cation for registration of an investment adviser pending at the time this rule becomes effective h consents and powers of attorney shall be furhed within 30 days after this rule becomes ective. (3) Each investment adviser registered or aping for registration who or which becomes a n-resident investment adviser after the effective e of this rule, and each general partner or naging agent, of an unincorporated investment viser registered or applying for registration, o becomes a non-resident after the effective date this rule, shall furnish such consent and power attorney within 30 days thereafter. (c) Service of any process, pleadings or other pers on the Commission under this rule shall made by delivering the requisite number of pies thereof to the Secretary of the Commission to such other person as the Commission may thorize to act in its behalf. Whenever any ocess, pleadings or other papers as aforesaid are ved upon the Commission, it shall promptly forrd a copy thereof by registered mail to the apopriate defendants at their last address of recd filed with the Commission. The Commission all be furnished a sufficient number of copies r such purpose, and one copy for its file. MISCELLANEOUS ule 3a12-2. Exemption of Certain Securities, the Income on Which Is Substantially Guaranteed by States or Political Subdivisions Thereof. (a) A security shall be exempt from the opera›n of such provisions of the Act as by their terms not apply to an "exempted security" or to "exapted securities" if— (1) A State or political subdivision thereof is ligated to make good to the issuer of such secuy any deficiency in the income of such issuer, the extent necessary to pay to the holders of ch security interest or dividends at a specified te; and (2) The business of such issuer is managed by (d) For purposes of this rule the following definitions shall apply: (1) The term "investment adviser" shall have the meaning set out in Section 202 (a) (11) of the Investment Advisers Act of 1940. (2) The term "managing agent" shall mean any person, including a trustee, who directs or manages or who participates in the directing or managing of the affairs of any unincorporated organization or association which is not a partnership. (3) The term "non-resident investment adviser" shall mean (A) in the case of an individual, one who resides in or has his principal place of business in any place not subject to the jurisdiction of the United States; (B) in the case of a corporation, one incorporated in or having its principal place of business in any place not subject to the jurisdiction of the United States; (C) in the case of a partnership or other unincorporated organization or association, one having its principal place of business in any place not subject to the jurisdiction of the United States. (4) A general partner or managing agent of an investment adviser shall be deemed to be a nonresident if he resides in any place not subject to the jurisdiction of the United States. such State or political subdivision or by a board of officers appointed by such State or political subdivision. (b) The exemption provided by this rule shall be available to such security only so long as the conditions specified in paragraph (a) are satisfied or during the subsequent dissolution of the issuer of any security so exempted. Rule 3a12-3. Exemption From Sections 14 (a) and 16 of Securities for Which Filing of Applications on Form 18, 19, 20, or 21 Is Authorized. Securities for which the filing of applications on form 18, 19, 20, or 21 is authorized shall be exempt from the operation of sections 14 (a) and 16. See also the exemptions contained in the rules under particular sections of the Act. Rule 3b-1. Definition of "Listed." DEFINITIONS The term "listed" means admitted to full trading privileges upon application by the issuer or its fiscal agent or, in the case of the securities of a foreign corporation, upon application by a banker engaged in distributing them; and includes securities for which authority to add to the list on official notice of issuance has been granted. Rule 3b-2. Definition of "Officer." The term "officer" means a president, vice presi dent, treasurer, secretary, comptroller, and other person who performs for an issuer, wheth incorporated or unincorporated, functions responding to those performed by the foreg officers. Rule 3b-3. Definition of "Short Sale." The term "short sale" means any sale of a curity which the seller does not own or any s which is consummated by the delivery of a secur borrowed by, or for the account of, the seller. REGISTRATION AND EXEMPTION OF EXCHANGES Rule 6a-1. Form of Application and Amendments. (a) An application of an exchange for registration as a national securities exchange, or for exemption from such registration, shall be made in duplicate on Form 1, each of which shall be accompanied by the statement and exhibits prescribed to be filed in connection therewith. (b) An amendment to such application shall be made in duplicate on Form 1-A, and each amendment shall be dated and numbered in order of filing. (c) Promptly after the discovery that any information in the statement, any exhibit, or any amendment was inaccurate when filed, the exchange shall file with the Commission an amendment correcting such inaccuracy. (d) Whenever the number of changes to be reported in an amendment, or the number of amendments filed, are so great that the purpose of clarity will be promoted by the filing of a new complete statement and exhibits, an exchange may, at its election, or shall, upon request of the Commission, file as an amendment a complete new statement together with all exhibits which are prescribed to be filed in connection with Form 1. Rule 6a-2. Annual Amendments to Registration Statement or Exemption Statements of Exchanges. Prior to June 30 of each year each exchange registered as a national securities exchange or exempted from such registration shall file an annual amendment setting forth: (a) All changes, and the effective dates there of, which have been effected in any of the in mation contained or incorporated in the ment, or in exhibits A (1), A (2), A (3), R and D, and which have not previously bee ported in an annual amendment. Such ame ment shall bring the statement and exhibits A A (2), A (3), B, C, and D up to date as of latest practicable date within one month of: date on which the amendment is filed. In event that no changes have occurred in an this material during the period covered by amendment, a statement to that effect shall be forth in the amendment. (b) Complete exhibits E and F as of the 5 of the latest fiscal year of the exchange, an each affiliate and subsidiary listed in answe item 8 of the statement. In the event that s hibit F is inapplicable to the exchange for reason that it has no affiliate or subsidiary, amendment shall include a statement to effect in lieu of the information called for exhibit F. (c) Complete exhibits G, H, I, J, K, LE M. The information contained in these exhi shall be up to date as of the latest practicable d' within 3 months of the date on which the an amendment is filed. Rule 6a-3. Supplemental Material. Each exchange registered as a national secu ties exchange or exempted from such registrs shall furnish the following supplemental maters (a) Within 10 days after any action is tak which renders no longer accurate any of the formation contained or incorporated in the st 1 t or in any exhibit (except exhibits E, F, L, M), or in any amendment thereto, the exage shall file with the Commission written fication in triplicate setting forth the nature uch action and the effective date thereof. Such fication may be filed either in the form of a er or in the form of a notice made generally ilable to members of the exchange. b) Within 10 days after issuing or making erally available to members of the exchange material (including notices, circulars, bulle, lists, periodicals, etc.) the exchange shall file with the Commission 3 copies of such material. (c) Within 15 days after the end of each calendar month, the exchange shall file with the Commission a report concerning the securities sold on such exchange during such calendar month, setting forth: (1) the number of shares of stock sold and the aggregate dollar amount thereof; (2) the principal amount of bonds sold and the aggregate dollar amount thereof; and (3) the number of units of rights and warrants sold and the aggregate dollar amount thereof. EXEMPTION OF CERTAIN SECURITIES FROM THE OPERATION OF le 7c2-1. Exemption from Section 7 (c) (2) had been a security (other than an exempted security) registered on a national securities exchange. (b) So long as any security which is not registered on a national securities exchange continues to be admitted to either listed or unlisted trading privileges on any exchange which is exempted from registration as a national securities exchange, such security shall be exempt from the operation of section 7 (c) (2) to the extent necessary to render lawful any direct or indirect extension or maintenance of credit thereon or any direct or indirect arrangement therefor which would not have been unlawful if such security had been a security (other than an exempted security) registered on a national securities exchange. HYPOTHECATION OF CUSTOMERS' SECURITIES ule 8c-1. Hypothecation of Customers' Securities. (a) General provisions.-No member of a naonal securities exchange, and no broker or dealer ho transacts a business in securities through the edium of any such member shall, directly or directly, hypothecate or arrange for or permit e continued hypothecation of any securities cared for the account of any customer under cir such member, broker or dealer under a lien for a loan made to such member, broker or dealer; or (3) that will permit securities carried for the account of customers to be hypothecated, or subjected to any lien or liens or claim or claims of the pledgee or pledgees, for a sum which exceeds the aggregate indebtedness of all customers in respect of securities carried for their accounts; except that this clause shall not be deemed to be violated by reason of an excess arising on any day through the reduction of the aggregate indebtedness of customers on such day, provided that funds or securities in an amount sufficient to eliminate such excess are paid or placed in transfer to pledgees for the purpose of reducing the sum of the liens or claims to which securities carried for the account of customers are subjected as promptly as practicable after such reduction occurs, but before the lapse of one-half hour after the commencement of banking hours on the next banking day at the place where the largest principal amount of loans of such member, broker or dealer are payable and, in any event, before such member, broker or dealer on such day has obtained or increased any bank loan collateralized by securities carried for the account of customers. (b) Definitions.-For the purposes of this rule (1) the term "customer" shall not be deemed to include any general or special partner or any director or officer of such member, broker or dealer, or any participant, as such, in any joint, group or syndicate account with such member, broker or dealer or with any partner, officer, or director thereof; (2) the term "securities carried for the account of any customer" shall be deemed to mean: (i) securities received by or on behalf of such member, broker or dealer for the account of any customer; (ii) securities sold and appropriated by such member, broker or dealer to a customer, except that if such securities were subject to a lien when appropriated to a customer they shall not be deemed to be "securities carried for the account of any customer" pending their release from such lien as promptly as practicable; (iii) securities sold, but not appropriated, by such member, broker or dealer to a customer who has made any payment therefor, to the extent that such member, broker or dealer owns and has received delivery of securities of like kind, except that if such securities were subject to a lien when such payment was made they shall not be deemed to be "securities carried for the account of any customer" pending their release from such lien as promptly as practicable; (3) "aggregate indebtedness" shall not be deemed to be reduced by reason of uncollected items. In computing aggregate indebtedness, related guaranteed and guarantor accounts shall be treated as a single account and considered on a consolidated basis, and balances in accounts carrying both long and short positions shall be adjusted by treating the market value of the securities required to cover such short positions as though such market value were a debit; and (4) in computing the sum of the liens or claim to which securities carried for the account of tomers of a member, broker or dealer are subjec any rehypothecation of such securities by anot member, broker or dealer who is subject to t rule or to Rule 15c2-1 shall be disregarded. (c) Exemption for cash accounts.-The pro visions of paragraph (a) (1) hereof shall apply to any hypothecation of securities carrie for the account of a customer in a special as account within the meaning of section 4 (c) d Regulation T of the Board of Governors of the Federal Reserve System, provided that at or b fore the completion of the transaction of purch of such securities for, or of sale of such securite to, such customer, written notice is given or ser such customer disclosing that such securit are or may be hypothecated under circumstans which will permit the commingling thereof, securities carried for the account of other tomers. The term "the completion of the tru action" shall have the meaning given to such ter by Rule 15c1-1 (b). (d) Exemption for clearing house liensThe provisions of paragraphs (a) (2), (a) is and (ƒ) hereof shall not apply to any lien or cl of the clearing corporation, or similar departe or association, of a national securities exchang for a loan made and to be repaid on the same a endar day, which is incidental to the clearing? transactions in securities or loans through such poration, department, or association, Proc however, That for the purpose of paragraph (3) hereof, "aggregate indebtedness of all cus mers in respect of securities carried for their s counts" shall not include indebtedness in respec any securities subject to any lien or claim exempte. by this paragraph. (e) Exemption for certain liens on securitie of noncustomers.-The provisions of paragra (a) (2) hereof shall not be deemed to prevent s member, broker, or dealer from permitting * curities not carried for the account of a custom to be subjected (i) to a lien for a loan made again securities carried for the account of customers (i) to a lien for a loan made and to be repaids the same calendar day. For the purpose of exemption, a loan shall be deemed to be "ms against securities carried for the account of tomers" if only securities carried for the acco the customers are used to obtain or to increase such n or as substitutes for other securities carried "the account of customers. (f) Notice and certification requirements.— person subject to this section shall hypothecate y security carried for the account of a customer less, at or prior to the time of each such hypothesion, he gives written notice to the pledgee that › security pledged is carried for the account of ustomer and that such hypothecation does not travene any provision of this rule, except it in the case of an omnibus account the member, ile 10a-1. Short Sales. broker or dealer for whom such account is carried may furnish a signed statement to the person carrying such account that all securites carried therein by such member, broker or dealer will be securities carried for the account of his customers and that the hypothecation thereof by such member, broker or dealer will not contravene any provision of this rule. The provisions of this paragraph shall not apply to any hypothecation of securities under any lien or claim of a pledgee securing a loan made and to be repaid on the same calendar day. SHORT SALES (a) No person shall, for his own account or r the account of any other person, effect on a tional securities exchange a short sale of any urity (1) below the price at which the last e thereof, regular way, was effected on such change, or (2) at such price unless such price above the next preceding different price at ich a sale of such security, regular way, was ected on such exchange. In determining the ice at which a short sale may be effected after security goes ex-dividend, ex-right, or ex- any her distribution, all sale prices prior to the "ex" te may be reduced by the value of such distribu ›n. (b) No member of a national securities exange shall, by the use of any facility of such change, execute any sell order unless such order marked either "long" or "short." (c) No member of a national securities exange shall mark a sell order "long" unless (1) e security to be delivered after sale is carried in e account for which the sale is to be effected, or ) such member is informed that the seller owns e security ordered to be sold and, as soon as is ssible without undue inconvenience or expense, Il deliver the security owned to the account for ich the sale is to be effected. (d) The provisions of paragraph (a) hereof all not apply to (1) Any sale by any person, for an account in ich he has an interest, if such person owns the curity sold and intends to deliver such security soon as is possible without undue inconvenience expense; 442868 0-58- -3 (2) Any member in respect of a sale, for an account in which he has no interest, pursuant to an order to sell which is marked "long": (3) Any sale of an odd-lot; (4) Any sale by an odd-lot dealer to offset odd. lot orders of customers; (5) Any sale by an odd-lot dealer to liquidate a long position which is less than a round lot, provided such sale does not change the position of such odd-lot dealer by more than the unit of trading; (6) Any sale of a security on a national securities exchange effected with the approval of such exchange which is necessary to equalize the price of such security thereon with the current price of such security on another national securities exchange which is the principal exchange market for such security; (7) Any sale of a security for a special arbitrage account by a person who then owns another security by virtue of which he is, or presently will be, entitled to acquire an equivalent number of securities of the same class as the securities sold; provided such sale, or the purchase which such sale offsets, is effected for the bona fide purpose of profiting from a current difference between the price of the security sold and the security owned and that such right of acquisition was originally attached to or represented by another security or was issued to all the holders of any class of securities of the issuer; (8) Any sale of a security on a national securities exchange effected for a special international arbitrage account for the bona fide purpose of profiting from a current difference between the |