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Rule 328. Sale-And-Leasebacks, Factoring, Financing and Similar Arrangements

This rule is no longer applicable. Incorporated NYSE Rule 328 has been superseded by FINRA Rule 4110. Please consult the appropriate FINRA Rule.

(a) No member organization shall consummate a sale-and-leaseback arrangement with respect to any of its assets; a sale, factoring or financing arrangement with respect to any unsecured accounts receivable; or a sale or factoring arrangement with respect to any customers' debit balances without the prior written authorization of the Exchange.
(b) Any loan agreement the proceeds of which is intended to reduce the deduction in computing net capital for fixed assets and assets which cannot be readily converted into cash under SEC Rule 15c3-1(c)(2)(iv), must be submitted to and be acceptable to the Exchange prior to such reduction becoming effective.
(c) Any agreement relating to a determination of a "ready market" for securities based upon the securities being accepted as collateral for a loan by a bank under SEC Rule 15c3-1(c)(11)(ii) must be submitted to and be acceptable to the Exchange before the securities are deemed to have a "ready market."
Adopted.
July 11, 1974.

Amendment.
December 11, 1980.

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