§ 515.535. Exchange of certain securities.
225 words·~1 min read·
/us/cfr/t31/s§ 515.535·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Subject to the limitations and conditions of paragraph
(b)of this section and notwithstanding § 515.202, any banking institution within the United States is authorized to engage in the following transactions with respect to securities listed on a national securities exchange, including the withdrawal of such securities from blocked accounts:
(1)Exchange of certificates necessitated by reason of changes in corporate name, par value or capitalization,
(2)Exchanges of temporary for permanent certificates,
(3)Exchanges or deposits under plans of reorganization,
(4)Exchanges under refunding plans, or
(5)Exchanges pursuant to conversion privileges accruing to securities held.
(b)This section does not authorize the following transactions:
(1)Any exchange of securities unless the new securities and other proceeds, if any, received are deposited in the blocked account in which the original securities were held immediately prior to the exchange.
(2)Any exchange of securities registered in the name of any designated national, unless the new securities received are registered in the same name in which the securities exchanged were registered prior to the exchange.
(3)Any exchange of securities issued by a person engaged in the business of offering, buying, selling, or otherwise dealing, or trading in securities, or evidences thereof, issued by another person.
(4)Any transaction with respect to any security by an issuer or other obligor who is a designated national.