Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices 26243

1 15 U.S.C. § 78s(b)(1) (1988).

2Letters from J. Keith Kessel, Esq., Compliance

Officer, Philadep, to Peter R. Geraghty, Esq., Senior

Counsel, Division of Market Regulation,

Commission (March 20, March 22, March 28, and

April 1, 1996).

3The Commission has modified the text of the

summaries submitted by PHILADEP.

4Customer name securities refer to securities that

are registered in the name of the beneficial owner.

5Philadep will segregate all customer name

certificates from nominee name certificates in its

vault.

6For customer name securities that are not

depository eligible at the time a transfer request is

made, Philadep will perform all necessary due

diligence on such securities to make them

depository eligible so that the securities can be

registered in Philadep’s nominee name and

subsequently available for book-entry delivery into

the participant’s general Philadep account.

7 In addition to reporting incoming deposits prior

to physical delivery, ADS will check securities

against Philadep’s certificate master file to ascertain

whether the securities possess a valid CUSIP

number.

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to the file

number in the caption above and should

be submitted by June 14, 1996.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority, 17 CFR 200.30–3(a)(12).

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13143 Filed 5–23–96; 8:45 am]

BILLING CODE 8010–01–M

[Release No. 34–37229; File No. SR–

PHILADEP–95–12]

Self-Regulatory Organizations; The

Philadelphia Depository Trust

Company; Notice of Filing of a

Proposed Rule Change Seeking To

Establish a Centralized Office

Processing System

May 20, 1996.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

December 19, 1995, the Philadelphia

Depository Trust Company (‘‘Philadep’’)

filed with the Securities and Exchange

Commission (‘‘Commission’’) the

proposed rule change (File No. SR–

PHILADEP–95–12), which Philadep

amended on March 20, March 27, March

28, and April 1, 1996,2 as described in

Items I, II, and III below, which items

have been prepared primarily by

Philadep. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Philadep proposes of offer to its

participants a customer name

safekeeping and branch receive

processing service known as the

Centralized Office Processing Service

(‘‘COPS’’).

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Philadep included statements

concerning the purpose of and basis for

the proposed rule change and discussed

any comments that it received on the

proposed rule change. The text of these

statements may be examined at the

places specified in Item IV below.

Philadep has prepared summaries, set

forth in sections (A), (B), and (C) below,

of the most significant aspects of such

statements.3

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

COPS is a customer name 4

safekeeping and branch receive

processing service that Philadep

proposes to offer to interested

participants for both depository eligible

and ineligible securities provided that

all such securities have a valid CUSIP

number. The primary objective of COPS

is to allow Philadep participants to

utilize Philadep as a custodial agent for

customer name securities.

COPS is designed to offer brokerdealers the opportunity to eliminate a

labor intensive, low profit service from

the broker-dealers’ operations. Philadep

believes COPS will serve several

functions including relieving Philadep

participants from the processing and

auditing responsibilities associated with

receiving customer name securities,

reducing the costs Philadep participants

bear in connection with maintaining

safekeeping for physical certificates, and

centralizing more securities certificates

in a depository environment.

Under COPS, deliveries of customer

name certificates from Philadep

participants will be deposited into

Philadep’s vault for safekeeping.5 Upon

an appropriate instruction from the

submitting participant to withdrawn

positions held in customer name or if a

participant’s customer wishes to sell the

securities, Philadep may either (i) send

these certificates to the participant or

(ii) if the securities are depository

eligible and possess all necessary

endorsements and stock or bond

powers, forward them to the transfer

agent for reregistration into Philadep’s

nominee name and subsequently

deposit them into the participant’s

general Philadep account.6

As proposed, COPS also will permit

Philadep participants to collect, process,

and forward certificates and related

documentation directly to Philadep

from their branch offices. This enables

Philadep to operate as the participants’

central processing office. Thus, COPS

will eliminate steps in the ordinary

certificates routing process by allowing

participants’ branch offices to forward

these documents directly to Philadep.

The branch receive processing facility

will apply to both customer name

safekeeping positions and to ordinary

deposits that participants will forward

to the depository to be placed in

Philadep’s nominee name.

The COPS program will require

Philadep participants utilizing the new

service to send their securities to

Philadep through Philadep’s Automated

Deposit System (‘‘ADS’’). This will

allow Philadep participants to report

their deliveries to Philadep in advance

of the physical delivery.7 Philadep will

verify the contents of the incoming

deliveries and will provide intraday

reconciliation through computer-tocomputer capabilities. Philadep will

endeavor to resolve with the delivering

participant any discrepancies between

the ADS transmission and the contents

of the packages. If the participant does

not properly reconcile its submissions

with Philadep or supply the proper

instructions regarding these items

within thirty days, Philadep will

automatically send these exception

items back to the respective

participant’s branch or central office.

Philadep has not established fees for

COPS; therefore, prior to its

implementation, Philadep will file a

proposed rule change with the

Commission setting forth the fees for

COPS.

In connection with providing the

COPS service, Philadep believes that it

operates as a control location for

securities deposited into COPS within

the meaning of Section 15(c) of the Act

and Rule 15c3–3(c)(5) promulgated

thereunder. In accordance with 15c3–

3(c)(5), Philadep states (i) it qualifies as
26244 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Notices

8 17 CFR 200.30–3(a)(12) (1995).

a bank within the meaning of Section

3(a)(6) of the Act because it is a member

of the Federal Reserve System, (ii) COPS

is a custody business designed to hold

securities in a depository ‘‘free’’

position, which will not require

payment to return the securities to

brokers and dealers, and (iii) securities

deposited into COPS will not be subject

to any right, charge, security interest,

lien, or claim in favor of Philadep or any

of its creditors.

Philadep believes the proposed COPS

service complies with Section 17A of

the Act insofar as it is contemplated to

protect investors and the public interest,

to foster cooperation and coordination

with persons engaged in the clearance

and settlement of securities

transactions, and to further assure the

safeguarding of securities which are in

the custody and control of Philadep.

(B) Self-Regulatory Organization’s

Statement on Burden on Competition

Philadep believes that COPS will

foster competition.

(C) Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received from

Members, Participants or Others

Written comments were neither

solicited nor received with respect to

the proposed rule change. However,

Philadep has received several oral

comments from its participants which

support Philadep in developing the

services contemplated by the proposed

rule change. These comments focus of

the benefits of cost reduction and

Philadep participants’ opportunity

costs.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within thirty-five days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

ninety days of such date if it finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which Philadep consents, the

Commission will:

(A) By order approve such proposed

rule change or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views, and

arguments concerning the foregoing.

Persons making written submissions

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of such

filing will also be available for

inspection and copying at the principal

office of Philadep. All submissions

should refer to the file number SR–

PHILADEP–95–12 and should be

submitted by June 14, 1996.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.8

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 96–13140 Filed 5–23–96; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

[Declaration of Disaster Loan Area #2852;

(Amendment #1]

Illinois Declaration of Disaster Loan

Area

In accordance with notices from the

Federal Emergency Management Agency

dated May 9 and May 10, 1996, the

above-numbered Declaration is hereby

amended to include Lawrence,

Madison, and Monroe Counties in the

State of Illinois as a disaster area due to

damages caused by severe storms and

flooding beginning on April 28, 1996

and continuing.

In addition, applications for economic

injury loans from small businesses

located in the contiguous counties of

Bond, Crawford, Jersey, Macoupin,

Montgomery, Richland, and Wabash in

Illinois; Jefferson, St. Charles, and Ste.

Genevieve Counties in Missouri; and

Knox and Sullivan Counties in Indiana

may be filed until the specified date at

the previously designated location.

All other information remains the

same, i.e., the termination date for filing

applications for physical damage is July

5, 1996, and for loans for economic

injury the deadline is February 6, 1997.

The economic injury number for the

State of Indiana is 888900.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: May 16, 1996.

Bernard Kulik,

Associate Administrator for Disaster

Assistance.

[FR Doc. 96–13065 Filed 5–23–96; 8:45 am]

BILLING CODE 8025–01–P

[Declaration of Disaster Loan Area #2853]

New Mexico (and Contiguous Counties

in Colorado); Declaration of Disaster

Loan Area

Taos County and the contiguous

counties of Colfax, Mora, and Rio Arriba

in the State of New Mexico, and Conejos

and Costilla Counties in the State of

Colorado constitute a disaster area as a

result of damages caused by a wildfire

that occurred May 5 through May 10,

1996. Applications for loans for

physical damage may be filed until the

close of business on July 15, 1996 and

for economic injury until the close of

business on February 18, 1997 at the

address listed below: U.S. Small

Business Administration, Disaster Area

3 Office, 4400 Amon Carter Blvd., Suite

102, Fort Worth, Texas 76155, or other

locally announced locations.

The interest rates are:

Percent

For physical damage:

Homeowners with credit available elsewhere ........................ 7.625

Homeowners without credit available elsewhere ........................ 3.875

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 numbers assigned to this disaster

for physical damage are 285305 for New

Mexico and 285405 for Colorado. For

economic injury the numbers are

889000 for New Mexico and 889100 for

Colorado.

(Catalog of Federal Domestic Assistance

Program Nos. 59002 and 59008)

Dated: May 16, 1996.

Philip Lader,

Administrator.

[FR Doc. 96–13066 Filed 5–23–96; 8:45 am]

BILLING CODE 8025–01–P