Notice to Members 02-04

NASD Asks Members Immediately to Adopt "Best Practice" of Requiring Investors to Sign a Disclosure Document as Part of a Subordination Loan Agreement

NASD Regulation, Inc. (NASD RegulationSM) is proposing a rule requiring National Association of Securities Dealers, Inc. (NASD®) members to obtain a signed Subordination Agreement Investor Disclosure Document (Disclosure Document) from an investor before entering into, or reviewing, a subordination agreement with an investor.

Questions concerning this Notice may be directed to Susan DeMando, Director, Financial Operations, Member Regulation, NASD Regulation, at (202) 728-8411; or Shirley H. Weiss, Associate General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-8844.