From: cathy.danahy@email.state.ne.us
Sent: Monday, July 14, 2003 12:14 PM
To: rule-comments@sec.gov
Subject: S7-13-03





RE:   Amendments to Rule 17Ad-7(f)

The "discussion" states:

  "....requires transfer agents that use electronic or micrographic media
to store records to:
      Use electronic or micrographic storage mechanisms that are designed
      to ensure the accessibility, security, and integrity of the records,
      detect attempts to alter or remove the records, and provide means to
      recover altered, damaged, or lost records;
      Create an index of the records that are electronically or
      micrographically stored and store the index with the underlying
      records;
      Keep a duplicate of all records and indexes that are stored using
      electronic or micrographic storage media;
      Be able to promptly download electronically or micrographically
      stored records to an alternate medium such as paper, microfilm, or
      microfiche; and
      Keep in escrow an updated copy of the software or other information
      that is necessary to access and download electronically stored
      records."
Paper and microfilm are currently the only media recognized as acceptable
for long-term or permanent records (if properly created and
stored)...........and microfilm is acceptable as admissible in nearly every
court in the United States and various other countries.  Electronic media
is not as widely accepted.

Requiring "an updated copy be kept in escrow of the software or other
information that is necessary to access and download electronically stored
records...." is a fine suggestion, however, the hardware (and all the
necessary cables, etc.) necessary to retrieve the information must also be
kept in escrow.  If their is a problem accessing the information even with
the software, software code and hardware, will one be able to print the
information for distribution?  Best keep a printer in that escrow vault as
well - and fresh ink cartridges?  What if the manufacturer stops making
those?

I believe you understand the point I am trying to make.  Paper is human eye
readable.  Human eyes will be around for as long as this information is
necessary to be accessed.  Microfilm - the only thing necessary to retrieve
information from microfilm is the human eye, a light source and a
magnifying glass.  Those should be available for centuries to come.

A technicality:    "Microfiche" IS microfilm.  "Microfiche" is a format (or
form) of microfilm.  There are several forms (or formats) of microfilm such
as microfiche, 35mm, 16mm, roll film, etc.  When referring to microfilm in
general, "microfilm" encompasses all microforms, including microfiche.

Finally, all media (paper, microfilm or electronic) should have
requirements 1-3 above attached to their use.  Even paper should be
'accessible and secure'.  If not properly stored, paper could be useless in
1 year if water damage occurs, in several years is vermin, heat, sunlight,
etc. are excessive.  An index is also needed for paper.......... and why
aren't you requiring a duplicate copy of the paper be kept?  If an act of
God (or man) were to occur where the paper is stored, there is no
backup.

Thank you for your attention to this matter and good luck to you all.

Sincerely,


Cathy Danahy
Assistant Director
Secretary of State's Office
Records Management Division
440 South 8th Street, Suite 210
Lincoln, NE  68508
Phone:  (402) 471-2745
Email:  cathy.danahy@email.state.ne.us