Most important is your own independent research. Research is the key! You should verify every matter put forth in this presentation before you take any consequential step. If you are unsure of the meaning of certain terms used, all valid definitions can be found in RULE 1 of the DTCC rulebook. If you are unsure about the procedure for completing a securities transaction through use of DTC services, the DTCC offers educational programs. See the “260832005 DTCC Learning Training Resources Guide.pdf” file located in the RESOURCES folder of this disc. You should also visit the DTCC web site for more information on courses they offer. You should keep in mind that there is a great deal of corruption within the securities industry. Though ethics and good conscience demand a certain level of honor in any business transaction, it must be acknowledged that there is a double-standard within the industry. A part of that double standard is that those who command the necessary political influence and privilege have been able to exert a very real power over the declared purposes of the SEC and DTC. Therefore, a policy has been adopted that if one knows the right people, one can get away with insider trading – something most, if not all high-level executives know for a fact. The only executives who are prosecuted by a supposedly honest, unbiased SEC are those who are usefully ignorant, have been selected for public spectacle, and/or have fallen out of favor in the game of power. If you intend to play this game, and a deadly game it is, be prepared because it is not for the squeamish. In fact, the debt-based system can be equated to a sin-based system.
Creating debt-money in a debt-based economic system is easier than it has been portrayed by those who stand to profit from the general public ignorance. In fact, the entirety of the system is based on a slight-of-hand, or economic “magick,” (dishonest weights and measures). It will do us some good to study the facets of a basic economic system in order to understand the invaluable role of the monetary system. In any economy, the system must be comprised of three branches: (1) Investments (ie, acquiring of property interest for future benefit); (2) Money (ie, actual currency designed to circulate in the capacity of tender for the payment of public and private debts); and (3) Economics (ie, trade and commerce). The methods discussed in this presentation apply to all these. However, the primary objective is usually centered around the second branch. As far as printing currency is concerned this will undoubtedly invite the criminal wrath of the well-known criminal enterprise which created the Federal Reserve system in the first place, and it will most likely come in the form criminal counterfeiting charges. A bank, like any other corporation, has both assets and liabilities. It must follow the standard book-entry accounting system. What most people don’t understand is that when customers deposit their funds into a bank, these funds are in the nature of a loan, and thus become the bank’s primary liability. The difference is that in a debt-based system, this debt is accounted to the bank as worth. Liabilities must be balanced on the ledger like so A deposit (loan) is made into the bank. This is then debited on the asset side of the ledger and accounted as cash in order to balance the books. Where the slight-of-hand comes in is when the bank is required only to keep 10 percent (ie, a fraction of its cash assets as reserves. It then loans out the remaining 90 percent to other customers. The loaned funds are deposited in the borrower’s deposit account, and the bank considers this deposit as a new liability which subsequently increases its worth. This “new” liability must be debited on the asset side of the ledger and counted as additional cash assets. From this simple diagram it should be easy to see that a fractional reserve system is merely a sophisticated version of biblically detested dishonest weights and measures, operatively no different than using a 50-pound weight misrepresented as 60 pounds in order to sell 50 pounds worth of grain for the price of 60 pounds. There is, however, a way to create debt-money honestly. Once you have executed the security (bond, note, etc.) you have three primary methods of monetization at your disposal: 1) You can immediately trade or sell it (or a portion of it), in which case you will have monetized it via ordinary clearance (ie, receipt of payment) and settlement (ie, delivery of the instrument and conveyance of title) 2) You can establish relations with a DTC participant and deposit the instrument in trust with them under an omnibus account, and then endeavor to have them trade or sell, it, and after clearing and settling through the DTC, giving to you a portion of the proceeds: or 3) You can become a Participant yourself, deposit and obtain the CUSIP identifier for the instrument, and sell or trade it in order to derive the proceeds from it directly. Of the three methods available, this is by far the simplest method of monetization because it involves few (if any) middlemen in the transaction. It is generally a two-party deal The process is as follows: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a buyer or investor*; 3) Enter into a contract of sale or trade of the instrument; 4) Clear either in the form of cash, check, or other method of acceptable payment; and 3) Settle up via personal delivery. Federal Express shipment, United Parcel Service shipment, or US Postal Service mailing (preferably registered or at least certified return receipt). The second method is probably the most feasible of the remaining two methods simply because it is only a slightly more complex version of the first method. In this method, the expense of monetization is absorbed by the middleman, and you are spared many of the costs associated with DTC membership. You can, however, establish an omnibus account with a member of the DTC system as an additional option which will greatly ease the process 1) Execute issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a member or liaison to a member) of the DTC system willing to middleman a sale or trade; 3) Enter into a contract to deposit the security in trust with the member (or liaison) for the limited purpose of disposing of the instrument in a transaction of which you are the primary beneficiary. The proceeds are to be deposited in an account or otherwise distributed to you in the acceptable form of payment. This can be done via an omnibus account with the participant or in an ordinary trust arrangement, and 4) The DTC participant will then utilize its membership with the DTC, probably depositing the security with the DTC. Finally, you have the option of absorbing all costs, and performing the whole task yourself. In this case, you must have already become a DTC Participant or Limited, Participant, with adequate instruction on the process as provided in the materials the DTC will give you: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument 2) Submit the security to the DTC for eligibility. This will require that you execute the corresponding forms located in the “dtc_eligibility” folder located within the FORMS folder of this disc 3) Once eligibility is approved, retain evidence of book-entry DTC Filing provided by the DTC and submit this to CSB in a request for a Unique Identifier for the security 4) Now the security is sellable/tradable in book-entry format to anyone within the system, and you can then sell or otherwise dispose of the security in any manner you wish; and 3) The final step is that of locating the buyer or trader of the security. Once the deal has been consummated, the clearance and settlement process through the DTC is fully automated, and is done at the speed of an electronic data transfer by the end of the day. Now, in the process you may be required to obtain a valid CUSIP identifier for the security. CSB is operated by Standard and Poor’s for the American Bankers Association, and incidentally is located on the 45th floor of the 55 Water Street building. Its web address is www.cusip.com. For more information on what CSB requires, you should visit its web site and contact a CSB representative prior to making your request. This should be done especially if your security is not of the standard, issue. In order to obtain an identifier, a request must be sent to them in letter form. Generally, the letter must contain: 1) Name of organization: 2) Head office and registered office address: 3) Law and date of formation: 4) Description of financial instrument for which number is being requested; 5) Nature and description of the offering to be made: 6) In the case of name changes, both the old an new names; The package should include the necessary documentation: 1) Public Offering of Equity or Debt — “Red Herring” (Preliminary Prospectus) or Registration Statement; 2) American Depository Receipts — Registration Statement F-6; 3) Bank Holding Company Formation — Registration Statement S-4; 4) Bankers Acceptances — Summary of Offering / Information Statement 5) Certificates of Deposit — Summary of Offering Terms (“Fact-Sheet”); 6) Church Bonds — Prospectus/Official Statement; 7) Commercial Paper (Book Entry only) — Info Statement and DTC-CP Filing; 8) Company Emerging from Chapter XI — Disclosure Statement; 9) Medium-Term Notes (Book Entry only) — Prospectus Supplement and DTC-MTN Filing 10) Mutual Funds — Registration Statement N-1; 11) Name Change — Proxy Statement (or) Certificate of Amendment; 12) Publicly Traded Limited Partnerships — Prospectus with SEC File # 13) Reverse Stock Splits –Letter to Shareholders; 14) Right Offerings — Rights Agreement/Company Press Release; 15) Rule 144A Securities — Offering Circular Prospectus with 144A Representation; 16) Shelf Registrations (415) — Initial Shelf Filing (S-3) and Subsequent “Prospectus Supplements”; 17) Unit Trusts — Registration Statement 5-6; and 18) Variable Annuities — Prospectus and/or contract. The complete request package with full payment should be sent to: CUSIP SERVICE BUREAU / Data Collection Department / Standard and Poor’s
The basic process is as follows: 1) Visit the DTC’s web site at www.dtcc.org in order to get acquainted with the services they provide. Read their latest news releases and current statements of note; 2) Fill out the “doc_questionnairre.doc” file located in the FORMS folder of this disc in order to determine which services you will likely be using and, therefore, the type of participant you will need to become. This will enable you to see at least the minimum of information they will require in profiling your entity: 3) Contact a representative in the members services department and establish relations. Let them know that you have already executed the questionnairre and that you are now looking to move forward; 4) Transmit the questionnaire to them so that they may ascertain your membership needs and pre-calculate the membership fees that may be required. Once they’ve reviewed your questionnairre they will make any necessary inquiries, and will then issue you a Participant application; 5) Execute the application and send it to them along with the necessary fees so that the Board may review and determine whether you quality for admittance into the system; You should keep in mind that they require at least the following conditions precedent: 1) Adequate financial capability, for Participant Fund contributions purposes; 2) Adequate and competent staffing to handle securities activities involved; 3) A dedicated representative located at your entity’s office for DTC relations purposes 4) Sufficient regulation or government oversight of your entity, and 3) Adequate clearance and settlement arrangements (ie, settling bank you will use, firm through which you clear in the process, etc.). All requirements are set-forth in both the Disclosure Framework and rule-book. It is wise to study the rule-book beforehand in order to fully understand what you are contracting into. DTCC POLICY STATEMENTS ON THE ADMISSION OF PARTICIPANTS: S 1. Policy Statement on the Admission of U.S. Entities as Direct Depository Participants: DTC Rules 2 and 3 set forth the basic standards for the admission of DTC Participants. These rules provide, among other things, that the admission of a Participant is subject to an applicant’s demonstration that it meets reasonable standards of financial responsibility, operational capability, and character at the time of its application and on an ongoing basis thereafter. In evaluating whether its members continue to meet these standards, DTC relies on the fact that all of its Participants are subject to federal or state regulation relating to, among other things, capital adequacy, financial reporting and recordkeeping operating performance, disqualification from employment, and business conduct. Pursuant to such regulation, DTC’s Participants receive periodic regulatory examinations to assure their compliance with thes requirements and are subject to disciplinary action if violations are found. Except for organizations specifically enumerated in Section 1/A of the Securities Exchange Act of 1934, as amended, unless an applicant organization is subject to regulatory agency oversight, it will not qualify for admittance inasmuch as the application of DIC’s own resources could not provide an adequate substitute for the kind of continuing regulatory oversight described above. § 2. Policy Statement on the Admission of Non-U.S. Entities as Direct Depository Participants: The policy permits entities that are organized in a country other than the United States and that are not otherwise subject to U.S. federal or state regulation, (“non-U.S. entities”) to be eligible to become direct DTC Participants. Under the policy, DTC will require that the non-U.S. entity execute the standard DTC Participant’s Agreement and enter into an additional series of undertakings and agreements that are designed to address jurisdictional concerns, sufficiency of collateral, and to assure that DTC is provided with audited financial information that is acceptable to DTC. Certain of these criteria may be waived where inappropriate to a particular applicant or class of applicants (e.g., a foreign government, international or national central securities depositories). DTCC POLICY STATEMENTS ON THE ADMISSION OF PARTICIPANTS (concluded): (c) The foreign entity must be eligible to become a member of its home country central securities depository, if any. Special Financial Conditions: (a)The foreign entity must have and maintain minimum net capital of 1000 percent of the minimum net capital required by DTC for the admission of a U.S. entity. (b) The foreign entity must have in its account at the beginning of the day haircutted, collateral that is acceptable to DTC equal to 50 percent of its net debit cap. This special collateral will be “locked up” and the Participant will not receive credit for this special collateral in DTCs Collateral Monitor — the Participant will be prevented from accruing any net debit that is not supported by the value of other, nonspecial, collateral (including securities received by the Participant) reflecting DTC’s normal haircuts. For purposes of determining collateral value of the special collateral, cash deposits to the Participants Fund will (obviously) receive no haircut and U.S. Treasuries will receive a 2 percent haircut. All other collateral securities would receive a haircut of 50 percent. For purposes of determining acceptability to DTC of the special collateral, DTC will obtain an opinion of foreign counsel satisfactory to DTC providing among other things that the agreements described above may be enforced against the foreign entity in the courts of its home country or other jurisdictions where the entity or its property may be found (c) designate a person in New York as its agent to receive service of process; (d) provide to DTC, for financial monitoring purposes, audited financial statements prepared in accordance with U.S. generally accepted accounting principles or other generally accepted accounting principles that are satisfactory to DTC; and provide all financial reports or other information requested by DTC in English, with monetary amounts stated in U.S. dollar equivalents indicating the conversion rate and date used. Regulatory Status of Foreign Entity: (e) The foreign entity would have to be subject to regulation in its home country and its home country regulator must have entered into a memorandum of understanding with the U.S. Securities and Exchange Commission regarding the sharing or exchange of information. (b) The foreign entity must be in compliance with the financial reporting
The primary rules and requirements (and by-laws) of the DTC are found in its rulebook. In addition to the rule-book, you should consult the Disclosure Framework of the DTC System (both documents are provided in the RESOURCES folder of this disc). There are two types of membership in the DTC: 1) Participant — ie, full-service membership (for depository, settlement, clearance, etc.); and 2) Limited Participant — ie, limited service membership. It should be noted that the DTC does not require Pledgees to be Participants (full-service members). To become one of these participants, RULE 2 § 1 requires that you be either a partnership, corporation, organization or entity, and that you (1) “apply to the [DTC) for the use of such services, (i) meet the qualifications specified in Rule 3, (111) are approved by the DTC) and (iv) if required, make a Required Participants Fund, Deposit pursuant to Section 1 of Rule 4 and Required Preferred Stock Investment pursuant to Section 2 of Rule 4.” You must demonstrate financial stability, such that you can make any “Required Participants Fund Deposit and Required Preferred Stock Investment and meet all … anticipated obligations”. Participants are required to make a RPF deposit according to DTC formulas based on the Participant’s use of DTC facilities, and must make at least a minimum deposit per RULE 4 & 1(a) 1). Though a participant is not required to be domiciled or resident in any particular jurisdiction, the DTC does require you to be subject to banking regulation in a federal or state jurisdiction per RULE 3 $ 1(d; and if a Limited Participant, you must meet any other regulatory subjection that the DTC may prescribe per § 2 of the same rule. If the participant is a Trust Indenture registered with the SEC per the Trust Indenture Act of 1939, then this requirement is met. This is the only option we have found in which though there is sufficient liability to Federal regulation, the liability is not a compound liability because the nature of the trust formed by the indenture does not necessarily have to be statutory. Therefore, you would bypass liability to the state in which the trust was formed if, of course, the trust is created pursuant to the natural rights of its creator(s), which of course is not inherently subject to state jurisdiction. In addition to Federal and/or State regulation, the DTC has the right to oversee all of your activities: to fine and impose disciplinary sanctions on you for violations of the rules, and to terminate your membership given certain circumstances. These may include failure to pay fines, fees and charges; Violation of rules and SEC regulations under applicable Acts: fraudulent activity or misrepresentation of material facts or omission of material facts during the application process; or prohibition from engaging in securities-related activity by a court of competent jurisdiction. In the event you fail to pay. the DTC is authorized to extract the amounts due from the accounts of the participant in order to satisfy its liabilities. he DTC retains the sole discretion in determining which securities are or are not eligible for deposit. Per RULE 5 $ 1(a) and (b), the DTC requires that the security has the necessary “operational capability.” such that the DTC can “obtain information regarding the Security necessary to permit it to provide its services to Participants and Pledgees when such Security is Deposited”, and it will only accept such a security based upon this and/or any other “such inquiry, or based upon such criteria, as the (DTC) may, in its sole discretion, determine from time to time.” And even so, $2 gives the DTC the right to cancel the eligibility of the security if the DTC, in its sole discretion, determines that it no longer meets the requirements of § 1 of the rule. It sets forth some additional reasons why this cancellation may be invoked, but these additional reasons have no bearing on the operation of its discretionary cancellation power. In order that an eligibility determination can be made by the DTC, you must submit the security pursuant to DTC policy. All eligibility forms are included in the FORMS folder of this disc. Once you have become a participant, the exact process will be outlined for you. All securities eligibility requests must be delivered to the Interface Department of the DTC at its address. Sublevel 1. When transacting in securities and money payments, RULE 9(A) requires that written, instructions be provided to the DTC specifying the amount of the payment. In order to gain recognition and membership in the DTC system, you will need to first determine the securities activities you will engage in. If you are already a governmentregulated entity, then you can simply apply to the DTC by first establishing relations with a representative and executing the application provided to you. The DTC will then review your application and determine whether or not you qualify for membership. It is recommended that you first prepare to establish relations by filling out the “dtec questionnaire.doc” file located in the FORMS folder of this disc. This will allow you to gain the best idea of what they will want to know about you in assessing your needs. It is not necessary that you take any action with the SEC, such as registration, etc., unless you desire to be public. In the event you are a private trust indenture, unregulated under the banking laws of any jurisdiction, then the DTC will most likely require you to be regulated in some way by some overseer. You can then apply for qualification as a Trust Indenture Act of 1939 trust indenture with the SEC using the forms located in the “sec_tia” folder in the FORMS folder of this disc. Prior to doing this you will need to fully understand both the Securities Act and Trust Indenture Act. Our purposes here are not those of trading in public securities, but private ones. The Securities Act Handbook is indispensable in this regard as well, because what relatively few regulations there are for trading in private securities, are laid out in an easy to reference format We are primarily concerned with that portion of the Act which governs private securities, in which the act construes that private securities do not need to be certificated in the manner of public ones. In fact, the Act barely concerns itself with private securities. Little attention is given to private securities transactions due to the lack of public, interest in them. The intent to do primarily private securities transactions is also a factor which will induce greater relaxation of the DTC standards when admitting you into the system. There is still another option which deserves mention: the omnibus account. Existing DTC Participants retain the right to establish sub-accounts for their customers under their DTC account subject to their sole discretion and customer contract.
According to the Securities and Exchange Commission, the SEC “has five Commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Their terms last five years and are staggered so that one Commissioner’s term ends on June 5 of each year. To ensure that the Commission remains non-partisan, no more than three Commissioners may belong to the same political party. The President also designates one of the Commissioners as Chairman, the SEC’s top Executive.” “The SEC’s foundation was laid in an era that was ripe for reform. Before the Great Crash of 1929, there was little support for federal regulation of the securities markets. This was particularly true during the post-World War I surge of securities activity Proposals that the federal government require financial disclosure and prevent the fraudulent sale of stock were never seriously pursued. Tempted by promises of rags to riches’ transformations and easy credit, most investors gave little thought to the dangers inherent in uncontrolled market operation. During the 1920s, approximately 20 million large and small shareholders took advantage of post-war prosperity and set out to make their fortunes in the stock market. It is estimated that of the $50 billion in new securities offered during this period, half became worthless. “When the stock market crashed in October 1929, the fortunes of countless investors were lost. Banks also lost great sums of money in the Crash because they had invested everything. “With the Crash and ensuing depression, public confidence in the markets plummeted. There was a consensus that for the economy to recover, the public’s faith in the capital markets needed to be restored. Congress held hearings to identify the problems and search for solutions. Based on the findings in these hearings, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws were designed to restore investor confidence in our capital markets by providing more structure and government oversight.” –Www.sec.gov But investigative accountants and legal researchers contend that, knowing the history of the Federal Reserve, the manner in which it came into power, and the manner in which it maintains its power, the SEC (and Federal Trade Commission FTC]) is in place to protect the monopolistic control of the Fed. And when you consider the fragility of a system protected only by limited knowledge, useful ignorance is an essential element. “According to the DTC, under the US Security and Exchange Commission (SEC) rules, you only have the right to receive proceeds or other advantages as the beneficiary. You are not the owner… you are the consignee. ‘One who has deposited with a third person an article of property for the benefit of a creditor- A Dictionary of Law, 1893. In legal terms, you are considered the heir presumptive or heir at law to the stock or bond you signed. “Most people don’t realize that when they open a brokerage account, they have entered into a contractual agreement allowing the broker to assign the stocks and bonds to an undisclosed creditor, the DTC. … This gives the broker your express written permission to place all your securities into the ownership of the DTC. Your broker is an agent for the DTC through mandatory Securities and Exchange Commission regulations and mandates by the Federal Reserve System private bank. Your broker represents them, not you. Your brokerage account is nothing more than a ledger of accounting. It reflects, no assets held in your name. The assets are registered in a ‘street name that is not you or your name. Sure… you receive the interest and dividends, but you do so as a beneficiary to the real owner. Your brokerage account in no way, shape, or manner reflects who literally owns your securities. What you own is a brokerage account and nothing more “A greater consideration is just exactly who does the DTC hold these securities for? As the owner, who has the DTC pledged these securities to? Our research points to the Federal Reserve System, an international private banking cartel with major offices found in Moscow. London, Tokyo, and Peking. By treaty with the United Nations and in compliance with the Bretton Woods Agreement, the DTC under regulation of the Federal Reserve System has pledged all those stocks and bonds to the International Monetary Fund (IMF). These are the same paper securities found in your IRA and pension fund accounts, as well as in your brokerage account. Remember, you don’t own the securities. The SEC is made up of 4 Divisions and 18 Offices. Its staff is comprised of approximately 3.100 members, which it considers to be “small by federal agency standards.” It has 11 regional and district Offices throughout the U.S. and is headquartered in Washington D.C. It has several regional offices strategically located throughout the states. So, what you are looking at any moment is your ability to derive benefit from the securities you possess at this stage of the game. Once your bond has been issued, and is a lawful commercial document of value, it must eventually be deposited with the DTC, and therefore be subject to SEC oversight, if you intend to have it monetized. If your security is a public one, it will have to be certificated by the SEC who must first recognize you as a qualified entity, which means you must be sufficiently controllable by the SEC. The SEC offers the necessary applications at its web site in order to become qualified, The most flexible manner of qualification is obtained as a trust indenture under the Trust Indenture Act of 1939, by registering with the SEC as such pursuant to Sections 305 or 307 of the Act. This registration may play a role in your application with the DTC as well. The SEC regulates participants via the process of rulemaking. Other than broad legislation such as the Securities Act of 1933, etc., the SEC has the authorization to make all rules by altering existing regulations or creating new ones. This is done in the following manner: 1) Rule proposal — the most common form of rulemaking where the SEC’s staff drafts a detailed formal rule and presents it to the commission. After this, it is presented to the public for 30-60 days for review/comment. This input is considered as the final rule is adopte; 2) Concept release — when the issue is so unique complicated as to warrant bypassing a rule proposal, the SEC solicits public input regarding the SEC’s concerns and approaches to solving the issue. This feedback is taken into consideration as the final decision is made; and 3) Rule adoption — the final step is that the SEC’s staff will present a final rule to the commission for its consideration, which if adopted becomes an official rule for the securities industry. If major, the rule may be subject to congressional review or veto prior to adoption Violations of these rules are investigated privately by the SEC Division of Enforcement.
Bonds, like all other financial instruments, are subject to certain standards. In fact, commercial law demands that any document or instrument must contain seven essential elements in order to be valid. If any of these elements is missing the paper is commercially defective, void, or expressly fraudulent. These essential elements are: 1) Accurate identification of the parties to the instrument, contract, or dispute; 2) Nature and content of the allegations or claims set forth with particularity; 3) Ledger — ie, accounting of the remedy or relief sought as recompense or compensation for specific wrongs or contractual violations or defaults, 4) Surety — ie, identification of the property sought or person pledged as the stakes over which the dispute occurs, and to be forfeited to the prevailing party to pay the debt. 5) Facts and law — ie, specific laws violated and facts set in evidence by exhibit; 6) Certification — ie, statement under oath by party asserting an allegation or claim that everything asserted is “true, correct, and complete,” whether criminal or civil; A bond, whether government or private, must contain certain essential elements still. Bond is defined by Black’s 7th as “[a] written promise to pay money or do some act if certain circumstances occur or a certain time elapses, a promise that is defeasible upon a condition subsequent.” In addition to the amount promised, the amount payable to the surety is called the premium (ie, the percentage of the total amount of the promise, charged by the surety to the principal as a one-time cost of guaranteeing the bond). The basic and general features are: 1) A fixed sum of money must be promised: 2) It must be payable at a definite time, and 3) It must be payable with stated interest. The only necessary parties to an ordinary private bond are: 1) the Principal (ie, the person making the confession of debt — the maker of the bond), and 2) the Obligee (ie, the person to whom the promise is made — the holder of the bond). AMERICAN JURISPRUDENCE GUIDE FOR DRAFTING PRIVATE BONDS: 1) Name and address of the principal: 2) Name, address, domicile, and financial qualification of surety: 3) Name and address of obligee; 4) Amount of bond (fixed or unlimited, ie listing the items making up the amount); 5) Obligating language (eg, heirs, executors, successors and assigns, joint and several, several but not joint, etc.); 6) Reason bond is given; 7) Condition of the bond (underlying obligation, general conditions to recovery on bond, prerequisites to recovery (eg, notice, period to cure defects or default, determination by arbitration or by experts of defect or insufficiency, method of curing defects of defaults]); 8) Scope of indemnification (loss or damage, liability); 9) Duration 10) Termination (ie, terms regarding the option of ending the obligation); 11) Limit of time for bringing action on bond (eg, statute of limitations), 12) Recovery of legal costs and attorney’s fees in action on bond; 13) Date of bond 14) Signatures of parties; 15) Acknowledgments (before witness or notary), and 16) Delivery and acceptance to obligee (or surety in the event of surety bond). The usual order in which the elements appear in a bond are: the obligation or promise to pay: the condition, if any, and the “testimonium clause;” and the signatures and acknowledgments. The bond premium is usually set forth in the document as well, in the form of a percentage. Consult the templates included in the FORMS folder of this A bond and a promissory note are of the same species. Basically, a promissory note is a promise to pay a fixed sum, with or without interest. So long as there is a promise to pay in the letter, even if it’s a love letter, it is a promissory note. It really is the simplest of negotiable instruments, so they can generally be explained through bonds. In the case of a contract surety bond, there are many forms prescribed and precompleted. The contract surety bond is the most common form used in contractor situations such as construction and other services where loss prevention is of paramount concern. As Principal in such a bond you will have to pay premium (ie, the percentage of the actual bond coverage). The premium is usually calculated according to a pre-qualification process, which, as Surety, you must use in order to evaluate the risks involved in standing surety for the debt: 1) Capacity to perform (ie, Principal’s ability to complete the contract agreed upon); 2) Capital (ie. Principal’s ability to pay the debt including the interest on the obligation); and 3) Character (ie, Principal’s business ethics, credit history, etc., in order to determine likelihood of default).
The Federal Reserve creates money out of nothing. It’s a four step process: First, the Federal Open Market Committee approves the purchase of United States Bonds; next, the bonds are purchased by the Federal Reserve; the Federal Reserve pays for these bonds with electronic credits to the seller’s bank (these credits are based on nothing); and finally, the banks use these deposits as “reserves”. So, they can loan out over ten times the amount of their reserves to new borrowers, all at interest. “Let’s look at an example of how this works with a Federal Reserve purchase of $1,000,000 of bonds. This then gets turned into over $10,000,000 in bank accounts. The Federal Reserve in effect creates 10 percent of this totally new $10,000,000 and the banks create the other 90 percent. To reduce the amount of money in circulation this process is simply reversed. The Federal Reserve sells these bonds to the public and the money flows out of the purchaser’s local bank. Loans must be reduced by ten times the amount of the sale, so a Federal Reserve sale of $1,000,000 in bonds, results in $10,000,000 less money in the economy.” –www.iamthewitness.com DarylBradford Smith Bankers.htm * These bonds are simply promises to pay or government IOU’s. People purchase them in order to get a secure rate of interest. At the end of the term of the bond, the government repays the bond, plus interest and the bond is then destroyed. When a legal system is dependent upon debt-money in order to carry on the business of the legislature, the executive and the judiciary, that business and indeed the departments themselves become what is called “colored” because (1) no actual payments in “lawful money” have taken place for any property, products or services, and (2) all title (evidenced by statements of ownership stock certificates, etc.) has been actually transferred to the DTC per its rules of participation, leaving only the pretext or semblance of title, now commonly known as “entitlement” or “beneficial interest”. Black’s 4th defines “color” as “[a]n appearance, semblance, or simulacrum, as distinguished from that which is real. A prima facie or apparent right. Hence, a deceptive appearance; a plausible, assumed exterior, concealing a lack of reality, a disguise or pretext.” This means that the statute only appears to be a statute “as distinguished from that which is (a) real [statute].” And a court of justice is only the “pretext” of one, and the “rights” enforced, only the “prima facie or apparent right[9]”. The reality lurking underneath the disguise is that everything involving the instruments being passed as money is colored into a commercial-natured thing. Indeed, even crime is not exempt from being colored: Title 12 Section 72.11 of the Code of Federal Regulations openly declares ALL crime to be commercial in nature, going as far as to list some of the more common crimes but without limiting the scope of the declaration. And the greater part of the U.S. Code consists of private law for the regulation of commerce. The type of legal system capable of sustaining a debt-money economy is a pure Civil Law (statute) system, where the statutes (or “apparent” statutes) are the obligations of record (ie, bonds). According to Black’s 4th, “statute also sometimes means a kind of bond or obligation of record, being an abbreviation for ‘statute merchant’ or ‘statute staple.” Now, the previous definition can seem confusing at first glance until you look at the definitions later given of the statute merchant and statute staple to which it refers: “Statute staple. The statute of the staple … authorized a security for money, commonly called statute staple, to be taken by traders for the benefit of commerce; the mayor of the place is entitled to take a recognizance of a debt (ie, bond] in proper form, which had the effect to convey the lands of the debtor to the creditor (International Monetary Fund) till out of the rents and profits of them he should be satisfied. … [It 15) Security for a debt acknowledged to be due, so called from its being entered into before the mayor of the staple, that is to say, the grand mart for the principal commodities or manufacturers of the kingdom, formerly held by act of parliament in certain trading towns. In other respects it resembled the statute-merchant, (q.v..) but like that has now fallen into disuse.” Implemented during the reign of King Edward III (27 Edw. III. stat. 2), the statute, often referred to as “the Law Merchant” in English, is the body of commercial law used by merchants throughout Europe during the medieval period. It evolved similar to English common law as a system of custom and best practice, which was enforced through a system of merchant courts along the main trade routes. It functioned as the international law of commerce. Therefore, the Statute-Merchant system (or some other version of it) is likely to be in use, more than ever before, as it is the natural and only legal device capable of sustaining such an economy. Perhaps a closer look at its definition will shed more light on this subject: “Statute-merchant. In English law. A security for a debt acknowledged to be due, entered into before the chief magistrate of some trading town, pursuant to the statute 13 Edw. I. De Mercatoribus, by which not only the body of the debtor might be imprisoned, and his goods seized in satisfaction of the debt, but also his lands might be delivered to the creditor till out of the rents and profits of the sale or disposition of] them the debt be satisfied.” But this still does little to explain the role it could play in a legal system where the debt-money base of the economy is secured by direct taxation of the citizens — or does it? When you consider that all Civil Law systems originate from and are closely connected to the Admiralty Law (Roman Civil Law) in terms of how they operate, and that under such systems fines and penalties are legally considered to be forms of direct taxation as is inflation, then you don’t need to be told that a Civil Law system is ideal for debt-based economies, nor do you need to be told why the statute-merchant arose under it — it will perpetuate its own dependency upon this debt-money as a matter of life or death. So, with the lifeblood of the system being commercial paper and electronic credits representative of those “immobilized” paper assets, the system is completely privatized within the private Federal Reserve monopoly. Like everything outside of any private system, non-members/non-participants are not subject to it. In fact, there are so many loopholes created by such an arrangement that it almost seems as though it was set up for the blatant exploitation of those with the intellectual prowess and knowledge, of operation of law. Understanding this, it is easy to see how all “paper,” if it contains the necessary elements, is potential commercial paper — including, especially, court papers such as judgments (civil and especially criminal). A criminal judgment based on a crime that is calculable in debt-money is a bond subject to the private law of the private system. The courts are therefore instrumentalities of the private system, and so are both the legislatures and executive departments who create and enforce the statutes (not to mention the salaries of the officers are payable in debt-money). It permeates everthing. All persons subject to this system are therefore voluntarily subjected to it through the contract they entered into by placing their paper in its custody and using its services or accepting its benefits. Indeed, by merely using Federal Reserve notes, one has passed, himself off as a merchant at law, holding himself out as knowledgeable in the negotiable instruments used, thereby subjecting himself to its jurisdiction in the same way that a citizen does.
According to the Depository Trust and Clearing Corporation (DTCC), the DTC (its subsidiary) “is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the Securities and Exchange Commission. The depository brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively ‘dematerializing most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in custody.” –www.dtoc.com But according to many investigative accountants and legal researchers, the DTC is “the best kept secret in America. … [T]he average American has no clue that this financial institution is the most powerful banking corporation in the world. … How can a private banking trust company hold assets of over $19 trillion and be unknown? In a recent press release dated April 19, 1999, the Depository Trust Company stated: The Depository Trust Company (DTC) is the world’s largest securities depository, holding nearly $19 trillion in assets for its Participants and their customers. … Last year, DTC processed over 164 million book-entry deliveries valued at more than $77 trillion.”” The year is now 2005, and there is no evidence to suggest that business has slowed down any. The DTC is said to have been created, along with the National Securities Clearing Corporation (NSCC), as a solution to the paperwork crisis” of the 1960s. It is intimated that the New York Stock Exchange (NYSE) was doing up to 12 million shares transactions daily, with runners going to and fro delivering stock certificates, other paper assets, and payment checks in order to clear and settle” the transactions, Brokerage firms were overwhelmed with paperwork, so they decided to close every Wednesday and shorten trading hours on other days just to help compensate for the backlog they were suffering. A solution was desperately needed. The crisis required a two-part solution: First, eliminate the cumbersome nature of physical paper assets (stock certificates, etc.), and second, ease the transfer of ownership from one party to the next. This called for the creation of a centralized service for the maintaining of certificates, so the broker-dealers established the Central Certificates Service (CCS) in 1968. It also called for the extensive participation of the banking industry, without which the solution wouldn’t work, so the Banking and Securities Industry Committee (BASIC) was formed, initially to make recommendations in the area of banking regarding the clearance and settlement process. It was the function of BASIC that eventually led to the formation of the DTC, specifically to “immobilize securities for broker-dealers and banks, complete book-entry delivery of those securities, and handle the myriad of operational tasks required to provide safekeeping through electronic record-keeping of securities balances. The second part of the solution was to establish the “multilateral netting” process that would allow brokers to “net” or conjoin two or more equal-number-of-shares transactions between themselves with no physical movement of shares between them, but leaving themselves to simply account for any price differences. The problem was that few opportunities for netting arose under the then-current state of trading because most brokers trade in single securities to multiple brokers during the course of a day. To make the process work, brokers were required to clear and settle through the central organization, making all trades of a single security “net-able” into one single clearance and settlement obligation at the end of the day. This allowed for such obligations to be reduced (netted) even more into one clearance and settlement obligation of a single firm, daily, making it possible for a firm to write a single check or make a single funds transfer to the central organization itself for the net amount in lieu of an individual check being written to each individual seller for each securities transaction at the end of the day. So, the NYSE, American Stock Exchange and National Association of Securities Dealers (NASD) each formed their own independent clearing organizations to handle their respective markets. This proved to be effective, but improvements could still be made to the system. So, in 1976 all were merged into the NSCC which would eventually assume all the functions of each markets’ clearing and settling organizations. Here is how it is now done. The DTCC explains it as follows: “When two firms trade, they are considered ‘contra-parties to each other. In a multilateral netting environment, NSCC steps into the middle of a trade, becomes the contra-party to both firms and guarantees completion of the transaction. This guarantee assures all members that NSCC will complete trades on the original terms, even if the original contra-party fails between midnight of trade date plus 1 [day] and settlement (day). To protect itself and its members, NSCC requires members to post collateral (usually cash and securities) to cover the risks associated with the trade. “NSCC offers further protection from risk through a risk management system that monitors customers’ financial health and trading patterns, as well as financial and operations requirements that applicants must meet in order to become NSCC members. In addition, NSCC ensures that it always has the capacity to process not only the average daily trading volume, but unexpected peak volumes, as well. This commitment has become increasingly important in light of the substantial volume growth in the 1990s.” Even in comparison to the DTC, the NSCC is by far the largest of the clearing organizations in terms of securities transaction volumes it processes. “NSCC provides clearing and settlement, risk management, central counterparty services and a guarantee allowing brokers to offset buy and sell positions into a single payment obligation. But if you understand how the U.S. Federal Reserve system works, then you don’t have to be told that there is much more to the functions of the DTCC and its subsidiaries and joint-ventures than just clearance and settlement And it becomes easy to see that there is more raw power located at 55 Water Street, New York, New York 10041-0099, than meets the average eye. In fact, in addition to the DTCC, DTC, and NSCC, the Federal Reserve Bank of New York, JP Morgan Chase Bank, Standard and Poor’s, CUSIP Service Bureau, Chubb Group of Insurance, Companies. Browne and Co., and the New York Times (to name a few) Share this building And when you consider that there is no “lawful money” of account or of exchange in circulation in America today (all there is is Federal Reserve bank notes, electronic book entries, and other actual securities for which the DTC and NSCC were created), you see that literally any person can replace these instruments with instruments of their own so long as they meet certain standards. The power is legally within reach of every legal person who can grasp the nature of this system, and abide by the rules and regulations put in place by the “Fed” through the U.S. Federal government.

Creating debt-money in a debt-based economic system is easier than it has been portrayed by those who stand to profit from the general public ignorance. In fact, the entirety of the system is based on a slight-of-hand, or economic “magick,” (dishonest weights and measures). It will do us some good to study the facets of a basic economic system in order to understand the invaluable role of the monetary system. In any economy, the system must be comprised of three branches: (1) Investments (ie, acquiring of property interest for future benefit); (2) Money (ie, actual currency designed to circulate in the capacity of tender for the payment of public and private debts); and (3) Economics (ie, trade and commerce). The methods discussed in this presentation apply to all these. However, the primary objective is usually centered around the second branch. As far as printing currency is concerned this will undoubtedly invite the criminal wrath of the well-known criminal enterprise which created the Federal Reserve system in the first place, and it will most likely come in the form criminal counterfeiting charges. A bank, like any other corporation, has both assets and liabilities. It must follow the standard book-entry accounting system. What most people don’t understand is that when customers deposit their funds into a bank, these funds are in the nature of a loan, and thus become the bank’s primary liability. The difference is that in a debt-based system, this debt is accounted to the bank as worth. Liabilities must be balanced on the ledger like so A deposit (loan) is made into the bank. This is then debited on the asset side of the ledger and accounted as cash in order to balance the books. Where the slight-of-hand comes in is when the bank is required only to keep 10 percent (ie, a fraction of its cash assets as reserves. It then loans out the remaining 90 percent to other customers. The loaned funds are deposited in the borrower’s deposit account, and the bank considers this deposit as a new liability which subsequently increases its worth. This “new” liability must be debited on the asset side of the ledger and counted as additional cash assets. From this simple diagram it should be easy to see that a fractional reserve system is merely a sophisticated version of biblically detested dishonest weights and measures, operatively no different than using a 50-pound weight misrepresented as 60 pounds in order to sell 50 pounds worth of grain for the price of 60 pounds. There is, however, a way to create debt-money honestly. Once you have executed the security (bond, note, etc.) you have three primary methods of monetization at your disposal: 1) You can immediately trade or sell it (or a portion of it), in which case you will have monetized it via ordinary clearance (ie, receipt of payment) and settlement (ie, delivery of the instrument and conveyance of title) 2) You can establish relations with a DTC participant and deposit the instrument in trust with them under an omnibus account, and then endeavor to have them trade or sell, it, and after clearing and settling through the DTC, giving to you a portion of the proceeds: or 3) You can become a Participant yourself, deposit and obtain the CUSIP identifier for the instrument, and sell or trade it in order to derive the proceeds from it directly. Of the three methods available, this is by far the simplest method of monetization because it involves few (if any) middlemen in the transaction. It is generally a two-party deal The process is as follows: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a buyer or investor*; 3) Enter into a contract of sale or trade of the instrument; 4) Clear either in the form of cash, check, or other method of acceptable payment; and 3) Settle up via personal delivery. Federal Express shipment, United Parcel Service shipment, or US Postal Service mailing (preferably registered or at least certified return receipt). The second method is probably the most feasible of the remaining two methods simply because it is only a slightly more complex version of the first method. In this method, the expense of monetization is absorbed by the middleman, and you are spared many of the costs associated with DTC membership. You can, however, establish an omnibus account with a member of the DTC system as an additional option which will greatly ease the process 1) Execute issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a member or liaison to a member) of the DTC system willing to middleman a sale or trade; 3) Enter into a contract to deposit the security in trust with the member (or liaison) for the limited purpose of disposing of the instrument in a transaction of which you are the primary beneficiary. The proceeds are to be deposited in an account or otherwise distributed to you in the acceptable form of payment. This can be done via an omnibus account with the participant or in an ordinary trust arrangement, and 4) The DTC participant will then utilize its membership with the DTC, probably depositing the security with the DTC. Finally, you have the option of absorbing all costs, and performing the whole task yourself. In this case, you must have already become a DTC Participant or Limited, Participant, with adequate instruction on the process as provided in the materials the DTC will give you: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument 2) Submit the security to the DTC for eligibility. This will require that you execute the corresponding forms located in the “dtc_eligibility” folder located within the FORMS folder of this disc 3) Once eligibility is approved, retain evidence of book-entry DTC Filing provided by the DTC and submit this to CSB in a request for a Unique Identifier for the security 4) Now the security is sellable/tradable in book-entry format to anyone within the system, and you can then sell or otherwise dispose of the security in any manner you wish; and 3) The final step is that of locating the buyer or trader of the security. Once the deal has been consummated, the clearance and settlement process through the DTC is fully automated, and is done at the speed of an electronic data transfer by the end of the day. Now, in the process you may be required to obtain a valid CUSIP identifier for the security. CSB is operated by Standard and Poor’s for the American Bankers Association, and incidentally is located on the 45th floor of the 55 Water Street building. Its web address is www.cusip.com. For more information on what CSB requires, you should visit its web site and contact a CSB representative prior to making your request. This should be done especially if your security is not of the standard, issue. In order to obtain an identifier, a request must be sent to them in letter form. Generally, the letter must contain: 1) Name of organization: 2) Head office and registered office address: 3) Law and date of formation: 4) Description of financial instrument for which number is being requested; 5) Nature and description of the offering to be made: 6) In the case of name changes, both the old an new names; The package should include the necessary documentation: 1) Public Offering of Equity or Debt — “Red Herring” (Preliminary Prospectus) or Registration Statement; 2) American Depository Receipts — Registration Statement F-6; 3) Bank Holding Company Formation — Registration Statement S-4; 4) Bankers Acceptances — Summary of Offering / Information Statement 5) Certificates of Deposit — Summary of Offering Terms (“Fact-Sheet”); 6) Church Bonds — Prospectus/Official Statement; 7) Commercial Paper (Book Entry only) — Info Statement and DTC-CP Filing; 8) Company Emerging from Chapter XI — Disclosure Statement; 9) Medium-Term Notes (Book Entry only) — Prospectus Supplement and DTC-MTN Filing 10) Mutual Funds — Registration Statement N-1; 11) Name Change — Proxy Statement (or) Certificate of Amendment; 12) Publicly Traded Limited Partnerships — Prospectus with SEC File # 13) Reverse Stock Splits –Letter to Shareholders; 14) Right Offerings — Rights Agreement/Company Press Release; 15) Rule 144A Securities — Offering Circular Prospectus with 144A Representation; 16) Shelf Registrations (415) — Initial Shelf Filing (S-3) and Subsequent “Prospectus Supplements”; 17) Unit Trusts — Registration Statement 5-6; and 18) Variable Annuities — Prospectus and/or contract. The complete request package with full payment should be sent to: CUSIP SERVICE BUREAU / Data Collection Department / Standard and Poor’s

The Truth About Banking And Your Birth Certificate Creating debt-money in a debt-based economic system is easier than it has been portrayed by those who stand to profit from the general public ignorance. In fact, the entirety of the system is based on a slight-of-hand, or economic “magick,” (dishonest weights and measures). It will do us some good to study the facets of a basic economic system in order to understand the invaluable role of the monetary system. In any economy, the system must be comprised of three branches: (1) Investments (ie, acquiring of property interest for future benefit); (2) Money (ie, actual currency designed to circulate in the capacity of tender for the payment of public and private debts); and (3) Economics (ie, trade and commerce). The methods discussed in this presentation apply to all these. However, the primary objective is usually centered around the second branch. As far as printing currency is concerned this will undoubtedly invite the criminal wrath of the well-known criminal enterprise which created the Federal Reserve system in the first place, and it will most likely come in the form criminal counterfeiting charges. A bank, like any other corporation, has both assets and liabilities. It must follow the standard book-entry accounting system. What most people don’t understand is that when customers deposit their funds into a bank, these funds are in the nature of a loan, and thus become the bank’s primary liability. The difference is that in a debt-based system, this debt is accounted to the bank as worth. Liabilities must be balanced on the ledger like so A deposit (loan) is made into the bank. This is then debited on the asset side of the ledger and accounted as cash in order to balance the books. Where the slight-of-hand comes in is when the bank is required only to keep 10 percent (ie, a fraction of its cash assets as reserves. It then loans out the remaining 90 percent to other customers. The loaned funds are deposited in the borrower’s deposit account, and the bank considers this deposit as a new liability which subsequently increases its worth. This “new” liability must be debited on the asset side of the ledger and counted as additional cash assets. From this simple diagram it should be easy to see that a fractional reserve system is merely a sophisticated version of biblically detested dishonest weights and measures, operatively no different than using a 50-pound weight misrepresented as 60 pounds in order to sell 50 pounds worth of grain for the price of 60 pounds. There is, however, a way to create debt-money honestly. Once you have executed the security (bond, note, etc.) you have three primary methods of monetization at your disposal: 1) You can immediately trade or sell it (or a portion of it), in which case you will have monetized it via ordinary clearance (ie, receipt of payment) and settlement (ie, delivery of the instrument and conveyance of title) 2) You can establish relations with a DTC participant and deposit the instrument in trust with them under an omnibus account, and then endeavor to have them trade or sell, it, and after clearing and settling through the DTC, giving to you a portion of the proceeds: or 3) You can become a Participant yourself, deposit and obtain the CUSIP identifier for the instrument, and sell or trade it in order to derive the proceeds from it directly. Of the three methods available, this is by far the simplest method of monetization because it involves few (if any) middlemen in the transaction. It is generally a two-party deal The process is as follows: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a buyer or investor*; 3) Enter into a contract of sale or trade of the instrument; 4) Clear either in the form of cash, check, or other method of acceptable payment; and 3) Settle up via personal delivery. Federal Express shipment, United Parcel Service shipment, or US Postal Service mailing (preferably registered or at least certified return receipt). The second method is probably the most feasible of the remaining two methods simply because it is only a slightly more complex version of the first method. In this method, the expense of monetization is absorbed by the middleman, and you are spared many of the costs associated with DTC membership. You can, however, establish an omnibus account with a member of the DTC system as an additional option which will greatly ease the process 1) Execute issue the security (bond, note, etc.). As holder of the instrument, you must also reserve the right to sell or trade it; 2) Locate a member or liaison to a member) of the DTC system willing to middleman a sale or trade; 3) Enter into a contract to deposit the security in trust with the member (or liaison) for the limited purpose of disposing of the instrument in a transaction of which you are the primary beneficiary. The proceeds are to be deposited in an account or otherwise distributed to you in the acceptable form of payment. This can be done via an omnibus account with the participant or in an ordinary trust arrangement, and 4) The DTC participant will then utilize its membership with the DTC, probably depositing the security with the DTC. Finally, you have the option of absorbing all costs, and performing the whole task yourself. In this case, you must have already become a DTC Participant or Limited, Participant, with adequate instruction on the process as provided in the materials the DTC will give you: 1) Execute/issue the security (bond, note, etc.). As holder of the instrument 2) Submit the security to the DTC for eligibility. This will require that you execute the corresponding forms located in the “dtc_eligibility” folder located within the FORMS folder of this disc 3) Once eligibility is approved, retain evidence of book-entry DTC Filing provided by the DTC and submit this to CSB in a request for a Unique Identifier for the security 4) Now the security is sellable/tradable in book-entry format to anyone within the system, and you can then sell or otherwise dispose of the security in any manner you wish; and 3) The final step is that of locating the buyer or trader of the security. Once the deal has been consummated, the clearance and settlement process through the DTC is fully automated, and is done at the speed of an electronic data transfer by the end of the day. Now, in the process you may be required to obtain a valid CUSIP identifier for the security. CSB is operated by Standard and Poor’s for the American Bankers Association, and incidentally is located on the 45th floor of the 55 Water Street building. Its web address is www.cusip.com. For more information on what CSB requires, you should visit its web site and contact a CSB representative prior to making your request. This should be done especially if your security is not of the standard, issue. In order to obtain an identifier, a request must be sent to them in letter form. Generally, the letter must contain: 1) Name of organization: 2) Head office and registered office address: 3) Law and date of formation: 4) Description of financial instrument for which number is being requested; 5) Nature and description of the offering to be made: 6) In the case of name changes, both the old an new names; The package should include the necessary documentation: 1) Public Offering of Equity or Debt — “Red Herring” (Preliminary Prospectus) or Registration Statement; 2) American Depository Receipts — Registration Statement F-6; 3) Bank Holding Company Formation — Registration Statement S-4; 4) Bankers Acceptances — Summary of Offering / Information Statement 5) Certificates of Deposit — Summary of Offering Terms (“Fact-Sheet”); 6) Church Bonds — Prospectus/Official Statement; 7) Commercial Paper (Book Entry only) — Info Statement and DTC-CP Filing; 8) Company Emerging from Chapter XI — Disclosure Statement; 9) Medium-Term Notes (Book Entry only) — Prospectus Supplement and DTC-MTN Filing 10) Mutual Funds — Registration Statement N-1; 11) Name Change — Proxy Statement (or) Certificate of Amendment; 12) Publicly Traded Limited Partnerships — Prospectus with SEC File # 13) Reverse Stock Splits –Letter to Shareholders; 14) Right Offerings — Rights Agreement/Company Press Release; 15) Rule 144A Securities — Offering Circular Prospectus with 144A Representation; 16) Shelf Registrations (415) — Initial Shelf Filing (S-3) and Subsequent “Prospectus Supplements”; 17) Unit Trusts — Registration Statement 5-6; and 18) Variable Annuities — Prospectus and/or contract. The complete request package with full payment should be sent to: CUSIP SERVICE BUREAU / Data Collection Department / Standard and Poor’s
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