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Rule 326(a). Growth Capital Requirement

This rule is no longer applicable. Incorporated NYSE Rule 326 has been superseded by FINRA Rule 4120. Please consult the appropriate FINRA Rule.

A member organization that carries customer accounts shall not expand its business during any period in which:

(1) any of the following conditions continue to exist for more than 15 consecutive business days, provided that such condition has been known to the Exchange for at least five consecutive business days:
a.  The member organization's net capital is less than 150 percent of its minimum dollar net capital requirement or such greater percentage thereof as may from time to time be designated by the Exchange.
b.  The member organization is subject to the aggregate indebtedness requirement of Rule 15c3-1 under the Securities Exchange Act of 1934 (the "Exchange Act"), and its aggregate indebtedness is more than 1,000 percent of its net capital.
c.  The member organization elects to use the alternative method of computing net capital pursuant to Exchange Act Rule 15c3-1(a)(1)(ii), and its net capital is less than five percent of the aggregate debit items in the Formula for Determination of Reserve Requirements for Brokers and Dealers under Exchange Act Rule 15c3-3.
d.  The member organization is approved to use the alternative method of computing net capital pursuant to Exchange Act Rule 15c3-1e, and
(i) its tentative net capital as defined in Exchange Act Rule 15c3-1(c)(15) is less than 50 percent of the early warning notification amount required by Exchange Act Rule 15c3-1(a)(7)(ii), or
(ii) its net capital is less than $1.25 billion.
e.  The member organization is registered as a Futures Commission Merchant pursuant to the Commodity Exchange Act, and its net capital is less than 120% of the minimum risk-based capital requirements of Commodity Exchange Act Rule 1.17.
f.  The member organization's deduction of capital withdrawals including maturities scheduled during the next six months and/or special deduction from net capital set forth in Rule 431(e)(8)(C)(iii) would result in any one of the conditions described in 1a, 1b, 1c, 1d or 1e of Section (a) of this Rule, or
(2) The Exchange restricts the member organization.
Amendments.
October 16, 1975; effective January 1, 1976.
June 28, 1978.
August 16, 1979.
January 7, 1981.
May 1, 1982.
March 29, 2007 (NYSE-2005-03).

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