General Rules and Regulations
promulgated
under the
Securities Exchange Act of 1934
Rule 15c3-2 -- Customers' Free Credit Balances
No broker or dealer shall use any funds arising out of any free credit balance carried
for the account of any customer in connection with the operation of the business
of such broker or dealer unless such broker or dealer has established adequate procedures
pursuant to which each customer for whom a free credit balance is carried will be
given or sent, together with or as a part of the customer's statement of account,
whenever sent but not less frequently than once every three months, a written statement
informing such customer of the amount due to the customer by such broker or dealer
on the date of such statement, and containing a written notice that (a) such funds
are not segregated and may be used in the operation of the business of such broker
or dealer, and (b) such funds are payable on the demand of the customer: Provided,
however, That this section shall not apply to a broker or dealer which is also
a banking institution supervised and examined by State or Federal authority having
supervision over banks. For the purpose of this section the term customer
shall mean every person other than a broker or dealer.
Notice to Users: The Deskbook is made available
with the understanding that the University of Cincinnati College
of Law is not engaged in rendering legal, accounting or other professional
services. If legal advice or other expert assistance is required,
the services of a competent professional person should be sought. See Terms and Conditions of Use.
