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APPENDIX A TO PART 190/BANKRUPTCY

FORMS

BANKRUPTCY APPENDIX FORM 1-OPERATION OF

THE DEBTOR'S ESTATE-SCHEDULE OF TRUSTEE'S DUTIES

For the convenience of a prospective trustee, the Commission has constructed an approximate schedule of important duties which the trustee should perform during the early stages of a commodity broker bankruptcy proceeding. The schedule includes duties required by this part, subchapter IV of chapter 7 of the Bankruptcy Code as well as certain practical suggestions, but it is only intended to highlight the more significant duties and is not an exhaustive description of all the trustee's responsibilities. It also assumes that the commodity broker being liquidated is an FCM. Moreover, it is important to note that the operating facts in a particular bankruptcy proceeding may vary the schedule or obviate the need for any of the partiular activities.

counts, accounts with no open positions) ($ 190.06(e)(1)).

4. Offset all futures contracts which would otherwise remain open beyond the last day of trading or first day on which notice of intent to deliver may be tendered; offset long options on a physical commodity which cannot be settled in cash, have value and would be automatically exercised or would remain open beyond the last day of exercise; and offset all short options on a physical commodity which cannot be settled in cash (8 190.02(f)(1)).

5. Compute estimated funded balance for each customer commodity account containing open commodity contracts ($190.04(b)) (daily thereafter). 6. Make margin calls

if necessary (190.02(g)(1)) (daily thereafter).

7. Liquidate offset any open commodity account for which a customer has failed to meet a margin call ($ 190.02(f)(1)) (daily thereafter).

8. Commence liquidation or offset of specifically identifiable property described in § 190.02(f)(2)(i) (property which has lost 10% or more of value) (and as appropriate thereafter).

9. Commence liquidation or offset of property described in $ 190.02(f)(3) (“all other property”').

10. Be aware of any contracts in delivery position and rules pertaining to such contracts ($190.05).

ALL CASES

Date of Order for Relief 1. Assure that the commodity broker has notified the Commission and its designated self-regulatory organization (“DSRO”) that a petition or order for relief has been filed (8 190.02(a)(1)).

2. Attempt to estimate short-fall in customer segregated funds.

a. If there is a substantial short-fall of customer segregated funds, the trustee should:

i. Contact the DSRO and attempt to effectuate a transfer under section 764(b) of the Code (hereinafter “bulk transfer"); notify the Commission for assistance (S$ 190.02(a)(2) and (e)(1), 8190.06(b)(2), (e), (f)(3), (g)(2), and (h)) but recognize that a bulk transfer is highly unlikely.

ii. If a bulk transfer cannot be effectuated, liquidate all customer commodity contracts, except dealer options and specifically identifiable commodity contracts which are bona fide hedging positions (as defined in $ 190.01(kk)(2)) with instructions not to be liquidated. (See $$ 190.02(f) and 190.06(d)(1)). (In this connection, depending upon the size of the debtor and other complications of liquidation, the trustee should be aware of special liquidation rules, and in particular the availability under certain circumstances of book-entry liquidation ($190.04(d)(1)(ii)).

b. If there is a small short-fall of customer segregrated funds, negotiate with the clearing organization to effect a bulk transfer; notify the Commission (S$ 190.02(a)(2) and (e)(1), 190.06(b)(2), (e), (f)(3), (g)(2), and (h)).

3. Whether or not a transfer has occurred, liquidate or offset open commodity contracts not eligible for transfer (i.e., deficit ac

First Business Day After the Entry of an Order

for Relief 1. If a bulk transfer occurred on the date of entry of the order for relief:

a. Liquidate any remaining open commodity contracts, except any dealer option or specifically identifiable commodity contract (hedge) (See $190.01(kk)(2) and $190.02(f)(1)), and not otherwise transferred in the bulk transfer.

b. Primary liquidation date for transferred or liquidated commodity contracts (f 190.01(ff)).

2. If no bulk transfer has yet been effected, continue attempt to negotiate bulk transfer of open commodity positions and dealer options (f 190.02(c)(1)).

3. Provide the clearing house or carrying broker with assurances to prevent liquidation of open accounts available for transfer at the customer's instruction or liquidate all open contracts except those available for transfer at a customer's instruction and dealer options.

Second Business Day After the Entry of an

Order for Relief If no bulk transfer has yet been effected, request directly customer instructions regarding transfer of open commodity contracts and publish notice for customer in

structions regarding the return of specifically identifiable property other than commodity contracts ($$ 190.02(b) (1) and (2)).

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Third Business Day After the Entry of an Order

for Relief 1. Last day on which to notify the Commission with regard to whether a bulk transfer in accordance with section 764(b) of the Bankruptcy Code will take place ($190.02( a )(2) and $ 190.06(e)).

2. Second publication date for customer instructions ($ 190.02(b)(1)) (publication is to be made on two consecutive days, whether or not the second day is a business day).

Tenth Business Day After the Entry of an Order

for Relief 1. Liquidate or offset all remaining open commodity contracts ($ 190.02(b)(2)).

2. Transfer all open dealer option contracts which have not previously been transferred ($190.06(1)(3)(i)). Eleventh Business Day After the Entry of an

Order for Relief If not done previously, notify customers of bankruptcy and request customer proof of claim ($ 190.02(b)(4)). Thirteenth Business Day After the Entry of an

Order for Relief Commence liquidation of specifically identifiable property for which no arrangements for return have been made in accordance with customer instructions ($8 190.02(b)(1), 190.03(c)).

Fourth Business Day After the Entry of an

Order for Relief If not previously concluded, conclude transfers under $190.06(e) and (f). (See $190.02(e)(1) and $190.06(g)(2)(i)(A)).

Fifth Business Day After the Entry of an Order

for Relief Last day for customers to instruct the trustee concerning open commodity contracts ($190.02(b)(2)).

Sirth Business Day After the Entry of an Order

for Relief Commence liquidation of open commodity contracts for which no customer instructions have been received ($190.02(b)(2)).

Separate Procedures for Involuntary Petitions

for Bankruptcy 1. Within one business day after notice of receipt of filing of the petition in bankruptcy, the trustee should assure that proper notification has been given to the Commission and the commodity broker's designated self-regulatory organization (§ 190.02(a)(1)); margin calls should be issued if necessary ($190.02(g)(2)).

2. On or before the fourth business day after the filing of a petition in bankruptcy, the trustee should use his best efforts to effect a transfer in accordance with $$190.06 (e) and (f) of all open commodity contracts and equity held for or on behalf of customers of the commodity broker (§ 190.02(e)(2)) unless the debtor can provide certain assurances to the trustee.

Seventh Business Day After the Entry of an

Order for Relief 1. Customer instructions due to trustee concerning specifically indentifiable prop erty ($ 190.02(b)(1)).

2. Primary liquidation date ($ 190.01(ff)) (assuming no bulk transfers and liquidation effected for all open commodity contracts for

customer instructions were ceived by the close of business on the sixth business day).

3. Establishment of transfer accounts ($190.03(a)(1)) (assuming this is the primary liquidation date); mark such accounts to market ($ 190.03(a)(2)) (daily thereafter until closed).

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BANKRUPTCY APPENDIX FORM 2-REQUEST FOR

INSTRUCTIONS CONCERNING NON-CASH PROPERTY DEPOSITED WITH (COMMODITY BROKER)

Eighth Business Day After the Entry of an

Order for Relief Commence liquidation of specifically identifiable property for which no customer intructions have been received (§ 190.02(b)(1)). Ninth Business Day After the Entry of an Order

for Relief Complete liquidation to the extent reasonably possible of specifically identifiable property which has yet to be liquidated and for which no

customer instructions have been received ($ 190.03(C)).

Please take notice: On (date), a petition in bankruptcy was filed by (against] (commodity broker). Those commodity customers of (commodity broker) who deposited certain kinds of non-cash property (see below) with (commodity broker) may instruct the trustee of the estate to return their property to them as provided below.

As no customer may obtain more than his proportionate share of the property available to satisfy customer claims, if you instruct the trustee to return your property to you, you will be required to pay the estate, as a condition to the return of your property, an amount determined by the trustee. If your property is not margining an open contract, this amount will approximate the difference between the market value of your property and your pro rata share of the estate, as estimated by the trustee. If your property is margining an open contract, this amount will be approximately the full fair market value of the prcperty on the date of its return.

Even if you request the return of your property, you must also pay the trustee the amount he specifies and provide the trustee with proof of your claim before (close of business on the 10th business day after 2d publication date) or your property will be liquidated. (Upon receipt of customer instructions to return property, the trustee will mail the sender a form which describes the information he must provide to substantiate his claim).

NOTE—The trustee is required to liquidate your property despite the timely receipt of your instructions, money, and proof of claim if, for any reason, your property cannot be returned by (close of business on the 10th business day after 2d publication date).

Kinds of Property To Which This Notice Applies

1. Any security deposited as margin which, as of (date petition was filed), was securing an open commodity contract and is: -registered in your name, -not transferable by delivery, and -not a short-term obligation.

2. Any fully-paid, non-exempt security held for your account in which there were no open contracts as of (date petition was filed). (Rather than the return, at this time, of the specific securities you deposited with (commodity broker), you may instead request now, or at any later time, that the trustee purchase "like-kind” securities of a fair market value which does not exceed your proportionate share of the estate).

3. Any warehouse receipt, bill of lading or other document of title deposited as margin which, as of (date petition was filed), was securing an open commodity contract and:can be identified in (commodity broker)'s records as being held for your account, andis neither in bearer form nor otherwise transferable by delivery.

4. Any warehouse receipt bill of lading or other document of title, or any commodity received, acquired or held by (commodity broker) to make or take delivery or exercise from or for your account and which:-can be identified in (commodity broker)'s records as received from or for your account as held specifically for the purpose of delivery or exercise.

5. Any cash or other property deposited to make or take delivery on a futures or options contract may be eligible to be returned. The trustee should be contacted directly for further information if you have deposited such property with (commodity broker) and desire its return.

Instructions must be received by (close of business on 4th business day after 2d publication date) or the trustee will liquidate your property. (If you own such property but fail to provide the trustee with instructions, you will still have a claim against (commodity broker) but you will not be able to have your specific property returned to you).

NOTE-Prior to receipt of your instructions, circumstances may require the trustee to liquidate your property, or transfer your property to another broker if it is margining open contracts. If your property is transferred and your instructions were received within the required time, your instructions will be forwarded to the new broker.

Instructions should be directed to: (Trustee's name, address, telephone and/or telex number).

BANKRUPTCY APPENDIX FORM 3REQUEST FOR

INSTRUCTIONS CONCERNING TRANSFER OF YOUR HEDGE CONTRACTS HELD BY (COMMODITY BROKER)

United States Bankruptcy Court District of -In re

—, Debtor, No. Please take notice: On (date), a petition in bankruptcy was filed by (against] (commodity broker).

You indicated when your hedge account was opened that the contracts (futures and/ or options) in your hedge account should not be liquidated automatically in the event of the bankruptcy of (commodity broker), and that you wished to provide instructions at this time concerning their disposition.

Instructions to transfer your positions and a cash deposit (as described below) must be received by the trustee by (close of business on 5th business day after entry of order for relief) or your positions will be liquidated.

If you request the transfer of your contracts, prior to their transfer, you must pay the trustee in cash an amount determined by the trustee which will approximate the difference between the value of the equity margining your positions and your pro rata share of the estate plus an amount constituting security for the nonrecovery of any overpayments. In your instructions, you should specify the broker to which you wish your contracts transferred.

Be further advised that prior to receipt of your instructions, circumstances may, in any event, require the trustee to liquidate or transfer your contracts. If your contracts are so transferred and your instructions are received, your instructions will be forwarded to the new broker.

Note also that the trustee is required to liquidate your positions despite the timely receipt of your instructions and money if, for any reason, you have not made arrangements to transfer and/or your contracts are not transferred by (10 business days after entry of order for relief).

Instructions should be sent to: (Trustee's or designee's name, address, telephone and/or

telex number). (Instructions may also be provided by phone).

BANKRUPTCY APPENDIX FORM 4PROOF OF

CLAIM (Note to trustee: As indicated in $190.02(d), this form is provided as a guide to the trustee and should be modified as necessary depending upon the information which the trustee needs at the time a proof of claim is requested and the time provided for a response.)

PROOF OF CLAIM

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United States Bankruptcy Court District of in re — Debtor, No.

Return this form by or your claim will be barred (unless extended, for good cause only).

I. (If claimant is an individual claiming for himself] The undersigned, who is the claimant herein, resides at

(If claimant is a partnership claiming through a member] The undersigned, who resides at -, is a member of —, a partnership, composed of the undersigned and of - and doing business at - and is duly authorized to make this proof of claim on behalf of the partnership.

(If claimant is a corporation claiming through a duly authorized officer) The undersigned, who resides at is the of

a corporation organized under the laws of - and doing business at —, and is duly authorized to make this proof of claim on behalf of the corporation.

(If claim is made by agent] The undersigned, who resides at is the agent of

, and is duly authorized to make this proof of claim on behalf of the claimant.

II. The debtor was, at the time of the filing of the petition initiating this case, and still is, indebted to this claimant for the total sum of $

III. List EACH account on behalf of which a claim is being made by number and name of account holder(s), and for EACH account, specify the following information:

the benefit of a ward or a minor under the Uniform Gift to Minors Act);

3. (The account is held by the undersigned as executor or administrator of an estate);

4. (The account is held by the undersigned as trustee for the trust beneficiary);

5. [The account is held by the undersigned in the name of a corporation, partnership, or unincorporated association);

6. [The account is held as an omnibus customer account of the undersigned futures commission merchant);

7. (The account is held by the undersigned as part owner of a joint account);

8. [The account is held by the undersigned in the name of a plan which, on the date the petition in bankruptcy was filed, had in effect a registration statement in accordance with the requirements of $ 1031 of the Employee Retirement Income Security Act of 1974 and the regulations thereunder); or

9. [The account is held by the undersigned as agent or nominee for a principal or beneficial owner (and not described above in items 1-8 of this II, b)).

10. (The account is held in any other capacity not described above in items 1-9 of this II, b. Specify the capacity).

c. The equity, as of the date the petition in bankruptcy was filed, based on the commodity transactions in the account.

d. Whether the person(s) (including a general partnership, limited partnership, corporation, or other type of association) on whose behalf the account is held is one of the following persons OR whether one of the following persons, alone or jointly, owns 10% or more of the account:

1. (If the debtor is an individualA. Such individual;

B. Relative (as defined below in item 8 of this III,d) of the debtor or of a general partner of the debtor;

C. Partnership in which the debtor is a general partner;

D. General partner of the debtor; or

E. Corporation of which the debtor is a director, officer, or person in control];

2. (If the debtor is a partnership
A. Such partnership;
B. General partner in the debtor;

C. Relative (as defined in item 8 of this HII,d) of a general partner in, general partner of, or person in control of the debtor;

D. Partnership in which the debtor is a general partner;

E. General partner of the debtor; or
F. Person in control of the debtor];
3. (If the debtor is a limited partnership
A. Such limited partnership;

B. A limited or special partner in such partnership whose duties include:

i. The management of the partnership business or any part thereof;

ii. The handling of the trades or customer funds of customers of such partnership;

a. Whether the account is a futures, foreign futures, leverage, option (if an option account, specify whether exchange-traded or dealer), or “delivery” account (a "delivery" account is one which contains only documents of title, commodities, cash or other property identified to the claimant and deposited for the purpose of making or taking delivery on a commodity underlying a commodity contract or for payment of the strike price upon exercise of an option).

b. The capacity in which the account is held, as follows (and if more than one is applicable, so state):

1. (The account is held in the name of the undersigned in his individual capacity);

2. [The account is held by the undersigned as guardian, custodian, or conservator for

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ii. Solely to secure a debt, if such entity has not in fact exercised such power to vote;

B. Corporation 20 percent or more of whose 5 outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or ? nolds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities

i. In a fiduciary or agency capacity without sole discretionary power to vote such securities; or

ii. Solely to secure a debt, if such entity. has not in fact exercised such power to vote;

C. Person whose business is operated under ? a lease or operating agreement by the debtor, or person substantially all of whose propis erty is operated under an operating agreement with the debtor;

D. Entity that otherwise, directly or indirectly, is controlled by or is under common control with the debtor);

E. Entity that operates the business or all or substantially all of the property of the debtor under a lease or operating agreement;

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or

iii. The keeping of records pertaining to the trades or customer funds of customers of such partnership; or

iv. The signing or co-signing of checks or drafts on behalf of such partnership);

4. (If the debtor is a corporation or association (except a debtor which is a futures commission merchant and is also a cooperative association of producers

A. Such corporation or association;
B. Director of the debtor;
C. Officer of the debtor;
D. Person in control of the debtor;

E. Partnership in which the debtor is a general partner;

F. General partner of the debtor;

G. Relative (as defined in item 8 of this III,d) of a general partner, director, officer, or person in control of the debtor;

H. An officer, director or owner of ten percent or more of the capital stock of such organization);

5. (If the debtor is a futures commission merchant which is a cooperative association of producers

Shareholder or member of the debtor which is an officer, director or manager);

6. (An employee of such individual, partnership, limited partnership, corporation or association whose duties include:

A. The management of the business of such individual, partnership, limited partnership, corporation or association or any part thereof;

B. The handling of the trades or customer funds of customers of such individual, partnership, limited partnership, corporation or association;

C. The keeping of records pertaining to the trades or funds of customers of such individual, partnership, limited partnership, corporation or association; or

D. The signing or co-signing of checks or drafts on behalf of such individual, partnership, limited partnership, corporation or association);

7. (Managing agent of the debtor);

8. (A spouse or minor dependent living in the same household of ANY OF THE FOREGOING PERSONS, or any other relative, regardless of residency, (unless previously described in items 1-B, 2-C, or 4-G of this III,d) defined as an individual related by affinity or consanguinity within the third degree as determined by the common law, or individual in a step or adoptive relationship within such degree);

9. (“Affiliate' of the debtor, defined as:

A. Entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities

i. In a fiduciary or agency capacity without sole discretionary power to vote such securities; or

F. Entity that otherwise, directly or indirectly, controls the debtor; or

10. (Any of the persons listed in items 1-7 3 above of this III,d if such person is associated with an affiliate (see item 9 above) of 1 the debtor as if the affiliate were the debtor).

e. Whether the account is a discretionary account. (If it is, the name in which the "attorney in fact'' is held).

f. If the account is a joint account, the amount of the claimant's percentage interest in the account. (Also specify whether partici : pants in a joint account are claiming sepa-> rately or jointly).

IV. Describe all claims against the debtor not based upon a commodity account of the claimant (e.g., if landlord, for rent; if customer, for misrepresentation or fraud).

V. Describe all claims of the DEBTOR against the CLAIMANT not already included in the equity of a commodity account(s) of the claimant (see III,c above).

VI. Describe any deposits of money, securities or other property held by or for the debtor from or for the claimant, and indicate if any of this property was included in your answer to III,c above.

VII. Of the money, securities, or other property described in VI above, identify any which consists of the following:

a. With respect to property received, acquired, or held by or for the account of the debtor from or for the account of the claimant to margin, guarantee or secure an open commodity contract, the following:

1. Any security which as of the filing date is:

A. Held for the claimant's account;
B. Registered in the claimant's name;

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