All Agencies, Latest Month		All Agencies, Current FY		Geographic Distribution of Convictions for All Agencies, FY 20
	13,080 Prosecutions in 20		158,299 Prosecutions in Fiscal Year 20
	12,446 Convictions in 20		139,476 Convictions in Fiscal Year 20

CITE

    15 USC Sec. 78h                                             01/05/2009

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B - SECURITIES EXCHANGES

HEAD

    Sec. 78h. Restrictions on borrowing and lending by members,
      brokers, and dealers

STATUTE

      It shall be unlawful for any registered broker or dealer, member
    of a national securities exchange, or broker or dealer who
    transacts a business in securities through the medium of any member
    of a national securities exchange, directly or indirectly -
      (a) In contravention of such rules and regulations as the
    Commission shall prescribe for the protection of investors to
    hypothecate or arrange for the hypothecation of any securities
    carried for the account of any customer under circumstances (1)
    that will permit the commingling of his securities without his
    written consent with the securities of any other customer, (2) that
    will permit such securities to be commingled with the securities of
    any person other than a bona fide customer, or (3) that will permit
    such securities to be hypothecated, or subjected to any lien or
    claim of the pledgee, for a sum in excess of the aggregate
    indebtedness of such customers in respect of such securities.
      (b) To lend or arrange for the lending of any securities carried
    for the account of any customer without the written consent of such
    customer or in contravention of such rules and regulations as the
    Commission shall prescribe for the protection of investors.

SOURCE

    (June 6, 1934, ch. 404, title I, Sec. 8, 48 Stat. 888; Aug. 23,
    1935, ch. 614, Sec. 203(a), 49 Stat. 704; Pub. L. 94-29, Sec. 5,
    June 4, 1975, 89 Stat. 109; Pub. L. 98-440, title I, Sec. 103, Oct.
    3, 1984, 98 Stat. 1690; Pub. L. 103-325, title II, Sec. 204, Sept.
    23, 1994, 108 Stat. 2199; Pub. L. 104-290, title I, Sec. 104(b),
    Oct. 11, 1996, 110 Stat. 3423.)

AMENDMENTS

      1996 - Pub. L. 104-290 redesignated subsecs. (b) and (c) as (a)
    and (b), respectively, and struck out former subsec. (a) which
    related to borrowing in ordinary course of business as broker or
    dealer on any security, except exempted security, registered on
    national securities exchange.
      1994 - Subsec. (a). Pub. L. 103-325 inserted "or a small business
    related security" after "mortgage related security" in last
    sentence.
      1984 - Subsec. (a). Pub. L. 98-440 inserted provision that no
    person shall be deemed to have borrowed within the ordinary course
    of business, within the meaning of this subsection, by reason of a
    bona fide agreement for delayed delivery of a mortgage related
    security under certain conditions.
      1975 - Pub. L. 94-29, Sec. 5(1), substituted "any registered
    broker or dealer, member of a national securities exchange, or
    broker or dealer who transacts a business in securities through the
    medium of any member of a national securities exchange" for "any
    member of a national securities exchange, or any broker or dealer
    who transacts a business in securities through the medium of any
    such member" in provisions preceding subsec. (a).
      Subsecs. (b) to (d). Pub. L. 94-29, Sec. 5(2), redesignated
    subsecs. (c) and (d) as (b) and (c), respectively, and in subsec.
    (c) as so redesignated inserted "or in contravention of such rules
    and regulations as the Commissioner shall prescribe for the
    protection of investors" after "written consent of such customer".
    Former subsec. (b), which covered the maximum allowable aggregate
    indebtedness of brokers, was struck out.

CHANGE OF NAME

      Act Aug. 23, 1935, substituted "Board of Governors of the Federal
    Reserve System" for "Federal Reserve Board".

MISCELLANEOUS

                     EFFECTIVE DATE OF 1975 AMENDMENT
      Amendment by Pub. L. 94-29 effective June 4, 1975, see section
    31(a) of Pub. L. 94-29, set out as a note under section 78b of this
    title.

TRANSFER OF FUNCTIONS

      For transfer of functions of Securities and Exchange Commission,
    with certain exceptions, to Chairman of such Commission, see Reorg.
    Plan No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
    64 Stat. 1265, set out under section 78d of this title.