21218 Federal Register / Vol. 61, No. 91 / Thursday, May 9, 1996 / Notices

identified as such on a list of such securities at

NSCC.

5For a complete description of the ACAT service,

refer to NSCC Rule 50 and to Securities Exchange

Act Release No. 34879 (October 21, 1994), 59 FR

54229 [File No. SR–NSCC–94–13] (order approving

a proposed rule change modifying the ACAT

service).

6NSCC will use the following pricing services

(listed in order of preference). Equities: The New

York Stock Exchange, the American Stock

Exchange, NASDAQ, Vancouver Stock Exchange,

average OTC comparison system price, Interactive

Data Financial Times information, previous day’s

system price, or last available price in system.

Bonds: Average Price in the Bond Comparison

System for trades compared on T or T+1, average

price in the Bond Comparison System for trades

compared on T+2, average price in the Bond

Comparison System for trades compared on T+3 or

older, Interactive Data Financial Times information,

previous day’s system price, last available price in

system, or for municipal bonds only the price

obtained from J.J. Kenny S&P if the last available

system price is five days old or older.

7The default matrix was developed in

conjunction with the New York Stock Exchange, the

Securities Industry Association Account Transfer

Division, and the National Association of Securities

Dealers.

8 15 U.S.C. 78q-1(b)(3) (A) and (F) (1988). 9 17 CFR 200.30-3(a)(12) (1995).

submitted by members for transfer

through NSCC’s ACAT service.5

Through its ACAT service, NSCC

provides an automated and

standardized service for the transfer of

assets in a customer account from one

brokerage firm to another.

When a customer wants to transfer

her account to a new broker-dealer

(‘‘receiving broker-dealer’’), the

receiving broker-dealer submits through

NSCC a transfer initiation request form

to the broker-dealer holding the

customer’s assets (‘‘delivering brokerdealer’’). Within three business days,

the delivering broker-dealer must

submit to NSCC a list of the customer’s

assets it holds. The list must include

prices assigned to the assets not eligible

for CNS. Unless there are discrepancies

between the receiving broker-dealer’s

list of the customer’s assets and the

delivering broker-dealer’s list, transfer

of the account generally takes place four

business days later.

On settlement date, NSCC

automatically debits the delivering

broker’s settlement account at NSCC

with the market value of the assets being

transferred through the ACAT service

and credits the receiving broker’s

settlement account with the same

amount. The resulting settlement

obligations appear on the members’

initial settlement statements issued in

the afternoon. When the assets which

are not CNS eligible assets are delivered

through NSCC’s envelope delivery

service, NSCC credits the delivering

broker’s settlement account with the

value of those assets and debits a

corresponding amount from the

receiving broker’s settlement account.

Because assets delivered through

NSCC’s envelope delivery service must

be submitted by 11:30 a.m., the

delivering broker’s initial settlement

statement will reflect both the debit

from the initial ACAT request and the

corresponding credit from the delivery

of assets resulting in no change to such

member’s overall settlement obligations.

If the assets are not delivered, the

delivering broker’s settlement bank

would be debited the assigned value of

the assets at the end-of-day settlement.

These funds will be credited to the

delivering broker when it delivers the

customer’s assets.

CNS assets submitted for transfer

through the ACAT system are

systematically priced. Because assets

not eligible for CNS (e.g., limited

partnerships, mortgaged backed

securities, zero coupon bonds, foreign

securities, U.S. government and U.S.

agency securities, and thinly traded

municipal bonds) typically do not have

a system price, NSCC must assign an

asset value to any such assets submitted

for transfer through the ACAT service.

NSCC ascribes assets not eligible for

CNS a value by using a pricing service.6

If there is no price available from a

pricing service, NSCC assigns a value

based on the higher of (i) the price

submitted by the delivering broker or

(ii) the price indicated by an industry

defined default price matrix.7 The

default price matrix employs security

category indicators and specifies a

default price for each identified security

category. For example, domestic stocks

are valued at $1.00 per share and

domestic corporate bonds and

municipal bonds are valued at $85 per

$100 principle amount. Once the default

value is established, changes by

participants are not permitted.

II. Discussion

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act and the

rules and regulations thereunder and

particularly with the requirements of

Sections 17A(b)(3) (A) and (F).8 Sections

17A(b)(3) (A) and (F) require that the

rules of a clearing agency be designed to

promote the prompt and accurate

clearance and settlement of securities

transactions and to foster cooperation

and coordination with person engaged

in the clearance and settlement of

securities transactions. The Commission

believes that NSCC’s rule change meets

these standards because establishment

of systemized standard default prices for

assets not eligible for CNS which are

transferred through the ACAT service

provides an incentive for broker-dealers

holding customer assets to promptly

deliver such securities. The proposed

rule change also should foster

cooperation and coordination between

brokerage firms and NSCC by

establishing a standard method by

which such assets are priced in the

ACAT service. This method of pricing

should decrease discrepancies with

respect to asset valuation and should

reduce the delivering broker’s exposure

from overvaluation of assets and the

receiving broker’s exposure from

undervaluation of assets.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with Sections

17A(b)(3) (A) and (F) 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–

NSCC–96–01) be and hereby is

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.9

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–11537 Filed 5–8–96; 8:45 am]

BILLING CODE 8010–01–M

[File No. 500–1]

Lanstar Semiconductor, Inc.; Order

Directing Suspension of Trading

May 3, 1996.

It appears to the Securities and

Exchange Commission that there is a

lack of adequate current information

concerning the securities of Lanstar

Semiconductor, Inc., a Utah corporation

with executive offices in Arlington,

Texas, and that questions have been

raised regarding the adequacy and

accuracy of publicly disseminated

information concerning, among other

things, unusual market activity and the

tradeability of shares.

Therefore, it is Ordered, pursuant to

Section 12(k) of the Securities Exchange

Act of 1934, that trading in the

securities of Lanstar Semiconductor,

Inc., over-the-counter or otherwise, is

suspended for the period from 9:30 a.m.

(EDT) on May 6, 1996, through 11:59

p.m. (EDT) on May 17, 1996.
Federal Register / Vol. 61, No. 91 / Thursday, May 9, 1996 / Notices 21219

By the Commission.

Jonathan G. Katz,

Secretary.

[FR Doc. 96–11623 Filed 5–8–96; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2851]

Kentucky; Declaration of Disaster Loan

Area

Madison County and the contiguous

counties of Clark, Estill, Fayette,

Garrard, Jackson, Jessamine, and

Rockcastle in the State of Kentucky

constitute a disaster area as a result of

damages caused by high winds and

tornadoes which occurred on April 20,

1996. Applications for loans for

physical damage may be filed until the

close of business on July 1, 1996 and for

economic injury until the close of

business on January 30, 1997 at the

address listed below:

U.S. Small Business Administration,

Disaster Area 2 Office, One Baltimore

Place, Suite 300, Atlanta, GA 30308

or other locally announced locations.

The interest rates are:

Percent

For Physical Damage:

Homeowners With Credit Available Elsewhere ........................ 7.250

Homeowners Without Credit

Available Elsewhere ................ 3.625

Businesses With Credit Available

Elsewhere ................................ 8.000

Businesses and Non-Profit Organizations Without Credit Available Elsewhere ........................ 4.000

Others (Including Non-Profit Organizations) With Credit Available Elsewhere ........................ 7.125

For Economic Injury.

Businesses and Small Agricultural Cooperatives Without

Credit Available Elsewhere ..... 4.000

The number assigned to this disaster

for physical damage is 285112, and for

economic injury the number is 883900.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008).

Dated: April 30, 1996.

John T. Spotila,

Acting Administrator.

[FR Doc. 96–11610 Filed 5–8–96; 8:45 am]

BILLING CODE 8025–01–P

Portland District Advisory Council

Meeting; Public Meeting

The U.S. Small Business

Administration, Portland District

Advisory Council will hold a public

meeting on Thursday, May 30, 1996

from 1:00 p.m. to 4:30 p.m. and Friday,

May 31, 1996 from 8:00 a.m. to 12:00

noon at the Newport Shilo Inn, 536 SW

Elizabeth, Newport, Oregon to discuss

matters as may be presented by

members, staff of the U.S. Small

Business Administration, or others

present.

For further information, write or call

Mr. John L. Gilman, District Director,

U.S. Small Business Administration,

222 S.W. Columbia, Suite 500, Portland,

OR 97201–6695, (503) 326–5221.

Dated: May 3, 1996.

Bill Combs,

Associate Administrator for Office of

Communication and Public Liaison.

[FR Doc. 96–11609 Filed 5–8–96; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

[FHWA Docket No. MC–96–13]

Commercial Driver’s License Program;

Temporary Waiver for Trekking

International Overland Expedition

AGENCY: Federal Highway

Administration (FHWA), DOT.

ACTION: Notice of final disposition.

SUMMARY: Trekking International

requested relief from the requirements

of the commercial driver’s license(CDL)

regulations (49 CFR Part 383) for drivers

participating in the Overland

Expedition.

The FHWA has decided that it is not

contrary to the public interest and will

not diminish the safe operation of

commercial motor vehicles (CMVs) to

grant a waiver from the CDL testing and

licensing standards to drivers

participating in the Overland

Expedition. The effect of this action is

to allow four Iveco 330.30 ANW 6x6

trucks being driven by six foreign

licensed employees of the petitioner to

continue driving their trucks from

Rome, Italy to New York City, New

York. The approved waiver is temporary

and subject to certain conditions.

EFFECTIVE DATE: May 9, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

Robert Redmond, Office of Motor

Carrier Research and Standards, (202)

366–4001, or Mr. Raymond W. Cuprill,

Office of the Chief Counsel, HCC–20,

(202) 366–0834, Federal Highway

Administration, Department of

Transportation, 400 Seventh Street,

SW., Washington, DC 20590. Office

hours are from 7:45 a.m. to 4:15 p.m.,

e.t., Monday through Friday, except

Federal holidays.

SUPPLEMENTARY INFORMATION:

Background

The Commercial Driver’s License

(CDL) regulations, issued pursuant to

the Commercial Motor Vehicle Safety

Act of 1986 (Title XII, Pub. L. 99-570,

100 Stat. 3207) (49 U.S.C. 31301 et seq.),

are found at 49 CFR Part 383 (1995).

Section 383.23 of the regulations sets

forth the general rule that no person

shall operate a commercial motor

vehicle (CMV) unless such person: (1)

has taken and passed a knowledge test

and, if applicable, a driving test, which

meets Federal standards, and (2)

possesses a CDL, which is evidence of

having passed the required tests. These

Federal standards ensure that drivers of

a CMV: (1) have a single driver’s license

and a single driving record, (2) are

tested for the knowledge and skills

needed to drive a vehicle representative

of the vehicle that they will be licensed

to drive, and (3) are disqualified from

driving a CMV when convicted of

certain criminal or traffic violations.

The term ‘‘commercial motor vehicle’’

is defined to include, a motor vehicle:

(1) With a gross combination weight

rating of 26,001 or more pounds

inclusive of a towed unit with a gross

vehicle weight rating (GVWR) of more

than 10,000 pounds; or

(2) With a GVWR of 26,001 or more

pounds; or

(3) Designed to transport 16 or more

passengers, including the driver; or

(4) Used in the transportation of

quantities of hazardous materials which

require the vehicle to be placarded

under the Hazardous Materials

Transportation Regulations (49 CFR part

172, subpart F). 49 CFR 383.5 (1995).

CDL Waivers

Section 12012 of the Commercial

Motor Vehicle Safety Act of 1985 (the

Act) authorizes the Secretary of

Transportation to waive any class of

drivers or vehicles from any or all of the

provisions of the Act or the

implementing regulations if the

Secretary determines that the waiver is

not contrary to the public interest and

does not diminish the safe operation of

commercial motor vehicles. The

regulatory procedures governing the

issuance of waivers are found at 49 CFR

383.7 (1995).

Petition

Trekking International of Milan, Italy,

through its North American coordinator,

Circumpolar Expeditions of Anchorage,

Alaska, has petitioned the FHWA to

grant a CDL waiver to drivers involved