and has filed the annual and other periodic reports required pursuant to such Act, or a subsidiary of any such company, or (iv) is registered under the Investment Company Act of 1940 and has filed the annual and other periodic reports required pursuant to such act.

(2) For the purposes of this rule a plan filed with the Commission by a national securities exchange shall not become effective unless the Commission, having due regard for the public interest and for the protection of investors, declares the plan to be effective. The Commission in its declaration may impose such terms and conditions relating to the provisions of the plan and the period of its effectiveness as it deems necessary or appropriate in the public interest or for the protection of investors.

(3) The provisions of this exemption shall terminate at the close of business on July 31, 1942, unless the Commission otherwise determines.

Rule X-10B-3. Employment of Manipulative and Deceptive Devices.

It shall be unlawful for any broker or dealer, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, to use or employ, in connection with the purchase or sale of any security otherwise than on a national securities exchange, any act, practice, or course of business defined by the Commission to be included within the term "manipulative, deceptive, or other fraudulent device or contrivance," as such term is used in section 15 (c) (1) of the Act.

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RULES UNDER SECTION 11 OF THE ACT

EXEMPTION OF CERTAIN SECURITIES FROM SECTION 11 (d) (1) Rule X-11D1-1. Exemption of Certain Securities From Section 11 (d) (1).

A security shall be exempt from the provisions of section 11 (d) (1) with respect to any transaction by a broker and dealer who, directly or indirectly, extends or maintains or arranges for the extension or maintenance of credit on the security to or for a customer if

(a) The broker and dealer has not sold the security to the customer or bought the security for the customer's account; or

(b) The security is acquired by the customer in exchange with the issuer thereof for an outstanding security of the same issuer on which credit was lawfully maintained for the customer at the time of the exchange; or

(c) The customer is a broker or dealer or bank.

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1101

RULES UNDER SECTION 12 OF THE ACT

SECURITIES EXEMPTED FROM REGISTRATION

Rule X-12A-1. Temporary Exemption From Section 12 (a) of Certain Securities of Banks and Bank Holding CompaniesProhibition of Use of Manipulative or Deceptive Devices or Contrivances With Respect Thereto.

(a) The following securities shall be exempt from the operation of section 12 (a) to and including the one hundred and twentieth day after the filing of applications on the form appropriate for such security shall be authorized: (1) Securities of banks and bank holding companies as to which temporary registration expired on June 30, 1935; (2) securities of the same issuer heretofore or hereafter issued in exchange for or resulting from a modification of any securities exempted from the operation of section 12 (a) by this rule; and (3) shares of common stock of the same issuer heretofore or hereafter issued as stock dividends on stock of the same class exempted from the operation of section 12 (a) by this rule.

(b) Rules X-7C2-1 and X-10B-1 shall be applicable to all securities exempted from the operation of section 12 (a) by paragraph (a) of this rule.

Rule X-12A-2. Temporary Exemption From Section 12 (a) of Certain Securities Secured by Property Which, or a Leasehold Interest in Which, Is Owned by a Person Not the Original Issuer of Such Security-Prohibition of Use of Manipulative or Deceptive Devices or Contrivances With Respect Thereto.

(a) Any security which is secured by property which, or a leasehold interest in which, is now owned by a person who was not the original issuer of such security, shall be exempt from the operation of section 12 (a) to and including the respective dates indicated below, and for such longer period, if any, as would have been applicable under rule X-12A-1 or rule X-12A-3, if such security had been a security of such owner or lessee:

(A) If temporary registration of such security expired on June 30, 1935, such exemption shall continue to and including November 5, 1935, unless either of the following conditions is