion Devices. Inc. Warrants (expire 09-30-87) First Federal of the Carolinas F.A. $1.00 par convertible, preferred GNI, Inc. No par common Edward Hines Lumber Co. $10.00 par common International Mobile Machine Corporation $.10 par convertible, preferred Kloss Video Corporation $.20 par common American Land Cruisers, Inc. Warrants (expire 05-04-89) American Surgery Centers Corporation $.001 par common Banc One Corporation Series A, convertible, preferred Chapman Energy, Inc. $1.20 par convertible, preferred Columbia Savings and Loan Association (California) Warrants (expire 05-15-93) Di Giorgia Corporation 12% convertible, subordinated debentures Financial Security Savings and Loan Association (Florida) Class A, $2.50 par common First of America Bank Corporation $11.00 par cumulative, convertible preferred Great American Bancorp No par common Home Intensive Care, Inc. $.01 par cumulative, convertible preferred Investors Savings Bank (Virginia) Series A, $.95 par cumulative American Businessphones, Inc. No par common Amwest Insurance Group, Inc. No par common Auxton Computer Enterprises, Inc. $.01 par common Bancserve Group, Inc. $5.00 par common Burnham Pacific Properties, Inc. No par common Catalyst Energy Development Corporation $.10 par common Chicago Pacific Corporation $.01 par common Cobanco, Inc. No par common Conifer Group, Inc., The $1.00 par common Davis W ater and W aste Industries, Inc. $1.00 par common Faraday Laboratories, Inc. $.01 par common American Land Cruisers, Inc $.01 par common Anchor Glass Container Corporation $.01 par common Bamberger Polymers, Inc. $.01 par common Baron Data Systems $.10 par common Cambridge Royalty Company $1.00 par common Chemlawn Corporation No par common Coast R.V., Inc. No par common Color Systems Technology Inc. $.15 par common Data Architects, Inc. $.01 par common Dual-Lite, Inc. No par common, $.01, stated value Federal National Mortgage Association W arrants (expire 02-25-01) First Data Management Company, Inc. $1.00 par common Gulf Broadcast Company $.10 par common High Plains Oil Corporation $.10 par common Instinet Corporation $.25 par capital Joule, Inc. $.01 par common KMW Systems Corporation $.10 par common Meditrust Corporation No par shares of beneficial interest Norris Oil Co. $.001 par common Old National Bancorporation $5.00 par common Pacific Southwest Airlines $.25 par common Paxar Corporation $.10 par common Pro-Med Capital, Inc. $.01 par common Quincy Co-Operative Bank, The (Massachusetts) $.10 par common RLI Corporation $1.00 par common Galoob, Lewis Toys, Inc. No par common Gray & Company Public Communications International, Inc. $.01 par common Houston Oil Fields Company Series C, 1.375% cumulative convertible, preferred Intrawest Financial Corp. $10.00 par common Kent Electronics Corporation No par common Lane Company, Inc., The $5.00 par common Monfort of Colorado, Inc. $1.00 par common North Carolina Federal Savings and Loan Association $.01 par common Orbanco Financial Services Corporation No par common Par Pharmaceutical, Inc. $.01 par common Philips’ Gloeilampen-Fabrieken, N.V. Common New York Shares, Nfl 10 par value Progressive Corporation, The $1.00 par common Riedel Environmental Technologies, Inc. $.01 par common Shelby Williams Industries, Inc. $.10 par common Staff Builders, Inc. $.10 par common Thermedics Inc. $.10 par common Town & Country Jewelry Manufacturing Corporation $.01 par common Union Federal Savings and Loan Association (California) No par common Valley Utah Bancorporation No par common Ziyad Inc. No par common Telesis Systems Corporation 28540 Federal Register / Vol. 52, No. 147 / Friday, July 31, 1987 / Rules and Regulations $.10 par common Thermo Process Systems, Inc. $.10 par common U.S. Design Corporation $.03 par common United Telecontrol Electronics Inc. $.10 par common Wright, William E. Company $.50 par common Additions to the OTC Margin List A & W Brands, Inc. $.01 par common Action Auto Stores, Inc. No par common Advanced Marketing Services, Inc. $.001 par common Aldus Corporation $.01 par common Allcity Insurance Company $1.00 par common Alpha 1 Biomedicals, Inc. $.001 par common Alpharel, Inc. No par common Amerford International Corporation $.05 par common American Credit Card Telephone Company $.01 par common American Pacific Corporation $.10 par common Amplicon, Inc. $.01 par common ATN, Inc. No par common Attwoods, PLC American Depository Receipts Autospa Corporation $.01 par common Avery, Inc. $.01 par common Bando McGlocklin Capital Corporation $.0667 par common Barr Laboratories, Inc. $.01 par common Beazer, C. H. (Holdings) PLC. American Depository Receipts Berry Petroleum Company Class A, $.01 par common Big O Tires, Inc. $.02 par common Boys Markets, Inc. $.01 par common Brajdas Corporation $.10 par common Brandywine Savings & Loan Association (Pennsylvania) $1.00 par common Brougher Insurance Group, Inc. No par common Budget Rent a Car Corporation $.01 par common Cabot Medical Corporation No par common, W arrants (expire 0116-89) Cal Rep Bancorp, Inc. $1.00 par common Calgon Carbon Corporation $.01 par common California Biotechnology, Inc. W arrants (expire 12-31-91) Cardinal Federal Savings Bank (Kentucky) $1.00 par common Care Plus, Inc. $.01 par common. Class A warrants (expire 08-13-90) Carme, Inc. $.0001 par common Cash America Investments. Inc. $.10 par common Cato Corporation, The Class A, $.33- Ya par common Cavalier Homes, Inc. $.10 par common Century Bancorp, Inc Class A, $1.00 par common Chalone, Inc. No par common Checkrobot, Inc. $.01 par common Chemex Pharmaceuticals, Inc. W arrants (expire 05-29-88) Citipostal, Inc. $.04 par common Citizens Bank (North Carolina) $2.50 par common CK Federal Savings and Loan Association (North Carolina) $1.00 par common CMS Advertising, Inc. $.01 par common CMS Enhancements, Inc. $.001 par common Commerce Bancorp, Inc. Series B, no par cumulative convertible preferred Commodore Environmental Services, Inc. $.10 par common Costco Wholesale Corporation $7-V4% convertible subordinated debentures CSC Industries, Inc. $.10 par common Cumberland Federal Savings Bank (Kentucky) $1.00 par common Data Measurement Corporation $.01 par common Data Technology Corporation $.001 par common Dataflex Corporation No par common Davox Corporation $.01 par common Delphi Information Systems. Inc. $.10 par common Designs, Inc. $.01 par common Devcon International Corporation $.10 par common Digital Microwave Corporation $.01 par common Discovery Associates, Inc. $.001 par common Diversco, Inc. $.01 par common Donegal Group Inc. $1.00 par common Doskocil Companies, Inc. $.40 par common Downey Designs International, Inc. $.01 par common EA Engineering, Science & Technology. Inc. $.01 par common Easco Hand Tools, Inc. $.01 par common ECAD, Inc. $.01 par common Electrolux AB Class B, American Depository Receipts Elmwood Federal Savings Bank (Pennsylvania) $1.00 par common Empire Savings & Loan Association (New Jersey) $.01 par common Empire-Orr, Inc. $.01 par common Enex Resources Corporation $.01 par common Environmental Treatment & Technologies Corporation 8% convertible subordinated debentures Envirosafe Services, Inc. $.01 par common Enzon, Inc. $.01 par common. W arrants (expire 02-15-89) Equitex, Inc. $.001 par common Essef Corporation No par common Falcon Oil & Gas Company, Inc. $.01 par common Fidelity Federal Savings Bank (Indiana) $.01 par common Finest Hours. Inc. No par common First Bancorp (North Carolina) $5.00 par common First Charter Corporation $5.00 par common First Federal of Western Pennsylvania $1.00 par common First Federal Savings & Loan Association of Salt Lake City (Utah) $1.00 par common First Federal Savings & Loan Association of Wooster $1.00 par common First Federal Savings & Loan of East Hartford (Connecticut) $.01 par common First Federal Savings Bank of Georgia $1.00 par common First Fidelity Bankcorp, Inc. (West Virginia) $1.24 par common First Financial Savings Association F.A. (Ohio) Federal Register / Vol. 52, No. 147 / Friday, July 31, 1987 / Rules and Regulations $1.00 par common First Golden Bancorporation $1.00 par common First National Bank Corp. (Michigan) $3,125 par common First of America Bank Corporation Series E, convertible preferred; Series G, 9% convertible preferred First Republic Bankcorp, Inc. (California) $.01 par common First Savings and Loan Association of Penns Grove (New Jersey) $.01 par common First Savings Bank, F.S.B. (New Mexico) $1.00 par common First Women’s Bank, The (New York) $5.00 par common Fisher Transportation Services, Inc. $.00001 par common Freymiller Trucking, Inc. $.01 par common Gainsco, Inc. $.01 par common Gateway Federal Savings & Loan Association Ohio $.01 par common General Sciences Corporation $.01 par common Germantown Saving Bank (Pennsylvania) $.10 par common Giant Bay Resources, Ltd. No par common Gish Biomedical, Inc. No par common Gold Company of America Depository units of limited partnership interest Graphic Packaging Corporation $.01 par common Greater New York Savings Bank, The $1.00 par common Griffith Consumer Company $.01 par common Groff Industries, Inc. $.50 par common Hako Minuteman, Inc. No par common Hamptons Bancshares, Inc. $4.00 par common Harleysville National Corporation $1.00 par common Healthcare Compare Corporation $.01 par common Heritage Financial Corporation $.90 par cumulative convertible preferred Higby’s, J.. Inc. $.01 par common Hospital Staffing Services, Inc. $.001 par common Hosposable Products, Inc. Class A W arrants (expire 01-07-90) HWC Distribution Corporation $.01 par common Integon Corporation $1.00 par common Intelligent Electronics, Inc. $.01 par common Interactive Technologies, Inc. W arrants (expire 03-06-91) Interfund Corporation $.01 par common International Broadcasting Corporation $.001 par common International Genetic Engineering, Inc. No par common International Microelectronic Products, Inc. $.001 par common International Mobile Machines Corporation $.10 cumulative convertible preferred Interspec, Inc. $.001 par common Itel Corporation Class B, Series C, $1.00 par convertible preferred J.P.M, Industries, Inc. No par common Jay Jacobs, Inc. $.01 par common KMS Industries, Inc. $.01 par common Komag, Incorporated $.01 par common LDI Corporation $.01 par common Lectec Corporation $.01 par common Lincoln Bancorp No par common Liposome Technology, Inc. $.0001 par common Magma Copper Company Class B, $.01 par common Marsam Pharmaceuticals, Inc. $.01 par common Maryland Federal Savings & Loan Association $1.00 per common Masco Industries, Inc. 6% convertible subordinated debentures Mayfair Industries, Inc. $.01 par common McClain Industries, Inc. No par common Medmaster Systems, Inc. $.01 par common, Warrants (expire 07-10-91) Meridian Insurance Group, Inc. No par common Metropolitan Bancorp, Inc. $5.00 par common Metropolitan Consolidated Industries, Inc. $.10 par common Michael Foods, Inc. $.01 par common Microage, Inc. $.01 par common Microcom, Inc. $.001 par common Midwest Communications Corporation $.01 par common 28541 Multi-Local Media Corporation $.01 par common Mycogen Corporation $.001 par common Nellcor, Inc. $.001 par common New Jersey Steel Corporation $.01 par common North Star Universal, Inc. $.25 par common Northern Trust Corporation Series B, $6.25 cumulative convertible preferred Northwest Illinois Bancorp, Inc. $5.00 par common Nycor, Inc. $1.00 par common $1.00 par convertible exchangeable preferred One Price Clothing Stores, Inc. $.01 par common Organogenesis. Inc. $.01 par common Osicom Technologies, Inc. $.01 par common Pacific Dunlop Limited American Depository Receipts Pacific International Services Corp. No par common Pentair, Inc. $.10 cumulative convertible preferred Peoples Savings Bank F.S.B. (Michigan) $1.00 par common Pharmatec, Inc. $.03 par common Phonemate, Inc. $.10 par common PHP Healthcare Corporation $.01 par common Pioneer Federal Savings & Loan Association (Virginia) Series A, $1.00 par cumulative convertible preferred Plains Resources, Inc. $.02 par common Proffitt’s, Inc. $.10 par common Prospect Park Savings and Loan Association (New Jersey) $1.00 par common Quality Food Centers, Inc. $.001 par common Railroadmen’s Federal Savings & Loan Association of Indianapolis $.01 par capital Raleigh Federal Savings Bank (North Carolina) $1.00 par common Raritan Bancorp, Inc. $.01 par common Regency Cruises, Inc. $.001 par common Rexworks, Inc. $.12 par common Rights Management Consultants. Inc. $.01 par common Roadway Motor Plazas, Inc. $.01 par common 28542 I ederal Regtster / Vol. 52, No. 147 / Friday, July 31, 1987 / Rules and Regulations Ross Cosmetics Distribution Centers, Inc. $.01 par common Sahlen & Associates, Inc. $.001 par common, W arrants (expire 1989) Samna Corporation $.01 par common Schult Homes Corporation No par common, W arrants (expire 0301-91) Schwartz Brothers, Inc. $.10 par common Security Savings and Loan Association (New Jersey) $1.00 par common Sensor Control Corporation $.0008 par common Sequent Computer Systems, Inc. $.01 par common Sharper Image Corporation $.01 par common Somerset Group, Inc., The No par common South Atlantic'Financial Corporation $.01 par common Southold Savings Bank (New York) $1.00 par common Southstate Bank for Savings (Massachusetts) $.10 par common Southwall Technologies, Inc. $.001 par common St. Paul Bancorp, Inc. $.01 par common Sunresorts Ltd. N.V. $.01 par common Tecogen, Inc. $.10 par common Telecast, Inc. $.01 par common Texcel International, Inc. $.001 par common Topps Company, Inc., The $.01 par common Two Pesos, Inc. $.01 par common U.S. Minerals Exploration Company No par common Ungermann-Bass, Inc. 6-7/8% convertible subordinated debentures United Bankshares, Inc. (West Virginia) $2.50 par common United Coasts Corporation $.01 par common Valley Capital Corporation $1.00 p°r common Vanderbilt Gold Corporation $.10 par common Vertex Communications Corporation $.10 par common VMS Strategic Land Trust No par shares of beneficial interest Washington Bancorp, Inc. (New Jersey) $.10 par common Washington Federal Savings Bank (Oregon) $1.00 par common Washington Federal Savings Bank (Washington, D.C.) $.01 par common Waterhouse Investor Services, Inc. $.01 par common Wellman, Inc. $.001 par common Westwood One, Inc. $6.75% convertible subordinated debentures Wolverine Exploration Company No par common, Class A, W arrants (expire 12-31-93) York Research Corporation $.01 par common By order of the Board o f Governors of the Federal R eserve System acting by its Director o f the D ivision o f Banking Supervision and Regulation pursuant to delegated authority (12 CFR 265.2(c)(18)), July 27.1987. James McAfee, Associate Secretary of the Board. (FR Doc. 87-17364 Filed 7-30-87; 8:45 am] BILLING CODE 6210-01-**