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F ederal R eser ve Bank OF DALLAS W IL L IA M H. WALLACE DALLAS, TEXAS 7 5 2 2 2 FIRST V IC E P R E S ID EN T AND CH IE F O PERATING O FFIC ER November 17, 1987 Circular 87-80 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 November 10, 1987, 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 supplements of additions and deletions effective May 12, 1987 and August 11, 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 November 10, 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. 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) FEDERALRESERVEpressrelease For use in morning papers October 26, 1987 October 23, 1987 The Federal Reserve Board today published a revised list of over-the-counter (OTC) stocks that are subject to its margin regulations, effective November 10, 1987. This List of Marginable OTC Stocks supersedes the revised List of Marginable OTC Stocks that was effective on August 11, 1987. Changes that have been made in the List, which now includes 3,328 OTC stocks, are as follows: — 182 stocks have been included for the first time, 153 under NMS designation. — 36 stocks previously on the List have been removed for substantially failing to meet the requirements for continued listing. — 56 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 stocks designated as National Market System (NMS) securities for which transaction reports are required to be made pursuant to an effective transaction reporting plan. 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 February 1988. 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 recruirements 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) securities exchanges. as stocks listed on national 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 wav 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. -o - 41962 Federal Register / Vol. 52, No. 211 / Monday, November 2, 1987 / 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 AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule; determination of applicability of regulations. s u m m a r y : 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 August 11,1987 and will serve to give notice to the public about the changed status of certain stocks. EFFECTIVE d a t e : November 10,1987. 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), (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 is available Federal Register / Vol. 52, No. 211 / Monday, November 2, 1987 / Rules and Regulations from the Federal Reserve Banks. This List supersedes the last complete List which w as effective August 11,1987. (Additions and deletions for that List were published at 52 FR 28538, July 31, 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 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 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 P art 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 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(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 A m erican Com munity D evelop m en t Group, Inc. $.01 par com m on A m erican Trustee $1.00 par com m on Atcor, Inc. $.10 par com m on Banctexaa Group. Inc. $1.00 par convertible preferred Battle M ountain G old Com pany C lass A, $.10 par com m on Cochrane Furniture Company, Inc. No par com m on Com mercial Programming Unlim ited Inc. C lass A, $.025 par com m on Digital Products Corporation $.01 par com m on E lectronics. M issiles & Com m unications, Inc. $.01— % par com m on Flexible Com puter Corporation $.001 par com m on Gencorp Inc. W arrants (expire 03-15-88) Great A m erican R esources, Inc. N o par com m on Hetra Computer and Com m unications Industries, Inc. $.01 par com m on H ills Stores C om pany S eries B, $.01 par cum ulative exch an geab le preferred Information Solution, Inc. $.001 par com m on Itel Corporation C lass B, Series B, $1.00 par convertible preferred Karcher, Carl Enterprises, Inc. 9V2% convertible subordinated debentures Kyle T echnology Corporation No par com m on Lane Telecom m unications, Inc. $.10 par com m on Life Care Com m unities Corporation 41963 $.01 par com m on M asco Industries, Inc. D epository convertible exch an g ea b le preferred shares N C A Corporation N o par com m on N e w York City Shoes, Inc. $.01 par com m on N orth w est Natural G as Com pany Series $2,375 no par convertible preferred O il Securities, Inc. $.05 par com m on Perle System s Limited N o par com m on Polym eric R esources Corporation N o par com m on Pratt H otel Corporation $.01 par com m on Southbrook International T elev isio n C om pany PLC A m erican D ep ository R eceipts Stereo Village, Inc. $.01 par com m on Sterling, Inc. N o par com m on Thermo A nalytical. Inc. $.10 par com m on Tipton Centers, Inc. $.10 par com m on T ops M arkets, Inc. $.01 par com m on ZZZZ Best Co., Inc. $.01 par com m on, W arrants (expire 1 2 -1 5 89) Stocks Removed for Listing on a National Securities Exchange or Being Involved in an Acquisition A ll Am erican Gourmet Com pany $.10 par com m on Amre, Inc. $.01 par com m on A rgosystem s, Inc. $.01 par com m on Barrister Information S y stem s Corporation $.24 par com m on B ayou Resources, Inc. $.01 par com m on B est Buy Co., Inc. $.10 par com m on BPI System s, Inc. $.01 par com m on Bridge C om m unications, Inc. N o par com m on Calmar, Inc. $.10 par com m on Caremark, Inc. $.01 par com m on Carriage Industries, Inc. $.02 par com m on Clear Channel Com m unications, Inc. $.10 par com m on C levite Industries, Inc. $.01 par com m on, W arrants (expire 0 6 -3 0 91) CML Group, Inc. $.10 par com m on Com ptek R esearch Inc. $.02 par com m on Devry, Inc. $.10 par com m on Elder-Beerman Stores Corp., The N o par com m on Eldorado Bancorp (California) N o par com m on 41964 Federal Register / Vol. 52, No. 211 / Monday, November 2, 1987 / Rules and Regulations Environm ental Treatm ent & T ech nologies Corp. $.10 par com m on First Federal S avings & Loan A sso cia tio n o f Brooksville $.01 par com m on First Federal S avings Bank o f California $1.00 par com m on First S avings Bank o f Florida F.S.B. $.01 par com m on First U nited F inancial S ervices, Inc. $2.00 par com m on G eneral A utom ation, Inc. $.10 par com m on H om e Federal Bank o f Florida, F.S.B. $.01 par com m on Jones & Vining, Inc. $.10 par com m on La-Z-Boy Chair Com pany $1.00 par com m on Leiner, P. Nutritional Products Corporation N o par com m on M erchants Group, Inc. $.01 par com m on M etrobanc, Federal S avings Bank (Michigan] $1.00 par com m on M etrom ail Corporation $.40 par com m on M odulaire Industries N o par com m on M onolithic M em ories, Inc. $.02 par com m on N athan’s Fam ous, Inc. $.10 par com m on N etw ork Security Corporation N o par com m on N ortheast Savings, F.A. $.01 par com m on, Series A , $2.25 cum ulative convertible preferred Pan A m erican Mortgage Corp. $1.00 par com m on Porex T ech nologies Corp. $.01 par com m on Pre-Paid Legal Services, Inc. $.01 par com m on Rainer Bancorporation $2.50 par com m on Real Estate Investm ent Trust o f California N o par sh ares o f b en eficial interest Rent-A-Center, Inc. $1.00 par com m on S a n /B a n Corporation N o par com m on S ch olastic Inc. $.25 par com m on S eattle Trust & S avings Bank $14.00 par com m on S h a w ’s Supermarkets, Inc. $1.00 par com m on Southern H om e Savings Bank (Florida) $1.00 par com m on Spectradyne, Inc. N o par com m on Triangle M icrow ave, Inc. N o par com m on Trust A m erica Service Corporation $.01 par com m on T w o P esos, Inc. $.01 par com m on Union W arren S avings Bank $1.00 par com m on Vitramon, Inc. $.10 par com m on Zenith N ational Insurance Com pany $1.00 par com m on A dditions to List ACM AT Corporation C lass A, no par com m on A d v an ced Polym er System s, Inc. $.01 par com m on Agouron Pharm aceuticals, Inc. N o par com m on A lb an y International Corp. C lass A, $.001 par com m on A llegh en y B everage Corporation 9 V2 % convertible subordinated debentures A m erican City B u siness Journals, Inc. $.01 par convertible ex ch a n g ea b le preferred A m erican Colloid Com pany $1.00 par com m on Am erican M obile S ystem s Incorporated $.01 par com m on A m erican P assage Marketing Corporation $.01 par com m on A m vestors Financial Corp. Series A, $1.00 par convertible exch a n g ea b le preferred A nchor S avings & Loan A sso cia tio n (N ew Jersey) $1.00 par com m on A n eco R einsurance Com pany Limited $.40 par capital A pplied Power, Inc. C lass A, $.20 par com m on Art’s-W ay Manufacturing Com pany Incorporated N o par com m on A s te c Industries, Inc. W arrants (expire 12-30-91) A tek M etals Center, Inc. N o par com m on Autoinfo, Inc. $.01 par com m on Barrett R esources Corporation $.001 par com m on Beauty Labs, Inc. $.01 par com m on Beectram Group, PLC. Am erican D epository R eceipts Bethel Bancorp (Maine) $1.00 par com m on Brooklyn S avings Bank, the (Connecticut) $1.00 par com m on Businessland, Inc. 5Vfe% convertible subordinated debentures C.I.S. T ech nologies, Inc. N o par com m on Cade Industries, Inc. $.001 par com m on W arrants (expire 9-24-88) Calstar, Inc. $.10 par com m on, W arrants (expire 1990) Cam brex Corporation $.10 par com m on Cambridge Instrument Com pany, PLC., the Am erican D epository R eceipts Castle Energy Corporation $.05 par com m on Catalyst Thermal Energy Corporation $.10 par com m on C elgene Corporation $.01 par com m on Centel Cable T elev isio n Com pany C lass A, $.01 par com m on C entex Telem anagem ent, Inc. $.01 par com m on C hase M edical Group, Inc. $.01 par com m on Chem fix Technologies, Inc. W arrants (expire 12-15-88) C h em e Enterprises Inc. N o par com m on City H olding Com pany $2.50 par com m on City R esources (Canada) Ltd. N o par com m on Cognos Incorporated N o par com m on C olorocs Corporation $.05 par com m on C om cast Corporation 516% convertible subordinated debentures Com m unications & Cable, Inc. $.05 par com m on Com m unications Transm ission, Inc. $.01 par com m on Conm ed Corporation $.01 par com m on C onvex Computer Corporation 6% convertible subordinated debentures Corporate Softw are Incorporated $.01 par com m on CPB, Inc. $5.00 par com m on Craft W orld International, Inc. $.01 par com m on Criticare System s, Inc. $.04 par com m on C rossland Savings, FSB (N ew York) Series B, $12.75 cum ulative preferred Crystal Oil Com pany $.01 par com m on $.01 par convertible preferred D allas Sem iconductor Corporation $.02 par com m on D staline, Inc. $.001 par com m on Dataphaz, Inc. $.001 par com m on D iagnostek, Inc. $.01 par com mon, C lass B, warrants (expire 3-31-88) Digitext, Inc. $.01 par com m on Dom ain Technology, Incorporated $.01 par com m on D yan sen Corporation $.01 par com m on, C lass A , warrants (expire 1988) Earth T ech nology Corporation (USA), the $.10 par com m on E a stex Energy, Inc. $.01 par com m on Eliot S avings Bank (M assachusetts) $.10 par com m on Encor Energy Corporation N o par com m on English China C lays, PLC A m erican D epository R eceipts Entree Corporation $.01 par com m on Entronics Corporation $.01 par com m on Environm ental Pow er Corporation $.01 par com m on Equipment Com pany o f A m erica $.10 par com m on Everex S ystem s, Inc. $.001 par com m on Fastenal Com pany $.01 par com m on Filenet Corporation $.01 par com m on First A m erican Savings Bank, F.S.B. (Ohio) Federal Register / Vol. 52, No. 211 / Monday, November 2, 1987 / Rules and Regulations $1.00 par com m on First Com mercial B ancshares, Inc. (Alabam a) $10.00 par com m on First E ssex Bancorp, Inc. $.10 par common First Federal Savings Bank of Charlotte County (Florida) $1.00 par com m on First Federal Savings Bank o f Elizabethtow n (Kentucky) $1.00 par com m on First o f A m erica Bank Corporation (Michigan) 9% convertible preferred, $11.00 par value Flextronics, Inc. $.01 par com m on Frances D en n ey Com panies, Inc., the $.01 par com m on G en-Probe Incorporated $.01 par com m on G en d ex Corporation $1.00 par com m on G oldtex, Inc. $.10 par com m on G reen castle Federal Savings Bank (Indiana) $.01 par com m on H arding A sso cia tes, Inc. $.01 par com m on H a rleysville S avings A sso cia tio n (Pennsylvania) $1.00 par common Harold’s Stores, Inc. $.01 par com m on HHB S ystem s, Inc. $.01 par com m on Hi-Port Industries, Inc. $.05 par com m on Hilb, Royal and H am ilton Com pany N o par com m on H om e Federal Savin gs Bank (Xenia, Ohio) $.01 par com m on H om e O ffice R eference Laboratory, Inc. $.01 par com m on H ospital N ew sp a p ers Group, Inc. $.001 par com m on Hunter-Melnor, Inc. $.01 par com m on H-VI Incorporated N o par com m on Impact S ystem s, Inc. $.001 par com m on Ingles M arkets, Incorporated C lass A, $.05 par com m on Intel Corporation W arrants (expire 08-15-88) Interfederal Savings Bank (Tennessee) $1.00 par com m on International Telecharge, Inc. $.01 par common Isoetec Communications, Inc. $.01 par com m on Jason, Incorporated $.10 par com m on Jepson Corporation, the $.01 par com m on Jetbom e International, Inc. $.01 par com m on Johnson W orld w id e A sso cia tes, Inc. C lass A, $.05 par com m on Lake Shore Bancorp, Inc. (Illinois) $10.00 par com m on Lexington Group, Inc., the $.01 par com m on M cC aw Cellular Com m unications, Inc. C la ss A, $.01 par com m on M edical A ction Industries, Inc. $.001 par com m on M elam ine C hem icals, Inc. $.01 par com m on M iddleby Corporation, the $.01 par com m on M iners N ational Bancorp, Inc. $5.00 par com m on M orsem ere Financial Group, Inc. $.10 par com m on M oto Photo, Inc. $.01 par com m on M ulti-Color Corporation N o par com m on N e w Jersey S avings Bank $2.00 par com m on N ew m ark Illinois Corporation $.01 par com m on Norm andy O il & G as Com pany, Inc. $.10 par com m on Norton Enterprises, Inc. $.01 par com m on Oncor, Inc. $.01 par com m on O nondaga S avin gs Bank (N ew York) $1.00 par com m on P acific S ilver Corporation $.25 par com m on Paperboard Industries Corporation N o par com m on Parkvale S avin gs A sso cia tio n (Pennsylvania) $1.00 par com m on Penn Treaty A m erican Corporation $.10 par com m on P en n v iew Savin gs A sso cia tio n (Pennsylvania) $1.00 par com m on Peters, J.M. Com pany, Inc. $.10 par com m on Petroleum D evelop m en t Corporation $.01 par com m on Photon T ech nology International N o par com m on Precision Target Marketing, Inc. $.01 par com m on, W arrants (expire 2 - 2 3 - 88 ) Premier B ankshares Corporation (Virginia) $2.00 par com m on Price Pfister, Inc. $.01 par com m on Pronet, Inc. $.01 par com m on Q m ax T ech nology Group, Inc. $.01 par com m on Quartz M ountain G old Corporation N o par com m on Railroad Savin gs & Loan A sso cia tio n (K ansas) $1.00 par com m on R ise T echnology, Inc. $.01 par com m on Rockingham Bancorp (N ew H am pshire) $1.00 par com m on R oyal B u siness Group, Inc. $1.00 par com m on Royalpar Industries, Inc. W arrants (expire 1-20-92) S .N .L F inancial Corporation C lass A, $2.00 par com m on Sag Harbor S avin gs Bank (N ew York) $1.00 par com m on Sage A n a ly tics In tern ational Inc. $.001 par com m on Scanform s, Inc. $.01 par com m on SDNB Financial Corp. N o par com m on 41965 Seagate T echnology 6%% convertible subordinated debentures Security F inancial Group, Inc. $.10 par com m on Skyline Chili, Inc. N o par com m on Softw are S ervices of Am erica, Inc. $.01 par com m on Spectram ed, Inc. $.01 par com m on Spiegel, Inc. C lass A , non-voting. $1.00 par com m on St. Ives Laboratories Corporation $.01 par com m on S teel o f W est Virginia, Inc. $.01 par com m on Structural D ynam ics R esearch Corporation C lass A, $.0278 par com m on Summ agraphics Corporation $.01 par com m on Sun M icrosystem s, Inc. SV*% convertible subordinated debentures Telem undo Group, Inc. $.01 par com m on T eradata Corporation $.01 par com m on T e x a s A m erican Energy Corporation $2,575 cum ulative convertible ex ch a n g ea b le preferred T e x cel International Inc. W arrants (expire 7-3-89) TM Com m unications, Inc. $.01 par com m on. W arrants (expire 1 2 -1 87) Total A s se ts Protection $.002 par com m on Tucker H olding Company, Inc. $.10 par com m on U nited Building Services Corporation o f D elaw are $.01 par com m on U nited N ew sp apers, PLC A m erican D epository R eceipts U nited S avings and Loan A ssocia tion (South Carolina) $1.00 par com m on Valcom , Inc. $.10 par com m on V ikonics, Inc. $.02 par com m on V ipont Pharm aceutical, Inc. W arrants (expire 6-25-89) Virgin Group, PLC A m erican D epository R eceipts V ista Organization, Ltd., The $.001 par com m on W alshire A ssu ran ce Com pany $.01 par com m on W ard W hite Group, PLC. A m erican D epository R eceipts W heelabrator T echnologies, Inc. $.01 par com m on W olf F inancial Group, Inc. $.01 par com m on W orkingm ens Co-O perative Bank (M assachusetts) $.10 par com m on Xscribe Corporation N o par com m on By order of the Board o f G overnors o f the Federal R eserve System acting by its Director o f the D ivision o f Banking Supervision and 41966 Federal Register / Vol. 52, No. 211 / Monday, November 2, 1987 / Rules and Regulations R egulation pursuant to d elegated authority (12 CFR 265.2(c)(18)), O ctober 26,1987. William W. Wiles, Secretary of the Board. [FR Doc. 87-25253 Filed 10-30-87; 8:45 am] BILLING CODE 6210-01-M
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