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  • 11300. DELIVERY OF SECURITIES

    • 11310. Book-Entry Settlement

      (a) A member shall use the facilities of a securities depository for the book-entry settlement of all transactions in depository eligible securities with another member or a member of a national securities exchange or a registered securities association.
      (b) A member shall not effect a delivery-versus-payment or receipt-versus payment transaction in a depository eligible security with a customer unless the transaction is settled by book-entry using the facilities of a securities depository.
      (c) For purposes of this Rule, the term "securities depository" shall mean a securities depository registered as a clearing agency under Section 17A of the Exchange Act.
      (d)(1) The term "depository eligible securities" shall mean securities that
      (A) are part of an issue of securities that is eligible for deposit at a securities depository and
      (B) with respect to a particular transaction, are eligible for book-entry transfer at the depository at the time of settlement of the transaction.
      (2) A determination under rules of a national securities exchange that a security depository has included a CUSIP number identifying a security in its file of eligible issues does not render the security "depository eligible" under this Rule until:
      (A) in the case of any new issue distributed by an underwriting syndicate on or after the date a securities depository system for monitoring repurchases of distributed shares by the underwriting syndicate is available, the date of the commencement of trading in such security on the exchange; or
      (B) in the case of any new issue distributed by an underwriting syndicate prior to the date a securities depository system for monitoring repurchases of distributed shares by the underwriting syndicate is available where the managing underwriter elects not to deposit the securities on the date of the commencement of trading in such security on the exchange, such later date designated by the managing underwriter in a notification submitted to the securities depository; but in no event more than three months after the commencement of trading in such security on the exchange.
      (e) This Rule shall not apply to transactions settled outside of the United States.
      (f) The requirements of this Rule shall supersede any inconsistent requirements under other Rules in the Code.
      (g) This Rule shall not apply to any transactions where the securities to be delivered in settlement of the transaction are not on deposit at a securities depository and:
      (1) if the transaction is for same-day settlement, the deliverer is unable to deposit the securities in a securities depository prior to the cut-off time established by the depository for same-day crediting of deposited securities, or
      (2) the deliverer is unable to deposit the securities in a depository prior to the cut-off date established by the depository for that issue of securities.
      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
      Amended by SR-NASD-2005-087 eff. Aug. 1, 2006
      Amended by SR-NASD-95-24 eff. June 7, 1995.
      Amended eff. Aug. 10, 1993.

      Selected Notices: 93-45, 95-55, 10-49.

    • 11320. Dates of Delivery

      (a) For "Cash"
      In connection with a transaction for "cash," delivery shall be made at the office of the purchaser on the day of the transaction.
      (b) "Regular Way"
      In connection with a transaction "regular way," delivery shall be made at the office of the purchaser on, but not before, the second business day following the date of the transaction.
      (c) "Seller's Option"
      In connection with a transaction "seller's option," delivery shall be made at the office of the purchaser on the date on which the option expires; except that delivery may be made by the seller on any business day after the second business day following the date of transaction and prior to the expiration of the option, provided the seller delivers at the office of purchaser, on a business day preceding the day of delivery, written notice of intention to deliver.
      (d) "Buyer's Option"
      In connection with a transaction "buyer's option," delivery shall be made at the office of the purchaser on the date on which the option expires.

      (e) Contracts Due on Holidays or Saturdays
      Contracts due on a day other than a business day shall mature on the next business day.
      (f) "Delayed-Delivery"
      In connection with a transaction made for "delayed-delivery," delivery shall be at the office of the purchaser on the date agreed upon at the time for the transaction.
      (g) Prior to Delivery Date
      If in contracts executed pursuant to paragraphs (b), (d) and (h) of this Rule, the seller tenders delivery before the stated time, acceptance shall be at the election of the purchaser, and rejection of such delivery by the purchaser shall be without prejudice to his rights.
      (h) Time and Place of Delivery
      Delivery shall be made at the office of the purchaser between the hours established by rule or practice in the community where such office is located. If the purchaser maintains more than one office, delivery shall be made at the office with which the transaction was effected, unless delivery instructions are provided at the time of the transaction.
      Amended by SR-FINRA-2016-047 eff. Sept. 5, 2017.
      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
      Amended by SR-NASD-94-56 eff. June 7, 1995.
      Amended by SR-NASD-91-13 eff. Nov. 1, 1991.
      Amended eff. Apr. 11, 1984.

      Selected Notices: 84-44, 10-49, 17-19.

    • 11330. Payment

      The party making delivery shall have the right to require the purchase money to be paid upon delivery by certified check, cashier's check, bank draft or cash.
      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.

      Selected Notice: 10-49.

    • 11340. Stamp Taxes

      (a) Members shall, as required by the rules and regulations of jurisdictions imposing taxes on sales, purchases or other transfers of securities, furnish tax stamps or pay the tax through securities clearing organizations.

      (b) In the event that taxes are due pursuant to state stock transfer taxes, the seller shall furnish to the buyer at the time of delivery a sale memorandum ticket to which shall be affixed and canceled sufficient state transfer stamps as are required by the state in which the sale occurs, or the tax may be paid by the seller through securities clearing organizations.

      (c) Additional stamps. If any stamps in addition to those required by paragraph (a) of this Rule are desired by the buyer, the furnishing of such additional stamps by the seller may be made a part of the transaction.

      (d) Seller's failure to furnish stamps. If the buyer has requested the additional state stamps provided by paragraph (c) of this Rule and at the time of delivery of the security the seller does not furnish or has not made adequate provision for such stamps, the buyer may furnish and cancel such additional state transfer stamps and deduct the cost thereof from the purchase price.
      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
      Amended eff. Jan. 1, 1973; Nov. 13, 1975.

      Selected Notice: 10-49.

    • 11350. Part Delivery

      The purchaser shall be required to accept a part delivery on any contract due provided the portion remaining undelivered is not an amount which includes an odd-lot which was not a part of the original transaction.
      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
      Amended eff. Jan. 1, 1973.

      Selected Notice: 10-49.

    • 11360. Units of Delivery

      • • • Supplementary Material: --------------

      .01 Uniform Delivery Ticket Form.

      NO.
      DELIVERY TICKET
      NAME OF MEMBER:
      ADDRESS:
      TELEPHONE
      THE ATTACHED SECURITIES ARE DELIVERED AGAINST PAYMENT

      CODES
      ORIGINATOR NO.
      TRANS. NO
      SETT TRADE DATE SETTLEMENT DATE DELIVERY DATE
      560          
      IDENTIFICATION NO. ACCOUNT NAME C.H. NUMBER SPECIAL DELIVERY INSTRUCTIONS









      QUANTITY CUSIP NUMBER SECURITY DESCRIPTION NET AMOUNT
       



       



       



       





      FORM AS SHOWN IS NOT DRAWN TO SCALE

      Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.

      Selected Notice: 10-49.

      • 11361. Units of Delivery — Stocks

        (a) Stock certificates delivered in settlement of contracts:

        (1) in which the transaction is for 100 shares may be in one certificate for the exact number of shares or certificates totaling 100 shares.

        (2) in which the transaction is greater than 100 shares and a multiple of 100 shall be in the exact amount of the contract, or in multiples of 100 shares, or in amounts from which units of 100 shares can be made, or a combination thereof equaling the amount of the contract.

        (3) in which the transaction is for more than 100 shares but not in a multiple of 100 shall be in multiples of 100 shares, or in amounts from which units of 100 shares can be made, or a combination thereof, plus either the exact amount for the odd lot or smaller amounts equaling the odd lot.

        (4) in which the transaction is for less than 100 shares shall be in the exact amount of the contract or for smaller units aggregating the amount of the contract.

        (b) Uniform Delivery Ticket
        A properly executed Uniform Delivery Ticket must accompany the delivery of securities.*

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

        Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
        Amended eff. July 8, 1968, Dec. 1, 1972.

        Selected Notice: 10-49.

      • 11362. Units of Delivery — Bonds

        (a) Coupon Bonds
        Each delivery of bonds or similar evidences of indebtedness in coupon bearer form shall be made in denominations of $1,000 or in denominations of $100 or multiples thereof aggregating $1,000.
        (b) Registered Bonds
        Each delivery of bonds or similar evidences of indebtedness in fully registered bond issues shall be made in denominations of $1,000 or multiples thereof or in amounts of $100 or multiples aggregating $1,000 but in no event in denominations larger than $100,000.
        (c) Bonds Issued in Both Coupon and Registered Form
        Unless otherwise specified at the time of execution, contracts in bonds that are issuable in either coupon or registered form, shall be settled by delivery of bonds in either form pursuant to the denominations in paragraphs (a) and (b) of this Rule, notwithstanding that there may be a charge for interchanging one form with the other.
        (d) Units of Delivery by Agreement
        When a contract relating to paragraphs (a), (b) and (c) of this Rule is for a principal amount which is not a multiple of $100, the parties shall agree, at the time of entering into the contract, as to the proper units of delivery.
        Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
        Amended eff. July 8, 1968; Nov. 1, 1971; Jan. 1, 1973.

        Selected Notice: 10-49.

      • 11363. Units of Delivery — Unit Investment Trust Securities

        The minimum unit of delivery for Unit Investment Trust Securities shall be a single unit of the trust.
        Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
        Added eff. Mar. 18, 1983.

        Selected Notices: 83-69, 10-49.

      • 11364. Units of Delivery — Certificates of Deposit for Bonds

        The units of delivery for certificates of deposit for bonds, shall be the same as prescribed for bonds in Rule 11362.
        Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.

        Selected Notice: 10-49.

      • 11365. Trading Securities As "Units" or Bonds "With Stock"

        Ruling of the Committee:

        Where securities are physically separate instruments, transferable independently of one another, and not subject to any legal or technical condition which requires that they be kept together, good practice requires that they be quoted and dealt in separately and not as units. Where, for some special reason, members enter into a contract calling for a group of securities, they are cautioned to make adequate specification both at the time of trade and in their confirmation or comparison, so that uncertainty or misunderstanding in the settlement of the contract may be eliminated.
        Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.

        Selected Notice: 10-49.