Finra Rule: UNIFORM PRACTICE CODE(10)---Usnook---The first portal of US info

Finra Rule: UNIFORM PRACTICE CODE(10)

USINFO | 2013-12-18 16:10

(d) Due-Bill for Dividend on When Issued Contract

This is to certify that, upon issuance of ____ in accordance with the plan approved by ____ , the undersigned will pay to ______ $ _____ , representing the dividend of $ _____ per share declared for the period ending 20 _____ , on ______ shares of _______ stock of ____ sold to it when, as, and if issued on _______ 20 _____ This due-bill shall become null and void if the contract for sale of said stock cannot be completed in accordance with the plan approved by ____ , on _________________________
___________(Date)
	___________(Official Signature)

(e) Due-Bill Check

Consider this check as due-bill until payable date as shown below

NEW YORK _________________ , X Y Z BANK	20 _____	No. 1999 1-2 ___ 210
Pay To The Order Of_________________________
$ __________________________________
Dollars
In Payment of Dividend or Interest	Dividend Account – Interest Account –
On______________________	NOT PAYABLE BEFORE _____________________
RECORD DATE_______________________________

11640. Claims for Dividends, Rights, Interest, etc.

(a) Dividends or Rights

A buyer of stock who has the certificate in its possession in time to enable it to effect transfer prior to the closing of the books or to the record date shall have no claim upon the seller (unless the seller is the registered holder) for the dividend or rights pertaining to such certificate, but the seller, upon request of the buyer, shall use its best efforts to collect the same for the buyer.

(b) Substantiating Claims

When a buyer of stock who has failed to have said stock transferred in time requests the seller to collect the dividends or rights pertaining thereto, the seller may require from the buyer the presentation of the certificate or a letter from the transfer agent substantiating the claim, or the buyer's written statement that it or its customer was the holder on the record date, and a guarantee of indemnity for liability arising out of any further demand for said dividend or rights.

(c) Interest or Rights

The provisions of paragraphs (a) and (b) of this Rule shall be equally applicable to interest or rights pertaining to registered bonds and unit investment trust securities.

11650. Transfer Fees

The party at whose instance a transfer of securities is made shall pay all service charges of the transfer agent.

11700. RECLAMATIONS AND REJECTIONS

11710. General Provisions

(a) Definition

The term "reclamation" as used in this Code shall mean a claim for the right to return or the right to demand the return of a security which has been previously accepted. Securities which have been presented for delivery on a transaction and which for a valid reason have been refused shall within the meaning of Rules 11710 and 11720, inclusive, be deemed a rejection for the purposes of these Rules.

(b) Uniform Reclamation Form

(1) Form Must Accompany Securities

A properly executed Uniform Reclamation Form must accompany securities on reclamation or return.*

(2) Absence of Form Permits Sell-Out

Any security reclaimed or returned on a transaction without a properly executed Uniform Reclamation Form as prescribed within this Rule may, at the option of the receiving broker, be "sold-out" pursuant to Rule 11820, however, in no event later than three business days after receipt of the receiving broker or its agent.

(c) Time for Delivery of Reclamation and Manner of Settlement

(1) A security with an irregularity having been delivered may be returned or reclaimed between the hours established by rule or practice in the community where the delivery or reclamation is to be made.

(2) When a security is returned or reclaimed, the party who originally delivered it shall immediately give the party returning it either the security in proper form for delivery in exchange for the security originally delivered, or the money amount of the contract. In the latter case, unless otherwise agreed, the party to whom the security is returned shall be deemed to be failing to deliver the security until such time as a proper delivery is made.

(d) Minor Irregularities

Reclamation for an irregularity which affects only the currency of the security in the market shall be made within 15 days from the day of original delivery, except that, if the security is issued under the jurisdiction of a foreign country, the period for reclamation under this section shall be 45 days from the day of original delivery.

(e) Wrong Form of Certificate

Reclamation, by reason of the fact that a form of certificate was delivered which was not a good delivery, but which is exchangeable without charge for a certificate which is a good delivery, shall be made within 15 days from the day of original delivery.

* Specifications for use of the Uniform Reclamation Form are contained in the Final Report of the Banking and Securities Industry Committee entitled "Four Uniform Forms," dated December 22, 1971.

Supplementary Material:
01 Uniform Reclamation Form.

Uniform Reclamation Form

To Accompany Reclamations
Subject to Rules & Regulations of:

Stock Clearing Corp.
Annex Clearing Corp.
National Clearing Corp.
FINRA - Uniform Practice Code

RECLAIMED TO

REC No.

NAME OF RECEIVER

DATE SECURITIES
BELOW RECEIVED

RECLAIMED BY

DEL. No.

NAME OF DELIVERER

DATE OF RETURN

QUANTITY

Security Description (certifcate's can
be applied to reverse side of copy #1

AMOUNT

Wrong Security __________ Should Be	Wrong Money __________ Our Money
Carries Due Bill	Duplicates Delivery __________ You Delivered On
Needs Signature Guarantee	Wrong Settlement Date __________ Our S/D
Needs Tax Stamp	No Instructions
Release Power of Attorney	Needs Legal Opinion
Coupon Missing	Needs Better Account Date
Other - Explanation