General Rules and Regulations
promulgated
under the
Securities Exchange Act of 1934
Rule 17Ad-12 -- Safeguarding of Funds and Securities
Any registered transfer agent that has custody or possession
of any funds or securities related to its transfer agent activities shall assure
that:
All such securities are held in safekeeping
and are handled, in light of all facts and circumstances, in a manner
reasonably free from
risk of theft, loss or destruction (other than by a transfer agent's
certificate destruction procedures pursuant to Rule
17Ad-19); and
All such funds are protected, in light of all facts
and circumstances, against misuse. In evaluating which particular safeguards and
procedures must be employed, the cost of the various safeguards and procedures as
well as the nature and degree of potential financial exposure are two relevant factors.
(b) For purposes of this section, the term securities
shall have the same meaning as the term securities certificate as
defined in Rule 17f-1(a)(6).
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