Rule 326(d). Reduction of Elimination of Loans and Advances
This rule is no longer applicable. Incorporated NYSE Rule 326 has been superseded by FINRA Rule 4120. Please consult the appropriate FINRA Rule.
Except with the prior written approval of the Exchange, a member organization which has outstanding any unsecured or partly secured loans or advances of funds, or guarantees of obligations of the nature described in (c)(1) through (4) above, shall forthwith reduce or eliminate such unsecured or partly secured amounts due from such borrowers, or otherwise restore its capital to a point where the conditions described in (c)(1) through (4) did not exist, if any of the following conditions exist at the member organization:
Adopted. December 12, 1974. Amendments. October 16, 1975; effective January 1, 1976. May 1, 1982. March 29, 2007 (NYSE-2005-03). |
• • • Supplementary Material: --------------
For the purpose of this rule, expansion of business shall mean:
Adopted. July 15, 1971. |
For the purposes of this rule, the term "business reduction" shall mean reducing or eliminating parts of a member organization's business in order to reduce the amount of capital required, such as disposing of branch offices, reducing trades, reducing or ceasing market making or underwriting, introducing accounts on a disclosed basis, and the like.
Adopted. July 15, 1971. |
The prohibitions of this rule shall apply to any member organization which introduces accounts on a disclosed basis to or clears on omnibus basis through another member organization which is prohibited from expanding or required to reduce its business under this rule, insofar as such business would be handled by such carrying or clearing member organization.
Adopted. July 15, 1971. |
For the purposes of increasing an organization's total subordinated liabilities and capital available as protection to customers, a member organization may enter into subordination agreements which are not allowed as good capital under Rule 325. Such agreements may place at the risk of the business margin accounts, securities, collateral in excess of face value of Secured Demand Notes, partners' personal accounts and the like. Such subordinations must be in a form acceptable to and filed with the Exchange and must be shown separately in financial statements and similar documents.
Adopted. July 15, 1971. |