SEC Rule 17Ad-17 Sample Clauses
SEC Rule 17Ad-17 is a regulatory requirement that mandates transfer agents to make reasonable efforts to locate lost security holders. In practice, this involves searching databases, using mailings, or employing other methods to find individuals who have not negotiated checks or otherwise lost contact with their securities. The core function of this rule is to protect investors by helping them reclaim unclaimed property and to ensure that securities are properly managed and not left dormant due to outdated contact information.
SEC Rule 17Ad-17. (A) BNYM shall perform such services as are required in order to comply with Rule 17Ad-17 of the 1934 Act (the “Rule 17Ad-17”), including but not limited to the following:
(i) execution of required database searches for “lost securityholders”, as that term is defined in Rule 17Ad-17;
(ii) sending the required written notification to each “unresponsive payee”, as that term is defined in Rule 17Ad-17;
(iii) maintain records to demonstrate compliance with the requirements of Rule 17Ad-17, including written procedures that describe BNYM’s methodology for complying with Rule 17Ad-17 and records of the results of the database searches for lost securityholders; and
(iv) retain the records required by Rule 17Ad-17 in accordance with applicable SEC regulations.
(B) For purposes of clarification: Section 3(a)(11)(A) does not obligate BNYM to perform the services described therein for broker-controlled accounts, omnibus accounts and similar accounts with respect to which BNYM does not receive or maintain information which would permit it to determine whether the account owner is a lost securityholder or an unresponsive payee.
SEC Rule 17Ad-17. (A) The Trust represents, warrants and covenants to BNYM, which will be deemed continuing, that the Trust does not, and will not, permit or admit any natural person to own and/or hold units of the Trust. Based on the foregoing representation, BNYM shall perform such services as are required of it to allow it to comply with Rule 17Ad-17 of the 1934 Act (the “Rule 17Ad-17”), including but not limited to the following:
(i) providing the Trust with reports of and sending the required written notifications to each “unresponsive payees” as that term is defined in Rule 17Ad-17;
(ii) maintain records to demonstrate compliance with the requirements of Rule 17Ad-17, including written procedures that describe BNYM’s methodology for complying with Rule 17Ad-17 and records of the results of the database searches for lost securityholders; and
(iii) retain the records required by Rule 17Ad-17 in accordance with applicable SEC regulations.
(B) For purposes of clarification: Section 3(a)(8)(A) does not obligate BNYM to perform the services described therein for broker-controlled accounts, omnibus accounts and similar accounts with respect to which BNYM does not receive or maintain information which would permit it to determine whether the account owner is a lost securityholder or an unresponsive payee.