13932 Federal Register / Vol. 62, No. 56 / Monday, March 24, 1997 / Notices

4 15 U.S.C. 78q–1(b)(3)(F).

5Securities Exchange Act Release Nos. 36431

(October 27, 1995), 60 FR 55749 [File No. SR–

GSCC–95–03] and 36597 (December 15, 1995), 60

FR 66570 [File No. SR–MBSCC–95–05] (orders

approving proposed rule changes authorizing the

release of clearing data relating to participants).

6 17 CFR 200.30–3(a)(12).

whether or in what amount it will be

entitled to receive funds from a crossguarantee party or when it will receive

such funds, with respect to the clearing

member, OCC may, in its discretion,

make a charge against other clearing

members’ contributions to the stock

clearing fund and/or the non-equity

securities clearing fund. New

interpretation .04 states explicitly that if

OCC determines that it is likely to

receive funds from a cross-guarantee

party with respect to the clearing

member, OCC may in anticipation of

receipt of the funds from the crossguarantee party, forego making a charge,

or make a reduced charge against other

clearing members’ contributions to the

stock clearing fund and/or the nonequity securities clearing fund. If OCC

does not receive the anticipated funds

or receives funds in a smaller amount

than anticipated, OCC may make a

charge or an additional charge against

other clearing members’ contributions to

the stock clearing fund and/or the nonequity securities clearing fund. New

interpretation .05 states explicitly that if

OCC were ever to be required to refund

funds which it had received from a

cross-guarantee party back to the crossguarantee party, OCC could make a

charge or an additional charge against

other clearing members’ contributions to

the stock clearing fund and/or the nonequity securities clearing fund to make

itself whole. The charge would be based

on the other clearing members’

computed contributions as fixed at the

time of the refund and not at the time

of the suspension of the clearing

member.

OCC also will add new paragraph (d)

to its Rule 1104 to state explicitly that

OCC may use any positive balance

remaining in a clearing member’s

liquidating settlement account to satisfy

any obligation with respect to that

clearing member which OCC may have

to any other clearing agency pursuant to

a limited cross-guarantee agreement.

The new paragraph is needed to assure

that OCC’s use of the assets of a clearing

member in this manner is authorized by

OCC’s rules because Rule 1104(a) states

that funds of a suspended clearing

member subject to OCC’s control shall

be placed in the clearing member’s

liquidating settlement account and used

‘‘for the purposes hereinafter specified.’’

II. Discussion

Seciton 17A(b)(3)(F) of the Act 4

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds in

the custody or control of the clearing

agency or for which it is responsible and

to foster cooperation and coordination

with persons engaged in the clearance

and settlement of securities

transactions. The Commission believes

the rule change is consistent with OCC’s

obligation to assure the safeguarding of

securities and funds in the custody or

control of the clearing agency or for

which it is responsible because crossguarantee agreements among clearing

agencies are a method of reducing

clearing agencies’ risk of loss due to a

common member’s default.

Furthermore, the Commission has

encouraged the use of cross-guarantee

agreements and other similar

arrangements among clearing agencies.5

Consequently, cross-guarantee

agreements should assist clearing

agencies in assuring the safeguarding of

securities and funds in their custody or

control.

The Commission also believes the

rule change is consistent with OCC’s

obligation to foster cooperation and

coordination with persons engaged in

the clearance and settlement of

securities transactions. The Commission

believes that by entering into such

cross-guarantee agreements, clearing

agencies can mitigate the systemic risks

posed to an individual clearing

corporation and to the national

clearance and settlement system arising

from the default of a common member.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposed

rule change is consistent with the

requirements of the Act and in

particular Section 17A of the Act and

the rules and regulations thereunder.

It is therefore ordered, pursuant to

section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

OCC–96–18) be and hereby is approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Jonathan G. Katz,

Secretary.

[FR Doc. 97–7341 Filed 3–21–97; 8:45 am]

BILLING CODE 8010–01–M

DEPARTMENT OF STATE

Office of Defense Trade Controls

[Public Notice 2521]

Statutory Debarment Under the

International Traffic in Arms

Regulations

AGENCY: Department of State.

ACTION: Notice.

SUMMARY: Notice is hereby given that

the Department of State has imposed

statutory debarment pursuant to Section

127.7(c) of the International Traffic in

Arms Regulations (22 CFR Parts 120–

130) (ITAR) for all export license

applications and other requests for

approval involving the Armaments

Corporation of South Africa, Ltd.

(Armscor); Kentron (Pty) Ltd. (Kentron);

the Denel Group (Pty) Ltd. (Denel); and,

any divisions, subsidiaries, associated

companies, affiliated persons, and

successor entities.

EFFECTIVE DATE: February 27, 1997.

FOR FURTHER INFORMATION CONTACT:

Philip S. Rhoads, Chief, Compliance

and Enforcement Branch, Office of

Defense Trade Controls, Department of

State (703–875–6644).

SUPPLEMENTARY INFORMATION: Section

38(g)(4) of the Arms Export Control Act

(22 U.S.C. 2778) (AECA) prohibits

licenses and other requests for approval

for the export of defense articles and the

furnishing of defense services to be

issued to a person, or any party to the

export, convicted of violating or

conspiring to violate the AECA. This

notice is provided in order to make the

public aware that the following entities

are prohibited from participating

directly or indirectly in the export from

the United States of defense articles,

related technical data, or defense

services for which a license or other

approval is required from the

Department of State under the AECA:

1. The Armaments Corporation of South

Africa, Ltd., (Armscor), Private Bag

X337, 0001 Pretoria, South Africa

2. The Denel Group (Pty) Ltd. (Denel),

P.O. Box 8322, 0046 Hennopsmeer,

South Africa

3. Kentron (Pty) Ltd., P.O. Box 7412,

0046 Hennopsmeer, South Africa.

Effective June 8, 1994, the Department

of State implemented a policy of denial

pursuant to Sections 38 and 42 of the

AECA and Sections 126.7(a) (1) and

(a)(2) of the ITAR for Armscor, Denel,

Kentron, and, any divisions,

subsidiaries, associated companies,

affiliated persons, and successor entities

in response to an indictment returned in

the U.S. District Court for the Eastern
Federal Register / Vol. 62, No. 56 / Monday, March 24, 1997 / Notices 13933

District of Pennsylvania charging

Armscor and Kentron with violating and

conspiring to violate the AECA. Denel,

which is related to Armscor, was

included in the policy of denial (see 59

FR 33811, June 30, 1994).

Armscor and Kentron have entered

pleas of nolo contendere to charges of

violating the AECA. Pursuant to the

Agreement between the Government of

the United States and the Government

of the Republic of South Africa

concerning cooperation of defense trade

controls, Armscor, Denel, and Kentron

will be subject to statutory debarment

until further notice.

This notice involves a foreign affairs

function of the United States

encompassed within the meaning of the

military and foreign affairs exclusion of

the Administrative Procedure Act.

Because the exercise of this foreign

affairs function is discretionary, it is

excluded from review under the

Administrative Procedure Act.

Dated: March 12, 1997.

William J. Lowell,

Director, Office of Defense Trade Controls,

Bureau of Political-Military Affairs, U.S.

Department of State.

[FR Doc. 97–7272 Filed 3–21–97; 8:45 am]

BILLING CODE 4710–25–M

[Public Notice 2522]

Office of Defense Trade Controls;

Statutory Debarment Under the

International Traffic in Arms

Regulations

AGENCY: Department of State.

ACTION: Notice.

SUMMARY: Notice is hereby given that

the Department of State’s policy of

denial for all export license applications

and other requests for approval

involving Fuchs Electronics (Pty) Ltd.

(Fuchs), and, any divisions,

subsidiaries, associated companies,

affiliated persons, and successor

entities, is rescinded, and is replaced by

statutory debarment pursuant to Section

127.7(c) of the International Traffic in

Arms Regulations (22 CFR Parts 120–

130) (ITAR).

EFFECTIVE DATE: February 27, 1997.

FOR FURTHER INFORMATION CONTACT:

Philip S. Rhoads, Chief, Compliance

and Enforcement Branch, Office of

Defense Trade Controls, Department of

State (703–875–6644).

SUPPLEMENTARY INFORMATION: Section

38(g)(4) of the Arms Export Control Act

(22 U.S.C. 2778) (AECA) prohibits

licenses and other requests for approval

for the export of defense articles and the

furnishing of defense services to be

issued to a person, or any party to the

export, be issued to a person, or any

party to the export, convicted of

violating or conspiring to violate the

AECA. This notice is provided in order

to make the public aware that the

following entities are prohibited from

participating directly or indirectly in the

export from the United States of defense

articles, related technical data, or

defense services for which a license or

other approval is required from the

Department of State under the AECA:

Fuchs Electronics (Pty) Ltd., 15

Combrinck Street, Alrode, Gauteng,

South Africa, including the Fuchs

Electronics Division of Reunert Limited.

Effective June 8, 1994, the Department

of state implemented a policy of denial

pursuant to Sections 38 and 42 of the

AECA and Sections 126.7(a)(1) and

(a)(2) of the ITAR for Fuchs and any

divisions, subsidiaries, associated

companies, affiliated persons, and

successor entities in response to an

indictment returned in the U.S. District

Court for the Eastern District Court of

Pennsylvania charging Fuchs with

violating and conspiring to violate the

AECA (see 59 Federal Register 33811,

June 30, 1994).

Fuchs pleaded guilty on February 27,

1997, to charges of violating the AECA.

Pursuant to a Consent Agreement

between Fuchs and the Department of

State, and an Order signed by the

Assistant Secretary for Political-Military

Affairs, Fuchs, including the Fuchs

Electronics Division of Reunert Limited,

will be subject to statutory debarment

and its licensing privileges will be

reinstated in accordance with the terms

of the Consent Agreement entered into

by Fuchs and the Department on

January 24, 1997. At such time, a further

notice will be published herein.

This notice involves a foreign affairs

function of the United States

encompassed within the meaning of the

military and foreign affairs exclusion of

the Administrative Procedure Act.

Because the exercise of this foreign

affairs function is discretionary, it is

excluded from review under the

Administrative Procedure Act.

Dated: February 12, 1997.

William J. Lowell,

Director, Office of Defense Trade Controls,

Bureau of Political-Military Affairs, U.S.

Department of State.

[FR Doc. 97–7273 Filed 3–21–97; 8:45 am]

BILLING CODE 4710–25–M

TENNESSEE VALLEY AUTHORITY

Sunshine Act Meeting (Meeting No.

1493)

TIME AND DATE: 10 a.m. (CST), March 26,

1997.

PLACE: Ramada Inn Convention Center,

Room 4, 854 North Gloster Street,

Tupelo, Mississippi.

STATUS: Open.

Agenda

Approval of minutes of meeting held

on February 19, 1997.

Discussion Items

1. Lowndes, Mississippi, Substation

2. TVA Customer Service Centers

New Business

E—Real Property Transactions

E1. Deed modification affecting

approximately 0.065 acre of former TVA

land on Kentucky Lake in Stewart

County, Tennessee (Tract No. XGIR–

259).

E2. Grant of easement affecting

approximately 330 square feet of TVA’s

Summer Place Building and Parking

Garage property in Knox County,

Tennessee (Tract No. XKOC–1B).

E3. Abandonment of a portion of the

right-of-way easement affecting

approximately 3.02 acres of land on the

Lonsdale-Alcoa transmission line in

Blount County, Tennessee (Tract No.

NA–188).

Unclassified

F1. Filing of condemnation cases.

Information Items

1. Revision to the price schedule for

commodity-based power arrangements

with SKW Metals an Alloys, Inc.

2. Joint marketing agreement with

Tata Electric Companies.

3. Business Practice 9, Management of

TVA’s Supply Chain Process.

4. Grant of easement affecting

approximately 1 acre of land on Norris

Lake for a fire station in Union County,

Tennessee (Tract No. XTNR–111B).

5. New investment managers and

management agreements between the

TVA Retirement System and Wellington

Management Company, LLP, and

Goldman Sachs Asset Management.

For more information: Please call

TVA Public Relations at (423) 632–6000,

Knoxville, Tennessee. Information is

also available at TVA’s Washington

Office (202) 898–2999.