Release No. 33-6446

Release No. 34-19356

Release No. 35-22789

Release No. 39-787

Release No. IC-12913

Release No. IA-835

December 21, 1982

Elimination of Legal Size Paper

ACTION: Amendments to rules.

SUMMARY: The Securities and Exchange Commission announces the adoption of amendments to its rules to require the use of 8 1/2 x 11 inch paper for all statements, applications, reports, documents and amendments thereto filed with the Commission. The Commissions filing system was designed to accommodate both letter size (8 1/2 x 11 inches) and legal size (8 1/2 x 13 inches) papers. After the Commission adopted a micrographics filing program, however, it became apparent that attempting to accommodate both size papers increased the cost of microfiche because, in most instances, it is not possible to get the maximum number of images on each microfiche. Adopting a uniform size for all documents filed with the Commission will achieve maximum cost-efficiency in the Commissions micrographics filing program.

EFFECTIVE DATE: January 30, 1983.

FOR FURTHER INFORMATION CONTACT: Questions should be directed to Douglas J. Scheidt, Office of the General Counsel, Securities and Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549. Telephone: (202) 272-2454.

SUPPLEMENTAL INFORMATION: The Commission announces the adoption of amendments to 17 CFR 201.22(e), 230.403(a), 240.12b-12(a) and (b), 250.22(d), 260.7a-17, 260.7a-18, 270.0-2(b), 270.8b-12(a) and (b), and 275.0-4(b) which eliminate the use of legal size paper and require the use of 8 1/2 x 11 inch paper for all statements, applications, reports, documents and amendments thereto filed with the Commission. This action parallels that of the Judicial Conference of the United States, which has adopted the 8 1/2 x 11 inch paper size standard for use throughout the federal judiciary and eliminated the use of legal size paper, effective January 1, 1983 (46 FR 60864, Dec. 14, 1981). In addition, many state courts have adopted the letter size paper requirement.

Discussion

On June 11, 1982, the Commission published for comment proposed amendments to 17 CFR 201.22(e), 230.403(a), 240.12(b)-12(a) and (b), 250.22(d), 260.7a-17, 260.7a-18, 270.0-2(b), 270.8b-12(a) and (b), and 275.0-4(b), which would eliminate, with minor exceptions, the use of legal size paper for all statements, applications, documents, reports and amendments thereto filed with the Commission and require that all such filings be made on 8 1/2 x 11 inch paper. After consideration of the comments received in response to the Proposing Release, the Commission has determined to adopt the proposed amendments with minor modification. The amendments are based on the Commissions assessment that the Commissions microfiche costs would be reduced by the adoption of 8 1/2 x 11 inches as a uniform paper size, and that requiring the uniform use of that paper size will not create hardship for persons making filings with the Commission.

Six of the eleven commentators responding to the Commissions request for comments in the Proposing Release supported the amendments, one commentator suggested that the amendments only be adopted as a guideline, and four others expressed no view but requested certain clarifications. Some of the commentators also suggested modifications to the proposed amendments. One modification would have provided that the amendments not apply to documents, such as annual and quarterly shareholder reports, which are ordinarily prepared on paper smaller than 8 1/2 x 11 inches, and which are not required to be filed with the Commission but which are often filed as exhibits to other documents filed with the Commission. Another modification would have provided that the proposed amendments not apply to certain documents which are prepared for filing with the Commissions but which, because of their special nature, e.g., computer-generated printouts, cannot be placed on 8 1/2 x 11 inch paper.

The Commission has considered the suggested modifications and has determined to accept the first of the suggested modifications. Documents initially prepared on paper smaller than 8 1/2 x 11 inches for purposes other than filing with the Commission need not be photostatically enlarged to 8 1/2 x 11 inches, as the Commission microfiching expenses are not increased by the copying of documents smaller than that size. The Commission wishes to emphasize, however, that all documents that are prepared for filing with the Commission should be prepared on 8 1/2 x 11 inch paper, except as provided below.

The Commission also has determined to revise the proposed amendments in light of the second of the suggested modifications. The proposed amendments permitted the filing of oversize documents "which were prepared for purposes other than for filing with the Commission" if the photostatic reduction of those documents rendered them illegible. Some oversize documents, however, such as computer-generated printouts, are prepared expressly for purposes of filing with the Commission. Photostatic reduction of such documents may be impracticable or render the print illegible. Thus, the Commission has determined to permit the filing of any document, whether prepared for purposes of filing with the Commission or not, if the document cannot initially be prepared on 8 1/2 x 11 inch paper and reduction of the document would render it illegible. The Commission believes that this modification permits sufficient flexibility to those who may prepare certain exhibits expressly for filing with the Commission, such as computer printouts, the reduction of which is impracticable. The Commission expects, however, that persons filing documents with the Commission will file oversize documents only under the limited circumstances permitted.

Similarly, the Commission expects that in most instances requiring registrants and others to use 8 1/2 x 11 inch paper for all filings with the Commission will not create hardship. The Commission recognizes, however, that certain documents filed with the Commission, such as material contracts and leases, as well as computer-generated printouts, maps, plats and geological surveys, may commonly be prepared on paper larger than 8 1/2 x 11 inches and often for purposes other than for filing with the Commission. In some instances, reducing such documents to the required size would be costly or would result in an illegible document. Under such circumstances in which it is not practicable to reduce documents to 8 1/2 x 11 inch paper, the Commission would permit filings on larger paper.

Other persons responding to the Commissions request for comments indicated that the photostatic reduction of larger documents to 8 1/2 x 11 inch paper may result in type size and margins that do not conform with the Commissions requirements. The Commission would accept such photostatically reduced copies so long as the type remains legible and the margins remain sufficiently wide so that, when the pages are bound, the reading matter is not obscured.

In light of the above, the Commission amends its rules relating to filing requirements to require the use of 8 1/2 x 11 inch paper for all applications, statements, reports, documents, and amendments thereto filed with the Commission. The Commission finds, in accordance with the Administrative Procedure Act ("APA"), 5 U.S.C. 553(b)(A), and 5 U.S.C. 553(d), that these amendments relate solely to agency organization, procedure or practice and do not relate to substantive rules.

REGULATORY FLEXIBILITY ACT: No regulatory flexibility analysis (or certification that one is not required) is necessary because the rules are procedural, and thus not within the definition of "rule" for purposes of Chapter 6, Title 5, U.S.C.

TEXT OF AMENDMENTS

In consideration of the foregoing, the Commission hereby amends Parts 201, 230, 240, 250, 260, 270 and 275 of Chapter II, Title 17, Code of Federal Regulations, as follows:

List of Subjects in 17 CFR Part 201

Administrative practice and procedure, investigations, securities

PART 201--RULES OF PRACTICE

1. Paragraph (e) of §201.22 is revised as follows:

AUTHORITY: Secs. 19, 23, 48 Stat. 85, as amended, 901, as amended, sec. 20, 49 Stat. 833, sec. 319, 53 Stat. 1173, secs. 38,211, 54 Stat. 841, 855 (15 U.S.C. 77s, 78w, 79t, 77sss, 80a-37, 80b-11).

§201.22 Filings; formalities; computation of time.

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(e) Paper, spacing, type. All paper filed under this part shall be typewritten, mimeographed, lithographed, printed or prepared by any similar process which, in the opinion of the Commission, produces copies suitable for microfilming. All papers shall be plainly legible and shall be on one grade of good unglazed white paper measuring no larger than 8 1/2 x 11 inches. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size. All papers should have left-hand margins at least 1 1/2 inches wide, shall be bound on the left-hand side, and shall be double-spaced, except that quotations shall be single-spaced and indented. If printed, they shall be in either 10- or 12- point type with double-leaded text and single-leaded quotations.

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List of Subjects in 17 CFR Part 230

Reporting requirements, securities

PART 230--GENERAL RULES AND

REGULATIONS, SECURITIES ACT OF 1933

2. Paragraph (a) of §230.403 is revised as follows:

AUTHORITY: Secs. 6, 8, 10, 19, 48 Stat. 78, 79, 81, as amended, 85, as amended (15 U.S.C. 77f, 77h, 77s).

§230.403 Requirements as to paper, printing, language and pagination.

(a) Registration statements, applications and reports shall be filed on good quality, unglazed, white paper no larger than 8 1/2 x 11 inches in size, insofar as practicable. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size.

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List of Subjects in 17 CFR Part 240

Reporting requirements, securities

PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934

3. Paragraphs (a) and (b) of §240.12b-12 are revised as follows:

AUTHORITY: Secs. 4, 16, 19, 24, 48 Stat. 77, 896, 85, as amended, 901 (15 U.S.C. 77d, 78p, 77s, 78x).

§240.12b-12 Requirements as to paper, printing and language.

(a) Statements and reports shall be filed on good quality, unglazed white paper, no larger than 8 1/2 x 11 inches in size, insofar as practicable. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size.

(b) The statement or report and, insofar as practicable, all papers and documents filed as a part thereof, shall be printed, lithographed, mimeographed, or typewritten. However, the statement or report or any portion thereof may be prepared by any similar process which, in the opinion of the Commission, produces copies suitable for a permanent record and microfilming. Irrespective of the process used, all copies of any such material shall be clear, easily readable and suitable for repeated photocopying. Debits in credit categories and credits in debit categories shall be designated so as to be clearly distinguishable as such on photocopies.

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List of Subjects in 17 CFR Part 250

Accounting, reporting requirements, securities utilities

PART 250--GENERAL RULES AND REGULATIONS, PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

4. Paragraph (d) of §250.22 is revised as follows:

AUTHORITY: Sec. 19, 48 Stat. 85, as amended, secs. 13, 15, 23, 48 Stat. 894, 895, 901, as amended, sec. 15, 49 Stat. 828, secs. 305, 307, 314, 319, 53 Stat. 1154, 1156, 1167, 1173, as amended, secs. 38, 39, 54 Stat. 841 (15 U.S.C. 77s, 77m, 78o, 78w, 79o, 77eee, 77ggg, 77nnn, 77sss, 80a-37, 80a-38).

§250.22 Applications and declarations.

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(d) Formal specifications. All applications, declarations, certificates and statements, and any amendments thereto, shall be filed in triplicate. One copy shall be signed but the other two copies may have facsimile or typed signatures. Applications and declarations, amendments thereto, and where practicable, all papers filed as a part thereof shall be on good quality, unglazed, white paper, no larger than 8 1/2 x 11 inches in size. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size. All documents filed shall be bound on the left side in such manner as to leave the reading matter legible, and shall be printed, lithographed, mimeographed, typewritten, or prepared by any process which, in the opinion of the Commission, produces copies suitable for permanent records and microfilming. Irrespective of the process used, all copies of such material shall be clear, easily readable and suitable for repeated photocopying. Debits and credits in financial statements shall be clearly distinguishable as such on photocopies.

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List of Subjects in 17 CFR Part 260

Reporting requirements, securities

PART 260--GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF 1939

5. §260.7a-17 is revised as follows:

AUTHORITY: Secs. 305, 307, 314, 319, 53 Stat. 1154, 1156, 1167, 1173 (15 U.S.C. 77eee, 77ggg, 77nnn, 77sss).

§260.7a-17 Quality, color and size of paper.

The application, statement or report, including all amendments and, where practicable, all papers and documents filed as a part thereof, shall be on good quality, unglazed, white paper, no larger than 8 1/2 x 11 inches in size. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size.

6. Paragraph (a) of §260.7a-18 is revised as follows:

AUTHORITY: Secs. 305, 307, 314, 319, 53 Stat. 1154, 1156, 1167, 1173 (15 U.S.C. 77eee, 77ggg, 77nnn, 77sss).

§260.7a-18 Legibility

(a) The application, statement or report, including all amendments and, where practicable, all papers and documents filed as a part thereof, shall be clear, easily readable and shall be typewritten, mimeographed, printed or prepared by any similar process which, in the opinion of the Commission, produces copies suitable for repeated photocopying and microfilming.

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List of Subjects in 17 CFR Part 270

Investment companies, reporting requirements, securities

PART 270--RULES AND REGULATIONS, INVESTMENT COMPANY ACT OF 1940

7. Paragraph (b) of §270.0-2 is revised as follows:

AUTHORITY: Secs. 38, 40, 54 Stat. 841, 842 (15 U.S.C. 80a-37, 80c-89).

§270.0-2 General requirements of papers and applications.

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(b) Formal specifications respecting applications. Every application for an order under any provision of the Act, for which a form with instructions is not specifically prescribed, and every amendment to such application shall be filed in quintuplicate. One copy shall be signed by the applicant but the other four copies may have facsimile or typed signatures. Such applications should be on paper no larger than 8 1/2 x 11 inches in size. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 x 11 inches in size. The left margin should be at least 1 1/2 inches wide and, if the application is bound, it should be bound on the left side. The application must be typed, printed, copied or prepared by any process which, in the opinion of the Commission, produces copies suitable for microfilming. All typewritten or printed matter (including deficits in financial statements) should be set forth in black so as to permit photocopying.

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8. Paragraphs (a) and (b) of §270.8b-12 are revised as follows:

AUTHORITY: Secs. 38, 40, 54 Stat. 841, 842 (15 U.S.C. 80a-37, 80c-89).

§270.8b-12 Requirements as to paper, printing and language.

(a) Registration statements and reports shall be filed on good quality, unglazed, white paper, no larger than 8 1/2 x 11 inches in size, insofar as practicable. To the extent that the reduction of larger documents would render them illegible, such documents may be filed on paper larger than 8 1/2 by 11 inches in size.

(b) The registration statement or report and, insofar as practicable, all papers and documents filed as a part thereof, shall be printed, lithographed, mimeographed, or typewritten. However, the registration statement or report or any portion thereof may be prepared by any similar process which, in the opinion of the Commission, produces copies suitable for a permanent record and microfilming. Irrespective of the process used, all copies of any such material shall be clear, easily readable and suitable for repeated photocopying. Debits in credit categories and credits in debit categories shall be designated so as to be clearly distinguishable as such on photocopies.

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List of Subjects in 17 CFR Part 275

Investment advisers, reporting requirements, securities

PART 275--RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940

9. Paragraph (b) of §275.0-4 is revised as follows:

AUTHORITY: Secs. 203, 204, 211, 54 Stat. 850, as amended, 852, as amended, 855, as amended (15 U.S.C. 80b-3, 80b-4, 80b-11).

§275.0-4 General requirements of papers and applications.

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(b) Formal Specifications respecting applications. Every application for an order under any provision of the Act, for which a form with instructions is not specifically prescribed, and every amendment to such application, shall be filed in quintuplicate. One copy shall be signed by the applicant, but the other four copies may have facsimile or typed signatures. Such applications shall be on paper no larger than 8 1/2 x 11 inches in size. To the extent that the reduction of larger documents would render them illegible, those documents may be filed on paper larger than 8 1/2 x 11 inches in size. The left margin should be at least 1 1/2 inches wide and, if the application is bound, it should be bound on the left side. All typewritten or printed matter (including deficits in financial statements) should be set forth in black so as to permit photocopying and microfilming.

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By the Commission.