Full text of Federal Reserve Bank of New York Circulars : Missing, Lost, Counterfeit, or Stolen Securities

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10 0 4 5

AREA CODE 212-791-5000

August 31, 1977

MISSING, LOST, COUNTERFEIT, OR STOLEN SECURITIES
Implementation of SEC Rule 17f-l

TO THE CHIEF EXECUTIVE OFFICERS OF ALL STATE MEMBER
BANKS IN THE SECOND FEDERAL RESERVE DISTRICT:
In our Circular No. 81^3, dated July 11, 1977, we indicated that the
Securities and Exchange Commission has adopted regulations— Rule 17f-l— to
monitor missing, lost, counterfeit, or stolen securities. Enclosed is a Federal
Register notice containing an Interpretative Release of the SEC explaining those
regulations, which will require all State member banks, among others, to make
certain reports and inquiries involving these securities.
The requirements regarding reporting and inquiry procedures will be
implemented in two phases, as outlined in our Circular No. 81 U3 . The first
phase involves the reporting requirement, the effective date of which is
October 3 , 1977* To comply with this requirement it is necessary first to
register with the SEC’s designee, Securities Information Center, Inc., a
subsidiary of ITEL AutEx, Inc., by September 23, 1977, using the enclosed
Registration Form. In the case of Government and Agency securities, reports and
inquiries will be made through the Federal Reserve Bank of New York as previously
explained in Circular No. 8l^3. Reports and inquiries regarding other instances
to which the rule applies will be made through the SEC's designee. The effective
date of the inquiry requirement, the second phase of the program, is January 2,
1978.
It is important that those responsible for processing securities
transactions be familiar with the material to assure compliance.
For this reason,
please apprise those departments likely to be affected, e.g., trust, investment,
transfer, clearing, or dealer departments, and lending areas involved with
collateral loans.




Edwin R. Powers, Vice President
Government Bond and Safekeeping
of Securities Function




FRIDAY, AUGUST 12, 1977
PART

n l

II

SECURITIES AND
EXCHANGE
COMMISSION

LO ST A N D STO LEN
SECURITIES PROGRAM
Im p le m e n ta tio n

RULES AND REGULATIONS

1 1 0 22

Title 17— Commodity and Securities
Exchanges
CHAPTER II— SECURITIES AND
EXCHANGE COMMISSION
[Release No. 34-13832}

PART 241— INTERPRETATIVE RELEASES
RELATING TO THE SECURITIES EX­
CHANGE ACT OF 1934 AND GENERAL
RULES AND REGULATIONS THERE­
UNDER
Lost and Stolen Securities
AGENCY:
S ecu rities
C om m ission .

and

E x ch a n g e

A C T I O N : Im p le m e n ta tio n o f p rogram
fo r rep ortin g a n d inquiry w ith respect to
m issin g , lost, co u n te rfe it or stolen s e ­
curities.
S U M M A R Y : T h is a ction provides n o tifi­
c a tio n o f th e im p le m e n ta tio n o f th e L o st
a n d S to len S ecu rities P ro g ra m , sets fo r th
th e procedu res fo r m a k in g reports and
inquiries w ith respect to m issin g, lost,
stole n or c ou n terfe it secu rities, a n d d is­
sem in a tes a R e g istra tio n F o rm w h ich
m u st be com p leted by a ll rep ortin g in sti­
tu tion s b efore access to th e d a ta base
m a in ta in e d by th e C o m m issio n ’s desig­
nee is a u th orized . T h is release is in ­
tended to aid rep ortin g in stitu tio n s in
co m p ly in g w ith th e C o m m issio n ’s regu ­
la tio n s p ro m u lg a te d in a n effo rt to re­
duce securities th e fts a n d traffic in s p u ­
rious secu rities. T h is a ction also rep u b ­
lishes § 2 4 0 .1 7 f - l a n d rep ortin g F o rm X 1 7 F -1 A in th eir fin al, a m en d ed versions
and is n ecessary to provide reportin g in ­
stitu tio n s w ith a ll su b sta n tiv e requ ire­
m en ts o f th e L o st a n d S to le n Secu rities
P rogram in a sin gle d o cu m e n t.
E F F E C T IV E D A T E S : R e p o rtin g a n d
record keep in g re q u ire m e n ts: O cto b e r
3, 1977. In q u iry req u irem en ts a n d r e ­
m a in in g pro vision s: J a n u a ry 2, 1978.
F O R F U R T H E R IN F O R M A T IO N C O N ­
TACT:
G re g o ry C. Y a d le y , D ivision o f M a r k e t
R eg u la tio n , S ecu rities a n d E x c h a n g e
C o m m ission , W a s h in g to n D .C . 20549.
2 0 2 -7 5 5 -7 8 2 6 .
SUPPLEM ENTARY
IN F O R M A T IO N :
In ord er to avoid d u p lication a n d to im ­
p lem en t th e L o st a n d S to le n S ecu rities
P rog ram in a m ore efficient m a n n e r, the
Secu rities a n d E x c h a n g e C o m m ission
h a s a m e n d ed § 2 4 0 .1 7 f -l to require th a t
copies o f reports o f m issin g , lost, sto le n
or co u n terfe it securities be filed w ith a
registered tra n sfe r a g en t fo r th e issue.
T h is release provides n otifica tion o f th is
a ctio n a n d also sets fo r th th e procedures
fo r im p le m e n ta tio n o f th e L o st a n d
S to le n Secu rities P ro g ra m , in clu d in g in ­
fo r m a tio n reg ard in g access to the d a ta
bases m a in ta in e d b y th e C om m ission 's
designee a n d th e F ed era l R ese rve B an k s,
b illin g a rra n g em en ts, a n d su bm ission o f
re g istration fo r m s . T h e release rep u b ­
lish es § 2 4 0 - 1 7 f - l a n d R e p o rtin g F o rm
X -1 7 F -1 A

in th eir fin a l, a m en d ed v er­

sion s.




B ackground
T h e p roblem s rela tin g to m issin g, lost,
co u n terfe it or stolen securities h a v e been
described b y th e C o m m is s io n 1 a nd were
th e s u b je c t o f a series o f C on gression al
h earin gs.* T h e reco m m en d a tio n fo r a
sy ste m fo r th e receipt o f reports a nd in ­
quiries con cern in g m issin g , lost, stolen
o r co u n te rfe it securities h a s been su p ­
p o rte d w idely. S e ctio n 1 7 (f) o f th e A c t
establish ed th e legislative fra m e w o rk fo r
su ch a sy stem b y providing th a t every
n a tio n a l securities e x ch an g e, m em b er
th ereo f, registered securities association ,
broker,
dealer,
m u n icip a l
securities
dealer, registered tra n sfe r a gen t, reg is­
tered clearing agen cy a n d p a rticip a n t
th erein , m em b er o f th e F ed eral R eserve
S y ste m a n d b an k w hose deposits are in ­
sured by th e F ed eral D ep o sit In su ran ce
C orp o ration sh all report a nd inquire w ith
respect to m issin g, lost, co u n terfe it or
stolen securities in acco rd an ce w ith rules
p ro m u lga te d b y th e C om m ission .
O n D ecem ber 6, 1976, th e C o m m ission
ad op ted § 2 4 0 .1 7 f -l , establish in g rep ort­
in g a n d inquiry requirem ents w ith r e ­
sp e ct to m issin g, lost, stolen or co u n ter­
fe it securities.® C ertain tech n ica l a m e n d ­
m e n ts to th e section were m a d e on F e b ­
ru ary 18, 1977,1 a nd fu rth e r a m e n d m en ts
4
**
2
regard in g th e role o f tra n sfe r agen ts in
th e L o st and S to len Securities P rogram
were proposed.®
-

I m pl e m e n t at io n
propriate

of the P rogram and A p ­
I n s t ru m e n ta l it ie s

In order to im p le m e n t § 2 4 0 .1 7 f -l in
th e m ost efficient m a n n e r, th e C o m m is­
sion determ in ed th a t it w ould be a p p ro ­
p riate to in stitu te a p ilot p ro gram to
m o n ito r th e effectiveness o f th e section
a n d th e sy stem d esigned to carry out its
p rovision s. A ccord in g ly , th e L o st a nd
S to le n S ecurities P rog ram w ill be im p le­
m e n te d on a pilot basis u n til D ecem b er
31, 1978. In acco rd an ce w ith th e inquiry
a n d reportin g requirem ents o f p a r a ­
g rap h s (b ) a n d (c ) o f § 2 4 0 .1 7 f - l , a n y
F ed era l R eserve B a n k or B ra n c h is a n
ap p rop ria te in stru m en tality w ith respect
to U n ited S ta te s G o v e rn m e n t or A g en cy
secu rities. A description o f th e general
o p eratin g procedures o f th e F ed eral R e ­
serve B a n k s is a tta ch ed as A p p en d ix I II.
S e ctio n 1 7 ( f ) ( 1 ) ( A ) o f th e A c t states
th a t reports a nd inquiries sh a ll be m a d e
to th e C o m m ission or “ oth er p erson des­
ign a ted by th e C o m m issio n .” T h e C o m ­

1 S tu d y -o f Unsafe and U nsound Practices
o f Brokers and Dealers, R e p o rt and Recom­
m en d a tio n s o f th e Securities and Exchange
C om m ission (p u rs u a n t to Section 11(h) o f
th e S ecurities In ve sto r P ro te ctio n A ct of
1970), December 1970.
2 O rganized
C rim e— Stolen
Securities,
Hearings Before th e P erm anent S u b co m m it­
tee on In ve stig a tio n s, Senate C om m ittee on
G overnm ent O perations, 92nd Cong., 1st
Sess. (1971); 93rd Cong., 1st Sess. (1973);
93rd Cong., 2d Sess. (1974).
s Securities Exchange A c t Release No.
13053, 41 PR 54923 (December 16, 1976).
4 Securities Exchange A c t Release No.
13280, 42 FR 11829 (M arch 1, 1977).
r Securities Exchange A ct Release No.
>
13281, 42 FR 11844 (M arch 1, 19771.

FEDERAL REGISTER. VOL. 4 2 , N O .

m ission determ ined th a t a m a n u a l, c o m ­
p u te r-a ssiste d sy stem w ould best achieve
th e purposes o f th e p ilot p ro gram and
th a t th e goals o f th e A c t w ould best be
fulfilled by th e d esign ation o f a private
en tity to p e rfo rm certain fu n ction s
under th e C om m issio n ’s direction. A c ­
cordingly, th e C o m m ission published
“ C riteria fo r a L ost a n d S to len S e cu ri­
ties R ep ortin g a n d Inquiry S y s te m ” and
solicited subm issions o f proposed system s
fro m en tities interested in serving as th e
C o m m issio n ’s designee during th e pilot
p ro gram . T h e plan s w h ich were received
were analyzed , a nd the Securities I n fo r ­
m a tio n C enter, In c . (“ S I C ” or th e “ C o m ­
m issio n ’s designee” ) , a subsid iary o f
IT E L A u tE x , In c . w as design ated to re­
ceive reports a n d respond to inquiries on
b e h a lf o f th e C o m m ission .8 A ll reports
a n d inquiries required_to be m ad e w ith
th e C om m ission , therefore, sh all be m a d e
w ith S IC . A description o f S I C ’s general
op eratin g procedures is a ttach ed as A p ­
pen d ix IV .
O n F ebruary 13, 1977,7 th e C o m m is­
sion ad op ted F o rm X - 1 7 F - 1 A , “ L o st,
M issin g , S to le n , C o u n terfe it Securities
R e p o r t,” (1 7 C F R 24 9.12 00 ) w hich, p u r­
su a n t to p a rag ra p h (b ) (6 ) o f § 2 4 0 .1 7 f -l ,
sh a ll be used fo r all reports. W h e r e r e ­
ports are m ad e by telephone, telex or
oth er m ea n s, a h ard co p y con firm a tio n o f
th e report m u st still be filed w ith th e a p ­
propriate in stru m en ta lity w ithin the
tim e periods specified in pa rag ra p h (b )
o f this section. C ertain tech n ical m o d i­
fication s to F o rm X - 1 7 F - 1 A a n d the a c ­
c om p an y in g
instructions
h av e
been
m ad e, a nd th e F o rm is a ttach ed as A p ­
pen dix

n.

S e c t io n 2 4 0 . 1 7 f - l 8
(a ) Definitions. P a ra g ra p h (a ) defines
th e term s “ reporting in stitu tio n ” and
“ ap p rop ria te in stru m e n ta lity .”
(b ) Reporting requirements. P a r a ­
gra p h (b ) requires fin a n cia l in stitu tion s
a nd oth ers to report m issing, lost, c o u n ­
te rfe it or stolen securities w ithin sp e c ­
ified tim e periods. R ep orts w ith respect
to U .S . G o v ern m e n t or A g en cy securities
or securities o f certain in te rn a tio n a l o r­
g an ization s are to be m ad e to th e n e a r ­
est F ed eral R eserve B a n k or B r a n c h ; r e ­
ports w ith respect to all oth er securities
are to be m ad e to th e C o m m issio n ’s
designee. Copies o f all reports m u st be
sen t to a registered tra n sfe r agen t for
th e issue involved.® W h e r e th ere is a

* I n Securities Exchange A ct Release No.
13538, 42 FR 26495 (M ay 24, 1977), AutEx,
In c. was named as th e designee. Subse­
q u e n tly, as a consequence o f the a cq u isitio n
o f A u tE x by IT E L C orporation, SIC was cre­
ated as a w h o lly-o w ne d subsidiary o f IT E L
A utE x, In c.
7 Securities
Exchange A ct Release No.
13280. 42 FR 11829 (M arch 1. 1977).
8 Section 240.17f-l is attached as Appendix

I.

* Where more th a n one registered tran sfe r
agent perform s tra n sfe r agent fu n c tio n s fo r
th e issue, n o tific a tio n to any o f th e m w ill
satisfy th e requirem ents o f th is section. I t is
expected t h a t where th e re are co -tra n sfer
agents, in te rn a l procedures w ill be estab­
lished to ensure p ro m p t n o tific a tio n o f losses
to a ll co -tra n sfe r agents.

1 5 6 — FRIDAY, AUGUST 12,

197 7

RULES AND REGULATIONS
required t o report. T h e tra n sfe r a g e n t
w h o receives a copy o f F o rm X - 1 7 F - 1 A
con cern in g su ch securities w ould n o t be
required to report. I n con trast, w here a
loss o f securities is reported to th e tra n s­
fe r a g en t b y a n o n -r e p o r tin g en tity such
as a n individ ual, th e tra n sfe r a g e n t
w ou ld be required to m a k e a report w h en
it receives th e in fo rm a tio n .
U n less th e C om m ission a n n ou n ces to
th e c on trary, tra n sfe r agen ts will n o t be
required to rep ort stop s received prior
to O ctober 3, 1977. H ow ever, th e C o m ­
m ission m a y o btain a n d include in th e
d a ta base su ch in fo rm a tio n obtained
fr o m in su ran ce com p an ies a n d la w e n ­
fo rc e m e n t sources. F o r th e purpose o f
p a ra g ra p h (b ) (2 ) o n ly, b u t n o t p a r a ­
gra p h s (b) (2) ( D - c i i i ) , th e tim e periods
fo r reportin g begin to ru n w hen, on th e
basis o f all rele v a n t circu m stan ces, th e
rep ortin g in stitu tio n believes a certifi­
cate to be lo st or m issin g as opposed
to a b elie f t h a t th e certificate is m erely
m isp la ced or m isfiled b y th e in stitu tio n .
R e p o rtin g in stitu tio n s sh ou ld d iligen tly
fo llo w u p o n in d ication s o f n o n -r e c e ip t
su b m itte d b y receiving in stitu tio n s in o r­
der to d ete rm in e th eir responsibilities
u n der th is section .
T h is section requires rep o rtin g in stitu ­
C o u n te rfe it securities, in clu d in g a l­
tion s to re p o r t: (1 ) T h o s e securities
tered or fo rge d securities, are required to
m issin g , lost, or stolen fr o m th eir posses­
be reported to th e ap p rop riate law e n ­
sion or c o n trol a n d (2 ) th ose securities
fo r c e m e n t a gen cy as w ell as to th e a p ­
w h ich are m issih g, lost or stolen fr o m
pro p ria te in stru m en talities. R ep orts o f
th e possession or con trol o f a person
recoveries o f lost, m issin g , or stole n se ­
w h ich is n o t a rep o rtin g in stitu tio n a n d
curities a re required to be m a d e to th e
w h ich securities h a v e n o t b een reported
ap p rop ria te in stru m e n ta lity a n d to a
b y a n o th e r rep ortin g in stitu tio n . F o r e x ­
registered tra n sfe r a g e n t fo r th e issue.
a m p le, if securities are m issin g fr o m th e
W h e r e stolen securities were reported to
c o n trol o f a broker, th e broker w ou ld be *
3
2
1
a la w e n fo rc e m e n t a gen cy , a report o f
recovery is required to be m a d e to su ch
’♦T h e fo llo w in g general guidelines m ay be a gen cy . R eco very m a y o nly be reported
u s e fu l in deciding w h ich la w e nforcem ent
b y th e in stitu tio n w h ich rep orted th e
agencies to n o tify in ce rta in instances:
(1) L o c a l P o l i c e D e p a r t m e n t — A ll cases in ­ secu rity as m issin g, lo st or stolen . H o w ­
v o lv in g th e fts or m ysterious disappearances ever, rep o rt o f recovery m a y be m a d e by
o f securities o r discoveries o f securities re ­
a successor in stitu tio n , tru stee or th e r e ­
p o rte d stolen.
coverin g in stitu tio n w here th e report­
(2) F e d e r a l B u r e a u o f I n v e s t i g a t i o n — A ll in g in stitu tio n n o lo n ge r exists. F o r cer­
cases in v o lv in g securities th e fts o f $5,000 or
ta in ex em p tio n s app licable u n til D e c e m ­
over, a ll th e fts fro m banks, a ll th e fts o f Gov­
e rn m e n t securities, a ll co u n te rfe its o f n o n - ber 31, 1978, see th e section below e n ­
titled “ P ilo t P r o g ra m .”
G o ve rn m e nt securities, a ll co u n te rfe its p re ­
su b sta n tia ] b e lie ! th a t c rim in al a ctivity
is involved, a n a d d itio n a l report m u st
be m a d e t o th e a p p ro p ria te law en fo rc e ­
m e n t a gen cy .1
*
U n issu ed certificates w h ich are lost or
sto le n a re also required to be reported,
a n d a p p rop ria te in stru ction s are p ro ­
vid ed fo r su ch reports in th e In stru ction s
t o F o rm X - 1 7 F - 1 A . C ou p on s, how ever,
a re n o t required to be reported. A r e ­
p o rt is a lso required if a secu rity p re ­
viously reported m issin g, lost or stolen is
recovered.
T h e in fo rm a tio n required to be re­
po rted is set fo r th in p a ra g ra p h <b) (5 )
o f th is section “ a n d sh a ll be provided on
FOrm X —1 7 F -1 A . A cop y o f F o rm X - 1 7 F I A is a n n e x e d to th is release as A p p en d ix
n , a n d a d d ition al copies o f th e F o rm are
availab le fr o m th e P u b lication Office o f
th e C o m m issio n or th e C o m m issio n ’s R e ­
g io n al Offices. T h e fo r m m a y be rep ro­
du ced in a n y m a n n e r b y en tities su b ject
t o th e section so lo n g as th e g ra p h ics a n d
fo r m a t o f th e F o rm are n ot altered a n d
x 1 1 ” p ap er is used. I n ord er to
a vo id d u p lication , th e C om m issio n e n ­
cou rages tra n sfe r agen ts to utilize FOrm
X —1 7 F -1 A as th eir stop tra n sfe r fo r m s,

sented as c o lla te ra l fo r a b ank loan, a ll stolen
o r c o u n te rfe it securities in vo lve d in in te r ­
s ta te commerce, and a ll c o u n te rfe it securi­
tie s used in a v io la tio n o f a Federal law.
(3) U . S . S e c r e t S e r v i c e — A ll cases in v o lv in g
ooxinterfeits o f securities w h ich are d ire c t
o b lig a tio n s o f th e U n ite d States G overnm ent
o r are issued w ith G o ve rn m e nt backing. T he
Secret Service re p o rte d ly has a general in ­
te re st in a ll c o u n te rfe it a c tiv ity .

(c ) Inquiry requirements. P a ra g ra p h
(c ) o f S e ctio n 2 4 0 .1 7 f - l requires fin a n ­
cial in stitu tio n s to d ete rm in e w h e th e r
secu rities c o m in g in to th eir possession
or keep in g u n d er certa in circu m stan ces
h a v e b een reported as m issin g , lost,
co u n terfe it o r stolen . In q u iry w ith th e
a p p rop ria te in stru m e n ta lity is required
w h en ever securities are received, w h eth er
b y p ledge, tra n sfe r or in so m e o th er
These are general guidelines. Good fa it h de­
te rm in a tio n a nd n o tific a tio n to any o f th e
m a n n e r, un less th e y a re received (1 )
above agencies s h a ll be deemed com pliance fr o m th e issuer on orig in a l issue, (2 )
w ith paragraph ( b ) ( 1 ) o f § 2 40.17f-l.
fr o m a n o th e r rep ortin g in stitu tio n , or
1
1 One ite m o f in fo rm a tio n re q u ire d is th e (3 ) fr o m a cu sto m er a n d are registered
re p o rtin g in s titu tio n ’s FIN S nu m b e r. F IN S
in th e n a m e o f su ch cu sto m er or its
( “ F in a n c ia l In d u s try N um ber S ta n d a rd ” )
num bers are com piled in th e 1976 F IN S D i­ n om in ee. C oup ons a re n o t required to be
re c to ry (F irs t E d itio n ), pu b lish e d by th e De­ th e su b ject o f inquiry.
p o s ito ry T ru s t Company. I f an in s titu tio n 1»
U n d er th e section , inquiry would, be
u n c e rta in as to w h e th er i t has a FIN S n u m ­ required o f a rep ortin g in stitu tio n w h e n ­
ber, i t should co n s u lt th is D ire ctory, Its se lfever a n o n -r e p o r tin g in stitu tio n such a s
re g u la to ry o rg a n iza tio n or its trad e associa­
tio n . I f an In s titu tio n has n o t been assigned a n in divid ual su b m its securities in b ea r­
a FIN S n um ber, a n u m b e r m ay be obtaine d er fo rm , stre et n a m e or registered to a
a t n o cost by w r itin g th e D epository T ru s t th ird person. A ll securities delivered to
Com pany. A tte n tio n : F IN S P u b lic a tio n , 55 a reportin g In stitu tion b y th e issuer or
W a te r Street, New Y ork, New Y o rk 10041,
a n o th e r rep o rtin g in stitu tio n are e x ­




41023
e m p t fr o m inquiry regardless o f th e fo r m
o f reg istration .1
*
T h e inquiry requirem ents as set fo rth
in th e section m u st b e fo llow ed even
th o u g h a reporting in stitu tio n m a y d e­
term in e th ro u gh oth er m ea n s th a t th e
security is n o t lo st o r stolen. F o r e x ­
a m p le, if a b an k takes a bearer secu ­
rity fr o m a cu stom er as collatera l fo r a
lo a n and th e b an k sends th e security to
th e tra n sfe r a g en t fo r tra n sfe r to the
b a n k ’s n a m e or th e cu sto m er’s n a m e , th e
b an k m u st still m ak e inquiry w ith th e
ap p rop riate in stru m en ta lity .
A s a p ra ctical m a tte r, how ever, a re­
p o rtin g in stitu tio n m a y a ssum e th e in ­
quiry responsibility o f a n o th e r reporting
in stitu tion . T h is m a y be a co m m o n p r a c ­
tice w here B rok er A clears o n a fu lly
disclosed basis fo r B roker B , a n d B roker
B ’s custom ers deliver th eir securities to
B rok er A . I f B roker A , as p a r t o f its
clearing a rra n g em en t, u ndertak es to
m a k e th e required inquiry, B roker B
w ould n o t h a v e to m ak e th e inquiry.
T h e se excep tion s a re in ten ded to m ak e
inquiry u n n ecessary in th e m a jo r ity o f
in stan ces a nd to require inquiry in those
circu m stan ces m o st lik ely to involve
m issin g, lost, co u n te rfe it or stole n secu ­
rities. T h e sy ste m h as been d esigned to
avoid un du e disru p tion to th e course o f
n o r m a l co m m ercia l tran saction s.
W h e n a n inquiry reveals t h a t th e se­
cu rity in question h a s been reported as
m issin g , lo st or stolen , th e inquiring in ­
stitu tio n w ill b e provided w ith th e n a m e
o f th e in stitu tion w h ich reported the loss.
I n such in sta n ces, th e section does n o t
set fo r th a n y fu r th e r requirem ents. C o n ­
sequently, the inquiring in stitu tio n w ould
be expected to fo llow cu rren t business
practices in d ealin g w ith securities w hich
it know s to be lo st o r stolen.
A s a p a r t o f th e design o f th e C o m ­
m issio n ’s sy ste m , inquiries w ill b e recir­
cu la te d a g a in st reports o f loss w hich m a y
h a v e com e in subsequent to th e inquiry.
T h r o u g h th is procedure, th e sy ste m w ill
b e able to id e n tify th ose securities w h ich
were n eg otiated before a lo st or stolen
securities report w as received.
F o r certain ex em p tion s w h ich w ill be
ap p licable u n til D ecem b er 31, 1978, see
th e section below en titled “ P ilo t P ro ­
g r a m .”
(d ) Permissive
inquiry. P a ra g ra p h
(d ) describes th e availab ility o f th e r e ­
p o rtin g a n d inquiry sy ste m to a n y r e ­
p o rtin g e n tity w h e th e r or n o t § 2 4 0 .1 7 f -l
w ould require a report or inquiry. W it h
respect to th e g ra n tin g o f a u th o rity to
m a k e p erm issive inquiries, it should be
p o in te d o ut th a t th is a u th o rity is p ro ­
vid ed to allow sufficient flexibility w hen
a n inquiry is n o t m a n d a te d b u t suspici­
ous circu m stan ces are involved. T h e
C om m ission , in allow in g p erm issive i n - 1
2

1 I t bears emphasis th a t n o t a ll fin a n c ia l
2
in s titu tio n s are re p o rtin g in s titu tio n s as de­
fined by § 240.17f— I f in d o u b t as to
I.
w h e th er an e n tity is a re p o rtin g in s titu tio n ,
i t is suggested th a t re p o rtin g in s titu tio n s
check th e available reference works to der
te rm in e w h e th er th e e n tity is an FD IC in ­
sured b a n k or o th e r re p o rtin g in s titu tio n
enum erated in th is section.

FEDERAL REGISTER, VOL. 4 2 , N O . 1 5 6 — FRIDAY, AUGUST 1 2 , 1 9 7 7

41024

RULES AND REGULATIONS

quiries, does n o t in te n d to in corp o ra te a n
inquiry req u irem en t in to th e b o n a fide
purch aser d o ctrin e ea ch tim e a rep ortin g
in stitu tio n receives a secu rity certificate.
T h e C om m issio n recognizes th a t to r e ­
quire or su ggest in qu iry in all cases
w ould seriously jeop ard ize th e ability o f
fin an cial in stitu tion s to fu n ctio n in an
efficient m a n n e r.
S e ctio n 2 4 0 .1 7 f -l also provides th a t th e
C om m ission m a y g ra n t o th e r person s a c ­
cess to th e sy ste m u pon su ch term s or
con d ition s as it d eem s n ecessary a n d a p ­
propriate in th e public in terest a n d fo r
th e p ro te ction o f investors. T h e C o m ­
m ission recognizes th a t a n u m b e r o f f o r ­
eign b an k s a n d o th er fin a n cia l in stitu ­
tions, su ch as in su ra n ce com p an ies, are
n o t in clu ded in th e d efin ition o f “ rep o rt­
ing in stitu tio n s.” C on sequ en tly, securities
received fr o m su ch in stitu tio n s w h ich are
n o t registered in th e n a m e s o f th ose in ­
stitu tio n s or th eir n om in ee s are required
to be th e su b ject o f inquiry under
§ 2 4 0 .1 7 f -l .
T h e C om m issio n is aw are th a t this
m a y cau se h a rd sh ip to c ertain rep ortin g
in stitu tion s. I n order to alleviate this
h a rd sh ip and to a llow th ose rep o rtin g
in stitu tio n s d e alin g w ith th ese n o n -r e ­
p o rtin g fin a n cia l in stitu tio n s th e e x e m p ­
tion allow ed u n d e r p a r a g ra p h (c ) (1 ) (ii>
o f th is section , th e C om m issio n e n co u r­
ages fin a n cia l in stitu tio n s n o t w ith in the
jurisdiction o f th is section to a pply u n der
p a ra g ra p h (d> to becom e so included.
T h e C o m m issio n , as a con d ition to
g ra n tin g such a sta tu s, w ill require th ose
in stitu tion s to u n d ertak e to com p ly w ith
§ 2 4 0 .1 7 f - l on th e sa m e basis as a rep o rt­
ing in stitu tion . L etters requ estin g p a r ­
ticip a tio n in the L o st a n d S to le n S e c u ­
rities P rog ram sh ou ld be d e n om in ated
“ A p p lic a tio n fo r D e s ig n a tio n as a R e ­
po rtin g In stitu tio n P u rsu a n t to § 2 4 0 .1 7 f 1” a n d sh ou ld be addressed to the D iv i­
sion o f M a rk e t R e g u la tio n .*5
*
4
3
2
1
T h e C om m ission sh a ll h a v e the righ t
to w ith draw th is d esign a tion u pon w rit­
ten n otice. T h e C o m m issio n w ill w ith ­
draw su ch d e sign a tion if th e fin a n cia l
institu tion s violates its u n d e rtak in g to
com p ly w ith § 2 4 0 .1 7 f - l , applicable in ­
stru ctio n s issued by th e C o m m ission , its
designee, or th e F ed eral R eserve B an k s,
or if it does n o t re m it th e ap p rop ria te
fees w hich are assessed fo r the use o f
the sy ste m . S u ch fin a n cia l in stitu tio n s
sh a ll n ot be ch arged a fee greater th an

The le tte r sh o u ld id e n tify :
1. The p rim a ry business o f the fin a n cia l
In s titu tio n .
2. W h e th er the fin a n c ia l in s titu tio n is
registered w ith or regulated by any Federal.
State or foreign governm ent or agency
thereof.
3. W hether the in s titu tio n engages in a re­
ta il securities business w ith n o n -in s titu tio n a l custom ers and th e p o rtio n of such in
re la tio n to th e in s t it u t io n ’s to ta l business.
4. The names o f th e officers or p rin c ip a l
shareholders o f th e fin a n c ia l in s titu tio n . In
the le tte r the fin a n c ia l in s titu tio n sh a ll agree
to com ply w ith a ll applicable provisions of
section 240,17f-l and applicable in s tru c tio n s
issued by the Com m ission, its designee or
the Federal Reserve Banks and sh a ll agree
to pay an a p p ro p ria te fee fo r p a rtic ip a tio n
in the system.




th a t ch arged a reportin g institu tion of
O n the basis o f the im p a ct studies c o n ­
com p arab le size.
ducted and th e com m en t letters received,
(e )
Exemptions. Section 2 4 0 .1 7 f -l the C om m ission believes th a t allow ing
provides in p a rag ra p h <e) th a t registered
these ad d ition al ex em p tion s fro m r e ­
securities fo r w hich a F ed eral R eserve po rtin g a n d inquiry d u rin g th e pilot
B a n k or B r a n c h is th e approp riate in ­
p rogram w ill allow th e efficient im ­
stru m e n ta lity or cou n terfeits o f such
p lem en tation o f a sy ste m
to carry
securities are n o t th e su b je c t o f required
o ut th e m a n d a te o f th e A c t. In a d ­
reportin g and inquiry. R ep orts w ith r e ­
dition,
these
ex em p tion s
will
allow
sp ect to such securities should con tin u e fin a n cia l in stitu tion s su b je c t to this
to b e m ad e to th e U .S . T rea su ry D e p a r t­
section an op p o rtu n ity to a d a p t to the
m e n t or th e F ed eral R eserve B a n k o f
op eration o f th e section w ith ou t undue
N ew Y o r k , in a ccord an ce w ith o u tsta n d ­
disruption to th e course o f n o rm a l c o m ­
in g T re a su ry in stru ction s a nd cu rren t
m ercial tra n saction s. D u rin g th e pilot
p ractices in th e fin a n cia l co m m u n ity .
p ro gram , th e C om m ission in ten d s to
W h e re a stolen security is involved, r e ­
m o n ito r th e a pprop riateness o f these
po rts are required to be m a d e to the
special exem p tion s in order to d eter­
ap p rop ria te law en fo rc e m e n t agency.
m ine w heth er th ey should be retained
W it h respect to coupons, th e C o m m is­
p erm a n en tly. T h ese exem p tion s will e x ­
sion sta ted in R elea se N o. 3 4 -1 3 2 8 0 th at,
pire on D ecem b er 31, 1978 unless they
as a m a tte r o f in te rp re ta tio n , § 2 4 0 .1 7 f -l
are extended by th e C om m ission .
does n o t require rep o rtin g and inquiry
w ith respect to coup ons.
A ppropriate I n st ru m e n ta l it ie s and
(f> Recordkeeping. P a ra g ra p h ( f ) o f
O peration of S y st em s
section 2 4 0 .1 7 f - l codifies the recordk eep­
A tta c h e d as A ppendices I I I and IV to
in g and record reten tio n procedures e s­
this release are descriptions o f the g e n ­
tablish ed by th e L o st a nd S to len S e cu ri­
ties P r o g ra m .1 E sse n tially , copies o f all eral operations o f th e a pprop riate in ­
4
F o rm s X - 1 7 F - 1 A filed p u rsu an t to this stru m en talities, including procedures for
m ak in g reports a nd inquiries. W it h r e ­
section and all con firm a tio n s o f inquiry
or oth er in fo rm a tio n received fr o m the sp ect to securities fo r w h ich a Federal
Reserve B a n k or B ran ch is th e a p p ro ­
a p p rop ria te in stru m en ta lity m u st be r e ­
p riate in stru m en tality, telep h on e n u m ­
tain ed fo r a period o f three years in an
bers and m a ilin g addresses p ertin en t fo r
easily accessible place. S ectio ns 2 4 0 .1 7 a com p lian ce w ith § 2 4 0 .1 7 f -l are included
3 a n d 2 4 0 .1 7 a -4 h av e also been am en ded
to in corp orate these requ irem en ts in to in A p p en d ix I I I . A m a p o f th e twelve
F ed eral R eserve D istricts is also in ­
the gen eral recordk eeping and reten tion
cluded to assist rep ortin g institu tion s
provisions ap p licable to c ertain ex ch an g e
in lo catin g th e closest F ed eral R eserve
m em bers, brokers, a nd dealers.
B an k or B ra n ch .
P il o t P rogram
A p p en d ix I V con tain s the operating
In order to im p le m e n t § 2 4 0 .1 7 f -l in
procedures and a description o f th e sy s­
the m ost efficient m a n n e r, th e C o m m is­
tem o f the Securities In fo r m a tio n C e n ­
sion determ in ed th a t it w ould be a p p ro ­
ter, In c., th e C o m m issio n ’s designee fo r
priate to in stitu te a pilot p rogram to
receipt o f reports and inquiries fo r w hich
m o n ito r th e effectiveness o f th e section
the C om m ission is th e approp riate in ­
a n d th e sy ste m d esigned to carry o ut its
stru m en ta lity . In clu d ed in these m a te r i­
provisions. A ccord in g ly , § 2 4 0 .1 7 f -l will
als as A p p en d ix V is a R eg istra tio n F o rm
be im p lem en ted on a pilot basis u n til D e ­
w hich m u st be com p leted a n d returned
cem b er 3 1 ,1 9 7 8 .
to the C o m m issio n ’s designee no later
D u rin g th e pilot p ro gram , th e C o m m is­
th a n S ep tem b er 23, 1977. E a ch reporting
sion will n o t require c ertain reports a nd
in stitu tio n m u st determ in e w h e th e r it
inquiries to be m a d e w h ich otherw ise
will be a D irect or In d ire c t Inquirer o f
would be required u nder th e section.
th e S y stem a nd so in d icate on th e R e g is­
1. C orp orate a nd m u n icip a l securities
tra tio n F o rm .
n ot assigned C U S IP n u m bers will be e x ­
T h e C om m ission h a s determ in ed th at
em p t fro m required rep o rtin g a n d in ­
the m eth od o f allo ca tin g fees a nd the
quiry. C on sequ en tly, sh ort term secu ri­
fees to be ch arged are reasonable in
ties su ch as com m ercial paper are not
m a k in g available to reporting in stitu ­
su b ject to the requirem ents o f § 2 4 0 .1 7 f tions in fo rm a tio n regarding m issing,
1 d u rin g th e p ilot p ro gram .1
"
lo st, co u n terfe it or stolen securities p u r ­
2. T ra n sa c tio n s involving securities o f
su a n t to S ectio n 1 7 (f ) (1 ) fA ) o f the A ct.
less th a n $10,000 fa c e valu e in th e case
A u th orized sign atu res a nd an in dication
o f bon ds a nd $10,000 m ark e t value in the
as to w heth er th e en tity will be a D irect
case o f stock s will be ex em p t fro m in ­
or In d irect In qu irer m u st be provided to
quiry only. A ll losses, in clu din g those o f
th e C o m m issio n ’s designee by Sep tem b er
less th an $10,000. m u st be reported.
23. 1977 in order fo r the rep ortin g in sti­
3. R egistered tra n sfe r agen ts are e x ­
tu tion to be able to fu lfill the require­
em p t from inquiry during th e pilot p ro ­
m en ts o f § 2 4 0 .1 7 f -l . T h e C o m m ission
gra m .
wishes to em p hasize th a t fa ilu re to su b ­
m it th e R eg istra tio n F o rm , and if a D i­
1 S e e Securities Exchange A ct Release No. rect In qu irer to rem it applicable fees
4
13831 (A u g u st 5, 1977).
w hen billed, will prevent access by a g iv ­
1
3 A c e rtific a te is n o t exem pt under th is en reporting in stitu tio n to th e system
p ro vision because th e ce rtifica te its e lf does
and hen ce cause th e reporting in stitu ­
n o t have a CUSIP n u m b e r on it. In order to
tion to be in violation o f § 2 4 0 .1 7 f -l .
be exempt, th e issue o f w h ich th e p a rtic u la r
T h e C o m m ission will stu d y th e o p e r a ­
ce rtifica te is a p a rt m u st n o t have been as­
tion o f § 2 4 0 .1 7 f -l and th e system fo r
signed a CUSIP num ber.

FEDERAL REGISTER, VOL. 42, N O

1 56 — FRIDAY, AUGUST 12,

1977

RULES AND REGULATIONS
reportin g a n d inquiry du rin g th e p ilo t
p ro g r a m a n d w ill m a k e m od ification s
w here app rop ria te.

E f fective D ates and R e sp o n sib il it ie s
A ppropriate I n st ru m e n ta l it ie s

of

T h e reportin g a n d recordkeeping re­
qu irem en ts o f § 2 4 0 .1 7 f -l will b ecom e
effective on O cto b e r 3, 1 9 77 ; th e inquiry
requ irem en ts a n d th e rem a in in g p ro vi­
sion s o f th e section w ill becom e effec­
tive on J a n u a ry 2 ,1 9 7 7 .
T h e app rop ria te in stru m en talities u n ­
dertak e n o respon sibility w ith regard to
a n y p a rty in m a in ta in in g th e lists o f
m issin g , lost, co u n terfe it or stolen secu ­
rities or respon din g to inquiries p e rta in ­
in g th ereto a n d will n o t be liable fo r
a n y a c t or fa ilu re to a ct w ith respect to
a n y procedures set fo r th in § 2 4 0 .1 7 f - l .

I m m o b il iz a t io n and E l im in a t io n
C ertificates

of

I t sh ou ld be n oted th a t th is p rogram
is n o t in ten d ed to be a su bstitu te for
o th er steps w h ich are bein g u n d ertak en
to im prove secu rities processin g, p re­
v en t losses a n d reduce th e risk o f th e ft.
T h e C om m ission con tin u es to endorse
th e con cepts o f im proved securities p ro c­
essin g a n d certificate im m o b ilization a n d
elim in a tio n th ro u gh g reater use o f d e ­
positories a n d book en try sy ste m s. I t is
ex p e cte d th a t th is p ro gram will be d e­
veloped in a m a n n e r app rop ria te to m ee t
ex istin g n eeds and will be flexible enough
to a d ju st to c h a n g in g circu m stan ces.

41025

«D ) W h e r e delivery o f securities is
in stru m e n ta lity a n d
to a registered
tra n sfe r a g e n t fo r th e issue th e d is­
m a d e by m a il or v ia d ra ft, if p a y m e n t is
covery o f th e t h e ft or loss o f a ny security
n o t received w ith in ten business d ays,
w h ere there is su b sta n tia l basis fo r b e ­
th e delivering in stitu tio n s h a ll con firm
lievin g th a t crim in a l a ctivity w as in ­
w ith th e receiving in stitu tio n th e fa ilu re
volved. S u ch rep ort sh a ll be m a d e w ith in
to receive su ch delivery; if con firm a tio n
one business d ay o f th e discovery a n d ,
show s n o n -r e c e ip t, th e delivering in sti­
if th e certificate n u m bers o f th e secu ri­
tu tio n sh a ll report w ith in tw o business
ties ca n n o t be ascertain ed a t th a t tim e,
days o f such con firm a tio n
th ey sh a ll be reported as soon th ereafter
(3 ) Counterfeit securities. E very r e ­
as possible.
po rtin g in stitu tio n sh a ll report the d is­
(ii)
E very rep ortin g in stitu tio n sh allcovery o f a n y c ou n terfe it security to th e
pro m p tly report to th e a pprop riate law
a pprop riate in stru m en tality a n d th e a p ­
e n fo rcem en t agen cy u pon th e discovery
propriate law en fo rce m e n t agen cy w ith ­
o f the t h e ft or loss o f a ny security w here
in one business d ay o f su ch discovery.
th ere is su b sta n tia l basis fo r believing
(4 ) Recovery. Every reporting in stitu ­
th a t c rim in al activity was involved.
tion sh a ll report the recovery or finding
(2 ) Missing or lost securities. Every
o f a n y security previously reported m iss­
rep ortin g in stitu tio n sh a ll report to th e
ing, lo st or stolen p u rsu an t to th is sec­
tio n to th e a pprop riate in stru m en ta lity
ap p rop riate in stru m e n ta lity a n d to a
a n d to a registered tra n sfe r agen t fo r th e
registered tra n sfe r a g e n t fo r th e issue
th e discovery o f th e loss o f a n y security
issue w ith in one business d a y o f such
recovery or fin d in g. I f a report o f stolen
w here crim in a l action s are n o t suspected
securities w as m ad e to th e approp riate
w h en th e security h a s been m issin g or
la w en fo rce m e n t a gen cy, a report o f
lo st fo r a period o f tw o business days.
su ch recovery sh a ll also be m a d e to such
S u ch report sh a ll be m a d e w ith in one
agen cy. R eco ve ry m a y only be reported
business d a y o f th e end o f such period
b y th e in stitu tio n w h ich reported th e se­
excep t t h a t :
cu rity as m issin g , lo st or stolen.
(i) Securities lost in tra n sit to cu sto m ­
(5 ) Information to be reported. A ll re­
ers, tra n sfe r a gen ts, b an k s, brokers or
ports m ad e p u rsu an t to th is section sh all
dealers sh a ll be reported by th e deliver­
include, if applicable or available, the
in g in stitu tio n n o la te r th a n tw o b u si­
fo llow in g in fo rm a tio n w ith respect to
n ess days a fte r n otice o f n o n -r e c e ip t or
ea ch secu rity :
as so on a fte r su ch n otice as th e certifi­

(i) Issuer;
cate n u m bers o f th e securities can be
(ii) T y p e o f security and series;
ascertain ed.
(iii) Date of issue;
(ii) Securities considered lost or m iss­
<iv) Maturity date;
B y th e C om m ission .
in g as a resu lt o f securities cou n ts or
(v) Denomination;
verifications required by rule, regulation
S h ir l e y E. H o l l is ,
(vi) Interest rate;
or oth erw ise (e.g. dividend record d ate
Assistant Secretary.
(vii) Certificate number, including al­
verification m a d e as a resu lt o f firm
phabetical prefix or suffix;
A ugust 5,1977.
p olicy or in te rn a l a ud it fu n c tio n rep o rt)
(viii) N a m e in w hich registered ;
§ 2 4 0 .1 7 f—I
Requirements for reporting sh a ll be reported n o la te r th a n te n b u si­
(ix) Distinguishing characteristics, if
n ess days a fte r com p letion o f such secu ­
and inquiry with respect to missing,
counterfeit;
lost, counterfeit or stolen securities. rities cou n t or v e r if ic a t io n or as soon
(x) D ate o f discovery o f loss or recov­
a fte r su ch cou n t or verification as th e
(a ) Definitions— (1) Reporting insti­
e ry ;
certificate n u m bers o f th e securities can
(xi) CUSIP number; and
tution. For purposes o f this section , the
be ascertain ed.
(xii) FINS number.
term “ reportin g in stitu tio n ” sh a ll include
(iii) S ecurities n o t received during
<6) Forms. A ll reports m ad e p u rsu an t
every n a tio n a l securities ex ch an g e, m e m ­
th e com p letion o f a delivery, deposit or
to this section s h a ll be m ad e on F o rm
ber th ereo f, registered securities a sso ­
w ith d raw al sh a ll be reported in th e f o l ­
X -1 7 F -1 A .
c iation , broker, dealer, m u n icip a l secu ri­
low in g m a n n e r :
(c ) Required inquiries. (1 ) E very r e ­
ties dealer, registered tra n sfe r a gen t,
( A ) W h e r e delivery o f securities is
p o rtin g in stitu tio n sh a ll inquire o f th e
registered cle arin g a gen cy , p a rtic ip a n t
th ro u g h cle arin g agency, th e delivering
ap p rop riate in stru m en tality w ith re­
therein , m e m b e r o f th e F ed eral R eserve
in stitu tio n sh a ll supp ly th e receiving in ­
sp ect to every security w hich com es
S y ste m a n d b an k w hose deposits are in ­
stitu tio n th e certificate n u m b e r o f th e
in to its possession or keeping, w h ether
sured by th e F ed eral D ep o sit In su ran ce
secu rity w ith in tw o business days fr o m
C orp o ration .
b y pledge, tra n sfe r, or otherw ise, to a s ­
th e d a te o f request fr o m th e receiving
c ertain w h eth er such security h as been
(2 ) Appropriate instrumentality. F o r
in stitu tio n . T h e receiving in stitu tio n
reported as m issin g, lost, cou n terfe it or
purposes o f th is section th e term “ a p p ro ­
sh a ll report w ith in one business day o f
stolen , unless
p riate in str u m e n ta lity ” sh a ll m e a n :
n o tifica tion o f th e certificate n u m b e r;
(1) T h e secu rity is received directly
(i) A n y F ed eral R ese rve B a n k or
fr o m th e issuer or issuing a gen t a t issu­
<B ) W h e r e th e delivery o f securities is
B r a n c h th e r e o f w ith respect to securities
issued b y :
ance;
over th e w indow a n d w here th e deliver­
<ii) T h e security is received fr o m a n ­
in g in stitu tio n h a s a receipt, th e d eliver­
<A) T h e U n ite d S ta te s G o v e rn m e n t,
oth er reporting in stitu tio n or F ed eral
in g in stitu tio n s h a ll su pp ly th e receiving
<B) A n y agen cy or in stru m e n ta lity o f
R eserve B a n k in its cap acity as fiscal
in stitu tio n th e certificate nu m bers o f th e
th e U n ited S ta te s G o v e rn m e n t,
a g e n t;
(C )
T h e In te r n a tio n a l B a n k fo r R e ­securities w ith in tw o business d a ys fr o m
c o n stru ction a n d D ev elo p m en t,
th e d ate o f request fr o m th e receiving
(iii)
T h e security is received fro m a
in stitu tio n . T h e receiving in stitu tio n
<D) T h e I n te r -A m e r ic a n B a n k , or
cu sto m er o f th e reporting institu tion
(E )
T h e A sia n D e v e lo p m e n t B a n k ; s h a ll report w ith in one business d a y o f
a n d is registered in th e n a m e o f such
and
n otifica tion o f th e certificate n u m b e r;
cu sto m er or its nom in ee.
(ii) T h e Secu rities and E x c h a n g e C o m ­
(C )
W h e r e th e delivery o f securities is (2 ) Form of inquiry. Inquiries sh a ll be
m ission w ith respect to all o th er secu ri­
over th e w indow a n d w here th e deliver­
m a d e in such m a n n e r as prescribed by
ties.
in g in stitu tio n h as n o receipt, th e d eliv­
th e ap p rop riate in stru m en ta lity .
(b ) Reporting
requirements— (1 )
ering in stitu tio n sh a ll report w ithin two
(d ) Permissive reports and inquiries.
Stolen securities, (i) E very reportin g in ­ business days o f n otifica tion o f n o n -r e ­ E very reporting in stitu tion m a y report
stitu tio n sh a ll report to th e a pprop riate
ceipt by th e receiving in stitu tio n ; or
to or inquire o f th e approp riate in stru ­




FEDERAL REGISTER, VOL. 4 2 , N O.

1 5 6 — FRIDAY, AUGUST 12, 1 97 7

RULES AND REGULATIONS

41026
m e n ta lity w ith respect to a n y secu rity
n o t oth erw ise required b y tills section to
be th e su b je c t o f a rep o rt o r inquiry. T h e
C om m ission o n w ritten requ est o r u pon
its ow n m otion m a y p e rm it reports to
a n d inquiries o f th e sy ste m h y a n y o th e r
p erso n or en tity u p o n su ch term s a n d
con d ition s a s it d eem s ap p rop riate a n d
necessary in th e public in terest a n d fo r
th e p ro te ction o f investors.




FEDERAL

(e )
Exemptions. R egistered securitiesquiry w ith th e approp riate in stru m e n ­
o f th e U n ite d S ta te s G o v e rn m e n t, a n y
tality.
a gen cy or in stru m en ta lity o f th e U n ited
(f)
Recordkeeping. Every reporting in ­
S ta te s G o v ern m e n t, th e In te rn a tio n a l
stitu tio n sh a ll m a in ta in a n d preserve in
B a n k fo r R eco n stru ctio n a n d D ev elo p ­
a n easily accessible place fo r three years
m e n t, th e In te r -A m e r ic a n D ev elo p m en t
copies o f all F o rm s X - 1 7 F - 1 A filed p u r­
B a n k , o r th e A sia n D ev elo p m en t B an k ,
su a n t to this section a nd all c o n firm a ­
a n d c ou n terfe it securities o f su ch e n ­
tio n s or o th e r in fo rm a tio n received fro m
tities a re n o t su b je c t to th e provisions o f
th e a pprop riate in stru m en tality or its
th is section rela tin g to reporting and in ­
designee as a resu lt o f inquiry.

REGISTER, VOL. 4 2 , N O . 1 5 6 — FRIDAY, AUGUST 12, 1 9 7 7

41027

RULES AND REGULATIONS
APPENDIX I I

ease T y p e or
Clearly

Designee’s Use Only

FORM X-17F-1A

PI
P rin t

MISSiHG/LOST/STOlEH/COUNTERiEIT

Date /File Number

SECURITIES REPORT
I , ’REPORTING INSTITUTION:

NM
A IT,
ADDRESS.
. ZIP CODE
ATTENTION:,

FINS,SICIDKNTinEnNfMBF.tl □ □ □ □ □ □ / ( ) ( ) ( )

S TYPE OF REPORT
»

□ LOSS

□ RECOVERY

O UPDATE

□ CO FIR ATIO
N M N

9 i DATE OF LOSS/RECOVERY

4* TYPE OF SECURITY

□

MUNICIPAL

□

RIGHT

BOND

COMMON
STOCK

f l PREFERRED
L- J STOCK

□
n

CONVERTIBLE

F I DEBENTURE

□

P I NOTE

*-*

■
—1 DEBENTURE
OPTION*

□

f l CORPORATE
*—1 BONO
f l WARRANT

i- J

OTHER „

U

.................... ...... .

............

. ..

&NAM E OF ISSUER

6* INTEREST

RATE___

& CUSIP NUMBER

7. MATURITY DATE

□

□

□

□

□

□

□

□

□

% NAME OF REGISTERED HOLDER ,

10.

CERTIFICATE/SEFIAL NUMBERS

IT . DENOMINATION/SHARES 12. ISSUE D ATE

13d. ADDITIONAL PACES ATTACHED.

13. TOTAL CURRENT MARKET OR FACE YALUE S ,
14.

□ C R IM IN A L IT Y

15.

□ C O U N T E R F E IT

in d i c a t e d

If Counterfeit • Dinlin/iuiuhinil ClutrartmHlim

REPORTS FILED WITH: IS. □

19.




DATA HANK

A U T H O R IZE D SIG NATURE

17. □

TRANSFER AGENT

20.

—

18. □

LAW ENFORCEMENT

P A TE

i t HW (-7
t
17*

FEDERAL REGISTER, VOL. 4 2 , N O . 1 5 6 — FRIDAY, AUGUST 12, 1 9 7 7

41028

RULES AND REGULATIONS
I nstructions

Note.— S ection 240.171-1 does n o t re q u ire
re p o rtin g o f coupons. M u n ic ip a l o r corporate
securities n o t assigned CUSIP Num bers are
n o t th e s u b je c t o f re p o rtin g and in q u iry
d u rin g th e p ilo t program .
Form s fo r w h ic h th e C om m ission is th e
a p p ro p ria te in s tru m e n ta lity sh o u ld be m ailed
to th e C om m ission’s designee:
S ecurities In fo rm a tio n Center, Inc., Post
Office Box 421, W ellesley H ills , Mass. 02181.
1. R e p o r t i n g I n s t i t u t i o n — E n te r re p o rtin g
in s titu tio n name, address and F IN S num ber,
w ith Securities In fo rm a tio n Center-assigned
suffix, i f any.
2. T y p e o f R e p o r t — Check w h e th er re p o rt
is a new re p o rt (“ Loss” ), re p o rt o f recovery
o f p re vio u sly rep o rte d loss ( “ Recovery” ), o r
up d ate o r co rre ctio n o f re p o rt o th e r th a n re ­
covery ( “ U pdate” ) . A d d itio n a lly , i f th e re ­
p o rt is a c o n firm a tio n o f a loss, recovery, or
up d ate made b y telex o r telephone, also
check th e box m arked “ C o n firm a tio n .”
3. D a t e — E n te r date w hen loss was noticed,
th e ft occurred, when c o u n te rfe it was d is ­
covered o r suspected, o r w hen s e c u rity was
fo u n d o r recovered. W hen s u b m ittin g u p ­
dates, corrections o r co n firm a tio n s, e nter
date o f loss o r recovery.
4. T y p e o f S e c u r i t i e s — Check th e box w h ich
m ost n e a rly describes th e typ e o f se cu rity.
I f none o f th e classifications adequately de­
scribes th e se cu rity, check “ O th e r” and de­
scribe th e se c u rity in th e space provided.
5. Issuer— P r in t or typ e th e name o f issu­
in g company, agency o r o rg a n iza tio n as set
o u t on th e s e c u rity even th o u g h th e se cu rity
m ay have been lost, stolen, o r m issing p rio r
to being “ issued" by the a p p ro p ria te a u th o r­
ity .
6. In te re s t Rate— I f in te re st ra te was in d i­
cated, e n te r th is in fo rm a tio n .
7. M a t u r i t y D a t e —E n te r m a tu r ity date
where applicable.
8. C U S I P N u m b e r — E n te r e n tire CUSIP
Num ber.
9. N a m e
R e g is te r e d
H o l d e r — Clearly
p r in t o r type th e f u ll name o f person ( in d i­
vid u a l, com pany, bank, brokerage house, etc.)
to w hom th e s e c u rity is registered exactly as
i t appears o n th e se cu rity. E n te r th e word
“ Bearer” when d ocum ent is a bearer security.
10. C e r t i f i c a t e / S e r i a l N u m b e r s — E n te r cer­
tific a te o r serial n u m b e r(s) in c lu d in g a ll
suffixes and prefixes. I f ce rtifica te s have n o t
been issued, en ter th e c o n tro l nu m b e r. Series
m ay be in d ic a te d by th e fir s t a nd la st n u m ­
bers separated by a dash and fo llo w e d by the
word “ Series” . C e rtifica te o r serial num bers
o f ce rtifica te s o f th e same CUSIP n u m b e r
w h ic h are n o t in seq u en tia l order sh o u ld be
lis te d separately on each lin e . I f a d d itio n a l
space is required, a tta ch a sheet c o n ta in in g
in fo rm a tio n in th e same fo rm a t as Ite m 10
and check Ite m 13a.
11. D e n o m i n a t i o n / S h a r e s — E n te r in n u ­
m erical fo rm th e a m o u n t o f money repre­
sented by bonds, debentures, notes and o th e r
securities (except stock w a rra n ts and rig h ts )
as in d ic a te d on th e certificates. I f a m o u n t
was n o t in d ic a te d on th e ce rtifica te , e nter th e
word “ B la n k .”
F or stocks, e nter th e n u m b e r o f shares rep ­
resented by th e certificates, n o t th e par value
o f th e stock. I f n u m b e r o f shares is n o t repre­
sented, e n ter th e w o rd “ B la n k .”
F or w a rra n ts and rig h ts , e nter in n u m e rica l
fo rm th e n u m b e r o f shares w h ich the docu­
m e n t e n title s th e owner to purchase.
12. I s s u e D a t e — E n te r issue date o f secur­
ity . I f c e rtifica te s have n o t ye t been issued,
in d ic a te th is fa ct.
13. T o t a l C u r r e n t M a r k e t o r F a c e V a l u e —
For stocks, rig h ts and w arrants, e n ter th e ap­
p ro x im a te to ta l c u rre n t m a rke t value. F or
bonds, e n te r th e face value o f th e ce rtifica te .

of




13a. A d d i t i o n a l P a g e s A t t a c h e d — F or a
no n seq u e n tia l series o f certifica te s h a vin g
th e same CUSIP num ber, a d d itio n a l pages
lis tin g securities to be reported m ay be a t ­
tached. (See In s tru c tio n 10). I f a d d itio n a l
pages are attached, check th is Ite m .
14. C r i m i n a l i t y I n d i c a t e d — I f re p o rtin g a
loss, check when a s u b s ta n tia l b e lie f o f c rim ­
in a lit y is in dicated.
15. C o u n t e r f e i t — Describe
d is tin g u is h in g
ch a ra cte ristics o f suspected c o u n te rfe it se­
cu ritie s.
16. F i l e d w i t h D a t a B a n k — Check i f file d
w ith th e Com m ission’s Designee or a Federal
Reserve B a n k or B ra n ch as appropriate.
17. F i l e d w i t h T r a n s f e r A g e n t — Check to
in d ica te th a t you have sent a copy o f th is
re p o rt to a T ransfer Agent fo r th e issue.
18. F i l e d w i t h L a w E n f o r c e m e n t — Check o f
you sent a copy o f th is re p o rt to the appro­
p ria te law enforcem ent agency when re ­
q uired.
19. A u t h o r i z e d S i g n a t u r e — F orm X -1 7 F -1 A
m u s t have an a u tho rize d sig n a ture to be ac­
cepted by th e System. W ith respect to those
reports file d w ith th e C om m ission’s designee,
such signatures m u s t be on file w ith th e des­
ignee. Copies o f reports sent to a tra n sfe r
agent and th e a p p ro p ria te law enforcem ent
agency sh o u ld co n ta in an o rg in a l signature.
20. D a t e — E n te r date when fo rm is signed.
A p p e n d ix

III

R E P O R T S A N D I N Q U I R I E S R E G A R D IN G L O S T O R S T O ­
L E N U N IT E D S T A T E S G O V E R N M E N T A N D A G E N C Y
S E C U R IT IE S F O R W H I C H
BANKS

ARE

THE

T H E FEDERAL RESERVE

A P P R O P R IA T E

IN S T R U M E N ­

T A L IT Y

O n December 16, 1976, th e Securities and
Exchange Com m ission adopted 17 CFR 240.17f~l, w h ic h requires a ll fin a n c ia l in s t it u ­
tio n s covered by th e section to re p o rt to th e
a p p ro p ria te in s tru m e n ta lity any instance o f
loss o r t h e ft o f c e tra in securities and, w ith
c e rta in exceptions, to make in q u iry p rio r to
th e c o m p le tio n o f any tra n s a c tio n in v o lv in g
these securities. The section w ill be im p le ­
m ented in tw o phases. T he fir s t p a rt to be
im p le m e n te d w ill be th e re p o rtin g re q u ire ­
m en t, w h ich w ill go in to effect on O ctober
3, 1977. The second p a rt, th e in q u iry re q u ire ­
m ent, w ill go in to effect on Ja n u a ry 2, 1978.
T he Federal Reserve Banks have been des­
ig n a ted as th e “ a p p ro p ria te in s tru m e n ta l­
it y ” fo r receiving reports o f and in q u irie s as
to lost, m issing, c o u n te rfe it or stolen U n ite d
States G o ve rn m e nt and Agency securities.
As used in th is circ u la r, th e te rm “ G overn­
m e n t and Agency se cu ritie s” includes se­
c u ritie s issued by th e :
U n ite d States Treasury
Banks fo r Cooperatives
D is tr ic t o f C o lu m bia A rm o ry Board
E x p o rt-Im p o rt B ank o f th e U n ite d States
F a rm C re d it A d m in is tra tio n
Farm ers Hom e A d m in is tra tio n
Federal F in a n c in g B a n k
Federal Home Loan Banks
Federal Home Loan M ortgage C o rporation
Federal H ousing A d m in is tra tio n
Federal In te rm e d ia te C re d it Banks
Federal L a n d Banks
Federal N a tio n a l M ortgage Association
G overnm ent N a tio n a l M ortgage Association
(does n o t in clu d e Pass-Through S ecuri­
ties)
S m a ll Business A d m in is tra tio n
S tu d e n t Loan M a rk e tin g Association
Tennessee V alley A u th o rity
U n ite d States Postal Service
W ashington M e tro p o lita n Area T ra n s it A u ­
th o r ity
Asian D evelopm ent Bank
In te r-A m e ric a n D evelopm ent Bank
In te rn a tio n a l B ank fo r R e co n stru ctio n and
D evelopm ent

FEDERAL REGISTER, VOL. 42, N O .

Since la te 1970, th e Federal Reserve Banks
have been o p erating a ch e cklis t procedure
designed to assist in th e id e n tific a tio n o f
lo st and stolen G overnm ent and Agency se­
cu rities. T he developm ent o f th e ch e c k lis t
procedure had been spurred in la te 1969 by
by a m arked increase in th e incidence and
m a g n itu d e o f th e fts o f U n ite d States G ov­
e rn m e n t and Agency securities fro m banks
and o th e r fin a n c ia l in s titu tio n s .
The re p o rtin g and in q u iry phases o f § 240.1 7 f-l w ill be operated on a one-year p ilo t
basis be g in ning Ja n u ary 2, 1978, when th e
in q u iry re q u ire m e n t becomes effective. The
section covers every n a tio n a l securities ex­
change, m em ber thereof, registered se cu ri­
ties association, broker, dealer, m n u ic ip a l se­
c u ritie s dealer, registered tra n s fe r agent,
registered
clearing
agency,
p a rtic ip a n t
th e re in , m em ber o f th e Federal Reserve Sys­
tem , and ba n k whose deposits are in su re d by
th e Federal Deposit Insurance C orporation
W h ile th e section requires reports and in ­
qu iries on G overnm ent and Agency securities
fro m those fin a n c ia l In s titu tio n s , th e Federal
Reserve Banks w ill also accept reports fro m
and respond to in q u irie s fro m any o ther
fin a n c ia l in s titu tio n .
I t should be noted th a t th e Federal Reserve
Banks undertake no re sp o n sib ility w ith re ­
gard to any p a rty in m a in ta in in g th e lis t of
lo st or stolen securities o r responding to in ­
q u irie s p e rta in in g th e re to and w ill n o t be
lia b le fo r any act o r fa ilu re to act w ith
respect to any procedures set fo r th in § 240.17f— F urth e rm o re , th e lis t m a in ta in e d by
1.
the Federal Reserve Banks p u rs u a n t to such
section is n o t a “ caveat” or “ stop p a ym e n t”
lis t.
REPORTS

(B E G I N N I N G

OCTOBER

3,

1977)

Reports of lost, m issing, c o u n te rfe it or
stolen securities sh o u ld be made in w ritin g ,
using SEC F orm X -1 7 F -1 A . A copy o f th e
fo rm is in clu d e d in SEC Release No. 34-to
w h ich th is m a te ria l is appended. Copies o f
th e fo rm w ill be available a t a ll SEC Re­
g io n a l Offices a fte r September 1, 1977. A ll re ­
coveries m u s t also be p ro m p tly reported in
w ritin g , using th e same fo rm , by th e in s t it u ­
tio n th a t reported the loss. A lis t o f m a ilin g
addresses to w h ic h reports m ay be sent
follow s th is d e scrip tio n o f re p o rtin g and in ­
q u iry procedures. A map o f the tw elve Federal
Reserve D is tric ts is also in cluded to assist
re p o rtin g in s titu tio n s in lo ca tin g the nearest
Federal Reserve Bank,
IN Q U IR IE S

(B E G IN N IN G

JA N U ARY

2,

1978)

A ll fin a n c ia l in s titu tio n s covered by 5 240 17f— w ill also be req u ire d to make in q u iry
1
w ith respect to every bearer G overnm ent o r
Agency se cu rity (in c lu d in g registered securi­
ties assigned in b la n k ), w h ich comes in to its
possession or keeping, w h e th er by pledge,
tra n s fe r or otherwise, to ascertain w h e th er
th a t se cu rity has been reported as lost, m iss­
ing. c o u n te rfe it or stolen unless:
(1) The se cu rity is received d ire c tly fro m
th e issuer or issuing agent a t issuance, or
(2) The se cu rity is received fro m another
re p o rtin g in s titu tio n o r fro m a Federal Re­
serve B ank in its capacity as fiscal agent.
(A ll securities received fro m a Federal Re­
serve B ank are exem pt fro m th e § 240.17f-l
in q u iry re q u ire m e n t except securities re­
ceived on a w ith d ra w a l fro m a safekeeping
or o th e r cu sto dial aco u nt where the securi­
ties were n o t h eld in b o o k-e n try fo rm .)
In q u irie s , as w e ll as requests fo r general
in fo rm a tio n regarding th e use o f the Federal
Reserve B ank checklist procedure, m ay be
made by telephone as in d ica te d in th e lis t
w h ich follow s. Response by th e Federal Re­
serve Office w ill be In th e fo rm o f a re tu rn
call, w h ich w ill be p ro m p tly confirm ed in
w ritin g .

1 S6— FRIDAY, AUGUST 12,

1 97 7

RULES AND REGULATIONS
Reports o f a n d in q u irie s as to registered
G o ve rn m e nt a n d Agency securities (unless
assigned in b la n k ) are n o t covered by 5 240.I7 f— b u t m ay be made to th e app ro p ria te
1
tra n s fe r agent (e ith e r th e U.S. Treasury De­
p a rtm e n t fo r Treasury and Federal Land
Bank issues, o r th e Federal Reserve B ank o f
New Y o rk fo r o th e r Agency issues, in c lu d in g
securities issued by in te rn a tio n a l organiza­
tio n s ) . A n y rep o rts o f o r in q u irie s as to co u n ­
te rfe it securities s h o u ld be d irected to th e
a p propriate la w enforcem ent agencies.
Tire ch e cklist procedure is designed to help
recover lo st o r sto le n securities and to pre ­
ve n t th e ir use in n o rm a l commerce. O f even
greater im p o rta n ce are measures designed to
m in im iz e th e ris k o f loss o r th e f t o f se cu ri­
ties. I n th is respect, th e b o o k -e n try proce­
dure fo r G o vernm ent and Federal Agency se­
c u ritie s affords th e o p tim a l s o lu tio n to the
problem o f securities th e fts . C u rre n tly m ore
th a n 87 percent o f th e e lig ib le m arketable
G o ve rn m e nt and Federal Agency issues are
h e ld in b o o k -e n try fo rm . However, a b o ut $63
b illio n s t ill rem ains o u ts ta n d in g in d e fin i­
tive fo rm — m u c h o f i t in th e custody o f
banks. B o th th e Federal Reserve System and
th e T reasury have been w o rk in g to extend
th e use o f th e b o o k-e n try-p roce d u re, and
banks are urged to u tiliz e th e procedure to
the m a x im u m e x te n t possible.
R E P O R T S A N D I N Q U I R I E S R E G A R D IN G L O S T O R S T O ­
LEN

U N IT E D

ACENCY
FEDERAL

STATES

GOVERNMENT

AND

S E C U R IT IE S

RESERVE B A N K
AND

AND

TELEPHONE

BRANCH

AD D R E SSE S

NUM BERS

Securities D epartm ent, C in c in n a ti Branch,
P.O. Box 999. C in c in n a ti, O hio 45201, 513721-4787.
Securities D epartm ent, P itts b u rg h Branch,
Federal Reserve Bank, P.O. Box 867. P itts ­
burgh. P a .15230, 412-261-7912.

S ix th F e d e ra l R e s e rv e D is t r ic t

Federal Reserve B a n k o f A tla n ta , 104 M a rie tta
S treet N W „ A tla n ta , Ga. 30303 , 404^5868647.
B irm in g h a m B ranch, Federal Reserve Bank,
P.O. Box 10447, B irm in g h a m , Ala. 35202.
205-252-3141 Ext. 215.
Jacksonville B ranch, Federal Reserve Bank,
515 J u lia Street. Jacksonville, Fla. 32231.
904-632-4243.
M ia m i Branch, Federal Reserve Bank, P.O.
Box 520847. M ia m i. Fla. 33152, 305-445-6281
Ext. 192.
N ashville Branch, Federal Reserve Bank, 301
E ig h th Avenue N o rth , Nashville, Tenn.
37203. 615-259-4006 Ext. 281.
New Orleans B ranch, Federal Reserve Bank,
P.O. Box 61630, New Orleans, La. 70161,
504-586-1505 Ext. 240.
S e v e n th F e d e ra l R e s e rv e D is t r ic t

S e c o n d F e d e ra l R e s e rv e D is tr ic t

G overnm ent B ond D ivisio n , Federal Reserve
B a n k o f New Y o rk, New Y o rk, N.Y. 10045,
212-791-5359.
B uffalo B ranch (in q u irie s o n ly ), C o llection
Loans, and Fiscal Agency D ivisio n , 716849-5043 o r 716-849-5130.
T h ir d F e d e ra l R e s e rv e D is tr ic t

James B. D uffy, M anager, G overnm ent Bond
D ivisio n , Federal Reserve B a n k o f P h ila ­
delphia, P.O. Box 90, P h ila d e lp h ia , Pa.
19105, 215-574-6190, R o b e rt Carey 215-5746191.
F o u rth

F e d e ra l R e s e rv e D is tr ic t

Securities D e p a rtm e n t, Federal Reserve B ank
o f Cleveland, P.O. Box 6387, Cleveland,
O hio 44101. 216-241-2800.




N in th

G overnm ent Securities D ivisio n , Federal Re­
serve B a n k o f Chicago, 230 S o u th LaSalle
Street, Chicago, 111. 60690, 312-322-5941 or
312-322-5947.
G overnm ent Securities D ivisio n , D e tro it
B ranch, Federal Reserve B ank, 160 West
F o rt Street, D e tro it, M ich . 48226, 313-9616880 Ext. 292 or 293.
E ig h th F e d e ra l R e s e rv e D is t r ic t

Federal Reserve Bank o f St. Louis, P.O. Box
442, St. Louis, Mo. 63116, A t t : Treasury
Issues D ivisio n , 314-421-1700 E xt. 203.
L ittle Rock Branch, Federal Reserve Bank,
P.O. Box 1261, L it t le Rock A rk. 72203, A tt:
Securities D epartm ent, 501-372-5451.
L o u isville Branch, Federal Reserve Bank,
P.O. Box 899, L o u isville , K y . 40201, A t t :
Securities D epartm ent, 502-7351.
M em phis Branch, Federal Reserve Bank, P.O,
Box 407, M em phis, T enn. 38101, A t t : Se­
cu ritie s D epartm ent, 901-523-7171.

FEOEftAl REGISTER, V O t

F e d e ra l R e s e rv e D is t r ic t

G erald J. M allen, Manager, Securities Cus­
to d y D ivisio n , Securities D epartm ent, Fed­
eral Reserve B ank o f M in n ., M inneapolis,
M in n . 55480.
.

F if t h F e d e ra l R e s e rv e D is t r ic t

Federal Reserve B a n k o f R ich m o nd . P.O. Box
27622, R ichm ond, Va. 23261, 804-649-3611
Ext. 290.
B a ltim o re Branch, Federal Reserve Bank,
P.O. Box 1378. B a ltim o re , Md. 21203, 301539-6552 E xt. 275.
C h a rlo tte B ranch, Federal Reserve Bank. P.O.
Box 300. C h a rlotte . N.C. 28230, 704-3730200 Ext. 266,

F ir s t F e d e r a l R e s e rv e D is tr ic t

Securities D e p a rtm e n t, Federal Reserve Bank
o f Boston, 30 Pearl Street, Boston, Mass.
02106, 617-426-7100 E xt. 351.

11029

T e n th F e d e ra l R e s e rv e D is t r ic t

Fiscal Agency D epa rtm e n t, Federal Reserve
B ank o f Kansas C ity, Federal Reserve S ta­
tio n , Kansas C ity, Mo. 64198, Delores
F orm an 816-881-2783.
Denver B ranch, Federal Reserve Bank, 1020
16th Street, P.O. Box 5228, T. A., Denver,
Colo. 80217, Bob L u n dg re n 303-292-4020
Ext. 253.
O klahom a C ity Branch. Federal Reserve
Bank, P.O. Box 25129, O klahom a C ity, Okla.
73125, Sherm an H u ff 405-235-1721 Ext.
181.
Omaha B ranch. Federal Reserve Bank. 102
South 17th, Omaha, Nebr. 68102. Iv a r A ndreasen 402-341-3610 E xt. 241.
E le v e n th F e d e r a l R e s e rv e D is t r ic t

Federal Reserve B a n k o f Dallas. Securities
D epartm ent, M arketable Issues D ivision,
S ta tio n K, Dallas, Tex. 75222, M ary M.
Rosas 214-651-6384, Donald E. C u rtis 214651-6360.
Houston B ranch, Federal Reserve Bank, F is­
cal Agency D e partm ent, P.O. Box 2578,
Houston, Tex. 77001, K . S. Savage 713-6594433 Ext. 74. J. W. L o ckh a rt 713-659-4433
Ext. 75.
San A n to n io Branch, Federal Reserve Bank.
Cash-Fiscal Agency D epa rtm e n t, P.O. Box
1471, San A n to n io , Tex. 78295. A. G. V a­
lencia. Jr. 512-224-2141 Ext. 60. M. E.
S te h lin g 512-224-2141 E xt. 62.
El Paso Branch, Federal Reserve Bank. CashFiscal Agency D epartm ent. P.O. Box 100.
El Paso, Tex. 7999.
T w e lf t h F e d e r a l R e s e rv e D is t r ic t

Federal Reserve Bank o f San Francisco, F is ­
cal D epartm ent, P.O. Box 7702, San F ra n ­
cisco, C a lif. 94120. 415-544-2330 or 2331.
Los Angeles Branch, Federal Reserve Bank.
Fiscal D epartm ent, P.O. Box 2077, Los A n ­
geles, C a lif. 90051, 213-683-8377.
P o rtla n d Branch, Federal Reserve Bank. F is­
cal D epartm ent, P.O. Box 3436, P o rtla n d.
Ore. 97208, 503-228-7584.
S a lt Lake C ity B ranch, Federal Reserve
Bank, Fiscal D epartm ent, P.O. Box 780, S a lt
Lake C ity, U ta h 84110, 801-355-3131.
Seattle Branch, Federal Reserve Bank. Fiscal
D epartm ent, P.O Box 3567. Seattle. Wash.,
206-442-7269

4 2 , N O . 156— FRIDAY, AUGUST 12,

1 977

RULES AND REGULATIONS

41030

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories •

LEGEND
Boundaries of Federal Reserve Districts
—
©

• Boundaries of Federal Reserve Branch
Territories

©

Federal Reserve Bank Cities

♦

Federal Reserve Branch Cities

4

Federal Reserve Bank Facility

Board of Governors of the Federal
Reserve System




FEDERAL REGISTER, VOL. 4 2 , N O .

1 5 6 — FRIDAY, AUGUST 12, T 9 7 7

RULES AND REGULATIONS
A p p e n d ix
THE

LOST,

M IS S IN G ,

S E C U R IT IE S

IV

STOLEN

AND

IN F O R M A T IO N

C O U N T E R F E IT
SYSTEM

D e s c r ip tio n o f t h e S y s te m

The Securities and Exchange Com m ission
designated th e Securities In fo rm a tio n Cen­
ter, In c . (th e “ Designee” ), a su b sid ia ry o f
IT E Ii A utE x, In c., to operate th e Lost, Stolen,
M issing and C o u n te rfe it Securities In fo rm a ­
tio n System (th e "system ” ) to receive and
process reports and in q u irie s fo r w h ich th e
C om m ission is th e appro p ria te in s tru m e n ­
t a lit y u n d er 17 CFR 2 40.17f-l. The system is
to operate as a p ilo t program w ith Reports
to th e system b e g in ning on O ctober 3, 1977,
and in q u irie s to th e system com m encing on
J a n u a ry 2, 1978. The p ilo t program w ill end
on December 31, 1978.
I t is th e in te n tio n o f th e Com m ission and
th e designee to operate a system w h ich w ill,
w ith s u fficie n t fle x ib ility and a t th e lowest
possible cost, m eet th e needs o f th e in d u s try
and f u lf ill th e in te n t o f Congress. I t is e sti­
m ated th a t d u rin g th e p ilo t year th e system
w ill on th e average process 10,000 reports and
in q u irie s a day. I n th e early m o n th s o f the
p ilo t, users sh o u ld a n tic ip a te m in o r p ro b ­
lems w h ic h u s u a lly accom pany th e s ta rt-u p
o f a new system. As experience is gained
w ith th e op e ra tio n o f th e system, user re ­
q u ire m e n ts w ill be b e tte r defined and proce­
dures w ill be m od ifie d to im prove th e opera­
tio n o f th e system and in su re th e u ltim a te
success o f th e program .
T h is m a te ria l b rie fly describes how th e
system w ill operate, defines term s and service
options, and provides a schedule o f fees
w h ich w ill be charged in connection w ith
th e service.
R E P O R T IN G

R E Q U IR E M E N T S

Securities and Exchange Com m ission Re­
lease Nos. 34-13053, 34-13280, and 13831
define th e organizations (re p o rtin g in s t it u ­
tio n s ) w h ic h are req u ire d to re p o rt to and
make in q u irie s o f th e system. The releases
also specify when rep o rts and in q u irie s are
required. The ru le provisions and im p o rta n t
e xp la n ato ry in fo rm a tio n has been re p u b ­
lished in SEC Release No. 34-13832, to w h ich
th is D e scrip tion o f th e system is an appen­
dix.
REPORTS

A rep o rt is a notice to th e system and to a
tra n s fe r agent fo r th e issue o f (1) securities
lost, stolen, m issing, or discovered to be
c o u n te rfe it; (2) recovery o f securities p re v i­
ously reported lost, stolen, or m issing; or (3)
a co rre ctio n or update o f a previous re p o rt
o th e r th a n recovery.
A ll re p o rtin g in s titu tio n s are req u ire d to
m ake reports enum erated in paragraph (b)
o f ru le 1 7 f-l d ire c tly to th e app ro p ria te in ­
s tru m e n ta lity . A ll reports m u s t be made on
F orm X -1 7 F -1 A and signed by an a u tho rize d
in d iv id u a l whose sig n a ture is on file w ith th e
designee. Reports fo r w h ich th e Com m ission
is the appro p ria te in s tru m e n ta lity sh o u ld be
m ailed to P.O. Box 421, Wellesley H ills , Mass.
02181.
Reports can be made v o lu n ta rily fo r s itu a ­
tio n s in w h ic h re p o rtin g in s titu tio n s are
exem pt fro m re p o rtin g requirem ents. H ow­
ever. a ll reports m u s t relate to securities
w h ic h have a CUSIP n u m b e r and m u s t show
th a t n u m b e r to be accepted b y th e system.
P re lim in a ry reports m ay also be m ade by
telephone o r telex. P re lim in a ry reports
should in c lu d e th e re p o rtin g I n s titu tio n ’s




FIN S nu m b e r,1 the CUSIP n u m b e r and cer­
tific a te num bers (in c lu d in g a ll prefixes and
suffixes) o f th e securities, and in d ic a tio n of
w h e th er or n o t c r im in a lity is suspected. Pre­
lim in a ry reports m u s t be fo llo w e d by a w r it ­
te n re p o rt on F orm X -1 7 F -1 A signed by an
a u tho rize d in d iv id u a l and m aile d to P.O. Box
421, W ellesley H ills , Mass. 02181.
The designee w ill send a w r itte n re p o rt
c o n firm a tio n to th e re p o rtin g in s titu tio n on
a weekly basis.
On October 3, 1977, th e system w ill be in
operation to receive reports and in s titu tio n s
req u ire d to re p o rt m u s t begin doing so on
th a t date.
IN Q U IR IE S

In q u irie s are made o f th e system to d e ter­
m in e i f securities com ing in to th e possession
or c o n tro l o f a re p o rtin g In s titu tio n have
been p re vio u sly reported as lost, stolen, m iss­
ing, o r c o u n te rfe it.
R e p o rtin g in s titu tio n s m u s t e ith e r be d i­
re ct in q u ire rs o r in d ire c t in q u ire rs o f th e
system. D ire c t in q u ire rs m ake in q u irie s o f
the system by u sin g telephone, telex, m a il,
o r m agnetic tape sent to th e designee. A l­
te rn a tiv e ly , a re p o rtin g in s titu tio n can p a r­
tic ip a te as an In d ire c t in q u ire r by a rra n g in g
w ith a d ire c t in q u ire r to a ct on its b e h a lf
in m a kin g in q u irie s o f th e system.
U pon reg iste rin g w ith th e system as a
d ire c t in q u ire r, th e re p o rtin g in s titu tio n w ill
be assigned app ro p ria te access codes. Each
tim e th e re p o rtin g in s titu tio n makes an in ­
q u iry o f th e system, w h e th er on its ow n be­
h a lf o r o n b e h a lf o f a n o th e r in s titu tio n , th e
code w ill be used to in su re th a t o n ly a u ­
th o rize d d ire c t in q u ire rs have access to th e
system.
I n a d d itio n to th e re p o rtin g in s t it u t io n ’s
access code, th e in q u iry m u s t in clu d e th e
in s t it u t io n ’s FIN S n u m b e r and th e se cu ri­
tie s’ CUSIP and ce rtifica te num bers (in c lu d ­
in g a ll suffixes and prefixes). M u ltip le in ­
quires can be made in a single m a ilin g , tele­
phone call, o r telex transm ission.
In s titu tio n s th a t a n tic ip a te a large volum e
o f in q u irie s or rep o rts on a reg u la r basis
m ay elect to in p u t to th e system via m ag­
n e tic tape. Such re p o rtin g in s titu tio n s
sh o u ld co n ta ct th e designee fo r specifica­
tio n s and procedures.
A d ire c t in q u ire r can access th e system
fro m various s ta tio n s w ith in its organiza­
tio n . A s ta tio n is a d e p a rtm e n t o r b ranch
lo c a tio n th a t w ill have its ow n access code
and telephone contact.
D ire ct in q u irie s m a kin g in q u irie s fro m
more th a n one s ta tio n can register th e a d d i­
tio n a l sta tio n s as e ith e r p rim a ry or second­
ary access sta tio ns. A secondary s ta tio n
makes in q u irie s o f th e system d ire c tly b u t
has its w ritte n c o n firm a tio n s d irected by th e
designee to a p rim a ry access s ta tio n o f the
in s titu tio n . A p rim a ry access s ta tio n receives
co n firm a tio n s fo r its ow n use o f th e system
and fo r use by its secondary access s ta ­
tions, i f any. A t least one lo ca tio n o f each
d ire c t in q u ire r m u s t be registered as a p r i­
m ary access sta tio n . No o th e r sta tio n s are
required. Every secondary s ta tio n m u s t be
associated w ith one and o n ly one p rim a ry
sta tio n .
P R O C E S S IN G

OF

IN Q U IR IE S

A fte r a u th o rize d access fo r purposes o f
m a kin g an in q u iry has been established, th e
system w ill assign th e in q u iry a va lid a tio n
n u m b e r w h ich co n firm s fo r th e d ire ct in ­
q u ire r th a t th e in q u iry was made.
1 In fo rm a tio n on where yo u r FIN S nu m b e r
can be located Is contained in SEC Release
No. 34-13832. to w h ich th is m a te ria l is ap­
pended.

FEDERAL REGISTER, VOL. 42, N O .

41031
'The system w ill th e n search th e data base
to determ ine i f th e CUSIP a n d c e rtifica te
num bers in th e in q u iry m a tc h those in a re ­
p o rt p re vio u sly s u b m itte d . I f so, th e in q u ir ­
in g in s titu tio n w ill be n o tifie d im m e d ia te ly
o f th e m atch. T h is positive c o n firm a tio n w ill
in clu d e in s tru c tio n s on how to co n tact th e
re p o rtin g in s titu tio n w h ic h s u b m itte d th e
m a tch in g re p o rt and notice, i f any, o f sus­
pected c r im in a lity .
W ritte n c o n firm a tio n s o f in q u irie s th a t
d id n o t re s u lt in a m a tch (negative con­
firm a tio n ) w ill be m aile d to th e d ire c t i n ­
q u ire r m o n th ly along w ith re p o rt co n firm a ­
tio n s. C o n firm a tio n s w ill be m aile d to th e
p rim a ry access sta tio n .
An o p tio n a l p ro m p t w r itte n c o n firm a tio n
service w ill be available to d ire c t in q u ire rs a t
a d d itio n a l cost. W ith th is service, the p r i­
m a ry access s ta tio n w ill receive p ro m p t co n ­
firm a tio n by m a il o f a ll in q u irie s (and
w h e th e r p o sitive o r negative) and o f a ll re ­
p o rts received by th e system fro m th a t sta ­
tio n o r its secondary access stations. There
w ill be one such m a ilin g fo r each day on
w h ic h reports a n d /o r in q u irie s were received
fro m th e s ta tio n o r its secondary access
sta tio ns.
O n Ja n u a ry 2, 1978, th e system w ill be in
op e ra tio n to receive in q u irie s, and in s t it u ­
tio n s req u ire d to make in q u irie s m u s t begin
doing so on t h a t date.
SCH EDU LE OF CHARGES

U nder a p ric in g s tru c tu re and schedule
o f fees approved by th e Com mission, orga­
n iza tio n s t h a t are d ire c t in q u ire rs w ill be
charged (1) an a n n u a l re g is tra tio n fee, (2)
a o n e -tim e assessment to cover system de­
velopm ent, and (3) usage fees. An in d ire c t
in q u ire r m u s t make separate arrangem ents
w ith th e In s titu tio n th a t makes in q u irie s on
its b e h a lf to compensate th a t d ire c t in q u ire r
fo r its costs and services.
Fees do n o t cover p a rtic ip a n t’s use o f the
m ails, telephone, or telex fo r m a kin g reports
o r in q u irie s , n o r any tra in in g or education
o f employees o f d ire c t or in d ire c t in q u ire rs
in connection w ith th e use o f th e system.
R e g i s t r a t i o n . — T h is a n n u a l fee fo r d ire c t
in q u ire rs covers th e cost o f m a in ta in in g
re g is tra tio n data, assignm ent o f access codes,
and b illin g o f a ll charges.
F o r th e
p ilo t y e a r

For each p rim a ry access s ta tio n ____ $18. 00
For each secondary access s ta tio n —
9. 00
S y s t e m d e v e l o p m e n t . — There w ill be a one­
tim e assessment to cover th e costs o f
developm ent o f softw are and hardw are to
operate th e system. The costs o f develop­
m e n t w ill be d ivid e d evenly among a ll d ire c t
in q u ire rs and th e per user charge w ill de­
pend on th e n u m b e r o f d ire c t in q u ire rs.

E stim a te d o n e -tim e a s s e s s m e n t
(based on a n tic ip a te d 5,000 d ire c t
users) __________________________$30.00
U s a g e . — These fees w ill cover th e costs of
v e rific a tio n o f a u tho rize d system access,
m a tch in g o f reports and in q u irie s , n o tific a ­
tio n o f matches, and c o n firm a tio n o f in ­
q u iries.
Usage charges w ill be b ille d q u a rte rly in
advance to a single p rim a ry access s ta tio n .
The charges o u tlin e d below are based on es­
tim ate s o f th e n u m b e r o f d ire c t in q u ire rs in
each size cla ssifica tio n (5,000 to ta l) and of
th e aggregate n u m b e r o f In q u irie s (10,000
per d a y). The firs t q u a rte rly b illin g w ill be
a djusted to reflect the a ctu al n u m b e r o f d i­
re ct in q u ire rs in each size classification.
Subsequent q u a rte rly b illin g s w ill be ad­
ju ste d to reflect a ctu al aggregate volum e of
in q u irie s.

156— FRIDAY, AUGUST 12,

1 97 7

RULES AND REGULATIONS

41032

E s t im a t e d U sag e C h a rg es

S iz e

T ype

Amount o f D e p o s i t s

Banks

$ 2 ,4 0 0 .0 0

3 0 0 .0 0

5 0 .0 0

to

$ 6 0 0 .0 0

1 ,2 0 0 ,0 0

o v e r $1 B i l l i o n
$500 M illio n
$1 B i l l i o n

1 2 .5 0

L e s s than $ 5 0 0
M illio n
Annual Kevenue (H o s t
're ce n t

S e c u r itie s
o r g a n iz a ­
tio n s

------- : — * —
- —

$ 2 ,4 0 0 .0 0

$ 6 0 0 .0 0

1 , 650.00

412 .5O

3 60, 00.

9 O.CC

100.00

25.00

Annual*

to

$ 5 0 0 , 0 0 0 . to$5 M i l l i o n ' '

Quarterly

.. .

L o ss th a n $ 5 0 0 ,0 0 0

Number o f S h a r e s
is s u e d h a s t Y e a r

Mon-Bank
T r a n s fe r
a g e n ts

Q u a r t e r ly

A n n u al

T—

o v e r $25 M i l l i o n
$5 M i l l i o n
$ 25 M i l l i o n

Quarterly

Annual

100,000 shares

$ 2 2 .5 0

$ 9 0 .0 0

Dr Jiiore
L e ss th a n 1 0 0 ,0 0 0
shares
P R O M P T W R IT T E N

C O N F IR M A T IO N

S E R V IC E

(O P T I O N A L )

F or m a ilin g o f p ro m p t w r itte n co n firm a ­
tio n s o f a ll in q u irie s and rep o rts received
fro m a d ire c t in q u ire r each day v ia m a il,
telephone o r te le x:
Each p rim a ry access s ta tio n u sin g

the service (per quarter)------- $16. CO
A d d itio n a l in fo rm a tio n , in c lu d in g p ro ­
cedural in s tru c tio n s and telephone and telex
num bers, w ill be m aile d to d ire c t in q u ire rs
a fte r re g is tra tio n fo rm s have been received
a nd processed.
A p p e n d ix V
LOST,

STOLEN ,

M IS S IN G ,

C U R IT IE S

AND

C O U N T E R F E IT

IN F O R M A T IO N

SE­

SYSTEM

1 2 .5 0

5 0 .0 0
1_

_

_

_

_

_

_

( ) 2. B a n k whose deposits are in su re d
b y th e Federal Deposit In su ra n ce Corpora­
tio n .
( ) 3. N a tio n a l Securities Exchange.
( ) 4. N a tio n a l Securities Exchange m em ­
ber.
( ) 5. N a tio n a l Securities Exchange m em ­
b er firm .
( ) 6. Registered Securities Association.
( ) 7. Registered Securities Association
m em ber.
( ) 8. Securities broker.
( ) 9. S ecurities dealer.
( ) 10. M u n ic ip a l securities dealer.*
( ) 11. Registered tra n sfe r agent.
( ) 12. Registered clearing agency.
( ) 13. P a rtic ip a n t in a registered clear­
in g agency.
Name o f re p o rtin g in s t it u t io n : _________ _

R e g is tr a t io n F o r m

O rganizations req u ire d b y Securities and
Exchange Com m ission R u le 1 7 f-l (un d e r
section 1 7 (f) o f th e Securities and Exchange
A c t o f 1934, as amended by Pub. L. 94-29
(June 4, 1975)), to make rep o rts to and in ­
q u irie s o f th e lost, stolen, m issing, and
c o u n te rfe it securities in fo rm a tio n system are
shown by categories below. A ll such o rg a n i­
za tio n s m u s t com plete and re tu r n th is fo rm
to th e Securities In fo rm a tio n Center, In c.
( “ designee” ) by September 23, 1977, in order
to be able to f u lf ill th e ir resp o n sib ilitie s
u n d e r th e law .
F ill o u t and re tu rn th is fo rm to : Securi­
tie s In fo rm a tio n Center, Inc., Post Office Box
421, W ellesley H ills , Mass. 02181.
E n titie s ( “ re p o rtin g in s titu tio n s ” ) re ­
q u ire d to m ake reports o f and in q u irie s to
th e system (check each classification appro­
p ria te to y o u ):
( ) 1. Federal Reserve System member.




Address:

A t t e n t io n : ______________________________
FIN S I d e n t if ic a t io n No.1 □ □ □ □ □ □
Telephone No. (
) ___________________
S ize

of

I n s t it u t io n

Check one o f th e fo llo w in g th a t describes
th e size o f yo u r o rg a n iza tio n .
B a n k (a ll those w h o have checked e ith e r
classifica tio n 1 o r 2 above). □ M ore th a n $1
b illio n in deposits; □ w ith $500 m illio n to
$1 b illio n in deposits; □ less th a n $500 m il­
lio n in deposits.
1 In fo rm a tio n on where yo u r FIN S n u m ­
ber can be located is contained in SEC Re­
lease No. 3 4, to w h ich th is m a te ria l is
appended.

FEDERAL REGISTER, VOL. 4 2 , N O.

_

Securities o rg a n iza tio n : □ W ith over $25
m illio n in a n n u a l revenue; □ w ith more
th a n $5 m illio n b u t less th a n $25 m illio n in
a n n u a l revenue; □ w ith $500,000 to $5 m il­
lio n in a n n u a l revenue; □ w ith less th a n
$500,000 in a n n u a l revenue.
N o n -b a n k tra n s fe r agents (those who
check o n ly classification 11 a b o v e ): □ T h a t
issue 100,000 shares o r more per year; Q th a t
issue less th a n 100,000 shares per year.
M e t h o d o f i n q u i r y .— I n it ia l one o f th e tw o
statem ents below to in d ica te w hether you
w ill m ake in q u irie s o f th e system as a “ di-.
re c t in q u ire r” o r " in d ire c t in q u ire r.” D ire c t
in q u ire rs should also in d ica te w h e th er th e y
w ill use m u ltip le access sta tio ns a n d /o r th e
p ro m p t c o n firm a tio n service. These usage op­
tio n s and th e charges related to each are
o u tlin e d in th e “ d e scrip tio n o f th e system.”
D ire ct In q u ire r: B e g in n in g J a n u ary 2,
1978, we w ill m ake in q u irie s o f th e system
d ire c tly . We agree to pay to th e designee th e
a n n u a l re g is tra tio n fees o f $18 fo r each p r i­
m ary access s ta tio n and $9 fo r each second­
a ry access sta tio n . We also agree to pay th e
advance q u a rte rly usage charges and th e
o n e -tim e assessment fo r system developm ent
costs approved by th e Com m ission and o u t­
lin e d in th e “ D escrip tion o f th e System,”
w h ic h Is appended to SEC Release No.
34------ .
D ire c t in q u ire rs should use th e boxes be­
lo w to in d ica te th e n u m b e r o f sta tio n s th e y
w ill use to m ake in q u irie s to th e system. I f
these boxes are n o t fille d , i t w ill be presumed
t h a t th e re w ill be 1 p rim a ry a nd no second­
a ry access stations, th e m a n d a to ry m in i­
m um .
□ N um ber o f p rim a ry access stations.
□ N u m be r o f secondary access stations.
D ire c t in q u ire rs th a t w ish to have th e
p ro m p t w r itte n c o n firm a tio n service should
_
_
_
_
_
_
_
check _ th e b lo ck below: _ _ _ _ _ _ _ _ _
□ We w ish to have th e p ro m p t w ritte n
co n firm a tio n service as o u tlin e d in th e “ De­
s c rip tio n o f th e System.” We agree to pay
$16 per q u a rte r fo r th is service.
We agree to pay am ounts equal to a ll
sales, use and excise taxes, o r o th e r taxes
w h ich m ay be levied upon o r in connection
w ith th e fu rn is h in g o f th e fa c ilitie s o r serv­
ice o f th e system.
T erm s: A ll fees are due and payable w ith ­
in te n days o f date o f in vo icin g .
I n d i r e c t i n q u i r e r : We have made arrange­
m ents w i t h ______________________________
(Name o f d ire c t in q u ire r)
w ho w ill m ake in q u irie s o f th e system on
o u r behalf. We are aware th a t we w ill re­
ceive no d ire c t c o n firm a tio n s fro m th e des­
ignee and th a t th e in s titu tio n th a t makes
in q u irie s fo r us m ay pass th ro u g h to us
th e costs o f u sin g th e system on o u r be h alf
as w e ll as a d d itio n a l service charges.
We u n d ersta n d th a t th e Lost, Stolen,
M issing, a nd C o u n te rfe it Securities In fo rm a ­
tio n System w ill operate as a one-year p ilo t
program . I n a d d itio n to m a kin g reports and
in q u irie s to th e designee, we w ill take a ll
o th e r steps necessary fo r re p o rtin g to th e
a p p ro p ria te in s tru m e n ta lity and la w enforce­
m e n t agencies in fo rm a tio n re la tin g to lost,
stolen, m issing, and c o u n te rfe it securities.
The designee w ill p e rfo rm its w ork in a
businesslike m anner and in accordance w ith
reasonable standards of care. The designee
does n o t, however, guarantee th e accuracy of
any in fo rm a tio n contained in th e records of
th e system o r o f th e responses to in q u irie s
concerning lost, stolen, m issing, o r co u n te r­
f e it securities fu rn is h e d by it . The designee
s h a ll n o t be lia b le fo r any u n in te n tio n a l de­
lays, inaccuracies, errors, or omissions in said
responses o r fo r any damages a ris in g th e re ­
fro m o r occasioned thereby. TTie designee
s h a ll n o t be lia b le fo r n on-perform ance o r
in te rru p tio n o f services due to fire, storm s,

1 5 6 — FRIDAY, AUGUST 12,

1 97 7

_




RULES AND REGULATIONS
strikes, la b o r disputes, o r any cause beyond
its c o n tro l or due to th e a ct o r om ission o f
any o th e r person, firm , o r corporation.
A u th o rized s ig n a tu re (s ):
(Signed)
(Typed)

--------- --------------------------------- ---------------,

(T itle )
D a t e d :__ _____ ________
(Signed)
(Typed)

----------------------------_________________ _

(T itle )
D a te d :__________________
Please sign and re tu rn th is re g istra tio n
form to the Securities In fo rm a tio n Center,
Inc., th e C om m ission’s designee, a t P.O. Box
421, W ellesley H ills , Mass. 02181, by Septem ­
ber 23, 1977, The Securities In fo rm a tio n
C enter w ill send to a ll d ire ct in q u ire rs by
October 3, 1977, fu rth e r in fo rm a tio n on how
to access th e system.
(FR Doc.77-23188 F ile d 8-11-77:8:45 am ]

FEOERAL

REGISTER, V O t. 4 2 , N O

156— FRIDAY, AUGUST 12,

1977







would you
like to know
if any changes have been made in
certain titles of the CODE OF
FEDERAL REGULATIONS without
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day? If so, you may wish to subscribe
to the “Cumulative List of CFR
Sections Affected,” the “ Federal
Register Index,” or both.
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w

*
V

The “ Cumulative List of CFR Sections
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the Code of Federal Regulations to
v» amendatory actions published in the
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monthly in cumulative form. Entries
indicate the nature of the changes.
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Entries are carried primarily under the
names of the issuing agencies. Significant
subjects are carried as cross-references.
A finding aid is Included in each publication which lists
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Note to FR Subscribers: FR Indexes and the
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Mail order form to:
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20402

There is enclosed $ _ _ ______ ..fo r________ - subscription(s) to the publications checked below:
___ ......... CUMULATIVE LIST OF CFR SECTIONS AFFECTED ($10.00
................. FEDERAL REGISTER INDEX ($8.00

Name

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$12.50 foreign)

domestic; $10.00 foreign)

------— — - -— —------------------------------------------------------------------- ------ .
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Street Address_____________________________ _—--------------------------- --------------------- --- ---------------------------------------------.
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Make check payable to the Superintendent of Documents

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-fa GPO: 1??€—o -56-ooo

■ i i m i i i i i i m .i l i i i li i i i i i i u i i i i i i i i i a

iiiiiim iiiiiiijiiiije iijjijiijjtiih iii

sfim iiiiiiiK fiiic iiiiiififiiiiiiiitfiiiiiim iiiiiiiiiiu iiiiK iiititf

ftfiiiiifiiiiK iiim itiiiiia iiiiin iim iM a iiiiiH iim iM iiiK iiiiiim iiik tiiftiiiiim iiiiiiK iiK iiB




Lost, Stolen, Missing and Counterfeit
Securities Information System
REGISTRATION FORM
ORGANIZATIONS REQUIRED BY SECURITIES AND EXCHANGE
COMMISSION RULE 17f-l (UNDER SECTION 17(f) OF THE
SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED BY
PUBLIC LAW NO. 94-29 (JUNE 4, 1975) TO MAKE REPORTS
TO AND INQUIRIES OF THE LOST, STOLEN, MISSING AND
COUNTERFEIT SECURITIES INFORMATION SYSTEM ARE SHOWN
BY CATEGORIES BELOW.
ALL SUCH ORGANIZATIONS MUST
COMPLETE AND RETURN THIS FORM TO THE SECURITIES IN­
FORMATION CENTER, INC. ("DESIGNEE") BY SEPTEMBER 23,
1977 IN ORDER TO BE ABLE TO FULFILL THEIR RESPONSI­
BILITIES UNDER THE LAW.
FILL OUT AND RETURN THIS FORM TO:
Securities Information Center, Inc.
Post Office Box 421
Wellesley Hills, Massachusetts 02181
Entities ("Reporting Institutions") required to make
Reports of and Inquiries to the System (check each
classification appropriate to y o u ) :
(

)

1.

Federal Reserve System Member

(

)

2.

Bank whose deposits are insured by the
Federal Deposit Insurance Corporation

(

)

3.

National Securities Exchange

(

)

4.

National Securities Exchange Member

(

)

5.

National Securities Exchange Member Firm

(

)

6.

Registered Securities Association

(

)

7.

Registered Securities Association Member

(

)

8.

Securities Broker

(

)

9.

Securities Dealer

(

)

10. Municipal Securities Dealer

(

)

11. Registered Transfer Agent

(

)

12. Registered Clearing Agency

(

)

13. Participant in a Registered Clearing Agency




2

Name of Reporting Institution:

Address:

Attention:

__________________________________ ____________

FINS Identification No. *
Telephone N o .

(

)

___

___

___

___

__________________________

SIZE OF INSTITUTION
Check one of the following that describes the size of
your organization.
Bank

(All those who have checked either classification
1 or 2 above)

_____

More than $1 billion in deposits

_____r

With $500 million to $1 billion in deposits

_____

Less than $500 million in deposits

Securities Organization
_____With over $25 million in annual revenue
_____

With more than $5 million but less than $25
million in annual revenue

_____

With $500,000 to $5 million in annual revenue

___

With less than $500,000 in annual revenue

*

Information on where your FINS Number can be located
is contained in SEC Release No. 34-13832, to which
this material is appended.




*

-

Non-Bank Transfer Agents

3

-

(Those who check only
classification 11 above)

That issued 100,000 shares or more last year
1

1

That issued less than 100,000 shares last year
METHOD OF INQUIRY

Initial one of the two statements below to indicate
whether you will make Inquiries of the System as a
’Direct Inquirer” or ’ Indirect Inquirer." Direct In­
’
’
quirers should also indicate whether they will use
multiple access stations and/or the Prompt Confirma­
tion Service.
These usage options and the charges
related to each are outlined in the "Description of
the System," Appendix IV to SEC Release No. 34-13832.
_____

DIRECT INQUIRER:
Beginning January 2, 1978,
we will make Inquiries of the System directly.
We agree to pay to the Designee the annual
registration fees of $18.00 for each Primary
Access Station and $9.00 for each Secondary
Access Station.
We also agree to pay the ad­
vance quarterly usage charges and the one-time
assessment for system development costs ap­
proved by the Commission and outlined in the
"Description of the System," which is appended
to SEC Release No. 34-13832,
Direct Inquirers should use the boxes below to
indicate the number of stations they will use
to make Inquiries to the System.
If these boxes
are not filled, it will be presumed that there
will be 1 Primary and no Secondary Access Sta­
tions, the mandatory minimum.
Number of Primary Access Stations
_____ Number of Secondary Access Stations
Direct Inquirers that wish to have the Prompt
Written Confirmation Service should check the
block below.




We wish to have the Prompt Written
Confirmation Service as outlined in
the "Description of the System." We
agree to pay $16.00 per quarter for
this service.

-

4

-

We agree to pay amounts equal to all sales,
use and excise taxes, or other taxes which
may be levied upon or in connection with the
furnishing of the facilities or service of
the System.
Terms:

All fees are due and payable within
ten days of date of invoicing.

INDIRECT INQUIRER: We have made arrangements
with _________________________ __________________
Name of Direct Inquirer
who will make Inquiries of the System on our
behalf.
We are aware that we will receive no
direct confirmations from the Designee and that
the Institution that makes Inquiries for us may
pass through to us the costs of using the System
on our behalf as well as additional service charges.
We understand that the Lost, Stolen, Missing and Counter­
feit Securities Information System will operate as a one
year pilot program.
In addition to making Reports and
Inquiries to the Designee, we will take all other steps
necessary for reporting to the appropriate instrumentality
and law enforcement agencies information relating to lost,
stolen, missing and counterfeit securities.
The Designee will perform its work in a businesslike man­
ner and in accordance with reasonable standards of care.
The Designee does not, however, guarantee the accuracy of
any information contained in the records of the System or
of the responses to inquiries concerning lost, stolen,
missing or counterfeit securities furnished by it. The
Designee shall not be liable for any unintentional delays,
inaccuracies, errors or omissions in said responses or
for any damages arising therefrom or occasioned thereby.
The Designee shall not be liable for non-performance or
interruption of services due to fire, storms, strikes,
labor disputes or any cause beyond its control or due to
the act or omission of any other person, firm or corporation.
Authorized Signature(s)
/s/ ___________ ____________
Print or Type Name

/ s / ________________________
Print or Type Name

Title

Title

Date

Date

THE SECURITIES INFORMATION CENTER WILL SEND TO ALL DIRECT INQUIRERS BY OCTOBER
3, 1977 FURTHER INFORMATION ON HOW TO ACCESS THE DATA SYSTEM.