UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM TA-1

UNIFORM FORM FOR REGISTRATION AS A TRANSFER AGENT AND FOR AMENDMENTTO REGISTRATION PURSUANT TO SECTION 17A OF THESECURITIES EXCHANGE ACT OF 1934
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GENERAL: Form TA-1 is to be used to register or amend registration as a transfer agent with the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation or the Securities and Exchange Commission pursuant to Section 17A of the Securities Exchange Act of 1934. Read all instructions before completing this form. Please print or type all responses.
Form Version:3.2.0
1(a).  Filer CIK: 0000772037
1(c). Live/Test Filing?
X Live    Test
1(e). Is this filing an amendment to a previous filing?
X Yes
1(e)(i).  File Number: 084-01329

2. Appropriate regulatory agency (check one):
X Securities and Exchange Commission
   Board of Governors of the Federal Reserve System
   Federal Deposit Insurance Corporation
   Comptroller of the Currency
   Office of Thrift Supervision

3(a).  Full Name of Registrant:
Columbia Management Services, Inc.
3(a)(i).  Previous name, if being amended:

3(b).  Financial Industry Number Standard (FINS) number:027748
3(c).  Address of principal office where transfer agent activities are, or will be, performed:
3(c)(i).  Address 1
One Financial Center
3(c)(ii).  Address 2

3(c)(iii).  City
Boston
3(c)(iv).  State or Country
MA
MASSACHUSETTS
3(c)(v).  Postal Code
02111
3(d). Address of principal office where transfer agent activities are, or will be, performed:
X Yes    No
If `yes,` provide address(es):
3(d)(i).  Address 1
P.O. Box 8081
3(d)(ii).  Address 2

3(d)(iii).  City
Boston
3(d)(iv).  State or Country
MA
MASSACHUSETTS
3(d)(v).  Postal Code
02266
3(e).  Telephone Number (Include Area Code)
(617) 772-3348

4. Does registrant conduct, or will it conduct, transfer agent activities at any location other than that given in Question 3(c) above?
X Yes    No
If `yes,` provide address(es):
4(a)(i).  Address 1
111 Westminster Street
4(a)(ii).  Address 2

4(a)(iii).  City
Providence
4(a)(iv).  State or Country
RI
RHODE ISLAND
4(a)(v).  Postal Code
02903

5. Does registrant act, or will it act, as a transfer agent solely for its own securities and/or securities of an affiliate(s)?
   Yes X No

6. Has registrant, as a named transfer agent, engaged, or will it engage, a service company to perform any transfer agent functions?
X Yes    No
If `yes,` provide the name(s) and address(es) of all service companies engaged, or that will be engaged, by the registrant to perform its transfer agent functions:
6(a).  Name:
Boston Financial Data Services, Inc.
6(b).  File Number: 084-00896
6(c)(i).  Address 1
Two Heritage Drive
6(c)(ii).  Address 2

6(c)(iii).  City
North Quincy
6(c)(iv).  State or Country
MA
MASSACHUSETTS
6(c)(v).  Postal Code
02190

7. Has registrant been engaged, or will it be engaged, as a service company by a named transfer agent to perform transfer agent functions?
   Yes X No
If `yes,` provide the name(s) and File Number(s) of the named transfer agent(s) for which the registrant has been engaged, or will be engaged, as a service company to perform transfer agent functions:

Completion of Question 8 on this form is required by all independent, non-issuer registrants whose appropriate regulatory authority is the Securities and Exchange Commission. Those registrants who are not required to complete Question 8 should select `Not Applicable.`

8. Is registrant a:
X Corporation
   Partnership
   Sole Proprietorship
   Other
   Not Applicable

Section for Initial Registration and for Amendments Reporting Additional Persons. (Corporation or Partnership)

8(a)(i).  Full Name: Bank of America Corporation
8(a)(ii).  Relationship Start Date: 04/01/2004
8(a)(iii).  Title or Status: Indirect Owner
8(a)(iv). Ownership Code:
   NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
X E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: NB Holdings Corporation
8(a)(ii).  Relationship Start Date: 10/01/2007
8(a)(iii).  Title or Status: Indirect Owner
8(a)(iv). Ownership Code:
   NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
X E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: BAC North America Holding Corporation
8(a)(ii).  Relationship Start Date: 05/01/2007
8(a)(iii).  Title or Status: Indirect Owner
8(a)(iv). Ownership Code:
   NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
X E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: LaSalle Bank Corporation
8(a)(ii).  Relationship Start Date: 10/17/2008
8(a)(iii).  Title or Status: Indirect Owner
8(a)(iv). Ownership Code:
   NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
X E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Bank of America National Association
8(a)(ii).  Relationship Start Date: 06/01/2005
8(a)(iii).  Title or Status: Indirect Owner
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Columbia Management Group
8(a)(ii).  Relationship Start Date: 04/01/2003
8(a)(iii).  Title or Status: Direct Owner
8(a)(iv). Ownership Code:
   NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
X E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Barnes, Maria S.
8(a)(ii).  Relationship Start Date: 07/27/2007
8(a)(iii).  Title or Status: Assistant Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Barry, Peter J.
8(a)(ii).  Relationship Start Date: 05/15/2008
8(a)(iii).  Title or Status: Assistant Treasurer
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Beck, Janice L.
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Bednarz, Allen F.
8(a)(ii).  Relationship Start Date: 07/27/2007
8(a)(iii).  Title or Status: Assistant Treasurer
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Brantley, Thomas M.
8(a)(ii).  Relationship Start Date: 04/30/2005
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Coughlin, Kerri
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Davis, Walter Keith
8(a)(ii).  Relationship Start Date: 04/30/2005
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: DeFao, Michael
8(a)(ii).  Relationship Start Date: 04/01/2006
8(a)(iii).  Title or Status: Assistant Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Jones, Michael
8(a)(ii).  Relationship Start Date: 11/01/2007
8(a)(iii).  Title or Status: Director
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Kane, Joanne M.
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: McKinley, Katherine S.
8(a)(ii).  Relationship Start Date: 04/01/2006
8(a)(iii).  Title or Status: Assistant Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Moon, Leslie
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Mroz, Gregory S.
8(a)(ii).  Relationship Start Date: 04/01/2006
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Nutter, Teddy R.
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Pryor, Elizabeth A.
8(a)(ii).  Relationship Start Date: 04/30/2005
8(a)(iii).  Title or Status: Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Schroeder, Luke F.
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Smith, Connie B.
8(a)(ii).  Relationship Start Date: 04/01/2006
8(a)(iii).  Title or Status: Assistant Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Smith, Robin G.
8(a)(ii).  Relationship Start Date: 02/01/2007
8(a)(iii).  Title or Status: Senior Vice President
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Tai, Nina
8(a)(ii).  Relationship Start Date: 07/27/2007
8(a)(iii).  Title or Status: Assistant Secretary
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Varma, Atul
8(a)(ii).  Relationship Start Date: 07/27/2007
8(a)(iii).  Title or Status: Chief Financial Officer
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Welsh, Stephen T.
8(a)(ii).  Relationship Start Date: 07/16/2004
8(a)(iii).  Title or Status: President and Director
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Wiley, Christie
8(a)(ii).  Relationship Start Date: 06/30/2004
8(a)(iii).  Title or Status: Controller, Treasurer and SVP
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date:

8(a)(i).  Full Name: Weidner, Donna
8(a)(ii).  Relationship Start Date: 06/30/2005
8(a)(iii).  Title or Status: Assistant Treasuer
8(a)(iv). Ownership Code:
X NA - 0 to 5%
   A - 5% up to 10%
   B - 10% up to 25%
   C - 25% up to 50%
   D - 50% up to 75%
   E - 75% up to 100%
8(a)(v). Control Person:
X
8(a)(vi).  Relationship End Date: 05/15/2008


9.  Does any person or entity not named in the answer to Question 8:
9(a). directly or indirectly, through agreement or otherwise exercise or have the power to exercise control over the management or policies of applicant; or . . . .
   Yes X No    NA
9(a)(i).  Exact name of each person or entity:

9(a)(ii).  Description of the Agreement or other basis:

9(b). wholly or partially finance the business of applicant, directly or indirectly, in any manner other than by a public offering of securities made pursuant to the Securities Act of 1933 or by credit extended in the ordinary course of business by suppliers, banks and others ? . . . . . . . . . . . . . . . . . . . . . . . . . .
   Yes X No
9(b)(i).  Exact name of each person or entity:

9(b)(ii).  Description of the Agreement or other basis:


10.  Applicant and Control Affiliate Disciplinary History:
The following definitions apply for purposes of answering this Question 10
Control affiliate - An individual or firm that directly or indirectly controls, is under common control with, or is controlled by applicant. Included are any employees identified in 8(a), 8(b), 8(c) of this form as exercising control. Excluded are any employees who perform solely clerical, administrative support of similar functions, or who, regardless of title, perform no executive duties or have no senior policy making authority.
Investment or investment related - Pertaining to securities, commodities, banking, insurance, or real estate (including, but not limited to, acting as or being associated with a broker-dealer, investment company, investment adviser, futures sponsor, bank, or savings and loan association).
Involved - Doing an act of aiding, abetting, counseling, commanding, inducing, conspiring with or failing reasonably to supervise another in doing an act.
10(a).  In the past ten years has the applicant or a control affiliate been convicted of or plead guilty or nolo contender (`no contest`) to:
10(a)(1). a felony or misdemeanor involving: investments or an investment-related business, fraud, false statements or omissions, wrongful taking of property, or bribery, forgery, counterfeiting or extortion?
   Yes X No
10(a)(2). any other felony?
   Yes X No
10(b).  Has any court in the past ten years:
10(b)(1). enjoined the applicant or a control affiliate in connection with any investment-related activity?
X Yes    No
10(b)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH AND CO., INC.
10(b)(1)(ii).  Title of Action 10(b)(1)(iii).  Date of Action
N/A
 03/17/2003
10(b)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(b)(1)(v).  Description of the action or claim:
IN IT'S COMPLAINT, THE SECURITIES AND EXCHANGE COMMISSION (SEC) ALLEGED THAT THREE YEARS AGO, IN 1999, MERRILL LYNCH AND CO., INC. (ML AND CO.), THE PARENT COMPANY OF MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. (MLPF AND S), AIDED AND ABETTED ENRON CORP.'S (ENRON) VIOLATIONS OF SECTIONS 10(B), 13(A), 13(B)(2) AND 13(B)(5) OF THE EXCHANGE ACT AND RULES 10B-5, 12B-20, 13A-1, 13A-13 AND 13B2-1 THERE UNDER, AS A RESULT OF ML AND CO. ENGAGING IN CERTAIN YEAR END TRANSACTIONS DESIGNED AND PROPOSED BY ENRON. ML and CO. SETTLED THE MATTER WITHOUT ADMITTING OR DENYING THE ALLEGATIONS.
10(b)(1)(vi).  Disposition of action or claim:
CIVIL PENALTIES AND DISGORGEMENT
10(b)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(b)(1)(ii).  Title of Action 10(b)(1)(iii).  Date of Action
Docket/Case Number: 2005000036701
 04/28/2003
10(b)(1)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(b)(1)(v).  Description of the action or claim:
THE SEC ALLEGED, AND MLPFS NEITHER ADMITTED NOR DENIED THE ALLEGATIONS, THAT MLPFS VIOLATED SECTION 15(C) OF THE EXCHANGE ACT AND RULE 15C1-2 THERE UNDER, AS WELL AS NASD RULED 2110, 2210 AND 3010, AND NYSE RULES 342, 401, 472, AND 476 IN CONNECTION WITH ITS INVESTIGATION INTO RESEARCH ANALYSTS CONFLICTS OF INTEREST. AS PART OF A JOINT SETTLEMENT WITH THE SEC, THE NASD AND THE NYSE ARISING FROM A JOINT INVESTIGATION BY THE SEC, NASD AND NYSE INTO RESEARCH ANALYSTS CONFLICTS OF INTEREST, MLPFS ENTERED INTO A SETTLEMENT WITH THE SEC. PURSUANT TO THE TERMS OF THE SETTLEMENT WITH THE SEC, MLPFS, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE SEC'S COMPLAINT, CONSENTED TO THE ENTRY OF A FINAL JUDGMENT PERMANENTLY ENJOINING MLPFS FROM CERTAIN VIOLATIONS OF SECTION 15 (C)OF THE EXCHANGE ACT AND RULE 15 C1-2 THERE UNDER, AS WELL AS NASD RULES 2110, 2210 AND 3010 AND NYSE RULES 342, 401, 472, AND 476. IN ADDITION, MLPFS AGREED TO A PAYMENT OF : (I) $100 MILLION, WHICH WAS OFFSET IN ITS ENTIRETY BY THE AMOUNT ALREADY PAID BY MLPFS IN THE RELATED PROCEEDING WITH THE STATE OF NEW YORK AND OTHER STATES; (II) $75 MILLION TO FUND THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS; AND (III) $25 MILLION TO PROMOTE INVESTOR EDUCATION. THE PAYMENTS FOR THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS AND TO PROMOTE INVESTOR EDUCATION ARE REQUIRED TO BE MADE OVER THE COURSE OF THE NEXT FIVE YEARS. SIMILAR DISCLOSURE HAS BEEN MADE WITH RESPECT TO THE DETAILS OF THE RELATED SETTLEMENTS WITH THE NASD AND THE NYSE ARISING FROM THE JOINT INVESTIGATION.
10(b)(1)(vi).  Disposition of action or claim:
INJUNCTION, THE PAYMENT OF VARIOUS DOLLAR AMOUNTS AND COMPLIANCE WITH CERTAIN UNDERTAKINGS.
10(b)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(b)(1)(ii).  Title of Action 10(b)(1)(iii).  Date of Action
Docket/Case Number: 2005000036701
 04/08/2002
10(b)(1)(iv).  The Court or body taking the Action and location:
NEW YORK ATTORNEY GENERAL
10(b)(1)(v).  Description of the action or claim:
A PRELIMINARY INJUNCTION WAS GRANTED ON AN EX PARTE MOTION BY NYAG TO ENJOIN MERRILL LYNCH AND ALL ITS AFFILIATES FROM VIOLATIONS OF THE MARTIN ACT AND FROM PRODUCING RESEARCH REPORTS WITHOUT ADDITIONAL SPECIFIED DISCLOSURES. THE PRELIMINARY INJUNCTION WAS GRANTED ON APRIL 8, 2002 UPON AN EX PARTE MOTION BY THE NYAG. THE INJUNCTION WAS STAYED LATER THE SAME DAY UNTIL APRIL 11, 2002. THE STAY WAS EXTENDED UNTIL APRIL 19, 2002 AND IT WAS VACATED ON APRIL 18, 2002. ON MAY 21, 2002, THE STAY WAS PERMANENTLY VACATED AND THE ACTION BY THE NYAG WAS DISMISSED.
10(b)(1)(vi).  Disposition of action or claim:
INJUNCTION
10(b)(1)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(b)(1)(ii).  Title of Action 10(b)(1)(iii).  Date of Action
Docket/Case Number: E8A2005015202
 08/03/2000
10(b)(1)(iv).  The Court or body taking the Action and location:
UNITED STATES OF AMERICA, EX. REL. MICHAEL LISSACK / FEDERAL DISTRICT COURT FOR
10(b)(1)(v).  Description of the action or claim:
THE LAWSUIT WAS BROUGHT TO RECOVER DAMAGES AND CIVIL PENALTIES UNDER THE FALSE CLAIMS ACT, 31 U.S.C. SECTIONS 3729 ET SEQ., AGAINST A NUMBER OF MUNICIPAL BOND UNDERWRITERS. NUVEEN ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT.
10(b)(1)(vi).  Disposition of action or claim:
CIVIL PENALTIES CEASE AND DESIST AND ATTORNEY'S FEES
10(b)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(b)(1)(ii).  Title of Action 10(b)(1)(iii).  Date of Action
Docket / Case Number: 09-CIV-SI70
 06/09/2009
10(b)(1)(iv).  The Court or body taking the Action and location:
Securities and Exchange Commission / United States District Court, Southern Dist
10(b)(1)(v).  Description of the action or claim:
The SEC alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) misled customers regarding the fundamental nature and increasing risks associated with auction rate securities (ARS) that they underwrote, marketed, and sold. The SEC also alleged that, by engaging in such conduct, they violated Section 15(c) of the Securities Exchange Act of 1934, as amended (Exchange Act). Without admitting or denying the allegations, BAIS and BAS entered into a consent agreement.
10(b)(1)(vi).  Disposition of action or claim:
Injunction / Undertakings
10(b)(2). found that the applicant or a control affiliate was involved in a violation of investment-related statutes or regulations?
X Yes    No
10(b)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(b)(2)(ii).  Title of Action 10(b)(2)(iii).  Date of Action
UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF NEW YORK, NO. 01 CIV. 11448 (
 01/05/2009
10(b)(2)(iv).  The Court or body taking the Action and location:
UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF NEW YORK, NO. 01 CIV. 11448 (
10(b)(2)(v).  Description of the action or claim:
PLAINTIFFS ALLEGED THAT THE APPLICANT VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT, RULE 10B-5 THERE UNDER, AND COMMON LAW FRAUD UNDER NEW YORK LAW. THE COURT FOUND THAT THE APPLICANT MADE MATERIAL MISSTATEMENTS AND OMISSIONS WHILE SERVING AS UNDERWRITER IN CONNECTION WITH AN OFFERING OF SECURITIES BACKED BY INSTALLMENT SALES CONTRACTS HELD BY THE HEILIG-MEYERS MASTER TRUST ("TRUST"). SPECIFICALLY, THE PLAINTIFFS ALLEGED THAT THE APPLICANT MADE MATERIALS MISSTATEMENTS AND OMISSIONS RELATED TO THE ACCOUNTING METHODOLOGY FOR LOSS AND DELINQUENCY RATES ON THE SALES CONTRACTS HELD BY THE TRUST THAT BACKED THE SECURITIES. A JURY FOUND FOR THE PLAINTIFFS AND AWARDED THEM $84,939,378 IN DAMAGES, NOT INCLUDING PREJUDGMENT INTEREST. THE APPLICANT IS CURRENTLY PREPARING POST-TRIAL MOTIONS TO OVERTURN THE JURY'S VERDICT, AND WILL APPEAL THE JUDGMENT IF NECESSARY.
10(b)(2)(vi).  Disposition of action or claim:
MONETARY DAMAGES IN THE AMOUNT OF $84,939,378
10(b)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH AND CO., INC.
10(b)(2)(ii).  Title of Action 10(b)(2)(iii).  Date of Action
N/A
 03/17/2003
10(b)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(b)(2)(v).  Description of the action or claim:
IN IT'S COMPLAINT, THE SECURITIES AND EXCHANGE COMMISSION (SEC) ALLEGED THAT THREE YEARS AGO, IN 1999, MERRILL LYNCH AND CO., INC. (ML CO.), THE PARENT COMPANY OF MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. (MLPFS), AIDED AND ABETTED ENRON CORP.'S (ENRON) VIOLATIONS OF SECTIONS 10(B), 13(A), 13(B)(2) AND 13(B)(5) OF THE EXCHANGE ACT AND RULES 10B-5, 12B-20, 13A-1, 13A-13 AND 13B2-1 THERE UNDER, AS A RESULT OF ML CO. ENGAGING IN CERTAIN YEAR END TRANSACTIONS DESIGNED AND PROPOSED BY ENRON. ML CO. SETTLED THE MATTER WITHOUT ADMITTING OR DENYING THE ALLEGATIONS.
10(b)(2)(vi).  Disposition of action or claim:
CIVIL PENALTIES AND DISGORGEMENT
10(b)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(b)(2)(ii).  Title of Action 10(b)(2)(iii).  Date of Action
Docket / Case Number: 09-CIV-SI70
 06/09/2009
10(b)(2)(iv).  The Court or body taking the Action and location:
Securities and Exchange Commission / United States District Court, Southern Dist
10(b)(2)(v).  Description of the action or claim:
The SEC alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) misled customers regarding the fundamental nature and increasing risks associated with auction rate securities (ARS) that they underwrote, marketed, and sold. The SEC also alleged that, by engaging in such conduct, they violated Section 15(c) of the Securities Exchange Act of 1934, as amended (Exchange Act). Without admitting or denying the allegations, BAIS and BAS entered into a consent agreement.
10(b)(2)(vi).  Disposition of action or claim:
Injunction / Undertakings
10(c).  Has the U.S. Securities and Exchange Commission or the Commodity Futures Trading Commission ever:
10(c)(1). found the applicant or a control affiliate to have made a false statement or omission?
X Yes    No
10(c)(1)(i).  The individuals named in the action or claim:
SOUTHMARK PROPERTIES; THE CITIZENS AND SOUTHERN NATIONAL BANK (NKA BANK OF AMERICA, NATIONAL ASSOCIATION)
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
N/A
 12/01/1977
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
SEC ALLEGED THAT PUBLIC DISCLOSURE BY THE CITIZENS AND SOUTHERN NATIONAL BANK (NKA BANK OF AMERICA, NATIONAL ASSOCIATION) (THE GEORGIA BANK) CONTAINED UNTRUE STATEMENTS OF MATERIAL FACT OR FAILED TO DISCLOSE MATERIAL FACTS NECESSARY IN ORDER TO MAKE THE STATEMENTS MISLEADING. WITHOUT ADMITTING OR DENYING THE ALLEGATION OF THE COMPLAINT AND IN ORDER TO AVOID LENGTHY LITIGATION, THE GEORGIA BANK ENTERED INTO A CONSENT SETTLEMENT OF THE INJUNCTION ACTION. THIS INCLUDED A CONSENT AND UNDERTAKING TO ESTABLISH AN ACQUISITION COMMITTEE OF THE BOARD OF DIRECTORS TO PERFORM CERTAIN FUNCTIONS RELATING TO ANY FUTURE ACQUISITIONS OF CORRESPONDENT ASSOCIATE BANKS, TO ESTABLISH A SPECIAL REVIEW SUB-COMMITTEE OF THE BOARD'S CREDIT COMMITTEE TO REVIEW CERTAIN CREDIT TRANSACTIONS WITH DIRECTORS AND SENIOR OFFICERS, AND TO DISCLOSE INFORMATION ABOUT RELATIONSHIPS WITH CORRESPONDENT ASSOCIATE BANKS AND CERTAIN ACQUISITIONS IN 1975. ON JULY 27, 1984, THE COURT REMOVED THE CONSENT AND UNDERTAKING AND ONLY THE PERMANENT INJUNCTION REMAINS IN EFFECT.
10(c)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(1)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
N/A
 02/09/2005
10(c)(1)(iv).  The Court or body taking the Action and location:
U. S. SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT : (1) BACAP AND BACAP DISTRIBUTORS SHALL MAINTAIN A COMPLIANCE AND ETHICS OVERSIGHT INFRASTRUCTURE HAVING, AMONG OTHER THINGS, A CODE OF ETHICS OVERSIGHT COMMITTEE, AN INTERNAL COMPLIANCE CONTROLS COMMITTEE, A SENIOR LEVEL COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST AND A CORPORATE OMBUDSMAN; (2) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN INDEPENDENT COMPLIANCE CONSULTANTS TO, AMONG OTHER THINGS, REVIEW COMPLIANCE, SUPERVISORY AND OTHER POLICIES AND PROCEDURES; (3) BACAP AND BACAP DISTRIBUTORS SHALL ADOPT THE RECOMMENDATIONS OF SUCH CONSULTANTS SUBJECT TO A MECHANISM FOR RESOLVING DISAGREEMENTS; (4) BACAP AND BACAP DISTRIBUTORS SHALL UNDERGO THIRD PARTY COMPLIANCE REVIEW EVERY OTHER YEAR; AND (5) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN AN INDEPENDENT DISTRIBUTION CONSULTANT. IN ADDITION, THE NATIONS FUNDS HAVE VOLUNTARILY UNDERTAKEN TO OPERATE IN ACCORDANCE WITH CERTAIN GOVERNANCE POLICIES AND PRACTICES INCLUDING, AMONG OTHERS, HAVING TRUSTEES STAND FOR ELECTION PRIOR TO MAY 1, 2005, ARRANGING FOR CERTAIN SPECIFIED TRUSTEES TO RESIGN AND/OR TO NOT STAND FOR ELECTION, REQUIRING THAT 75% OF THE TRUSTEES MEET INDEPENDENCE STANDARDS; REQUIRING THAT THE CHAIRMAN BE INDEPENDENT; AND EMPLOYING COUNSEL TO THE INDEPENDENT TRUSTEES WHO MEET INDEPENDENCE STANDARDS AND DESIGNATING AN INDEPENDENT COMPLIANCE OFFICER.
10(c)(1)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(1)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
N/A
 02/09/2005
10(c)(1)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AD EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT: CMA AND CFDI ARE CENSURED; CMA SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34(B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CFDI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) AND 15(C) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER, S. 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) & 34 (B)OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(1)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(1)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC. and COLUMBIA MANAGEMENT ADVISORS, LLC
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING ANY DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED IN (4) ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEN IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(1)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES, AND CERTAIN UNDERTAKINGS.
10(c)(1)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAISI) AND COLUMBIA MANAGEMENT ADVISORS, LLC (CMA) HAVE CONSENTED TO THE ENTRY OF AN ORDER THAT FINDS VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND ADVISERS ACT RULE 206(4)-1(A)(5) IN CONNECTION WITH BAISI'S SELECTION OF CERTAIN MUTUAL FUNDS IN BAISI'S WRAP FEE PROGRAM AND THE ADEQUACY OF DISCLOSURES TO CUSTOMERS REGARDING THE SAME AND CMA'S RECEIPT OF ADDITIONAL MANAGEMENT FEES AS A RESULT THEREOF. THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING AND DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEM IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(1)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES AND CERTAIN UNDERTAKINGS
10(c)(1)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: 3-11818
 02/09/2005
10(c)(1)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT BANC OF AMERICA SECURITIES, LLC (BAS) IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 17 (A) OF THE SECURITIES ACT, 10(B), (15C) AND 17(A) OF THE EXCHANGE ACT AND RULES 10B-5, 15C1-2, 17A-3 AND 17A-4 THERE UNDER AND RULE 22C-1, AS ADOPTED UNDER 22(C) OF THE INVESTMENT COMPANY ACT, AND FROM CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 34(B) OF THE INVESTMENT CO. ACT AND 206(1) AND 206(2) OF THE ADVISERS ACT; BAS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) $250 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $125 MILLION; AND BAS SHALL COMPLY WITH CERTAIN REMEDIAL UNDERTAKINGS.
10(c)(1)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, AND DISGORGEMENT/RESTITUTION
10(c)(1)(i).  The individuals named in the action or claim:
COLUMBIA FUNDS DISTRIBUTOR, INC. & COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
N/A
 02/09/2008
10(c)(1)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
PURSUANT TO OFFERS OF SETTLEMENT BY CMA AND CFDI IN WHICH THEY NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED AN ORDER ON 2/9/05 FINDING THAT, FROM AT LEAST 1998 THROUGH OCTOBER, 2003, CMA AND CFDI VIOLATED THE FEDERAL SECURITIES LAWS BY ENTERING INTO ARRANGEMENTS WITH 9 INVESTORS THAT ALLOWED THEM TO ENGAGE IN SHORT-TERM OR EXCESSIVE TRADING, CONTRARY TO RESTRICTIONS AND/OR REPRESENTATIONS IN THE COLUMBIA FUNDS' PROSPECTUSES, AND ALLOWING OR FAILING TO PREVENT OTHER INVESTORS FROM ENGAGING IN A PRACTICE OF SHORT-TERM OR EXCESSIVE TRADING. THE ORDER ALSO FOUND THAT CMA FAILED TO MAINTAIN POLICIES AND PROCEDURES TO PREVENT MISUSE OF MATERIAL NON-PUBLIC INFORMATION ABOUT PORTFOLIO HOLDINGS. THE SEC ORDER PROVIDES THAT: CMA & CFDI ARE CENSURED; CMA SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF SS204A, 206(1) & 206(2) OF THE ADVISERS ACT & SS17(D) &v34(B) OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CFDI SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) & 15(C) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER, S.206(1) & 206(2) OF THE ADVISERS ACT & SS17(D) & 34 (B) OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CMA & CFDI SHALL PAY ON A JOINT & SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(1)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(1)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: 3-12591
 11/08/2001
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
PURSUANT TO AN OFFER OF SETTLEMENT BY BANC OF AMERICA SECURITIES, LLC (BAS) IN WHICH BAS NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED INTO AN ORDER ON MARCH 14,2007 FINDING THAT, DURING THE PERIOD JANUARY 1999 THROUGH DECEMBER 2001, BAS VIOLATED THE ANTIFRAUD AND INTERNAL CONTROL PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH BAS' ISSUANCE OF RESEARCH. THE SEC ORDER PROVIDES THAT BAS IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 15(C) AND 15(F) OF THE EXCHANGE ACT AND RULE 15C1-2(A) PROMULGATED THERE UNDER; BAS SHALL PAY A CIVIL MONEY PENALTY OF $6 MILLION FOR VIOLATIONS OF SECTION 15(F) OF THE EXCHANGE ACT AND $10 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $10 MILLION FOR ITS VIOLATIONS OF SECTION 15(C) OF THE EXCHANGE ACT; AND BAS SHALL COMPLY WITH CERTAIN UNDERTAKINGS.
10(c)(1)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, DISGORGEMENT/RESTITUTION; AND CERTAIN UNDERTAKINGS
10(c)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH CAPITAL SERVICES, INC.
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: SEA REL. 42640; 95 CIV. 1353 (SDNY)
 04/06/2000
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
ALLEGATION THAT TREASURY SECURITIES WERE PRICED TOO HIGH WHEN SOLD IN CONNECTION WITH MUNICIPAL ADVANCE REFUNDING BOND OFFERINGS. THE FIRM JOINED IN A GLOBAL SETTLEMENT OF THE SEC'S INDUSTRY-WIDE INVESTIGATION RELATING TO THE PRICING OF GOVERNMENT SECURITIES IN ADVANCE REFUNDS (SEA REL. NO.42640) AND A RELATED QUI TAM SUIT BROUGHT BY MICHAEL LISSACK ON BEHALF OF THE UNITED STATES (95 CIV. 1353 (SDNY). UNDER THE TERMS OF THE SETTLEMENT, MERRILL LYNCH, WITHOUT ADMITTING OR DENYING LIABILITY, CONSENTED TO AN SEC ADMINISTRATIVE CEASE AND DESIST ORDER UNDER SECTIONS 17(A)(2) AND (3) OF THE SECURITIES AND EXCHANGE ACT AND A CENSURE AND AGREED TO PAYMENTS TO MUNICIPALITIES AND TO THE UNITED STATES TREASURY. THE QUI TAM SUIT AGAINST MERRILL LYNCH WAS THEN DISMISSED WITH PREJUDICE AND THE INTERNAL REVENUE SERVICE AGREED TO PROVIDE ASSURANCES TO MUNICIPALITIES RELATING TO THE TAX EXEMPT STATUS OF APPROXIMATELY 260 TRANSACTIONS.
10(c)(1)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: SEC REL. 13769, SEC REL. 13770
 07/19/1977
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
VIOLATIONS OF SEC RULE 17A3. FIRM CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TO FINDING THAT IT VIOLATED RULE 17A3 AND HAS BEEN ORDERED BY THE SEC TO INSTITUTE CERTAIN RECORDKEEPING PROCEDURES TO AVOID A REPETITION OF THIS TYPE OF SITUATION.
10(c)(1)(vi).  Disposition of action or claim:
Undertaking
10(c)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: ND 73-122
 06/25/1973
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
ALLEGED VIOLATES OF ANTIFRAUD PROVISIONS INCLUDING MAKING UNTRUE STATEMENTS OR OMISSIONS CONCERNING FUTURE PRICE OF SHARES, THE COMPARISON OF THE COMPANY'S GROWTH TO OTHER WELL ESTABLISHED COMPANIES AND THE LIKELIHOOD OF THE SHARES BEING LISTED ON A NATIONAL EXCHANGE. ADDITIONALLY, IT WAS ALLEGED THAT THERE WAS MISUSE OF INSIDE INFORMATION AND A FAILURE TO REASONABLY SUPERVISE. CENSURED; UNDERTAKING PURSUANT TO OFFER OF SETTLEMENT INCLUDING (1) PAY RESTITUTION TO CUSTOMERS, (2) REVIEW AND REVISE PROCEDURES AS APPROPRIATE RELATING TO RESEARCH AND SALES ACTIVITIES AND (3) REVIEW AND REVISE AS APPROPRIATE THE ACCOUNT EXECUTIVE TRAINING PROGRAMS.
10(c)(1)(vi).  Disposition of action or claim:
CENSURE AND RESTITUTION
10(c)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (SEC) FOUND, AND MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLPFS) NEITHER ADMITTED NOR DENIED, THAT MLPFS VIOLATED SECTION 17(A) (2) OF THE SECURITIES ACT OF 1933 BY MANAGING AUCTIONS FOR AUCTION RATE SECURITIES IN WAYS THAT WERE NOT ADEQUATELY DISCLOSED OR THAT DID NOT CONFORM TO DISCLOSED PROCEDURES. AS PART OF A SETTLEMENT RELATING TO MANAGING AUCTIONS FOR AUCTION RATE SECURITIES, THE SEC ACCEPTED MLPFS' OFFER OF SETTLEMENT AND ISSUED A SETTLEMENT ORDER ON MAY 31, 2006. A CIVIL MONEY PENALTY OF $1,500,000 WAS PAID TO THE SEC ON JUNE 1, 2006.
10(c)(1)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY, COMPLIANCE WITH CERTAIN UNDERTAKINGS
10(c)(1)(i).  The individuals named in the action or claim:
STATE STREET RESEARCH AND MANAGEMENT COMPANY
10(c)(1)(ii).  Title of Action 10(c)(1)(iii).  Date of Action
Docket/Case Number: 3-12056
 07/22/2004
10(c)(1)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(1)(v).  Description of the action or claim:
ON JANUARY 31, 2005 BLACKROCK INC. ACQUIRED SSRM HOLDINGS INC. (THE ACQUISITION), THE HOLDING COMPANY OF STATE STREET RESEARCH AND MANAGEMENT COMPANY (SSRM) AND STATE STREET RESEARCH INVESTMENT SERVICES, INC. (SSRIS). THE CIRCUMSTANCES GIVING RISE TO THE MATTER OCCURRED PRIOR TO THE ACQUISITION OF SSRM BY BLACKROCK. THE sec ALLEGED THAT PRIOR TO THE ACQUISITION, SSRM INCORRECTLY TRANSFERRED $156,128 IN REDEMPTION FEES IT COLLECTED FROM SHAREHOLDERS TO THE STATE STREET RESEARCH INTERNATIONAL EQUITY FUND (THE FUND) TO THE FUNDS' DISTRIBUTOR, SSRIS, INSTEAD OF PAYING SUCH FEES TOT HE FUND, IN VIOLATION OF SECTION 206(2) OF THE INVESTMENT ADVISORS ACT OF 1940, AS AMENDED.
10(c)(1)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(c)(2). found the applicant or a control affiliate to have been involved in a violation of its regulations or statutes?
X Yes    No
10(c)(2)(i).  The individuals named in the action or claim:
COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-8397
 06/15/1994
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ALLEGED THAT COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTIONS 15(C)(3) AND 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULES 15C3-1, 17A-3(A)(11) AND 17A-11(A)(1) PROMULGATED THERE UNDER BY (I)FAILING TO TIMELY CALCULATE ITS NET CAPITAL ON A MONTHLY BASIS DURING A LIMITED PERIOD OF TIME, (II) FAILING TO MAINTAIN THE REQUIRED RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL DURING A LIMITED PERIOD OF TIME, AND (III) FAILING TO PROVIDE TELEGRAPHIC NOTICE OF ITS NET CAPITAL DEFICIENCY ON THE DATE IT OCCURRED.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist, $50,000 CIVIL PENALTY
10(c)(2)(i).  The individuals named in the action or claim:
STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-6733
 09/25/1986
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ALLEGED THAT STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTION 203(E)(5) OF THE INVESTMENT ADVISERS ACT ("ACT") WITH A VIEW TO PREVENTING VIOLATIONS OF SECTION 206 OF THE ACT AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT AND RULE 10B-5 THERE UNDER. STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) WAS REQUIRED TO OBTAIN AN INDEPENDENT CONSULTANT TO MAKE RECOMMENDATIONS CONCERNING THE ADMINISTRATION OF ITS INVESTMENT ADVISER OPERATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Censure
10(c)(2)(i).  The individuals named in the action or claim:
STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-7303
 01/09/1990
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ALLEGED THAT STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTION 17(E)(1) OF THE INVESTMENT COMPANY ACT ALLEGING THAT COMPENSATION WAS RECEIVED FOR THE PURCHASE AND SALE OF PROPERTY TO OR FOR THE ACCOUNTS OF SEVERAL INVESTMENT COMPANIES WHICH WERE ADVISED BY STEIN ROE. STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) WAS REQUIRED TO COMPLY WITH AN UNDERTAKING TO ESTABLISH CERTAIN PROCEDURES REGARDING TRANSACTIONS INVOLVING INVESTMENT COMPANY ASSETS.
10(c)(2)(vi).  Disposition of action or claim:
Censure
10(c)(2)(i).  The individuals named in the action or claim:
NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
# 3-9596
 05/04/1998
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONS SECURITIES' (DISSOLVED 1/1/1998),A FORMER AFFILIATE BROKER/DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARD TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004 INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17(A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(2)(vi).  Disposition of action or claim:
Stipulation and Consent
10(c)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA CORPORATION
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
SEATTLE FIRST NATIONAL BANK
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-9409
 07/01/1994
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(F)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1, PROMULGATED THERE UNDER. WITHOUT ADMITTING OR DENYING THE MATTERS ASSERTED THEREIN, SEATTLE FIRST NATIONAL BANK (SEAFIRST), A WHOLLY-OWNED SUBSIDIARY OF SEAFIRST CORPORATION AND BANKAMERICA CORPORATION ENTERED INTO A JOINT CONSENT CEASE AND DESIST ORDER WITH THE SEC AND THE OCC. THE ORDER FOUND THAT SEAFIRST VIOLATED SECTION 17F1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1 PROMULGATED THERE UNDER, PROHIBITED VIOLATIONS IN THE FUTURE, AND REQUIRED SEAFIRST TO PAY CIVIL MONEY PENALTY OF $75,000.00.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist, $75,000 CIVIL PENALTY
10(c)(2)(i).  The individuals named in the action or claim:
BANK OF BOSTON CORPORATION
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
ADMIN. PROCEEDING FILING NO. 3-8270
 01/11/1994
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THAT CERTAIN ASPECTS OF THE MANAGEMENT DISCUSSION AND ANALYSIS PORTION OF BANK OF BOSTON CORPORATION'S 10-Q FOR THE 2ND QUARTER OF 1989 DID NOT COMPLY WITH SECTION 13(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE "EXCHANGE ACT"). BANK OF BOSTON WAS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 13(A) OF THE EXCHANGE ACT AND RULES 12B-20 AND 13A-13 THERE UNDER.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
N/A
 02/09/2005
10(c)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT : (1) BACAP AND BACAP DISTRIBUTORS SHALL MAINTAIN A COMPLIANCE AND ETHICS OVERSIGHT INFRASTRUCTURE HAVING, AMONG OTHER THINGS, A CODE OF ETHICS OVERSIGHT COMMITTEE, AN INTERNAL COMPLIANCE CONTROLS COMMITTEE, A SENIOR LEVEL COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST AND A CORPORATE OMBUDSMAN; (2) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN INDEPENDENT COMPLIANCE CONSULTANTS TO, AMONG OTHER THINGS, REVIEW COMPLIANCE, SUPERVISORY AND OTHER POLICIES AND PROCEDURES; (3) BACAP AND BACAP DISTRIBUTORS SHALL ADOPT THE RECOMMENDATIONS OF SUCH CONSULTANTS SUBJECT TO A MECHANISM FOR RESOLVING DISAGREEMENTS; (4) BACAP AND BACAP DISTRIBUTORS SHALL UNDERGO THIRD PARTY COMPLIANCE REVIEW EVERY OTHER YEAR; AND (5) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN AN INDEPENDENT DISTRIBUTION CONSULTANT. IN ADDITION, THE NATIONS FUNDS HAVE VOLUNTARILY UNDERTAKEN TO OPERATE IN ACCORDANCE WITH CERTAIN GOVERNANCE POLICIES AND PRACTICES INCLUDING, AMONG OTHERS, HAVING TRUSTEES STAND FOR ELECTION PRIOR TO MAY 1, 2005, ARRANGING FOR CERTAIN SPECIFIED TRUSTEES TO RESIGN AND/OR TO NOT STAND FOR ELECTION, REQUIRING THAT 75% OF THE TRUSTEES MEET INDEPENDENCE STANDARDS; REQUIRING THAT THE CHAIRMAN BE INDEPENDENT; AND EMPLOYING COUNSEL TO THE INDEPENDENT TRUSTEES WHO MEET INDEPENDENCE STANDARDS AND DESIGNATING AN INDEPENDENT COMPLIANCE OFFICER.
10(c)(2)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
N/A
 02/09/2005
10(c)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AD EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT: CMA and CFDI ARE CENSURED; CMA SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT & SS17(D) & 34(B) OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CFDI SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) & 15(C) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER, S. 206(1) & 206(2) OF THE ADVISERS ACT & SS17(D) & 34 (B)OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(2)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC. and COLUMBIA MANAGEMENT ADVISORS, LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING ANY DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED IN (4) ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEN IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES, AND CERTAIN UNDERTAKINGS.
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAISI) AND COLUMBIA MANAGEMENT ADVISORS, LLC (CMA) HAVE CONSENTED TO THE ENTRY OF AN ORDER THAT FINDS VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 ("ADVISERS ACT"), AND ADVISERS ACT RULE 206(4)-1(A)(5) IN CONNECTION WITH BAISI'S SELECTION OF CERTAIN MUTUAL FUNDS IN BAISI'S WRAP FEE PROGRAM AND THE ADEQUACY OF DISCLOSURES TO CUSTOMERS REGARDING THE SAME AND CMA'S RECEIPT OF ADDITIONAL MANAGEMENT FEES AS A RESULT THEREOF. THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING AND DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEM IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES AND CERTAIN UNDERTAKINGS
10(c)(2)(i).  The individuals named in the action or claim:
BANKAMERICA CORPORATION (NKA BANK OF AMERICA CORPORATION)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, THE COMMISSION FOUND THAT, IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, (I) INCORRECTLY ACCOUNTED FOR A FINANCIAL RELATIONSHIP, AND (II) MADE INADEQUATE DISCLOSURES RELATED TO RISK IN EXCHANGE ACT REPORT FILINGS WITH THE COMMISSION, IN CONNECTION WITH A BUSINESS ALLIANCE WITH D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON THE SAME DATE, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11952
 06/15/2005
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED VIOLATIONS BY BANC OF AMERICA INVESTMENT SERVICES, INC. (BAI) AND BACAP DISTRIBUTORS, LLC (BACAP)OF RECORD-KEEPING REQUIREMENTS OF SECTION 17(A) OF THE EXCHANGE ACT & RULE 17A-4 THERE UNDER & VIOLATIONS BY BAI OF RECORD-KEEPING REQUIREMENTS OF SECTION 204 OF THE ADVISERS ACT & RULE 204-2 THERE UNDER FROM JANUARY 2001 TO FEBRUARY 2004. FROM JANUARY 2001 TO FEBRUARY 2004, BAI AND BACAP FAILED TO PRESERVE FOR 3 YEARS ELECTRONIC MAIL COMMUNICATIONS (INCLUDING INTER-OFFICE MEMORANDA & COMMUNICATIONS) RECEIVED AND SENT BY ITS ASSOCIATED PERSONS & EMPLOYEES THAT RELATED TO ITS BUSINESS AS A BROKER OR DEALER AS REQUIRED BY RULE 17A-4. DURING THE SAME PERIOD, BAI FAILED TO KEEP IN ANY EASILY ACCESSIBLE PLACE FOR A PERIOD OF 5 YEARS, AND/OR TO PRESERVE IN AN APPROPRIATE OFFICE FOR A PERIOD OF 2 YEARS, TRUE, ACCURATE AND CURRENT WRITTEN COMMUNICATIONS RELATING TO RECOMMENDATIONS MADE, ADVICE GIVEN OR PROPOSED TO BE GIVEN; RECEIPT, DISBURSEMENT OR DELIVERY OF FUNDS OR SECURITIES; AND THE PLACING OR EXECUTION OF ORDERS TO PURCHASE AND SELL SECURITIES AS REQUIRED BY RULE 204-2. WITHIN 90 DAYS OF THIS ORDER, BAI AND BACAP WILL COMPLETE A REVIEW OF THEIR PROCEDURES FOR PRESERVATION OF ELECTRONIC MAIL COMMUNICATIONS AND ESTABLISH SYSTEMS & PROCEDURES DESIGNED TO ACHIEVE COMPLIANCE WITH LAWS, REGULATIONS & RULES. PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, BAI AND BACAP WILL CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OR FUTURE VIOLATIONS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4THEREUNDER. PURSUANT TO SECTION 203(K) OF THE ADVISERS ACT, BAI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING TO COMMIT VIOLATIONS & ANY FUTURE VIOLATIONS OF SECTION 204 OF THE ADVISERS ACT AND RULE 204-2 THERE UNDER. BAI & BACAP ARE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT & BAI IS ALSO CENSURED PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT. WITHIN 10 DAYS OF THIS ORDER, BAI WILL PAY A CIVIL MONETARY PENALTY OF $1,000,000 TO THE SEC AND BACAP WILL PAY $500,000 TO THE SEC.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist, PENALTIES AND OTHER RELIEF
10(c)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-9596
 05/04/1998
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (N.K.A. BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONS SECURITIES', A FORMER AFFILIATE BROKER-DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARDS TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. & NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17 (A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATED SECTION 17 (A)(2) OF THE SECURITIES ACT. WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT CONSENTED TO THE ENTRY OF THIS ORDER. ACCORDINGLY, PURSUANT TO SECTION 8A OF THE SECURITIES ACT AND SECTION 15(B) OF THE EXCHANGE ACT, IS ORDERED THAT RESPONDENT IS CENSURED, SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 17(A)(2) OF THE SECURITIES ACT; AND SHALL, WITHIN 10DAYS OF THE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY OF $750,000 TO THE UNITED STATES TREASURY.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL PENALTIES
10(c)(2)(i).  The individuals named in the action or claim:
CENSURE, CIVIL PENALTIES
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-11818
 02/09/2005
10(c)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT BANC OF AMERICA SECURITIES, LLC (BAS) IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 17 (A) OF THE SECURITIES ACT, 10(B), (15C) AND 17(A) OF THE EXCHANGE ACT AND RULES 10B-5, 15C1-2, 17A-3 AND 17A-4 THERE UNDER AND RULE 22C-1, AS ADOPTED UNDER 22(C) OF THE INVESTMENT COMPANY ACT, AND FROM CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 34(B) OF THE INVESTMENT CO. ACT AND 206(1) AND 206(2) OF THE ADVISERS ACT; BAS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) $250 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $125 MILLION; AND BAS SHALL COMPLY WITH CERTAIN REMEDIAL UNDERTAKINGS.
10(c)(2)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, AND DISGORGEMENT/RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
COLUMBIA FUNDS DISTRIBUTOR, INC. AND COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
N/A
 02/09/2005
10(c)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
PURSUANT TO OFFERS OF SETTLEMENT BY CMA AND CFDI IN WHICH THEY NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED AN ORDER ON 2/9/05 FINDING THAT, FROM AT LEAST 1998 THROUGH OCTOBER, 2003, CMA AND CFDI VIOLATED THE FEDERAL SECURITIES LAWS BY ENTERING INTO ARRANGEMENTS WITH 9 INVESTORS THAT ALLOWED THEM TO ENGAGE IN SHORT-TERM OR EXCESSIVE TRADING, CONTRARY TO RESTRICTIONS AND/OR REPRESENTATIONS IN THE COLUMBIA FUNDS' PROSPECTUSES, AND ALLOWING OR FAILING TO PREVENT OTHER INVESTORS FROM ENGAGING IN A PRACTICE OF SHORT-TERM OR EXCESSIVE TRADING. THE ORDER ALSO FOUND THAT CMA FAILED TO MAINTAIN POLICIES AND PROCEDURES TO PREVENT MISUSE OF MATERIAL NON-PUBLIC INFORMATION ABOUT PORTFOLIO HOLDINGS. THE SEC ORDER PROVIDES THAT: CMA AND CFDI ARE CENSURED; CMA SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34(B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CFDI SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) AND 15(C) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER, S.206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34 (B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA AND CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(2)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-12591
 11/08/2001
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
PURSUANT TO AN OFFER OF SETTLEMENT BY BANC OF AMERICA SECURITIES LLC (BAS) IN WHICH BAS NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED INTO AN ORDER ON MARCH 14,2007 FINDING THAT, DURING THE PERIOD JANUARY 1999 THROUGH DECEMBER 2001, BAS VIOLATED THE ANTIFRAUD AND INTERNAL CONTROL PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH BAS' ISSUANCE OF RESEARCH. THE SEC ORDER PROVIDES THAT BAS IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 15(C) AND 15(F) OF THE EXCHANGE ACT AND RULE 15C1-2(A) PROMULGATED THERE UNDER; BAS SHALL PAY A CIVIL MONEY PENALTY OF $6 MILLION FOR VIOLATIONS OF SECTION 15(F) OF THE EXCHANGE ACT AND $10 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $10 MILLION FOR ITS VIOLATIONS OF SECTION 15(C) OF THE EXCHANGE ACT; AND BAS SHALL COMPLY WITH CERTAIN UNDERTAKINGS.
10(c)(2)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, DISGORGEMENT/RESTITUTION; AND CERTAIN UNDERTAKINGS
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-11425
 11/08/2001
10(c)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
U.S. SECURITIES AND EXCHANGE COMMISSION (THE COMMISSION) , WITHOUT OTHERWISE ADMITTING OR DENYING THE FINDINGS SET FORTH IN THE ORDER, IN WHICH THE COMMISSION I) FOUND THAT BAS VIOLATED SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT, AND RULE 17A-4(J) OF THE EXCHANGE ACT; II) ORDERED THAT PURSUANT TO SECTION 21C OF EXCHANGE ACT, BAS CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THERE UNDER; III) ORDERED THAT BAS BE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT; AND IV) ORDERED THAT BAS PAY A CIVIL PENALTY IN THE AMOUNT OF $10,000,000.
10(c)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
N/A
 01/16/1992
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATIONS OF BROKER-DEALER AND GOVERNMENT SECURITIES BD RECORD-KEEPING PROVISIONS OF THE SECURITIES EXCHANGE ACT OF 1934 IN CONNECTION WITH THE RESPONDENTS' PARTICIPATION IN PRIMARY DISTRIBUTIONS OF UNSECURED DEBT SECURITIES ISSUES BY 1 OR MORE GSES (RELS34-30192-34-30251). CIVIL PENALTY TO THE US TREASURY OF $100,000 ON BEHALF OF ITS PREDECESSOR, NCNB CAPITAL MARKETS, INC. SHALL MAINTAIN OR WITHIN 60 DAYS OF ORDER DATE, DEVELOP, IMPLEMENT AND MAINTAIN POLICIES REASONABLY DESIGNED TO ENSURE FUTURE COMPLIANCE WITH SECTION 17A OF THE EXCHANGE ACT AND 17 C.F.R. 240.17A-3 AND 240.17A-4 IN CONNECTION WITH ANY PRIMARY DISTRIBUTION OF UNSECURED DEBT SECURITIES ISSUED BY THE GSES. SUCH POLICIES SHALL BE AVAILABLE FOR SEC INSPECTION. NATIONSBANC SHALL COMPLY WITH ALL POLICIES IMPLEMENTED OR MAINTAINED. IT MAY MODIFY SUCH POLICIES, PROVIDED THAT SUCH, AS MODIFIED, ARE REASONABLY DESIGNED TO ENSURE NATIONSBANC'S FUTURE COMPLIANCE.
10(c)(2)(vi).  Disposition of action or claim:
CIVIL PENALTY
10(c)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
N/A
 01/15/1992
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
COMMITTING OR CAUSING VIOLATIONS OF RULES IN CONNECTION WITH ANY PRIMARY DISTRIBUTION OF UNSECURED EBT SECURITIES ISSUED BY GSE. NATIONSBANC CAPITAL MARKETS, INC. CONSENTED WITHOUT ADMITTING OR DENYING ANY OF THE FINDINGS TO THE ISSUANCE OF 01/15/92 ORDER BY THE SEC IN THE MATTER OF THE DISTRIBUTION OF SECURITIES OF CERTAIN GOVERNMENT SPONSORED ENTERPRISES IN FULL SETTLEMENT OF THE MATTER. IN ITS REPORT UNDER SECTION 21(A) OF THE SECURITIES EXCHANGE ACT, THE SEC STATED THAT THE OFFICIALS OF THE GSES INVOLVED DO NOT BELIEVE THAT SELLING GROUP MEMBERS EVER MISLEAD THEM REGARDING PRICING OF THE SECURITIES. THERE WERE MORE THAN 100 BANKS AND BROKER-DEALERS INVOLVED IN THIS MATTER, AND VIRTUALLY ALL SELLING GROUP MEMBERS DETERMINED TO SETTLE.
10(c)(2)(vi).  Disposition of action or claim:
SETTLED
10(c)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11446
 03/30/2004
10(c)(2)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
SEC ADMINISTRATIVE RELEASE NO. 34-49499, FILE NO. 3-11446, MARCH 30, 2004; THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AGAINST FLEET SPECIALIST, INC. (FSI OR RESPONDENT). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, FSI HAS SUBMITTED AN OFFER OF SETTLEMENT (OFFER), WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. THIS MATTER INVOLVES VIOLATIONS BY FSI OF ITS BASIC OBLIGATION TO SERVE PUBLIC CUSTOMER ORDERS OVER ITS OWN PROPRIETARY INTERESTS. AS A SPECIALIST FIRM ON THE NYSE, FSI HAD A GENERAL DUTY TO MATCH EXECUTABLE PUBLIC CUSTOMER OR "AGENCY" BUY AND SELL ORDERS AND NOT TO FILL CUSTOMER ORDERS THROUGH TRADES FROM THE FIRM'S OWN ACCOUNT WHEN THOSE CUSTOMER ORDERS COULD BE MATCHED WITH OTHER CUSTOMER ORDERS. THROUGH VARIOUS FORMS OF IMPROPER CONDUCT, FSI VIOLATED THIS OBLIGATION BY FILLING ORDERS THROUGH PROPRIETARY TRADES RATHER THAN THROUGH OTHER CUSTOMER ORDERS, THEREBY CAUSING CUSTOMER ORDERS TO BE DISADVANTAGED BY APPROXIMATELY $38 MILLION FROM 1999 THROUGH 2003. ACCORDINGLY, IT IS ORDERED THAT: PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, FSI CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 11(B) OF THE EXCHANGE ACT AND RULE 11B-1 THERE UNDER. PURSUANT TO SECTION 15(B)(4)(E) OF THE EXCHANGE ACT, FSI IS HEREBY CENSURED. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY DISGORGEMENT IN THE TOTAL AMOUNT OF $38,013,594. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $21,083,875. THE DISGORGEMENT AND THE CIVIL PENALTIES WHICH SHALL BE ADDED TO A FAIR FUND (THE DISTRIBUTION FUND) SHALL BE MAINTAINED IN AN INTEREST-BEARING ACCOUNT AND SHALL BE DISTRIBUTED PURSUANT TO A DISTRIBUTION PLAN (THE PLAN) DRAWN UP BY AN ADMINISTRATOR (THE ADMINISTRATOR) TO BE CHOSEN BY THE STAFF OF THE COMMISSION AND THE NYSE.
10(c)(2)(vi).  Disposition of action or claim:
Disgorgement
10(c)(2)(i).  The individuals named in the action or claim:
MLPFS (BROKERS AND DEALERS LIMITED)
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: CFTC DOCKET NO. 99-11
 05/20/1999
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
MLPFS (BROKERS AND DEALERS) LIMITED, MERRILL LYNCH INTERNATIONAL INCORPORATED AND MERRILL LYNCH AND CO., INC. WERE ALLEGED BY THE CFTC AND MERRILL LYNCH, PIERCE, FENNER AND SMITH (BROKER AND DEALERS) LIMITED WERE ALLEGED BY THE LME TO HAVE AIDED AND ABETTED SUMITOMO CORPORATION AND GLOBAL MINERALS AND METALS CORPORATION IN THEIR ALLEGED MANIPULATION OF COPPER PRICES.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 97-10
 06/24/1997
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED SECTION 4(C)(A)(A) OF THE COMMODITY EXCHANGE ACT AND CFTC REGULATION 1.37(A) RELATING TO TRADING IN WHEAT FUTURES. MERRILL LYNCH FUTURES, INC. SHALL CEASE AND DESIST FROM VIOLATING SECTION 4C(A)(A) OF THE ACT, 7 USC S6C(A)(A) AND REGULATION 1.37(A), 7 CFRSI.37(A) AND PAY A CIVIL MONETARY PENALTY.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1992
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF C.F.R. PART 404 PROMULGATED PURSUANT TO SECTION 15C. THIS PROCEEDING WAS PART OF PROCEEDINGS COMMENCED AGAINST APPROXIMATELY 100 FINANCIAL INSTITUTIONS IN CONNECTION WITH THEIR DISTRIBUTION OF SECURITIES ISSUED BY CERTAIN GOVERNMENT SPONSORED ENTERPRISES.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/30/1985
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
MERRILL LYNCH FAILED TO SUPERVISE ACTIVITIES OF A FORMER MERRILL LYNCH FUTURES, INC. EMPLOYEE. FIRM AGREED TO REVIEW CERTAIN PROCEDURES. MERRILL LYNCH FUTURES INC. CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS TO A CEASE AND DESIST.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH CAPITAL SERVICES, INC.
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA REL. 42640; 95 CIV. 1353 (SDNY)
 04/06/2000
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION THAT TREASURY SECURITIES WERE PRICED TOO HIGH WHEN SOLD IN CONNECTION WITH MUNICIPAL ADVANCE REFUNDING BOND OFFERINGS. THE FIRM JOINED IN A GLOBAL SETTLEMENT OF THE SEC'S INDUSTRY-WIDE INVESTIGATION RELATING TO THE PRICING OF GOVERNMENT SECURITIES IN ADVANCE REFUNDS (SEA REL. NO.42640) AND A RELATED QUI TAM SUIT BROUGHT BY MICHAEL LISSACK ON BEHALF OF THE UNITED STATES (95 CIV. 1353 (SDNY). UNDER THE TERMS OF THE SETTLEMENT, MERRILL LYNCH, WITHOUT ADMITTING OR DENYING LIABILITY, CONSENTED TO AN SEC ADMINISTRATIVE CEASE AND DESIST ORDER UNDER SECTIONS 17(A)(2) AND (3) OF THE SECURITIES AND EXCHANGE ACT AND A CENSURE AND AGREED TO PAYMENTS TO MUNICIPALITIES AND TO THE UNITED STATES TREASURY. THE QUI TAM SUIT AGAINST MERRILL LYNCH WAS THEN DISMISSED WITH PREJUDICE AND THE INTERNAL REVENUE SERVICE AGREED TO PROVIDE ASSURANCES TO MUNICIPALITIES RELATING TO THE TAX EXEMPT STATUS OF APPROXIMATELY 260 TRANSACTIONS.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH ALTERNATIVE INVESTMENTS LLC
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 07-08
 07/31/2007
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE CFTC FOUND THAT ON CERTAIN OCCASIONS FROM 2001 TO 2005, MLAI VIOLATED CFTC REGULATION 4.22(C) BY FAILING TO TIMELY FILE COMMODITY POOL ANNUAL REPORTS WITH THE NATIONAL FUTURES ASSOCIATION AND TO TIMELY DISTRIBUTE SUCH REPORTS TO POOL PARTICIPANTS. RESPONDENT CONSENTED TO THE ENTRY OF THIS ORDER WITHOUT ADMITTING OR DENYING ANY OF THE FINDINGS. PURSUANT TO THE ORDER, MLAI SHALL: (A) CEASE AND DESIST FROM VIOLATING REGULATION 4.22(C); AND (B) PAY A CIVIL MONETARY PENALTY OF $500,000. PURSUANT TO ITS UNDERTAKING, MLAI AND ITS EMPLOYEES MAY NOT MAKE ANY STATEMENTS OR TAKE OTHER ACTIONS TO SUGGEST THAT THE ORDER IS WITHOUT FACTUAL BASIS. FINE PAID AUGUST 9, 2007.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA RELEASE #14149
 11/09/1977
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
FIRM FAILED TO REASONABLY SUPERVISE CERTAIN INDIVIDUAL RESPONDENTS THEREBY PREVENTING VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT 10(B) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER. AGREED TO PAY SUM OF UP TO $1,600,000 TO COMPENSATE ITS CUSTOMERS WHO SUFFERED LOSSES RESULTING FROM TRANSACTIONS IN THE COMMON STOCK OF SCIENTIFIC CONTROL CORPORATION DURING THE PERIOD MARCH 1, 1968 TO NOVEMBER 21, 1969.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE AND UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 11515
 06/30/1975
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED CUSTOMER TRANSACTIONS WERE UNSUITABLE AND THAT TRADES WERE NOT PROPERLY REFLECTED ON FIRM RECORDS. FIRM HAS UNDERTAKEN TO ADOPT CERTAIN SUPPLEMENTAL POLICIES AND PROCEDURES TO PREVENT REOCCURRENCE OF ALLEGED CONDUCT.
10(c)(2)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/12/1978
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 AND THAT FIRM AND A MANAGER FAILED TO REASONABLY SUPERVISE AN ACCOUNT EXECUTIVE. AGREEMENT TO ADOPT AND IMPLEMENT CERTAIN NEW PROCEDURES RELATED TO THE OPENING, REVIEWING AND HANDLING OF GOVERNMENT SECURITIES ACCOUNTS IN ITS INSTITUTIONAL OFFICES.
10(c)(2)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 17793
 05/11/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
FIRM FAILED TO SUPERVISE AN ACCOUNT EXECUTIVE IN REGARD TO THE OFFER AND SALE OF COMMON STOCK OF HARNISCHFEGER CORP. THE FIRM UNDERTOOK TO REVISE SOME OF ITS PROCEDURES REGARDING THE DISTRIBUTION OF TENDER MATERIALS TO ITS CUSTOMERS.
10(c)(2)(vi).  Disposition of action or claim:
ORDER
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 18923
 07/26/1982
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT AND SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER BY THE FIRM AND FAILURE TO SUPERVISE. FIRM AGREED TO A CENSURE AND AN UNDERTAKING REQUIRING THE FORMATION OF AN OPTIONS REVIEW COMMITTEE TO CONSIDER POLICIES AND PROCEDURES WITH RESPECT TO OPTIONS SELLING PRACTICES.
10(c)(2)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/30/1983
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-3 THERE UNDER. FIRM AGREED TO A CENSURE AND TO INSTITUTE NEW PROCEDURES WITH RESPECT TO STOCK LOAN TRANSACTIONS.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE AND UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/11/1985
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
FIRM FAILED TO PROPERLY SUPERVISE AN ACCOUNT EXECUTIVE. THE FIRM ACCEPTED THE SANCTIONS WITHOUT ADMITTING OR DENYING THE SEC'S CHARGES.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 85-6
 11/14/1985
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATIONS OF SECTIONS 4C(A)&(B) OF THE ACT AND REGULATIONS 1.38 AND 166.3 PROHIBITING WASH SALES. PURSUANT TO THE TERMS OF SETTLEMENT AGREEMENT - $50,000 CIVIL PENALTY AND AN ORDER TO COMPLY WITH CERTAIN UNDERTAKINGS TO REVIEW/REFORM ITS SUPERVISORY AND TRAINING POLICIES/PROCEDURES AND TO CEASE AND DESIST FROM SAID VIOLATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/27/1985
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
CHARGED WITH EXECUTING THREE WASH TRADES FOR ONE OF ITS CUSTOMERS. CASE SETTLED WITHOUT ADMITTING OR DENYING ALLEGATIONS BY AGREEING TO A CIVIL PENALTY AND ENTRY OF A CEASE AND DESIST ORDER.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/24/1986
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF THE TIME STAMPING AND ORDER TICKET PREPARATION AND MAINTENANCE REQUIREMENTS OF THE COMMODITY EXCHANGE ACT. FIRM AGREED TO CEASE AND DESIST FROM FUTURE VIOLATIONS, PAY A CIVIL PENALTY AND REVISE ITS COMPUTER PROGRAM AND OPERATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 88-13
 03/22/1988
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
FIRM CHARGED WITH VARIOUS BOOKKEEPING VIOLATIONS. FIRM ALSO CHARGED WITH BEING LIABLE FOR THE FINANCIAL CONSULTANT'S CONDUCT. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM CONSENTED TO A CIVIL PENALTY OF $150,000 AND WAS ORDERED TO CEASE AND DESIST FROM VIOLATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: ADMIN. PROCEEDING 3-3255, SEC REL. 33367
 12/22/1993
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-3 IN THAT IT FAILED TO PROPERLY RECORD ON ITS BOOKS AND RECORDS CERTAIN TRADES OF HIGH YIELD AND TREASURY SECURITIES. CONSENTED WITHOUT ADMITTING OR DENYING THE MATTERS SET FORTH TO THE ISSUANCE OF AN ORDER OF CENSURE, CEASE AND DESIST AND REQUIREMENT TO MAINTAIN CERTAIN PROCEDURES TO ASSURE COMPLIANCE WITH THE ACT AND RULE THERE UNDER.
10(c)(2)(vi).  Disposition of action or claim:
Cease and Desist, CENSURE, UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: SEA RELEASE #8459
 11/25/1968
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF SECTIONS 17(A), 10(B) AND 15(C)(1) OF THE EXCHANGE ACT AND RULES 10B-5 AND 15(C)-2. NY INSTITUTIONAL SALES OFFICE SUSPENDED FOR 21 DAYS BEGINNING 12/5/68 AND WEST COAST UNDERWRITING OFFICE SUSPENDED FOR 15 DAYS BEGINNING 12/11/68.
10(c)(2)(vi).  Disposition of action or claim:
Suspension
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: CIVIL ACTION 75-1065
 07/02/1975
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(A) OF THE SECURITIES ACT OF 1933 AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10-5 THERE UNDER IN CONNECTION WITH THE PURCHASE AND SALE OF THE SECURITIES OF COMEX. FIRM CONSENTED TO THE ENTRY OF JUDGMENT OF PERMANENT INJUNCTION FOLLOWING THE FILING OF A COMPLAINT BY THE SEC AGAINST STIRLING HOMEX CORPORATION, MERRILL LYNCH AND VARIOUS OTHER DEFENDANT IN THE U.S. DISTRICT COURT FOR THE DISTRICT OF COLUMBIA. MERRILL LYNCH SHALL ADOPT, IMPLEMENT AND MAINTAIN CERTAIN POLICIES AND PROCEDURES REASONABLY CALCULATED TO PREVENT REOCCURRENCE OF VIOLATIONS.
10(c)(2)(vi).  Disposition of action or claim:
Injunction
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/06/1970
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
FIRM AND FIRST NATIONAL CITY BANK VIOLATED SECTION 5 OF THE SECURITIES ACT. SEC FILED A COMPLAINT FOR AN INJUNCTION IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. MERRILL LYNCH ENTERED INTO A STIPULATION AND UNDERTAKING WITH THE SEC WHEREIN IT DENIED THAT IT ENGAGED IN ANY ILLEGAL ACTS BUT AGREED TO CEASE ACTING IN CONNECTION WITH THE BANKS' SPECIAL INVESTMENT ADVISORY SERVICE. AN ORDER WAS ENTERED THE SAME DAY BY THE COURT DISMISSING THE SEC'S COMPLAINT WITHOUT PREJUDICE.
10(c)(2)(vi).  Disposition of action or claim:
STIPULATION AND UNDERTAKING
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: NASDAQ MARKET MAKERS RELEASE 34-40900 and 15
 01/11/1999
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
IN AN ACTION BROUGHT AGAINST ALMOST ALL MAJOR NASDAQ MARKET MAKERS, SEC FOUND THAT IN 1994 MARKET MAKERS, INCLUDING MERRILL LYNCH VIOLATED PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH THEIR ACTIVITIES IN NASDAQ SECURITIES. WITHOUT ADMITTING OR DENYING ALLEGATIONS, MERRILL LYNCH AGREED TO PAY A CIVIL PENALTY. IN ADDITION, FIRM AGREED TO A CEASE AND DESIST ORDER AND TO SUBMIT CERTAIN OF ITS POLICIES TO AN INDEPENDENT CONSULTANT.
10(c)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: S-97061(LX)
 08/24/1998
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ALLEGED THAT MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. VIOLATED SECTIONS 17(A)(2) AND (3) OF THE SECURITIES ACT OF '33 SECTION 15B(C)(1) OF THE SECURITIES ACT OF '34 AND RULE G-17 OF THE MSRB. MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. WAS DIRECTED TO CEASE AND DESIST FROM ANY FUTURE VIOLATIONS OF SECTIONS 17(A)2 AND (3) OF THE SECURITIES ACT OF '33 AND SECTION 15B(C)(1) OF SECURITIES ACT OF '34; TO PAY A CIVIL PENALTY OF $2 MILLION; TO COMPLY WITH UNDERTAKINGS TO MAINTAIN PREVIOUSLY REVISED POLICIES AND PROCEDURES.
10(c)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: CLE-334
 08/06/1982
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED TO HAVE VIOLATED PROVISIONS OF THE SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934 IN CONNECTION WITH THE OFFER AND SALE OF EXCHANGE LISTED OPTIONS, INCLUDING FAILURE TO SUPERVISE EMPLOYEES. SEC ACCEPTED SETTLEMENT OFFERS CONSENTING TO FINDINGS WITHOUT ADMITTING OR DENYING ALLEGATIONS. CENSURE IMPOSED INCLUDING SUSPENSION FOR SEVERAL EMPLOYEES AS SPECIFIED IN THE ORDER. ADDITIONALLY, MERRILL LYNCH MADE OFFERS OF RESTITUTION TO CERTAIN CUSTOMERS AND ESTABLISHED AN OPTIONS REVIEW COMMITTEE TO IMPLEMENT REVISED PROCEDURES TO ENSURE COMPLIANCE WITH APPLICABLE GUIDELINES.
10(c)(2)(vi).  Disposition of action or claim:
Censure
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: ND 73-122
 06/25/1973
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGED VIOLATES OF ANTIFRAUD PROVISIONS INCLUDING MAKING UNTRUE STATEMENTS OR OMISSIONS CONCERNING FUTURE PRICE OF SHARES, THE COMPARISON OF THE COMPANY'S GROWTH TO OTHER WELL ESTABLISHED COMPANIES AND THE LIKELIHOOD OF THE SHARES BEING LISTED ON A NATIONAL EXCHANGE. ADDITIONALLY, IT WAS ALLEGED THAT THERE WAS MISUSE OF INSIDE INFORMATION AND A FAILURE TO REASONABLY SUPERVISE. CENSURED; UNDERTAKING PURSUANT TO OFFER OF SETTLEMENT INCLUDING (1) PAY RESTITUTION TO CUSTOMERS, (2) REVIEW AND REVISE PROCEDURES AS APPROPRIATE RELATING TO RESEARCH AND SALES ACTIVITIES AND (3) REVIEW AND REVISE AS APPROPRIATE THE ACCOUNT EXECUTIVE TRAINING PROGRAMS.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE AND RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNAVAILABLE
 12/23/1993
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
SEC ALLEGES THAT MERRILL LYNCH VIOLATED SECTIONS OF THE SECURITIES EXCHANGE ACT OF 1934. IT WAS ALLEGED THAT THE FIRM FAILED TO PROPERLY RECORD SECURITIES TRANSACTIONS ON ITS BOOKS AND RECORDS. MERRILL LYNCH MADE AN OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS. THE SEC ACCEPTED THE OFFER OF SETTLEMENT. THE FIRM WAS CENSURED AND ORDERED TO CEASE AND DESIST. THE FIRM WAS REQUIRED TO IMPLEMENT CERTAIN PROCEDURES TO ENSURE PROPER RECORDKEEPING.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, CEASE AND DESIST
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R 81-1170-82-330
 07/13/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
CLAIMANT ALLEGES THAT FINANCIAL ADVISOR MADE 5 UNAUTHORIZED TRADES. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND THOMAS R. BAKER TO PAY CLAIMANT $507.50 PLUS INTEREST UNTIL PAID ALONG WITH CLAIMANTS $25.00 FILING FEE. COMMISSION ORDERED THAT COMPLAINT BE DISMISSED AGAINST MELVIN G. DAVIDSON.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R 77-49
 12/09/1976
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT FINANCIAL ADVISOR FAILED TO FOLLOW INSTRUCTIONS OF CLAIMANT AND MADE UNAUTHORIZED TRANSFER OF STOCK. MERRILL LYNCH ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $9,732.50 PLUS INTEREST AT 8% FROM JULY 26, 1976 TO DATE OF PAYMENT. COMPLAINT DISMISSED AGAINST TOMLINSON, SMITH AND SULLIVAN.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R81-664-82-181
 04/08/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT RESPONDENT FAILED TO PROMPTLY FURNISH AN ACCURATE MONTHLY STATEMENT AND WRITTEN STATEMENT FOR EACH TRANSACTION, FAILED TO SUPERVISE THE HANDLING OF ACCOUNTS AND FAILED TO MAKE CORRECTIONS TO STATEMENTS WITHIN A REASONABLE TIME. FINDINGS THAT CORRECTIONS TO STATEMENTS WERE NOT MADE BY RESPONDENT IN A REASONABLE TIME. RESPONDENT ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $13,740.40 WITH INTEREST FROM SEPTEMBER 8, 1983 UNTIL PAID, ALONG WITH PAYMENT OF CLAIMANT'S $25.00 FILING FEE.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 83R-262
 01/17/1983
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR VIOLATED SECTION 4B OF THE COMMODITY EXCHANGE ACT BY FAILING TO DISCLOSE TO THE COMPLAINANT THAT THE PRICE OF GOLD DECLINED ON SEPTEMBER 7, 1982. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND BLAISE MASON TO PAY DAMAGES TO THE COMPLAINANT IN THE AMOUNT OF $25.00 FOR THEIR FILING FEE ALONG WITH $928.80 PLUS INTEREST FROM MARCH 29, 1985 UNTIL PAID. IT WAS ORDERED THAT THE PROCEEDING BE DISMISSED AGAINST RESPONDENT JAMES ALVA.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/20/1978
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION THAT CONFIRMS WERE NOT LOCKED UP. MERRILL LYNCH WAS CENSURED PURSUANT TO OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING ALLEGATIONS. MERRILL LYNCH WAS PROHIBITED FROM HAVING BLANK GOVERNMENT SECURITIES CONFIRMS AVAILABLE IN ANY OF ITS INSTITUTIONAL SALES OFFICES. MERRILL WAS PERMITTED TO HAVE THESE CONFIRMS AVAILABLE ONLY IN ITS REGIONAL INSTITUTIONAL OPERATIONS
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, REMEDIAL SANCTIONS
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R 81-1361-82-453
 09/08/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
COMPLAINANT ALLEGED THAT THE FIRM FAILED TO LIQUIDATE TWO LONG GOLD POSITIONS WHEN REQUESTED. THE FIRM WAS ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $28,627.00 PLUS INTEREST TO COVER DAMAGES OF LOST PROFIT WHICH OCCURRED BY THE FIRM'S FAILURE TO COMPLY WITH THE COMPLAINANT'S REQUEST.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R 81-649-81-770
 04/09/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR FAILED TO DISCLOSE RISKS OF COMMODITIES TRADING. CLAIMANT ALSO ALLEGES UNAUTHORIZED TRADING BY FINANCIAL ADVISOR. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND GREGORY LEIGHTON TO PAY REPARATIONS IN THE AMOUNT OF $8,890.00 PLUS INTEREST UNTIL PAID ALONG WITH CLAIMANT'S FILING FEE.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 83-R883
 09/14/1983
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR MADE UNAUTHORIZED TRADE. RESPONDENTS MERRILL LYNCH AND JANE M. READ WERE ORDERED TO PAY DAMAGES IN THE AMOUNT OF $2,308.83 PLUS INTEREST FROM OCTOBER 23, 1985 UNTIL PAID, ALONG WITH CLAIMANT'S $25.00 FILING FEE. ORDER THAT COMPLAINT BE DISMISSED AGAINST RESIDENT VICE PRESIDENT JAMES A. GARY.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: R 79-684-80-132
 03/27/1981
10(c)(2)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATIONS OF UNAUTHORIZED TRADING, CHURNING AND MISREPRESENTATION. RESPONDENT FOUND IN VIOLATION OF SECTION 4B OF THE COMMODITY EXCHANGE ACT. MERRILL LYNCH AND DAVID BONDY ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $32,590.00 PLUS INTEREST FROM OCTOBER 1, 1978 UNTIL DATE OF PAYMENT, ALONG WITH CLAIMANT'S $25.00 FILING FEE.
10(c)(2)(vi).  Disposition of action or claim:
Restitution
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/06/1982
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATION OF VIOLATION OF ANTIFRAUD PROVISIONS OF SECURITIES ACTS OF 1933 AND 1934. THE COMMISSION SIMULTANEOUSLY ACCEPTED OFFERS OF SETTLEMENT OF THE RESPONDENTS WHEREIN THEY CONSENTED TO FINDINGS OF VIOLATIONS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE COMMISSION'S ORDER.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, DISGORGEMENT, RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/26/1995
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT LAZARD AND MERRILL LYNCH FAILED TO FULLY INFORM MUNICIPAL ISSUERS OF THEIR CONTRACT REGARDING INTEREST RATE SWAPS. MERRILL LYNCH AND LAZARD CONSENTED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY ENTERED INTO A CONTRACT REGARDING INTEREST RATE SWAPS, AND DID NOT FULLY INFORM THE MUNICIPAL ISSUERS OF THE CONTRACT. $3,800,000.00 PAID IN RESTITUTION ON OR BEFORE OCTOBER 26, 1995.
10(c)(2)(vi).  Disposition of action or claim:
CEASE, DESIST, DISGORGEMENT AND RESTITUTION
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/13/1987
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM. THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM.
10(c)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-12236
 03/13/2006
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SEC ALLEGED AND MERRILL LYNCH, PIERCE, FENNER AND SMITH , INCORPORATED (MLPFS) NEITHER ADMITTED NOR DENIED, THAT MLPFS FAILED TO FURNISH PROMPTLY TO REPRESENTATIVES OF THE SEC ELECTRONIC MAIL COMMUNICATIONS (EMAILS) AS REQUIRED UNDER SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4(J) THERE UNDER. THE SEC ALSO ALLEGED, AND MLPFS NEITHER ADMITTED NOR DENIED, THAT MLPFS FAILED TO RETAIN CERTAIN EMAILS RELATED TO ITS BUSINESS AS SUCH IN VIOLATION OF SECTION 17A OF THE EXCHANGE ACT AND RULE 17A-4(B)(4) THERE UNDER. AS PART OF A SETTLEMENT RELATING TO THE RETENTION OF EMAILS AND THE PROMPT PRODUCTION OF EMAILS TO THE SEC, THE SEC ACCEPTED MLPFS' OFFER OF SETTLEMENT ON MARCH 13, 2006. THE CIVIL MONEY PENALTY OF $2,500,00 WAS PAID ON MARCH 17, 2006.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY, COMPLIANCE WITH CERTAIN UNDERTAKINGS
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (SEC) FOUND, AND MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLPFS) NEITHER ADMITTED NOR DENIED, THAT MLPFS VIOLATED SECTION 17(A) (2) OF THE SECURITIES ACT OF 1933 BY MANAGING AUCTIONS FOR AUCTION RATE SECURITIES IN WAYS THAT WERE NOT ADEQUATELY DISCLOSED OR THAT DID NOT CONFORM TO DISCLOSED PROCEDURES. AS PART OF A SETTLEMENT RELATING TO MANAGING AUCTIONS FOR AUCTION RATE SECURITIES, THE SEC ACCEPTED MLPFS' OFFER OF SETTLEMENT AND ISSUED A SETTLEMENT ORDER ON MAY 31, 2006. A CIVIL MONEY PENALTY OF $1,500,000 WAS PAID TO THE SEC ON JUNE 1, 2006.
10(c)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY, COMPLIANCE WITH CERTAIN UNDERTAKINGS
10(c)(2)(i).  The individuals named in the action or claim:
STATE STREET RESEARCH AND MANAGEMENT COMPANY
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-12056
 07/22/2004
10(c)(2)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(2)(v).  Description of the action or claim:
ON JANUARY 31, 2005 BLACKROCK INC. ACQUIRED SSRM HOLDINGS INC. (THE ACQUISITION), THE HOLDING COMPANY OF STATE STREET RESEARCH AND MANAGEMENT COMPANY (SSRM) AND STATE STREET RESEARCH INVESTMENT SERVICES, INC. (SSRIS). THE CIRCUMSTANCES GIVING RISE TO THE MATTER OCCURRED PRIOR TO THE ACQUISITION OF SSRM BY BLACKROCK. THE SEC ALLEGED THAT PRIOR TO THE ACQUISITION, SSRM INCORRECTLY TRANSFERRED $156,128 IN REDEMPTION FEES IT COLLECTED FROM SHAREHOLDERS TO THE STATE STREET RESEARCH INTERNATIONAL EQUITY FUND (THE FUND) TO THE FUNDS' DISTRIBUTOR, SSRIS, INSTEAD OF PAYING SUCH FEES TOT HE FUND, IN VIOLATION OF SECTION 206(2) OF THE INVESTMENT ADVISORS ACT OF 1940, AS AMENDED.
10(c)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(c)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(2)(ii).  Title of Action 10(c)(2)(iii).  Date of Action
Docket/Case Number: 3-13407
 03/11/2009
10(c)(2)(iv).  The Court or body taking the Action and location:
THE SEC ALLEGED, AND APPLICANT NEITHER ADMITTED NOR DENIED, THAT APPLICANT FAILE
10(c)(2)(v).  Description of the action or claim:
ON MARCH 11, 2009, WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, APPLICANT CONSENTED TO THE ENTRY OF AN ADMINISTRATIVE SEC ORDER FINDING VIOLATIONS OF SECTION 15(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 204A OF THE INVESTMENT ADVISERS ACT OF 1940 FOR ALLEGEDLY FAILING TO MAINTAIN WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT THE MISUSE OF CUSTOMER ORDER INFORMATION. THE ORDER REQUIRES APPLICANT TO COMPLY WITH UNDERTAKINGS TO IMPLEMENT (OR TO CONTINUE) AND MAINTAIN POLICIES AND PROCEDURES TO, AMONG THINGS: (1) INFORM EMPLOYEES THAT INFORMATION CONCERNING CUSTOMER ORDER INFORMATION IS CONFIDENTIAL, (2) ADDRESS EMPLOYEE ACCESS TO THE EQUITY SQUAWK BOX, AND (3) TRAIN EMPLOYEES WHO USE SQUAWK BOX RELATED TECHNOLOGY. IN ADDITION, APPLICANT'S INTERNAL AUDIT DEPARTMENT SHALL CONDUCT PERIODIC REVIEWS OF THESE POLICIES AND PROCEDURES AND PROVIDE THE SEC STAFF WITH A COPY OF THE AUDIT REPORT.
10(c)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES; FINES ($7,000,000.00); CEASE AND DESIST; CENSURE; UNDERTAKING
10(c)(3). found the applicant or a control affiliate to have been a cause of an investment-related business having its authorization to do business denied, suspended, revoked or restricted?
   Yes X No
10(c)(4). entered an order denying, suspending or revoking the applicant`s or a control affiliate`s registration or otherwise disciplined it by restricting its activities?
X Yes    No
10(c)(4)(i).  The individuals named in the action or claim:
COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-8397
 06/15/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTIONS 15(C)(3) AND 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULES 15C3-1, 17A-3(A)(11) AND 17A-11(A)(1) PROMULGATED THERE UNDER BY (I)FAILING TO TIMELY CALCULATE ITS NET CAPITAL ON A MONTHLY BASIS DURING A LIMITED PERIOD OF TIME, (II) FAILING TO MAINTAIN THE REQUIRED RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL DURING A LIMITED PERIOD OF TIME, AND (III) FAILING TO PROVIDE TELEGRAPHIC NOTICE OF ITS NET CAPITAL DEFICIENCY ON THE DATE IT OCCURRED.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, $50,000 CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-6733
 09/25/1986
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT STEIN ROE AND FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTION 203(E)(5) OF THE INVESTMENT ADVISERS ACT (ACT) WITH A VIEW TO PREVENTING VIOLATIONS OF SECTION 206 OF THE ACT AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT AND RULE 10B-5 THERE UNDER. STEIN ROE AND FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) WAS REQUIRED TO OBTAIN AN INDEPENDENT CONSULTANT TO MAKE RECOMMENDATIONS CONCERNING THE ADMINISTRATION OF ITS INVESTMENT ADVISER OPERATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Censure
10(c)(4)(i).  The individuals named in the action or claim:
STEIN ROE & FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-7303
 01/09/1990
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT STEIN ROE AND FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTION 17(E)(1) OF THE INVESTMENT COMPANY ACT ALLEGING THAT COMPENSATION WAS RECEIVED FOR THE PURCHASE AND SALE OF PROPERTY TO OR FOR THE ACCOUNTS OF SEVERAL INVESTMENT COMPANIES WHICH WERE ADVISED BY STEIN ROE. STEIN ROE AND FARNHAM INCORPORATED (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) WAS REQUIRED TO COMPLY WITH AN UNDERTAKING TO ESTABLISH CERTAIN PROCEDURES REGARDING TRANSACTIONS INVOLVING INVESTMENT COMPANY ASSETS.
10(c)(4)(vi).  Disposition of action or claim:
Censure
10(c)(4)(i).  The individuals named in the action or claim:
NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
# 3-9596
 05/04/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONSSECURITIES' (DISSOLVED 1/1/1998),A FORMER AFFILIATE BROKER/DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARD TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004 INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17(A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(4)(vi).  Disposition of action or claim:
Stipulation and Consent
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA CORPORATION
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
SEATTLE FIRST NATIONAL BANK
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-9409
 07/01/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(F)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1, PROMULGATED THERE UNDER. WITHOUT ADMITTING OR DENYING THE MATTERS ASSERTED THEREIN, SEATTLE FIRST NATIONAL BANK (SEAFIRST), A WHOLLY-OWNED SUBSIDIARY OF SEAFIRST CORPORATION AND BANKAMERICA CORPORATION ENTERED INTO A JOINT CONSENT CEASE AND DESIST ORDER WITH THE SEC AND THE OCC. THE ORDER FOUND THAT SEAFIRST VIOLATED SECTION 17F1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1 PROMULGATED THERE UNDER, PROHIBITED VIOLATIONS IN THE FUTURE, AND REQUIRED SEAFIRST TO PAY CIVIL MONEY PENALTY OF $75,000.00.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, $75,000 CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF BOSTON CORPORATION
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILING NO. 3-8270
 01/11/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THAT CERTAIN ASPECTS OF THE MANAGEMENT DISCUSSION AND ANALYSIS PORTION OF BANK OF BOSTON CORPORATION'S 10-Q FOR THE 2ND QUARTER OF 1989 DID NOT COMPLY WITH SECTION 13(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE EXCHANGE ACT). BANK OF BOSTON WAS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 13(A) OF THE EXCHANGE ACT AND RULES 12B-20 AND 13A-13 THERE UNDER.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U. S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT : (1) BACAP AND BACAP DISTRIBUTORS SHALL MAINTAIN A COMPLIANCE AND ETHICS OVERSIGHT INFRASTRUCTURE HAVING, AMONG OTHER THINGS, A CODE OF ETHICS OVERSIGHT COMMITTEE, AN INTERNAL COMPLIANCE CONTROLS COMMITTEE, A SENIOR LEVEL COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST AND A CORPORATE OMBUDSMAN; (2) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN INDEPENDENT COMPLIANCE CONSULTANTS TO, AMONG OTHER THINGS, REVIEW COMPLIANCE, SUPERVISORY AND OTHER POLICIES AND PROCEDURES; (3) BACAP AND BACAP DISTRIBUTORS SHALL ADOPT THE RECOMMENDATIONS OF SUCH CONSULTANTS SUBJECT TO A MECHANISM FOR RESOLVING DISAGREEMENTS; (4) BACAP AND BACAP DISTRIBUTORS SHALL UNDERGO THIRD PARTY COMPLIANCE REVIEW EVERY OTHER YEAR; AND (5) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN AN INDEPENDENT DISTRIBUTION CONSULTANT. IN ADDITION, THE NATIONS FUNDS HAVE VOLUNTARILY UNDERTAKEN TO OPERATE IN ACCORDANCE WITH CERTAIN GOVERNANCE POLICIES AND PRACTICES INCLUDING, AMONG OTHERS, HAVING TRUSTEES STAND FOR ELECTION PRIOR TO MAY 1, 2005, ARRANGING FOR CERTAIN SPECIFIED TRUSTEES TO RESIGN AND/OR TO NOT STAND FOR ELECTION, REQUIRING THAT 75% OF THE TRUSTEES MEET INDEPENDENCE STANDARDS; REQUIRING THAT THE CHAIRMAN BE INDEPENDENT; AND EMPLOYING COUNSEL TO THE INDEPENDENT TRUSTEES WHO MEET INDEPENDENCE STANDARDS AND DESIGNATING AN INDEPENDENT COMPLIANCE OFFICER.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AD EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT: CMA & CFDI ARE CENSURED; CMA SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT & SS17(D) & 34(B) OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CFDI SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) & 15(C) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER, S. 206(1) & 206(2) OF THE ADVISERS ACT & SS17(D) & 34 (B)OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC. and COLUMBIA MANAGEMENT ADVISORS, LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING ANY DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED IN (4) ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEN IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES, AND CERTAIN UNDERTAKINGS.
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAISI) AND COLUMBIA MANAGEMENT ADVISORS, LLC (CMA) HAVE CONSENTED TO THE ENTRY OF AN ORDER THAT FINDS VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND ADVISERS ACT RULE 206(4)-1(A)(5) IN CONNECTION WITH BAISI'S SELECTION OF CERTAIN MUTUAL FUNDS IN BAISI'S WRAP FEE PROGRAM AND THE ADEQUACY OF DISCLOSURES TO CUSTOMERS REGARDING THE SAME AND CMA'S RECEIPT OF ADDITIONAL MANAGEMENT FEES AS A RESULT THEREOF. THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING AND DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEM IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAISI) AND COLUMBIA MANAGEMENT ADVISORS, LLC (CMA) HAVE CONSENTED TO THE ENTRY OF AN ORDER THAT FINDS VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND ADVISERS ACT RULE 206(4)-1(A)(5) IN CONNECTION WITH BAISI'S SELECTION OF CERTAIN MUTUAL FUNDS IN BAISI'S WRAP FEE PROGRAM AND THE ADEQUACY OF DISCLOSURES TO CUSTOMERS REGARDING THE SAME AND CMA'S RECEIPT OF ADDITIONAL MANAGEMENT FEES AS A RESULT THEREOF. THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING AND DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEM IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANKAMERICA CORPORATION (NKA BANK OF AMERICA CORPORATION)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, THE COMMISSION FOUND THAT, IN 1997 AND 1998, BANKAMERICA, PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, (I) INCORRECTLY ACCOUNTED FOR A FINANCIAL RELATIONSHIP, AND (II) MADE INADEQUATE DISCLOSURES RELATED TO RISK IN EXCHANGE ACT REPORT FILINGS WITH THE COMMISSION, IN CONNECTION WITH A BUSINESS ALLIANCE WITH D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON THE SAME DATE, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11952
 06/15/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED VIOLATIONS BY BANC OF AMERICA INVESTMENT SERVICES, INC. (BAI) AND BACAP DISTRIBUTORS, LLC (BACAP)OF RECORD-KEEPING REQUIREMENTS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4 THERE UNDER & VIOLATIONS BY BAI OF RECORD-KEEPING REQUIREMENTS OF SECTION 204 OF THE ADVISERS ACT AND RULE 204-2 THERE UNDER FROM JANUARY 2001 TO FEBRUARY 2004. FROM JANUARY 2001 TO FEBRUARY 2004, BAI AND BACAP FAILED TO PRESERVE FOR 3 YEARS ELECTRONIC MAIL COMMUNICATIONS (INCLUDING INTER-OFFICE MEMORANDA AND COMMUNICATIONS) RECEIVED AND SENT BY ITS ASSOCIATED PERSONS AND EMPLOYEES THAT RELATED TO ITS BUSINESS AS A BROKER OR DEALER AS REQUIRED BY RULE 17A-4. DURING THE SAME PERIOD, BAI FAILED TO KEEP IN ANY EASILY ACCESSIBLE PLACE FOR A PERIOD OF 5 YEARS, AND/OR TO PRESERVE IN AN APPROPRIATE OFFICE FOR A PERIOD OF 2 YEARS, TRUE, ACCURATE AND CURRENT WRITTEN COMMUNICATIONS RELATING TO RECOMMENDATIONS MADE, ADVICE GIVEN OR PROPOSED TO BE GIVEN; RECEIPT, DISBURSEMENT OR DELIVERY OF FUNDS OR SECURITIES; AND THE PLACING OR EXECUTION OF ORDERS TO PURCHASE AND SELL SECURITIES AS REQUIRED BY RULE 204-2. WITHIN 90 DAYS OF THIS ORDER, BAI AND BACAP WILL COMPLETE A REVIEW OF THEIR PROCEDURES FOR PRESERVATION OF ELECTRONIC MAIL COMMUNICATIONS AND ESTABLISH SYSTEMS AND PROCEDURES DESIGNED TO ACHIEVE COMPLIANCE WITH LAWS, REGULATIONS & RULES. PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, BAI AND BACAP WILL CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OR FUTURE VIOLATIONS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4. THERE UNDER. PURSUANT TO SECTION 203(K) OF THE ADVISERS ACT, BAI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING TO COMMIT VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 204 OF THE ADVISERS ACT AND RULE 204-2 THERE UNDER. BAI AND BACAP ARE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT AND BAI IS ALSO CENSURED PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT. WITHIN 10 DAYS OF THIS ORDER, BAI WILL PAY A CIVIL MONETARY PENALTY OF $1,000,000 TO THE SEC AND BACAP WILL PAY $500,000 TO THE SEC.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, PENALTIES AND OTHER RELIEF
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-9596
 05/04/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (N.K.A. BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONSSECURITIES', A FORMER AFFILIATE BROKER-DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARDS TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. & NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17 (A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATED SECTION 17 (A)(2) OF THE SECURITIES ACT. WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT CONSENTED TO THE ENTRY OF THIS ORDER. ACCORDINGLY, PURSUANT TO SECTION 8A OF THE SECURITIES ACT AND SECTION 15(B) OF THE EXCHANGE ACT, IS ORDERED THAT RESPONDENT IS CENSURED, SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 17(A)(2) OF THE SECURITIES ACT; AND SHALL, WITHIN 10DAYS OF THE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY OF $750,000 TO THE UNITED STATES TREASURY.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CIVIL PENALTIES
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-11818
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT BANC OF AMERICA SECURITIES, LLC (BAS) IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 17 (A) OF THE SECURITIES ACT, 10(B), (15C) AND 17(A) OF THE EXCHANGE ACT AND RULES 10B-5, 15C1-2, 17A-3 AND 17A-4 THERE UNDER AND RULE 22C-1, AS ADOPTED UNDER 22(C) OF THE INVESTMENT COMPANY ACT, AND FROM CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 34(B) OF THE INVESTMENT CO. ACT AND 206(1) AND 206(2) OF THE ADVISERS ACT; BAS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) $250 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $125 MILLION; AND BAS SHALL COMPLY WITH CERTAIN REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
COLUMBIA FUNDS DISTRIBUTOR, INC. AND COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
PURSUANT TO OFFERS OF SETTLEMENT BY CMA AND CFDI IN WHICH THEY NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED AN ORDER ON 2/9/05 FINDING THAT, FROM AT LEAST 1998 THROUGH OCTOBER, 2003, CMA AND CFDI VIOLATED THE FEDERAL SECURITIES LAWS BY ENTERING INTO ARRANGEMENTS WITH 9 INVESTORS THAT ALLOWED THEM TO ENGAGE IN SHORT-TERM OR EXCESSIVE TRADING, CONTRARY TO RESTRICTIONS AND/OR REPRESENTATIONS IN THE COLUMBIA FUNDS' PROSPECTUSES, AND ALLOWING OR FAILING TO PREVENT OTHER INVESTORS FROM ENGAGING IN A PRACTICE OF SHORT-TERM OR EXCESSIVE TRADING. THE ORDER ALSO FOUND THAT CMA FAILED TO MAINTAIN POLICIES AND PROCEDURES TO PREVENT MISUSE OF MATERIAL NON-PUBLIC INFORMATION ABOUT PORTFOLIO HOLDINGS. THE SEC ORDER PROVIDES THAT: CMA AND CFDI ARE CENSURED; CMA SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) &v34(B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CFDI SHALL CEASE & DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) AND 15(C) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER, S.206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34 (B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA AND CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12591
 11/08/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
PURSUANT TO AN OFFER OF SETTLEMENT BY BANC OF AMERICA SECURITIES LLC (BAS) IN WHICH BAS NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED INTO AN ORDER ON MARCH 14,2007 FINDING THAT, DURING THE PERIOD JANUARY 1999 THROUGH DECEMBER 2001, BAS VIOLATED THE ANTIFRAUD AND INTERNAL CONTROL PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH BAS' ISSUANCE OF RESEARCH. THE SEC ORDER PROVIDES THAT BAS IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 15(C) AND 15(F) OF THE EXCHANGE ACT AND RULE 15C1-2(A) PROMULGATED THERE UNDER; BAS SHALL PAY A CIVIL MONEY PENALTY OF $6 MILLION FOR VIOLATIONS OF SECTION 15(F) OF THE EXCHANGE ACT AND $10 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $10 MILLION FOR ITS VIOLATIONS OF SECTION 15(C) OF THE EXCHANGE ACT; AND BAS SHALL COMPLY WITH CERTAIN UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, DISGORGEMENT/RESTITUTION; AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-11425
 11/08/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
U.S. SECURITIES AND EXCHANGE COMMISSION (THE COMMISSION) , WITHOUT OTHERWISE ADMITTING OR DENYING THE FINDINGS SET FORTH IN THE ORDER, IN WHICH THE COMMISSION I) FOUND THAT BAS VIOLATED SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT, AND RULE 17A-4(J) OF THE EXCHANGE ACT; II) ORDERED THAT PURSUANT TO SECTION 21C OF EXCHANGE ACT, BAS CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THERE UNDER; III) ORDERED THAT BAS BE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT; AND IV) ORDERED THAT BAS PAY A CIVIL PENALTY IN THE AMOUNT OF $10,000,000.
10(c)(4)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 01/16/1992
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF BROKER-DEALER AND GOVERNMENT SECURITIES BD RECORD-KEEPING PROVISIONS OF THE SECURITIES EXCHANGE ACT OF 1934 IN CONNECTION WITH THE RESPONDENTS' PARTICIPATION IN PRIMARY DISTRIBUTIONS OF UNSECURED DEBT SECURITIES ISSUES BY 1 OR MORE GSES (RELS34-30192-34-30251). CIVIL PENALTY TO THE US TREASURY OF $100,000 ON BEHALF OF ITS PREDECESSOR, NCNB CAPITAL MARKETS, INC. SHALL MAINTAIN OR WITHIN 60 DAYS OF ORDER DATE, DEVELOP, IMPLEMENT AND MAINTAIN POLICIES REASONABLY DESIGNED TO ENSURE FUTURE COMPLIANCE WITH SECTION 17A OF THE EXCHANGE ACT AND 17 C.F.R. 240.17A-3 AND 240.17A-4 IN CONNECTION WITH ANY PRIMARY DISTRIBUTION OF UNSECURED DEBT SECURITIES ISSUED BY THE GSES. SUCH POLICIES SHALL BE AVAILABLE FOR SEC INSPECTION. NATIONSBANC SHALL COMPLY WITH ALL POLICIES IMPLEMENTED OR MAINTAINED. IT MAY MODIFY SUCH POLICIES, PROVIDED THAT SUCH, AS MODIFIED, ARE REASONABLY DESIGNED TO ENSURE NATIONSBANC'S FUTURE COMPLIANCE.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11446
 03/30/2004
10(c)(4)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
SEC ADMINISTRATIVE RELEASE NO. 34-49499, FILE NO. 3-11446, MARCH 30, 2004; THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AGAINST FLEET SPECIALIST, INC. (FSI OR RESPONDENT). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, FSI HAS SUBMITTED AN OFFER OF SETTLEMENT (OFFER), WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. THIS MATTER INVOLVES VIOLATIONS BY FSI OF ITS BASIC OBLIGATION TO SERVE PUBLIC CUSTOMER ORDERS OVER ITS OWN PROPRIETARY INTERESTS. AS A SPECIALIST FIRM ON THE NYSE, FSI HAD A GENERAL DUTY TO MATCH EXECUTABLE PUBLIC CUSTOMER OR AGENCY BUY AND SELL ORDERS AND NOT TO FILL CUSTOMER ORDERS THROUGH TRADES FROM THE FIRM'S OWN ACCOUNT WHEN THOSE CUSTOMER ORDERS COULD BE MATCHED WITH OTHER CUSTOMER ORDERS. THROUGH VARIOUS FORMS OF IMPROPER CONDUCT, FSI VIOLATED THIS OBLIGATION BY FILLING ORDERS THROUGH PROPRIETARY TRADES RATHER THAN THROUGH OTHER CUSTOMER ORDERS, THEREBY CAUSING CUSTOMER ORDERS TO BE DISADVANTAGED BY APPROXIMATELY $38 MILLION FROM 1999 THROUGH 2003. ACCORDINGLY, IT IS ORDERED THAT: PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, FSI CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 11(B) OF THE EXCHANGE ACT AND RULE 11B-1 THERE UNDER. PURSUANT TO SECTION 15(B)(4)(E) OF THE EXCHANGE ACT, FSI IS HEREBY CENSURED. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY DISGORGEMENT IN THE TOTAL AMOUNT OF $38,013,594. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $21,083,875. THE DISGORGEMENT AND THE CIVIL PENALTIES WHICH SHALL BE ADDED TO A FAIR FUND (THE DISTRIBUTION FUND) SHALL BE MAINTAINED IN AN INTEREST-BEARING ACCOUNT AND SHALL BE DISTRIBUTED PURSUANT TO A DISTRIBUTION PLAN (THE PLAN) DRAWN UP BY AN ADMINISTRATOR (THE ADMINISTRATOR) TO BE CHOSEN BY THE STAFF OF THE COMMISSION AND THE NYSE.
10(c)(4)(vi).  Disposition of action or claim:
Disgorgement
10(c)(4)(i).  The individuals named in the action or claim:
COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILE NO. 3-8397
 06/15/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT COLONIAL MANAGEMENT ASSOCIATES, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) VIOLATED SECTIONS 15(C)(3) AND 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULES 15C3-1, 17A-3(A)(11) AND 17A-11(A)(1) PROMULGATED THERE UNDER BY (I)FAILING TO TIMELY CALCULATE ITS NET CAPITAL ON A MONTHLY BASIS DURING A LIMITED PERIOD OF TIME, (II) FAILING TO MAINTAIN THE REQUIRED RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL DURING A LIMITED PERIOD OF TIME, AND (III) FAILING TO PROVIDE TELEGRAPHIC NOTICE OF ITS NET CAPITAL DEFICIENCY ON THE DATE IT OCCURRED.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, $50,000 CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
# 3-9596
 05/04/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONSSECURITIES' (DISSOLVED 1/1/1998),A FORMER AFFILIATE BROKER/DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARD TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004 INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17(A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(4)(vi).  Disposition of action or claim:
Stipulation and Consent
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA CORPORATION
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
SEATTLE FIRST NATIONAL BANK
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-9409
 07/01/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(F)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1, PROMULGATED THERE UNDER. WITHOUT ADMITTING OR DENYING THE MATTERS ASSERTED THEREIN, SEATTLE FIRST NATIONAL BANK (SEAFIRST), A WHOLLY-OWNED SUBSIDIARY OF SEAFIRST CORPORATION AND BANKAMERICA CORPORATION ENTERED INTO A JOINT CONSENT CEASE AND DESIST ORDER WITH THE SEC AND THE OCC. THE ORDER FOUND THAT SEAFIRST VIOLATED SECTION 17F1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1 PROMULGATED THERE UNDER, PROHIBITED VIOLATIONS IN THE FUTURE, AND REQUIRED SEAFIRST TO PAY CIVIL MONEY PENALTY OF $75,000.00.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, $75,000 CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF BOSTON CORPORATION
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
ADMIN. PROCEEDING FILING NO. 3-8270
 01/11/1994
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THAT CERTAIN ASPECTS OF THE MANAGEMENT DISCUSSION AND ANALYSIS PORTION OF BANK OF BOSTON CORPORATION'S 10-Q FOR THE 2ND QUARTER OF 1989 DID NOT COMPLY WITH SECTION 13(A) OF THE SECURITIES EXCHANGE ACT OF 1934 (THE EXCHANGE ACT). BANK OF BOSTON WAS ORDERED TO CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 13(A) OF THE EXCHANGE ACT AND RULES 12B-20 AND 13A-13 THERE UNDER.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U. S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT: (1) BACAP AND BACAP DISTRIBUTORS SHALL MAINTAIN A COMPLIANCE AND ETHICS OVERSIGHT INFRASTRUCTURE HAVING, AMONG OTHER THINGS, A CODE OF ETHICS OVERSIGHT COMMITTEE, AN INTERNAL COMPLIANCE CONTROLS COMMITTEE, A SENIOR LEVEL COMPLIANCE OFFICER FOR CONFLICTS OF INTEREST AND A CORPORATE OMBUDSMAN; (2) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN INDEPENDENT COMPLIANCE CONSULTANTS TO, AMONG OTHER THINGS, REVIEW COMPLIANCE, SUPERVISORY AND OTHER POLICIES AND PROCEDURES; (3) BACAP AND BACAP DISTRIBUTORS SHALL ADOPT THE RECOMMENDATIONS OF SUCH CONSULTANTS SUBJECT TO A MECHANISM FOR RESOLVING DISAGREEMENTS; (4) BACAP AND BACAP DISTRIBUTORS SHALL UNDERGO THIRD PARTY COMPLIANCE REVIEW EVERY OTHER YEAR; AND (5) BACAP AND BACAP DISTRIBUTORS SHALL RETAIN AN INDEPENDENT DISTRIBUTION CONSULTANT. IN ADDITION, THE NATIONS FUNDS HAVE VOLUNTARILY UNDERTAKEN TO OPERATE IN ACCORDANCE WITH CERTAIN GOVERNANCE POLICIES AND PRACTICES INCLUDING, AMONG OTHERS, HAVING TRUSTEES STAND FOR ELECTION PRIOR TO MAY 1, 2005, ARRANGING FOR CERTAIN SPECIFIED TRUSTEES TO RESIGN AND/OR TO NOT STAND FOR ELECTION, REQUIRING THAT 75% OF THE TRUSTEES MEET INDEPENDENCE STANDARDS; REQUIRING THAT THE CHAIRMAN BE INDEPENDENT; AND EMPLOYING COUNSEL TO THE INDEPENDENT TRUSTEES WHO MEET INDEPENDENCE STANDARDS AND DESIGNATING AN INDEPENDENT COMPLIANCE OFFICER.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT: CMA AND CFDI ARE CENSURED; CMA SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34(B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CFDI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) AND 15(C) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER, S. 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34 (B)OF THE INVESTMENT COMPANY ACT & RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC. and COLUMBIA MANAGEMENT ADVISORS, LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING ANY DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED IN (4) ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEN IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES, AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-13030
 11/01/2003
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAISI) AND COLUMBIA MANAGEMENT ADVISORS, LLC (CMA) HAVE CONSENTED TO THE ENTRY OF AN ORDER THAT FINDS VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND ADVISERS ACT RULE 206(4)-1(A)(5) IN CONNECTION WITH BAISI'S SELECTION OF CERTAIN MUTUAL FUNDS IN BAISI'S WRAP FEE PROGRAM AND THE ADEQUACY OF DISCLOSURES TO CUSTOMERS REGARDING THE SAME AND CMA'S RECEIPT OF ADDITIONAL MANAGEMENT FEES AS A RESULT THEREOF. THE SEC ORDER PROVIDES THAT (I) BAISI AND CMA CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933, SECTIONS 206(2), 206(4), AND 207 OF THE ADVISERS ACT, AND RULE 206(4)-1(A)(5) PROMULGATED THERE UNDER; (II) BAISI PAY $3,310,206 IN DISGORGEMENT, $793,773 IN PREJUDGMENT INTEREST, AND $2,000,000 IN CIVIL MONETARY PENALTY; (III) CMA PAY $2,143,273 IN DISGORGEMENT, $516,382 IN PREJUDGMENT INTEREST, AND $1,000,000 IN CIVIL MONETARY PENALTIES; (IV) CENSURES BAISI PURSUANT TO SECTION 15(B)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 AND CENSURES BAISI AND CMA PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT; AND (V) REQUESTS THAT BAISI COMPLY WITH CERTAIN UNDERTAKINGS. THE SEC ORDER PROVIDES THAT: (1) WITHIN 15 DAYS, BAISI PLACE AND MAINTAIN ON ITS WEBSITE FOR AT LEAST 18 MONTHS DISCLOSURES RESPECTING THE MANNER OF SELECTING FUNDS FOR ANY DISCRETIONARY PROGRAM AND IDENTIFYING ANY FUNDS AFFILIATED WITH BAISI OR CMA THAT ARE INCLUDED IN THE PROGRAM AND AGGREGATE PERCENTAGE OF AFFILIATE FUNDS INCLUDED IN SUCH PROGRAM; (2) WITHIN 15 DAYS, BAISI PLACE A SUMMARY OF THE ORDER ON ITS WEBSITE WITH A HYPERLINK TO THE ORDER AND MAINTAIN SUCH SUMMARY AND HYPERLINK FOR AT LEAST 18 MONTHS; (3) ON AT LEAST A QUARTERLY BASIS AND CONTINUING FOR AT LEAST 18 MONTHS FROM THE DATE OF THE STATEMENT IN WHICH IT IS FIRST INCLUDED, BAISI SHALL SEND A PERIODIC STATEMENT OR REPORT TO EACH DISCRETIONARY MUTUAL FUND WRAP FEE CLIENT TO SPECIFICALLY IDENTIFY ALL FUNDS OR FUND FAMILIES ADVISED BY ANY AFFILIATE OF BAISI; (4) WITHIN 90 DAYS, BAISI SHALL COMPLETE A COMPREHENSIVE REVIEW OF (I) WHETHER THE METHOD OF SELECTING MUTUAL FUNDS TO BE INCLUDED IN ANY DISCRETIONARY PROGRAM ADVISED BY BAISI IS ADEQUATELY DISCLOSED; (II) THE ADEQUACY OF DISCLOSURES RESPECTING AND DISCRETIONARY PROGRAM ADVISED BY BAISI; AND (III) THE ADEQUACY OF THE POLICIES AND PROCEDURES RESPECTING BAISI RECOMMENDATIONS TO MUTUAL FUND WRAP CLIENTS. UPON COMPLETION OF THE REVIEW OUTLINED ABOVE, BAISI SHALL FORWARD A DESCRIPTION OF ANY DEFICIENCIES FOUND DURING THE REVIEW AND THE MANNER IN WHICH IT PLANS TO REMEDIATE ANY DEFICIENCIES TO THE SEC. BAISI SHALL THEM IMPLEMENT REMEDIAL ACTIONS TO ADDRESS ANY DEFICIENCIES FOUND IN THE REVIEW WITHIN 120 DAYS.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, DISGORGEMENT AND PREJUDGMENT INTEREST, CIVIL MONETARY PENALTIES AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANKAMERICA CORPORATION (NKA BANK OF AMERICA CORPORATION)
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-10541
 07/30/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) FOUND THAT IN 1997 AND 1998, BANKAMERICA CORPORATION (BANKAMERICA), PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, VIOLATED VARIOUS SECURITIES EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS WITH RESPECT TO A BUSINESS ALLIANCE BETWEEN BANKAMERICA AND D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON JULY 30, 2001, THE COMMISSION FOUND THAT, IN 1997 AND 1998, BANKAMERICA, PREDECESSOR OF THE CORPORATE PARENT OF THE APPLICANT, (I) INCORRECTLY ACCOUNTED FOR A FINANCIAL RELATIONSHIP, AND (II) MADE INADEQUATE DISCLOSURES RELATED TO RISK IN EXCHANGE ACT REPORT FILINGS WITH THE COMMISSION, IN CONNECTION WITH A BUSINESS ALLIANCE WITH D.E. SHAW SECURITIES GROUP, L.P. AND RELATED ENTITIES. ON THE SAME DATE, WITHOUT ADMITTING OR DENYING THE COMMISSION'S ALLEGATIONS, CHARGES OR FINDINGS, THE APPLICANT'S CORPORATE PARENT (BANK OF AMERICA CORPORATION) CONSENTED TO ENTRY OF AN ADMINISTRATIVE ORDER PROVIDING THAT IT CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF THE EXCHANGE ACT ACCOUNTING AND REPORTING PROVISIONS CITED IN THE COMMISSION'S ALLEGATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11952
 06/15/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED VIOLATIONS BY BANC OF AMERICA INVESTMENT SERVICES, INC. (BAI) AND BACAP DISTRIBUTORS, LLC (BACAP)OF RECORD-KEEPING REQUIREMENTS OF SECTION 17(A) OF THE EXCHANGE ACT & RULE 17A-4 THERE UNDER AND VIOLATIONS BY BAI OF RECORD-KEEPING REQUIREMENTS OF SECTION 204 OF THE ADVISERS ACT & RULE 204-2 THERE UNDER FROM JANUARY 2001 TO FEBRUARY 2004. FROM JANUARY 2001 TO FEBRUARY 2004, BAI AND BACAP FAILED TO PRESERVE FOR 3 YEARS ELECTRONIC MAIL COMMUNICATIONS (INCLUDING INTER-OFFICE MEMORANDA AND COMMUNICATIONS) RECEIVED AND SENT BY ITS ASSOCIATED PERSONS AND EMPLOYEES THAT RELATED TO ITS BUSINESS AS A BROKER OR DEALER AS REQUIRED BY RULE 17A-4. DURING THE SAME PERIOD, BAI FAILED TO KEEP IN ANY EASILY ACCESSIBLE PLACE FOR A PERIOD OF 5 YEARS, AND/OR TO PRESERVE IN AN APPROPRIATE OFFICE FOR A PERIOD OF 2 YEARS, TRUE, ACCURATE & CURRENT WRITTEN COMMUNICATIONS RELATING TO RECOMMENDATIONS MADE, ADVICE GIVEN OR PROPOSED TO BE GIVEN; RECEIPT, DISBURSEMENT OR DELIVERY OF FUNDS OR SECURITIES; AND THE PLACING OR EXECUTION OF ORDERS TO PURCHASE AND SELL SECURITIES AS REQUIRED BY RULE 204-2. WITHIN 90 DAYS OF THIS ORDER, BAI AND BACAP WILL COMPLETE A REVIEW OF THEIR PROCEDURES FOR PRESERVATION OF ELECTRONIC MAIL COMMUNICATIONS AND ESTABLISH SYSTEMS AND PROCEDURES DESIGNED TO ACHIEVE COMPLIANCE WITH LAWS, REGULATIONS AND RULES. PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, BAI AND BACAP WILL CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OR FUTURE VIOLATIONS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4THEREUNDER. PURSUANT TO SECTION 203(K) OF THE ADVISERS ACT, BAI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING TO COMMIT VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 204 OF THE ADVISERS ACT AND RULE 204-2 THERE UNDER. BAI AND BACAP ARE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT AND BAI IS ALSO CENSURED PURSUANT TO SECTION 203(E) OF THE ADVISERS ACT. WITHIN 10 DAYS OF THIS ORDER, BAI WILL PAY A CIVIL MONETARY PENALTY OF $1,000,000 TO THE SEC AND BACAP WILL PAY $500,000 TO THE SEC.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, PENALTIES AND OTHER RELIEF
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-9596
 05/04/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED THAT NATIONSBANK, N.A. (N.K.A. BANK OF AMERICA, N.A.) WAS A CAUSE OF NATIONSSECURITIES', A FORMER AFFILIATE BROKER-DEALER, VIOLATION OF SECTION 17(A)(2) & (3) OF THE SECURITIES ACT IN REGARDS TO SUPERVISING REGISTERED REPRESENTATIVES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. & NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NATIONSBANK, N.A. CONSENTED TO AN ORDER TO CEASE AND DESIST FROM COMMITTING OR CAUSING VIOLATIONS OF SECTION 17 (A)(2) AND (3) OF THE SECURITIES ACT.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATED SECTION 17 (A)(2) OF THE SECURITIES ACT. WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT CONSENTED TO THE ENTRY OF THIS ORDER. ACCORDINGLY, PURSUANT TO SECTION 8A OF THE SECURITIES ACT AND SECTION 15(B) OF THE EXCHANGE ACT, IS ORDERED THAT RESPONDENT IS CENSURED, SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 17(A)(2) OF THE SECURITIES ACT; AND SHALL, WITHIN 10DAYS OF THE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY OF $750,000 TO THE UNITED STATES TREASURY.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CIVIL PENALTIES
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-11818
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ORDER PROVIDES THAT BANC OF AMERICA SECURITIES, LLC (BAS) IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 17 (A) OF THE SECURITIES ACT, 10(B), (15C) AND 17(A) OF THE EXCHANGE ACT AND RULES 10B-5, 15C1-2, 17A-3 AND 17A-4 THERE UNDER AND RULE 22C-1, AS ADOPTED UNDER 22(C) OF THE INVESTMENT COMPANY ACT, AND FROM CAUSING ANY PRESENT OR FUTURE VIOLATIONS OF 34(B) OF THE INVESTMENT CO. ACT AND 206(1) AND 206(2) OF THE ADVISERS ACT; BAS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) $250 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $125 MILLION; AND BAS SHALL COMPLY WITH CERTAIN REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
COLUMBIA FUNDS DISTRIBUTOR, INC. AND COLUMBIA MANAGEMENT ADVISORS, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 02/09/2005
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
PURSUANT TO OFFERS OF SETTLEMENT BY CMA AND CFDI IN WHICH THEY NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED AN ORDER ON 2/9/05 FINDING THAT, FROM AT LEAST 1998 THROUGH OCTOBER, 2003, CMA AND CFDI VIOLATED THE FEDERAL SECURITIES LAWS BY ENTERING INTO ARRANGEMENTS WITH 9 INVESTORS THAT ALLOWED THEM TO ENGAGE IN SHORT-TERM OR EXCESSIVE TRADING, CONTRARY TO RESTRICTIONS AND/OR REPRESENTATIONS IN THE COLUMBIA FUNDS' PROSPECTUSES, AND ALLOWING OR FAILING TO PREVENT OTHER INVESTORS FROM ENGAGING IN A PRACTICE OF SHORT-TERM OR EXCESSIVE TRADING. THE ORDER ALSO FOUND THAT CMA FAILED TO MAINTAIN POLICIES AND PROCEDURES TO PREVENT MISUSE OF MATERIAL NON-PUBLIC INFORMATION ABOUT PORTFOLIO HOLDINGS. THE SEC ORDER PROVIDES THAT: CMA & CFDI ARE CENSURED; CMA SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS & ANY FUTURE VIOLATIONS OF SS204A, 206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34(B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CFDI SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF S.17(A) OF THE SECURITIES ACT, SS10(B) AND 15(C) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER, S.206(1) AND 206(2) OF THE ADVISERS ACT AND SS17(D) AND 34 (B) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THERE UNDER; CMA AND CFDI SHALL PAY ON A JOINT & SEVERAL BASIS, $70M IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $70M; CMA & CFDI SHALL COMPLY WITH REMEDIAL UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE AND DISGORGEMENT/RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12591
 11/08/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
PURSUANT TO AN OFFER OF SETTLEMENT BY BANC OF AMERICA SECURITIES LLC (BAS) IN WHICH BAS NEITHER ADMITTED NOR DENIED THE FINDINGS, THE SEC ENTERED INTO AN ORDER ON MARCH 14,2007 FINDING THAT, DURING THE PERIOD JANUARY 1999 THROUGH DECEMBER 2001, BAS VIOLATED THE ANTIFRAUD AND INTERNAL CONTROL PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH BAS' ISSUANCE OF RESEARCH. THE SEC ORDER PROVIDES THAT BAS IS CENSURED; BAS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY FUTURE VIOLATIONS OF SECTIONS 15(C) AND 15(F) OF THE EXCHANGE ACT AND RULE 15C1-2(A) PROMULGATED THERE UNDER; BAS SHALL PAY A CIVIL MONEY PENALTY OF $6 MILLION FOR VIOLATIONS OF SECTION 15(F) OF THE EXCHANGE ACT AND $10 MILLION IN DISGORGEMENT PLUS A CIVIL MONEY PENALTY OF $10 MILLION FOR ITS VIOLATIONS OF SECTION 15(C) OF THE EXCHANGE ACT; AND BAS SHALL COMPLY WITH CERTAIN UNDERTAKINGS.
10(c)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, DISGORGEMENT/RESTITUTION; AND CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-11425
 11/08/2001
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
U.S. SECURITIES AND EXCHANGE COMMISSION (THE COMMISSION) , WITHOUT OTHERWISE ADMITTING OR DENYING THE FINDINGS SET FORTH IN THE ORDER, IN WHICH THE COMMISSION I) FOUND THAT BAS VIOLATED SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT, AND RULE 17A-4(J) OF THE EXCHANGE ACT; II) ORDERED THAT PURSUANT TO SECTION 21C OF EXCHANGE ACT, BAS CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 17(A) AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THERE UNDER; III) ORDERED THAT BAS BE CENSURED PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT; AND IV) ORDERED THAT BAS PAY A CIVIL PENALTY IN THE AMOUNT OF $10,000,000.
10(c)(4)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 01/16/1992
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF BROKER-DEALER AND GOVERNMENT SECURITIES BD RECORD-KEEPING PROVISIONS OF THE SECURITIES EXCHANGE ACT OF 1934 IN CONNECTION WITH THE RESPONDENTS' PARTICIPATION IN PRIMARY DISTRIBUTIONS OF UNSECURED DEBT SECURITIES ISSUES BY 1 OR MORE GSES (RELS34-30192-34-30251). CIVIL PENALTY TO THE US TREASURY OF $100,000 ON BEHALF OF ITS PREDECESSOR, NCNB CAPITAL MARKETS, INC. SHALL MAINTAIN OR WITHIN 60 DAYS OF ORDER DATE, DEVELOP, IMPLEMENT AND MAINTAIN POLICIES REASONABLY DESIGNED TO ENSURE FUTURE COMPLIANCE WITH SECTION 17A OF THE EXCHANGE ACT AND 17 C.F.R. 240.17A-3 AND 240.17A-4 IN CONNECTION WITH ANY PRIMARY DISTRIBUTION OF UNSECURED DEBT SECURITIES ISSUED BY THE GSES. SUCH POLICIES SHALL BE AVAILABLE FOR SEC INSPECTION. NATIONSBANC SHALL COMPLY WITH ALL POLICIES IMPLEMENTED OR MAINTAINED. IT MAY MODIFY SUCH POLICIES, PROVIDED THAT SUCH, AS MODIFIED, ARE REASONABLY DESIGNED TO ENSURE NATIONSBANC'S FUTURE COMPLIANCE
10(c)(4)(vi).  Disposition of action or claim:
CIVIL PENALTY
10(c)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
N/A
 01/15/1992
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
COMMITTING OR CAUSING VIOLATIONS OF RULES IN CONNECTION WITH ANY PRIMARY DISTRIBUTION OF UNSECURED EBT SECURITIES ISSUED BY GSE. NATIONSBANC CAPITAL MARKETS, INC. CONSENTED WITHOUT ADMITTING OR DENYING ANY OF THE FINDINGS TO THE ISSUANCE OF 01/15/92 ORDER BY THE SEC IN THE MATTER OF THE DISTRIBUTION OF SECURITIES OF CERTAIN GOVERNMENT SPONSORED ENTERPRISES IN FULL SETTLEMENT OF THE MATTER. IN ITS REPORT UNDER SECTION 21(A) OF THE SECURITIES EXCHANGE ACT, THE SEC STATED THAT THE OFFICIALS OF THE GSES INVOLVED DO NOT BELIEVE THAT SELLING GROUP MEMBERS EVER MISLEAD THEM REGARDING PRICING OF THE SECURITIES. THERE WERE MORE THAN 100 BANKS AND BROKER-DEALERS INVOLVED IN THIS MATTER, AND VIRTUALLY ALL SELLING GROUP MEMBERS DETERMINED TO SETTLE.
10(c)(4)(vi).  Disposition of action or claim:
SETTLED
10(c)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE NO. 3-11446
 03/30/2004
10(c)(4)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
SEC ADMINISTRATIVE RELEASE NO. 34-49499, FILE NO. 3-11446, MARCH 30, 2004; THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AGAINST FLEET SPECIALIST, INC. (FSI OR RESPONDENT). IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, FSI HAS SUBMITTED AN OFFER OF SETTLEMENT (OFFER), WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. THIS MATTER INVOLVES VIOLATIONS BY FSI OF ITS BASIC OBLIGATION TO SERVE PUBLIC CUSTOMER ORDERS OVER ITS OWN PROPRIETARY INTERESTS. AS A SPECIALIST FIRM ON THE NYSE, FSI HAD A GENERAL DUTY TO MATCH EXECUTABLE PUBLIC CUSTOMER OR AGENCY BUY AND SELL ORDERS AND NOT TO FILL CUSTOMER ORDERS THROUGH TRADES FROM THE FIRM'S OWN ACCOUNT WHEN THOSE CUSTOMER ORDERS COULD BE MATCHED WITH OTHER CUSTOMER ORDERS. THROUGH VARIOUS FORMS OF IMPROPER CONDUCT, FSI VIOLATED THIS OBLIGATION BY FILLING ORDERS THROUGH PROPRIETARY TRADES RATHER THAN THROUGH OTHER CUSTOMER ORDERS, THEREBY CAUSING CUSTOMER ORDERS TO BE DISADVANTAGED BY APPROXIMATELY $38 MILLION FROM 1999 THROUGH 2003. ACCORDINGLY, IT IS ORDERED THAT: PURSUANT TO SECTION 21C OF THE EXCHANGE ACT, FSI CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION 11(B) OF THE EXCHANGE ACT AND RULE 11B-1 THERE UNDER. PURSUANT TO SECTION 15(B)(4)(E) OF THE EXCHANGE ACT, FSI IS HEREBY CENSURED. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY DISGORGEMENT IN THE TOTAL AMOUNT OF $38,013,594. FSI SHALL, WITHIN TEN DAYS OF THE ENTRY OF THE ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $21,083,875. THE DISGORGEMENT AND THE CIVIL PENALTIES WHICH SHALL BE ADDED TO A FAIR FUND (THE DISTRIBUTION FUND) SHALL BE MAINTAINED IN AN INTEREST-BEARING ACCOUNT AND SHALL BE DISTRIBUTED PURSUANT TO A DISTRIBUTION PLAN (THE PLAN) DRAWN UP BY AN ADMINISTRATOR (THE ADMINISTRATOR) TO BE CHOSEN BY THE STAFF OF THE COMMISSION AND THE NYSE.
10(c)(4)(vi).  Disposition of action or claim:
Disgorgement
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 97-10
 06/24/1997
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED SECTION 4(C)(A)(A) OF THE COMMODITY EXCHANGE ACT AND CFTC REGULATION 1.37(A) RELATING TO TRADING IN WHEAT FUTURES. MERRILL LYNCH FUTURES, INC. SHALL CEASE AND DESIST FROM VIOLATING SECTION 4C(A)(A) OF THE ACT, 7 USC S6C(A)(A) AND REGULATION 1.37(A), 7 CFRSI.37(A) AND PAY A CIVIL MONETARY PENALTY.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1992
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF C.F.R. PART 404 PROMULGATED PURSUANT TO SECTION 15C. THIS PROCEEDING WAS PART OF PROCEEDINGS COMMENCED AGAINST APPROXIMATELY 100 FINANCIAL INSTITUTIONS IN CONNECTION WITH THEIR DISTRIBUTION OF SECURITIES ISSUED BY CERTAIN GOVERNMENT SPONSORED ENTERPRISES.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/30/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
MERRILL LYNCH FAILED TO SUPERVISE ACTIVITIES OF A FORMER MERRILL LYNCH FUTURES, INC. EMPLOYEE. FIRM AGREED TO REVIEW CERTAIN PROCEDURES. MERRILL LYNCH FUTURES INC. CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS TO A CEASE AND DESIST.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH CAPITAL SERVICES, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA REL. 42640; 95 CIV. 1353 (SDNY)
 04/06/2000
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT TREASURY SECURITIES WERE PRICED TOO HIGH WHEN SOLD IN CONNECTION WITH MUNICIPAL ADVANCE REFUNDING BOND OFFERINGS. THE FIRM JOINED IN A GLOBAL SETTLEMENT OF THE SEC'S INDUSTRY-WIDE INVESTIGATION RELATING TO THE PRICING OF GOVERNMENT SECURITIES IN ADVANCE REFUNDS (SEA REL. NO.42640) AND A RELATED QUI TAM SUIT BROUGHT BY MICHAEL LISSACK ON BEHALF OF THE UNITED STATES (95 CIV. 1353 (SDNY). UNDER THE TERMS OF THE SETTLEMENT, MERRILL LYNCH, WITHOUT ADMITTING OR DENYING LIABILITY, CONSENTED TO AN SEC ADMINISTRATIVE CEASE AND DESIST ORDER UNDER SECTIONS 17(A)(2) AND (3) OF THE SECURITIES AND EXCHANGE ACT AND A CENSURE AND AGREED TO PAYMENTS TO MUNICIPALITIES AND TO THE UNITED STATES TREASURY. THE QUI TAM SUIT AGAINST MERRILL LYNCH WAS THEN DISMISSED WITH PREJUDICE AND THE INTERNAL REVENUE SERVICE AGREED TO PROVIDE ASSURANCES TO MUNICIPALITIES RELATING TO THE TAX EXEMPT STATUS OF APPROXIMATELY 260 TRANSACTIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 14149
 11/09/1977
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
FIRM FAILED TO REASONABLY SUPERVISE CERTAIN INDIVIDUAL RESPONDENTS THEREBY PREVENTING VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT 10(B) OF THE EXCHANGE ACT & RULE 10B-5 THERE UNDER. AGREED TO PAY SUM OF UP TO $1,600,000 TO COMPENSATE ITS CUSTOMERS WHO SUFFERED LOSSES RESULTING FROM TRANSACTIONS IN THE COMMON STOCK OF SCIENTIFIC CONTROL CORPORATION DURING THE PERIOD MARCH 1, 1968 TO NOVEMBER 21, 1969.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE AND UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 11515
 06/30/1975
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED CUSTOMER TRANSACTIONS WERE UNSUITABLE AND THAT TRADES WERE NOT PROPERLY REFLECTED ON FIRM RECORDS. FIRM HAS UNDERTAKEN TO ADOPT CERTAIN SUPPLEMENTAL POLICIES AND PROCEDURES TO PREVENT REOCCURRENCE OF ALLEGED CONDUCT.
10(c)(4)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/12/1978
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 AND THAT FIRM AND A MANAGER FAILED TO REASONABLY SUPERVISE AN ACCOUNT EXECUTIVE. AGREEMENT TO ADOPT AND IMPLEMENT CERTAIN NEW PROCEDURES RELATED TO THE OPENING, REVIEWING AND HANDLING OF GOVERNMENT SECURITIES ACCOUNTS IN ITS INSTITUTIONAL OFFICES.
10(c)(4)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 18923
 07/26/1982
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT AND SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THERE UNDER BY THE FIRM AND FAILURE TO SUPERVISE. FIRM AGREED TO A CENSURE AND AN UNDERTAKING REQUIRING THE FORMATION OF AN OPTIONS REVIEW COMMITTEE TO CONSIDER POLICIES AND PROCEDURES WITH RESPECT TO OPTIONS SELLING PRACTICES.
10(c)(4)(vi).  Disposition of action or claim:
UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/30/1983
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-3 THERE UNDER. FIRM AGREED TO A CENSURE AND TO INSTITUTE NEW PROCEDURES WITH RESPECT TO STOCK LOAN TRANSACTIONS.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE AND UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/11/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
FIRM FAILED TO PROPERLY SUPERVISE AN ACCOUNT EXECUTIVE. THE FIRM ACCEPTED THE SANCTIONS WITHOUT ADMITTING OR DENYING THE SEC'S CHARGES.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 85-6
 11/14/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SECTIONS 4C(A)&(B) OF THE ACT AND REGULATIONS 1.38 AND 166.3 PROHIBITING WASH SALES. PURSUANT TO THE TERMS OF SETTLEMENT AGREEMENT - $50,000 CIVIL PENALTY AND AN ORDER TO COMPLY WITH CERTAIN UNDERTAKINGS TO REVIEW/REFORM ITS SUPERVISORY AND TRAINING POLICIES/PROCEDURES AND TO CEASE AND DESIST FROM SAID VIOLATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/27/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
CHARGED WITH EXECUTING THREE WASH TRADES FOR ONE OF ITS CUSTOMERS. CASE SETTLED WITHOUT ADMITTING OR DENYING ALLEGATIONS BY AGREEING TO A CIVIL PENALTY AND ENTRY OF A CEASE AND DESIST ORDER.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/24/1986
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF THE TIME STAMPING AND ORDER TICKET PREPARATION AND MAINTENANCE REQUIREMENTS OF THE COMMODITY EXCHANGE ACT. FIRM AGREED TO CEASE AND DESIST FROM FUTURE VIOLATIONS, PAY A CIVIL PENALTY AND REVISE ITS COMPUTER PROGRAM AND OPERATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: ADMIN. PROCEEDING 3-3255, SEC REL. 33367
 12/22/1993
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-3 IN THAT IT FAILED TO PROPERLY RECORD ON ITS BOOKS AND RECORDS CERTAIN TRADES OF HIGH YIELD AND TREASURY SECURITIES. CONSENTED WITHOUT ADMITTING OR DENYING THE MATTERS SET FORTH TO THE ISSUANCE OF AN ORDER OF CENSURE, CEASE AND DESIST AND REQUIREMENT TO MAINTAIN CERTAIN PROCEDURES TO ASSURE COMPLIANCE WITH THE ACT AND RULE THERE UNDER.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist, CENSURE, UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 8459
 11/25/1968
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF SECTIONS 17(A), 10(B) AND 15(C)(1) OF THE EXCHANGE ACT AND RULES 10B-5 AND 15(C)-2. NY INSTITUTIONAL SALES OFFICE SUSPENDED FOR 21 DAYS BEGINNING 12/5/68 AND WEST COAST UNDERWRITING OFFICE SUSPENDED FOR 15 DAYS BEGINNING 12/11/68.
10(c)(4)(vi).  Disposition of action or claim:
Suspension
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/06/1970
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
FIRM AND FIRST NATIONAL CITY BANK VIOLATED SECTION 5 OF THE SECURITIES ACT. SEC FILED A COMPLAINT FOR AN INJUNCTION IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. MERRILL LYNCH ENTERED INTO A STIPULATION AND UNDERTAKING WITH THE SEC WHEREIN IT DENIED THAT IT ENGAGED IN ANY ILLEGAL ACTS BUT AGREED TO CEASE ACTING IN CONNECTION WITH THE BANKS' SPECIAL INVESTMENT ADVISORY SERVICE. AN ORDER WAS ENTERED THE SAME DAY BY THE COURT DISMISSING THE SEC'S COMPLAINT WITHOUT PREJUDICE.
10(c)(4)(vi).  Disposition of action or claim:
STIPULATION AND UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: NASDAQ MARKET MAKERS RELEASE 34-40900 and 15
 01/11/1999
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
IN AN ACTION BROUGHT AGAINST ALMOST ALL MAJOR NASDAQ MARKET MAKERS, SEC FOUND THAT IN 1994 MARKET MAKERS, INCLUDING MERRILL LYNCH VIOLATED PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH THEIR ACTIVITIES IN NASDAQ SECURITIES. WITHOUT ADMITTING OR DENYING ALLEGATIONS, MERRILL LYNCH AGREED TO PAY A CIVIL PENALTY. IN ADDITION, FIRM AGREED TO A CEASE AND DESIST ORDER AND TO SUBMIT CERTAIN OF ITS POLICIES TO AN INDEPENDENT CONSULTANT.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA RELEASE 9959
 04/12/1969
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
FIRM AND ONE SALESMAN VIOLATED SECTION 5(A) & (C) OF THE ACT BY SALES OF NON-EXEMPT UNREGISTERED STOCK. BRANCH OFFICE WAS SUSPENDED FROM CONDUCTING SECURITIES BUSINESS FOR FIVE BUSINESS DAYS. SALESMAN AND MANAGER SUSPENDED FOR TEN AND FIVE BUSINESS DAYS, RESPECTIVELY.
10(c)(4)(vi).  Disposition of action or claim:
ORDER
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: S-97061(LX)
 08/24/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. VIOLATED SECTIONS 17(A)(2) AND (3) OF THE SECURITIES ACT OF '33 SECTION 15B(C)(1) OF THE SECURITIES ACT OF '34 AND RULE G-17 OF THE MSRB. MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. WAS DIRECTED TO CEASE AND DESIST FROM ANY FUTURE VIOLATIONS OF SECTIONS 17(A)2 AND (3) OF THE SECURITIES ACT OF '33 AND SECTION 15B(C)(1) OF SECURITIES ACT OF '34; TO PAY A CIVIL PENALTY OF $2 MILLION; TO COMPLY WITH UNDERTAKINGS TO MAINTAIN PREVIOUSLY REVISED POLICIES AND PROCEDURES.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEC REL. 13769, SEC REL. 13770
 07/19/1977
10(c)(4)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SEC RULE 17A3. FIRM CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TO FINDING THAT IT VIOLATED RULE 17A3 AND HAS BEEN ORDERED BY THE SEC TO INSTITUTE CERTAIN RECORDKEEPING PROCEDURES TO AVOID A REPETITION OF THIS TYPE OF SITUATION.
10(c)(4)(vi).  Disposition of action or claim:
Undertaking
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: CLE-334
 08/06/1982
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED TO HAVE VIOLATED PROVISIONS OF THE SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934 IN CONNECTION WITH THE OFFER AND SALE OF EXCHANGE LISTED OPTIONS, INCLUDING FAILURE TO SUPERVISE EMPLOYEES. SEC ACCEPTED SETTLEMENT OFFERS CONSENTING TO FINDINGS WITHOUT ADMITTING OR DENYING ALLEGATIONS. CENSURE IMPOSED INCLUDING SUSPENSION FOR SEVERAL EMPLOYEES AS SPECIFIED IN THE ORDER. ADDITIONALLY, MERRILL LYNCH MADE OFFERS OF RESTITUTION TO CERTAIN CUSTOMERS AND ESTABLISHED AN OPTIONS REVIEW COMMITTEE TO IMPLEMENT REVISED PROCEDURES TO ENSURE COMPLIANCE WITH APPLICABLE GUIDELINES.
10(c)(4)(vi).  Disposition of action or claim:
Censure
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: ND 73-122
 06/25/1973
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGED VIOLATES OF ANTIFRAUD PROVISIONS INCLUDING MAKING UNTRUE STATEMENTS OR OMISSIONS CONCERNING FUTURE PRICE OF SHARES, THE COMPARISON OF THE COMPANY'S GROWTH TO OTHER WELL ESTABLISHED COMPANIES AND THE LIKELIHOOD OF THE SHARES BEING LISTED ON A NATIONAL EXCHANGE. ADDITIONALLY, IT WAS ALLEGED THAT THERE WAS MISUSE OF INSIDE INFORMATION AND A FAILURE TO REASONABLY SUPERVISE. CENSURED; UNDERTAKING PURSUANT TO OFFER OF SETTLEMENT INCLUDING (1) PAY RESTITUTION TO CUSTOMERS, (2) REVIEW AND REVISE PROCEDURES AS APPROPRIATE RELATING TO RESEARCH AND SALES ACTIVITIES AND (3) REVIEW AND REVISE AS APPROPRIATE THE ACCOUNT EXECUTIVE TRAINING PROGRAMS.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE AND RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNAVAILABLE
 12/23/1993
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
SEC ALLEGES THAT MERRILL LYNCH VIOLATED SECTIONS OF THE SECURITIES EXCHANGE ACT OF 1934. IT WAS ALLEGED THAT THE FIRM FAILED TO PROPERLY RECORD SECURITIES TRANSACTIONS ON ITS BOOKS AND RECORDS. MERRILL LYNCH MADE AN OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS. THE SEC ACCEPTED THE OFFER OF SETTLEMENT. THE FIRM WAS CENSURED AND ORDERED TO CEASE AND DESIST. THE FIRM WAS REQUIRED TO IMPLEMENT CERTAIN PROCEDURES TO ENSURE PROPER RECORDKEEPING.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CEASE AND DESIST
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R 81-1170-82-330
 07/13/1981
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
CLAIMANT ALLEGES THAT FINANCIAL ADVISOR MADE 5 UNAUTHORIZED TRADES. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND THOMAS R. BAKER TO PAY CLAIMANT $507.50 PLUS INTEREST UNTIL PAID ALONG WITH CLAIMANTS $25.00 FILING FEE. COMMISSION ORDERED THAT COMPLAINT BE DISMISSED AGAINST MELVIN G. DAVIDSON.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R 77-49
 12/09/1976
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATIONS THAT FINANCIAL ADVISOR FAILED TO FOLLOW INSTRUCTIONS OF CLAIMANT AND MADE UNAUTHORIZED TRANSFER OF STOCK. MERRILL LYNCH ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $9,732.50 PLUS INTEREST AT 8% FROM JULY 26, 1976 TO DATE OF PAYMENT. COMPLAINT DISMISSED AGAINST TOMLINSON, SMITH AND SULLIVAN.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R81-664-82-181
 04/08/1981
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATIONS THAT RESPONDENT FAILED TO PROMPTLY FURNISH AN ACCURATE MONTHLY STATEMENT AND WRITTEN STATEMENT FOR EACH TRANSACTION, FAILED TO SUPERVISE THE HANDLING OF ACCOUNTS AND FAILED TO MAKE CORRECTIONS TO STATEMENTS WITHIN A REASONABLE TIME. FINDINGS THAT CORRECTIONS TO STATEMENTS WERE NOT MADE BY RESPONDENT IN A REASONABLE TIME. RESPONDENT ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $13,740.40 WITH INTEREST FROM SEPTEMBER 8, 1983 UNTIL PAID, ALONG WITH PAYMENT OF CLAIMANT'S $25.00 FILING FEE.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 83R-262
 01/17/1983
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR VIOLATED SECTION 4B OF THE COMMODITY EXCHANGE ACT BY FAILING TO DISCLOSE TO THE COMPLAINANT THAT THE PRICE OF GOLD DECLINED ON SEPTEMBER 7, 1982. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND BLAISE MASON TO PAY DAMAGES TO THE COMPLAINANT IN THE AMOUNT OF $25.00 FOR THEIR FILING FEE ALONG WITH $928.80 PLUS INTEREST FROM MARCH 29, 1985 UNTIL PAID. IT WAS ORDERED THAT THE PROCEEDING BE DISMISSED AGAINST RESPONDENT JAMES ALVA.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/20/1978
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT CONFIRMS WERE NOT LOCKED UP. MERRILL LYNCH WAS CENSURED PURSUANT TO OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING ALLEGATIONS. MERRILL LYNCH WAS PROHIBITED FROM HAVING BLANK GOVERNMENT SECURITIES CONFIRMS AVAILABLE IN ANY OF ITS INSTITUTIONAL SALES OFFICES. MERRILL WAS PERMITTED TO HAVE THESE CONFIRMS AVAILABLE ONLY IN ITS REGIONAL INSTITUTIONAL OPERATIONS
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, REMEDIAL SANCTIONS
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R 81-1361-82-453
 09/08/1981
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
COMPLAINANT ALLEGED THAT THE FIRM FAILED TO LIQUIDATE TWO LONG GOLD POSITIONS WHEN REQUESTED. THE FIRM WAS ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $28,627.00 PLUS INTEREST TO COVER DAMAGES OF LOST PROFIT WHICH OCCURRED BY THE FIRM'S FAILURE TO COMPLY WITH THE COMPLAINANT'S REQUEST.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R 81-649-81-770
 04/09/1981
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR FAILED TO DISCLOSE RISKS OF COMMODITIES TRADING. CLAIMANT ALSO ALLEGES UNAUTHORIZED TRADING BY FINANCIAL ADVISOR. COMMISSION ORDERED RESPONDENTS MERRILL LYNCH AND GREGORY LEIGHTON TO PAY REPARATIONS IN THE AMOUNT OF $8,890.00 PLUS INTEREST UNTIL PAID ALONG WITH CLAIMANT'S FILING FEE.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 83-R883
 09/14/1983
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR MADE UNAUTHORIZED TRADE. RESPONDENTS MERRILL LYNCH AND JANE M. READ WERE ORDERED TO PAY DAMAGES IN THE AMOUNT OF $2,308.83 PLUS INTEREST FROM OCTOBER 23, 1985 UNTIL PAID, ALONG WITH CLAIMANT'S $25.00 FILING FEE. ORDER THAT COMPLAINT BE DISMISSED AGAINST RESIDENT VICE PRESIDENT JAMES A. GARY.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: R 79-684-80-132
 03/27/1981
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATIONS OF UNAUTHORIZED TRADING, CHURNING AND MISREPRESENTATION. RESPONDENT FOUND IN VIOLATION OF SECTION 4B OF THE COMMODITY EXCHANGE ACT. MERRILL LYNCH AND DAVID BONDY ORDERED TO PAY REPARATIONS IN THE AMOUNT OF $32,590.00 PLUS INTEREST FROM OCTOBER 1, 1978 UNTIL DATE OF PAYMENT, ALONG WITH CLAIMANT'S $25.00 FILING FEE.
10(c)(4)(vi).  Disposition of action or claim:
Restitution
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/26/1995
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATIONS THAT LAZARD AND MERRILL LYNCH FAILED TO FULLY INFORM MUNICIPAL ISSUERS OF THEIR CONTRACT REGARDING INTEREST RATE SWAPS. MERRILL LYNCH AND LAZARD CONSENTED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY ENTERED INTO A CONTRACT REGARDING INTEREST RATE SWAPS, AND DID NOT FULLY INFORM THE MUNICIPAL ISSUERS OF THE CONTRACT. $3,800,000.00 PAID IN RESTITUTION ON OR BEFORE OCTOBER 26, 1995.
10(c)(4)(vi).  Disposition of action or claim:
CEASE, DESIST, DISGORGEMENT AND RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/13/1987
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM. THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/27/1968
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ADMINISTRATIVE PROCEEDINGS, SEC 68-168 08/27/68. 70-26 SEC FILED COMPLAINT IN THE DISTRICT COURT OF NEW YORK CITY VIA INVESTMENT CO. OCTOBER. FINAL 08/20/1972.
10(c)(4)(vi).  Disposition of action or claim:
Other
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: DOCKET 97-10
 06/24/1997
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED SECTION 4(C)(A)(A) OF THE COMMODITY EXCHANGE ACT AND CFTC REGULATION 1.37(A) RELATING TO TRADING IN WHEAT FUTURES. MERRILL LYNCH FUTURES, INC. SHALL CEASE AND DESIST FROM VIOLATING SECTION 4C(A)(A) OF THE ACT, 7 USC S6C(A)(A) AND REGULATION 1.37(A), 7 CFRSI.37(A) AND PAY A CIVIL MONETARY PENALTY.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1992
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF C.F.R. PART 404 PROMULGATED PURSUANT TO SECTION 15C. THIS PROCEEDING WAS PART OF PROCEEDINGS COMMENCED AGAINST APPROXIMATELY 100 FINANCIAL INSTITUTIONS IN CONNECTION WITH THEIR DISTRIBUTION OF SECURITIES ISSUED BY CERTAIN GOVERNMENT SPONSORED ENTERPRISES.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/30/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
MERRILL LYNCH FAILED TO SUPERVISE ACTIVITIES OF A FORMER MERRILL LYNCH FUTURES, INC. EMPLOYEE. FIRM AGREED TO REVIEW CERTAIN PROCEDURES. MERRILL LYNCH FUTURES INC. CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS TO A CEASE AND DESIST.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH CAPITAL SERVICES, INC.
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: SEA REL. 42640; 95 CIV. 1353 (SDNY)
 04/06/2000
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT TREASURY SECURITIES WERE PRICED TOO HIGH WHEN SOLD IN CONNECTION WITH MUNICIPAL ADVANCE REFUNDING BOND OFFERINGS. THE FIRM JOINED IN A GLOBAL SETTLEMENT OF THE SEC'S INDUSTRY-WIDE INVESTIGATION RELATING TO THE PRICING OF GOVERNMENT SECURITIES IN ADVANCE REFUNDS (SEA REL. NO.42640) AND A RELATED QUI TAM SUIT BROUGHT BY MICHAEL LISSACK ON BEHALF OF THE UNITED STATES (95 CIV. 1353 (SDNY). UNDER THE TERMS OF THE SETTLEMENT, MERRILL LYNCH, WITHOUT ADMITTING OR DENYING LIABILITY, CONSENTED TO AN SEC ADMINISTRATIVE CEASE AND DESIST ORDER UNDER SECTIONS 17(A)(2) AND (3) OF THE SECURITIES AND EXCHANGE ACT AND A CENSURE AND AGREED TO PAYMENTS TO MUNICIPALITIES AND TO THE UNITED STATES TREASURY. THE QUI TAM SUIT AGAINST MERRILL LYNCH WAS THEN DISMISSED WITH PREJUDICE AND THE INTERNAL REVENUE SERVICE AGREED TO PROVIDE ASSURANCES TO MUNICIPALITIES RELATING TO THE TAX EXEMPT STATUS OF APPROXIMATELY 260 TRANSACTIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH ALTERNATIVE INVESTMENTS LLC
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 07-08
 07/31/2007
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE CFTC FOUND THAT ON CERTAIN OCCASIONS FROM 2001 TO 2005, MLAI VIOLATED CFTC REGULATION 4.22(C) BY FAILING TO TIMELY FILE COMMODITY POOL ANNUAL REPORTS WITH THE NATIONAL FUTURES ASSOCIATION AND TO TIMELY DISTRIBUTE SUCH REPORTS TO POOL PARTICIPANTS. RESPONDENT CONSENTED TO THE ENTRY OF THIS ORDER WITHOUT ADMITTING OR DENYING ANY OF THE FINDINGS. PURSUANT TO THE ORDER, MLAI SHALL: (A) CEASE AND DESIST FROM VIOLATING REGULATION 4.22(C); AND (B) PAY A CIVIL MONETARY PENALTY OF $500,000. PURSUANT TO ITS UNDERTAKING, MLAI AND ITS EMPLOYEES MAY NOT MAKE ANY STATEMENTS OR TAKE OTHER ACTIONS TO SUGGEST THAT THE ORDER IS WITHOUT FACTUAL BASIS. FINE PAID AUGUST 9, 2007.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 85-6
 11/14/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATIONS OF SECTIONS 4C(A)&(B) OF THE ACT AND REGULATIONS 1.38 AND 166.3 PROHIBITING WASH SALES. PURSUANT TO THE TERMS OF SETTLEMENT AGREEMENT - $50,000 CIVIL PENALTY AND AN ORDER TO COMPLY WITH CERTAIN UNDERTAKINGS TO REVIEW/REFORM ITS SUPERVISORY AND TRAINING POLICIES/PROCEDURES AND TO CEASE AND DESIST FROM SAID VIOLATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER UNDERTAKING
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/27/1985
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
CHARGED WITH EXECUTING THREE WASH TRADES FOR ONE OF ITS CUSTOMERS. CASE SETTLED WITHOUT ADMITTING OR DENYING ALLEGATIONS BY AGREEING TO A CIVIL PENALTY AND ENTRY OF A CEASE AND DESIST ORDER.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST ORDER
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/24/1986
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
VIOLATION OF THE TIME STAMPING AND ORDER TICKET PREPARATION AND MAINTENANCE REQUIREMENTS OF THE COMMODITY EXCHANGE ACT. FIRM AGREED TO CEASE AND DESIST FROM FUTURE VIOLATIONS, PAY A CIVIL PENALTY AND REVISE ITS COMPUTER PROGRAM AND OPERATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 88-13
 03/22/1988
10(c)(4)(iv).  The Court or body taking the Action and location:
COMMODITY FUTURES TRADING COMMISSION
10(c)(4)(v).  Description of the action or claim:
FIRM CHARGED WITH VARIOUS BOOKKEEPING VIOLATIONS. FIRM ALSO CHARGED WITH BEING LIABLE FOR THE FINANCIAL CONSULTANT'S CONDUCT. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM CONSENTED TO A CIVIL PENALTY OF $150,000 AND WAS ORDERED TO CEASE AND DESIST FROM VIOLATIONS.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CEASE AND DESIST
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: NASDAQ MARKET MAKERS RELEASE 34-40900 AND 15
 01/11/1999
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
IN AN ACTION BROUGHT AGAINST ALMOST ALL MAJOR NASDAQ MARKET MAKERS, SEC FOUND THAT IN 1994 MARKET MAKERS, INCLUDING MERRILL LYNCH VIOLATED PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH THEIR ACTIVITIES IN NASDAQ SECURITIES. WITHOUT ADMITTING OR DENYING ALLEGATIONS, MERRILL LYNCH AGREED TO PAY A CIVIL PENALTY. IN ADDITION, FIRM AGREED TO A CEASE AND DESIST ORDER AND TO SUBMIT CERTAIN OF ITS POLICIES TO AN INDEPENDENT CONSULTANT.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: S-97061(LX)
 08/24/1998
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED THAT MERRILL LYNCH, PIERCE, FENNER & SMITH INC. VIOLATED SECTIONS 17(A)(2) AND (3) OF THE SECURITIES ACT OF '33 SECTION 15B(C)(1) OF THE SECURITIES ACT OF '34 AND RULE G-17 OF THE MSRB. MERRILL LYNCH, PIERCE, FENNER & SMITH INC. WAS DIRECTED TO CEASE & DESIST FROM ANY FUTURE VIOLATIONS OF SECTIONS 17(A)2 AND (3) OF THE SECURITIES ACT OF '33 AND SECTION 15B(C)(1) OF SECURITIES ACT OF '34; TO PAY A CIVIL PENALTY OF $2 MILLION; TO COMPLY WITH UNDERTAKINGS TO MAINTAIN PREVIOUSLY REVISED POLICIES & PROCEDURES.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNAVAILABLE
 12/23/1993
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
SEC ALLEGES THAT MERRILL LYNCH VIOLATED SECTIONS OF THE SECURITIES EXCHANGE ACT OF 1934. IT WAS ALLEGED THAT THE FIRM FAILED TO PROPERLY RECORD SECURITIES TRANSACTIONS ON ITS BOOKS AND RECORDS. MERRILL LYNCH MADE AN OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS. THE SEC ACCEPTED THE OFFER OF SETTLEMENT. THE FIRM WAS CENSURED AND ORDERED TO CEASE AND DESIST. THE FIRM WAS REQUIRED TO IMPLEMENT CERTAIN PROCEDURES TO ENSURE PROPER RECORDKEEPING.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CEASE AND DESIST
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/20/1978
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATION THAT CONFIRMS WERE NOT LOCKED UP. MERRILL LYNCH WAS CENSURED PURSUANT TO OFFER OF SETTLEMENT WITHOUT ADMITTING OR DENYING ALLEGATIONS. MERRILL LYNCH WAS PROHIBITED FROM HAVING BLANK GOVERNMENT SECURITIES CONFIRMS AVAILABLE IN ANY OF ITS INSTITUTIONAL SALES OFFICES. MERRILL WAS PERMITTED TO HAVE THESE CONFIRMS AVAILABLE ONLY IN ITS REGIONAL INSTITUTIONAL OPERATIONS
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, REMEDIAL SANCTIONS
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/26/1995
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ALLEGATIONS THAT LAZARD AND MERRILL LYNCH FAILED TO FULLY INFORM MUNICIPAL ISSUERS OF THEIR CONTRACT REGARDING INTEREST RATE SWAPS. MERRILL LYNCH AND LAZARD CONSENTED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT THEY ENTERED INTO A CONTRACT REGARDING INTEREST RATE SWAPS, AND DID NOT FULLY INFORM THE MUNICIPAL ISSUERS OF THE CONTRACT. $3,800,000.00 PAID IN RESTITUTION ON OR BEFORE OCTOBER 26, 1995.
10(c)(4)(vi).  Disposition of action or claim:
CEASE, DESIST, DISGORGEMENT AND RESTITUTION
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/13/1987
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM. THE COMMISSION STATED THAT ON JUNE 30, 1975 INFORMATION HAD COME TO ITS ATTENTION ALLEGING CERTAIN CONDUCT (NOT EXPLAINED) RELATING TO TRANSACTIONS EXECUTED BY REGISTERED REPRESENTATIVES IN SHORT , INTERMEDIATE AND LONG TERM GOVERNMENT SECURITIES ALONG WITH CERTAIN SELLING PRACTICES OF THE FIRM IN CONNECTION WITH SECURITIES WHICH WERE BEING OFFERED BY A COMPANY UNDER THE SPONSORSHIP OF AN AFFILIATE OF THE FIRM.
10(c)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12236
 03/13/2006
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SEC ALLEGED AND MERRILL LYNCH, PIERCE, FENNER AND SMITH , INCORPORATED (MLPFS) NEITHER ADMITTED NOR DENIED, THAT MLPFS FAILED TO FURNISH PROMPTLY TO REPRESENTATIVES OF THE SEC ELECTRONIC MAIL COMMUNICATIONS (EMAILS) AS REQUIRED UNDER SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-4(J) THERE UNDER. THE SEC ALSO ALLEGED, AND MLPFS NEITHER ADMITTED NOR DENIED, THAT MLPFS FAILED TO RETAIN CERTAIN EMAILS RELATED TO ITS BUSINESS AS SUCH IN VIOLATION OF SECTION 17A OF THE EXCHANGE ACT AND RULE 17A-4(B)(4) THERE UNDER. AS PART OF A SETTLEMENT RELATING TO THE RETENTION OF EMAILS AND THE PROMPT PRODUCTION OF EMAILS TO THE SEC, THE SEC ACCEPTED MLPFS' OFFER OF SETTLEMENT ON MARCH 13, 2006. THE CIVIL MONEY PENALTY OF $2,500,00 WAS PAID ON MARCH 17, 2006.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY, COMPLIANCE WITH CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12310
 05/31/2006
10(c)(4)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
THE SECURITIES AND EXCHANGE COMMISSION (SEC) FOUND, AND MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLPFS) NEITHER ADMITTED NOR DENIED, THAT MLPFS VIOLATED SECTION 17(A) (2) OF THE SECURITIES ACT OF 1933 BY MANAGING AUCTIONS FOR AUCTION RATE SECURITIES IN WAYS THAT WERE NOT ADEQUATELY DISCLOSED OR THAT DID NOT CONFORM TO DISCLOSED PROCEDURES. AS PART OF A SETTLEMENT RELATING TO MANAGING AUCTIONS FOR AUCTION RATE SECURITIES, THE SEC ACCEPTED MLPFS' OFFER OF SETTLEMENT AND ISSUED A SETTLEMENT ORDER ON MAY 31, 2006. A CIVIL MONEY PENALTY OF $1,500,000 WAS PAID TO THE SEC ON JUNE 1, 2006.
10(c)(4)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY, COMPLIANCE WITH CERTAIN UNDERTAKINGS
10(c)(4)(i).  The individuals named in the action or claim:
STATE STREET RESEARCH AND MANAGEMENT COMPANY
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12056
 07/22/2004
10(c)(4)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ON JANUARY 31, 2005 BLACKROCK INC. ACQUIRED SSRM HOLDINGS INC. (THE ACQUISITION), THE HOLDING COMPANY OF STATE STREET RESEARCH AND MANAGEMENT COMPANY (SSRM) AND STATE STREET RESEARCH INVESTMENT SERVICES, INC. (SSRIS). THE CIRCUMSTANCES GIVING RISE TO THE MATTER OCCURRED PRIOR TO THE ACQUISITION OF SSRM BY BLACKROCK. THE sec ALLEGED THAT PRIOR TO THE ACQUISITION, SSRM INCORRECTLY TRANSFERRED $156,128 IN REDEMPTION FEES IT COLLECTED FROM SHAREHOLDERS TO THE STATE STREET RESEARCH INTERNATIONAL EQUITY FUND (THE FUND) TO THE FUNDS' DISTRIBUTOR, SSRIS, INSTEAD OF PAYING SUCH FEES TOT HE FUND, IN VIOLATION OF SECTION 206(2) OF THE INVESTMENT ADVISORS ACT OF 1940, AS AMENDED.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(c)(4)(i).  The individuals named in the action or claim:
STATE STREET RESEARCH AND MANAGEMENT COMPANY
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-12056
 07/22/2004
10(c)(4)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
ON JANUARY 31, 2005 BLACKROCK INC. ACQUIRED SSRM HOLDINGS INC. (THE ACQUISITION), THE HOLDING COMPANY OF STATE STREET RESEARCH AND MANAGEMENT COMPANY (SSRM) AND STATE STREET RESEARCH INVESTMENT SERVICES, INC. (SSRIS). THE CIRCUMSTANCES GIVING RISE TO THE MATTER OCCURRED PRIOR TO THE ACQUISITION OF SSRM BY BLACKROCK. THE SEC ALLEGED THAT PRIOR TO THE ACQUISITION, SSRM INCORRECTLY TRANSFERRED $156,128 IN REDEMPTION FEES IT COLLECTED FROM SHAREHOLDERS TO THE STATE STREET RESEARCH INTERNATIONAL EQUITY FUND (THE FUND) TO THE FUNDS' DISTRIBUTOR, SSRIS, INSTEAD OF PAYING SUCH FEES TOT HE FUND, IN VIOLATION OF SECTION 206(2) OF THE INVESTMENT ADVISORS ACT OF 1940, AS AMENDED.
10(c)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: FILE 3-13357
 01/30/2009
10(c)(4)(iv).  The Court or body taking the Action and location:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
10(c)(4)(v).  Description of the action or claim:
SEC IA RELEASE 40-2834, JANUARY 30, 2009: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 203(E) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AGAINST MERRILL LYNCH, PIERCE, FENNER AND SMITH INC. (MERRILL LYNCH OR RESPONDENT)- SECTIONS 204, 206(2) OF THE ADVISERS ACT AND SEC RULE 204-2(A)(14): FROM AT LEAST 2002 THROUGH 2005, MERRILL LYNCH, THROUGH ITS PENSION CONSULTING SERVICES ADVISORY PROGRAM, BREACHED ITS FIDUCIARY DUTY TO CERTAIN OF ITS PENSION FUND CLIENTS AND PROSPECTIVE CLIENTS BY MISREPRESENTING AND OMITTING TO DISCLOSE MATERIAL INFORMATION. MERRILL LYNCH'S PENSION FUND CLIENTS CAME TO IT SEEKING ADVICE IN DEVELOPING APPROPRIATE INVESTMENT STRATEGIES AND IN SELECTING MONEY MANAGERS TO MANAGE THE ASSETS ENTRUSTED TO THEIR CARE. IN PROVIDING SUCH ADVICE, MERRILL LYNCH FAILED TO DISCLOSE THE FACTS CREATING THE MATERIAL CONFLICT OF INTEREST IN RECOMMENDING CLIENTS USE DIRECTED BROKERAGE TO PAY HARD DOLLAR FEES, AND IN RECOMMENDING THE USE OF ITS TRANSITION MANAGEMENT DESK. IN ADDITION, MERRILL LYNCH MADE MISLEADING STATEMENTS TO THE CLIENTS SERVED BY ITS PONTE VEDRA SOUTH, FLORIDA OFFICE (PONTE VEDRA SOUTH OFFICE) REGARDING ITS MANAGER IDENTIFICATION PROCESS. AS A RESULT OF THE ABOVE CONDUCT, MERRILL LYNCH VIOLATED SECTION 206(2) OF THE INVESTMENT ADVISERS ACT OF 1940 (THE ADVISERS ACT). MERRILL LYNCH FAILED REASONABLY TO SUPERVISE ITS INVESTMENT ADVISER REPRESENTATIVES IN THE BRANCH OFFICE WITH RESPECT TO THE PROVISION OF ADVISORY SERVICES TO ITS CONSULTING SERVICES CLIENTS. MERRILL LYNCH VIOLATED SECTION 204 OF THE ADVISERS ACT AND RULE 204-2(A)(14) THERE UNDER BY FAILING TO MAINTAIN RECORDS OF THE OFFER OR DELIVERY OF DISCLOSURE STATEMENTS.
10(c)(4)(vi).  Disposition of action or claim:
FINE OF $ 1,000,000.00 PAID ON 02/25/2009
10(c)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(c)(4)(ii).  Title of Action 10(c)(4)(iii).  Date of Action
Docket/Case Number: 3-13407
 03/11/2009
10(c)(4)(iv).  The Court or body taking the Action and location:
THE SEC ALLEGED, AND APPLICANT NEITHER ADMITTED NOR DENIED, THAT APPLICANT FAILE
10(c)(4)(v).  Description of the action or claim:
ON MARCH 11, 2009, WITHOUT ADMITTING OR DENYING THE SEC'S FINDINGS, APPLICANT CONSENTED TO THE ENTRY OF AN ADMINISTRATIVE SEC ORDER FINDING VIOLATIONS OF SECTION 15(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 204A OF THE INVESTMENT ADVISERS ACT OF 1940 FOR ALLEGEDLY FAILING TO MAINTAIN WRITTEN POLICIES AND PROCEDURES REASONABLY DESIGNED TO PREVENT THE MISUSE OF CUSTOMER ORDER INFORMATION. THE ORDER REQUIRES APPLICANT TO COMPLY WITH UNDERTAKINGS TO IMPLEMENT (OR TO CONTINUE) AND MAINTAIN POLICIES AND PROCEDURES TO, AMONG THINGS: (1) INFORM EMPLOYEES THAT INFORMATION CONCERNING CUSTOMER ORDER INFORMATION IS CONFIDENTIAL, (2) ADDRESS EMPLOYEE ACCESS TO THE EQUITY SQUAWK BOX, AND (3) TRAIN EMPLOYEES WHO USE SQUAWK BOX RELATED TECHNOLOGY. IN ADDITION, APPLICANT'S INTERNAL AUDIT DEPARTMENT SHALL CONDUCT PERIODIC REVIEWS OF THESE POLICIES AND PROCEDURES AND PROVIDE THE SEC STAFF WITH A COPY OF THE AUDIT REPORT.
10(c)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES; FINES ($7,000,000.00); CEASE AND DESIST; CENSURE; UNDERTAKING
10(d).  Has any other Federal regulatory agency or any state regulatory agency:
10(d)(1). ever found the applicant or a control affiliate to have made a false statement or omission or to have been dishonest, unfair, or unethical?
X Yes    No
10(d)(1)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
N/A
 02/09/2005
10(d)(1)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(1)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) SHALL CEASE AND DESIST FROM ENGAGING IN ACTS IN VIOLATION OF AND WILL COMPLY WITH THE MARTIN ACT, GENERAL BUSINESS LAW S.349 AND EXECUTIVE LAW S.63(12); BACAP AND BACAP DISTRIBUTORS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA SECURITIES LLC (BAS), $250 MILLION IN DISGORGEMENT AND A CIVIL MONEY PENALTY IN THE AMOUNT OF $125 MILLION.
10(d)(1)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(1)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
N/A
 02/09/2005
10(d)(1)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(1)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT: (1) CMA AND CFDI AND AFFILIATE COLUMBIA WANGER ASSET MANAGEMENT LP, COLLECTIVELY, WITH AFFILIATE BANC OF AMERICA CAPITAL MANAGEMENT, LLC, AGREE TO REDUCE MANAGEMENT FEES CHARGED TO CERTAIN FUNDS DISTRIBUTED TO RETAIL INVESTORS BY $32M PER YEAR THROUGH 2009, FOR A TOTAL OF $160M IN FEE REDUCTIONS; (2) CMA AGREES NOT TO MANAGE OR ADVISE A FUND UNLESS THE FUND IMPLEMENTS CERTAIN CORPORATE GOVERNANCE PRACTICES, INCLUDING HAVING 75% OF TRUSTEES MEET INDEPENDENCE STANDARDS, HAVING AN INDEPENDENT CHAIRMAN, APPOINTING A SENIOR OFFICER WHO MEETS INDEPENDENCE STANDARDS TO, AMONG OTHERS, MONITOR COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS, STATE LAWS RESPECTING CONFLICTS OF INTEREST, FIDUCIARY DUTIES AND CODES OF ETHICS AND COMPLIANCE POLICIES AND MANAGE THE NEGOTIATION PROCESS FOR MANAGEMENT FEES; (3) CMA AGREES TO DEVELOP PROCEDURES FOR THE DISCLOSURE OF FEES AND COSTS; AND (4) CMA AND CFDI AGREE TO PAY, ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT AND A CIVIL MONEY PENALTY OF $70M.
10(d)(1)(vi).  Disposition of action or claim:
CEASE, DESIST AND DISGORGEMENT
10(d)(1)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
N/A
 02/09/2005
10(d)(1)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(1)(v).  Description of the action or claim:
ON FEBRUARY 9, 2005, NEITHER ADMITTING NOR DENYING THE FINDINGS, BAS ENTERED INTO AN ASSURANCE OF DISCONTINUANCE WITH THE OFFICE OF THE NEW YORK ATTORNEY GENERAL TO SETTLE ALLEGATIONS IT HAD VIOLATED THE MARTIN ACT, EXECUTIVE LAW 63(12), AND THE GENERAL BUSINESS LAW 349. THE ASSURANCE OF DISCONTINUANCE FINDS THAT BAS, FROM AS EARLY AS JULY 2000 THROUGH JULY 2003, FACILITATED MARKET TIMING AND LATE TRADING BY SOME INTRODUCING BROKER-DEALERS AND A HEDGE FUND AND PROVIDED ACCOUNT MANAGEMENT TOOLS AND OTHER ASSISTANCE AND ENABLED INTRODUCING BROKER-DEALERS TO CONCEAL THEIR CLIENT'S MARKET TIMING ACTIVITIES FROM MUTUAL FUNDS.
10(d)(1)(vi).  Disposition of action or claim:
CEASE AND DESIST, CIVIL PENALTY
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket/Case Number: SEC 2006-00070
 10/24/2006
10(d)(1)(iv).  The Court or body taking the Action and location:
VIRGINIA DIVISION OF SECURITIES
10(d)(1)(v).  Description of the action or claim:
DILIGENT SUPERVISION OVER THE SECURITIES ACTIVITIES OF ALL OF ITS AGENTS, INCLUDING INSTANCES OF OVER-BURDENED BRANCH MANAGEMENT; (2) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 3, BY FAILING TO MAINTAIN ALL INFORMATION KNOWN ABOUT CUSTOMERS CONTAINED IN THE FFRS AND MERRILL LYNCH'S INTERNAL COMPUTER DESIGNATION FOR CLIENT ACCOUNT PROFILES (KDIS), INCLUDING THE FAILURE TO RECONCILE SUCH INFORMATION BETWEEN THE FFRS AND THE KDI SYSTEM, AND BY FAILING TO ESTABLISH A SUPERVISORY REVIEW TO ENSURE THAT APPROPRIATE DISCLOSURES WERE DOCUMENTED WHEN IT OFFERED ONLY THE STATE OF MAINE 529 PLAN WITHOUT COMPARISON OF THIS PLAN TO VIRGINIA'S IN-STATE 529 PLAN; AND (3) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 12 BY FAILING TO CONSISTENTLY NOTIFY CERTAIN CLIENTS WITH MLUA ACCOUNTS OF THE DIFFERENCE BETWEEN THE FEES THEY HAD INCURRED IN THE MLUA PROGRAM AND THE STANDARD TRANSACTION CHARGES THEY WOULD HAVE BEEN CHARGED HAD THE ACCOUNT NOT BEEN IN MLUA. DEFENDANT NEITHER ADMITTED, NOR DENIED THE ALLEGATIONS, BUT THE FIRM ADMITTED TO THE COMMISSION'S JURISDICTION OVER THE MATTER AND AGREED TO AND HAS CHANGED ITS POLICIES AND PROCEDURES TO CORRECT THE CRITICISMS NOTED. DEFENDANT ALSO HAS FULFILLED ITS OBLIGATIONS FOR SEC-2003-00041 AND MERRILL LYNCH HAS PAID $75,000 TO THE DIVISION TO DEFRAY THE COST OF THE INVESTIGATION.
10(d)(1)(vi).  Disposition of action or claim:
UNDERTAKING
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket/Case Number: 2008-0001
 04/13/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(1)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged violations of the Massachusetts Uniform Securities Act, which in part, prohibits unethical or dishonest conduct or practices in the securities business, concerning the sale of auction rate securities. Without admitting or denying the MSD's allegations, MLPFS agreed to certain undertakings, to cease and desist from violations of Massachusetts Uniform Securities Act and to MSD entering an order censuring MLPFS for its actions associated with the matter.
10(d)(1)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, UNDERTAKING
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket/Case Number: 2008-0058
 04/13/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(1)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged violations of the Massachusetts Uniform Securities Act, which in part, prohibits unethical or dishonest conduct or practices in the securities business, concerning the sale of auction rate securities (ARS) to retail and other customers by MLFPS. Without admitting or denying the MSD's allegations, MLPFS agreed to certain undertakings, including offering to but back eligible ARS from Eligible Investors. MLFPS agreed to pay a civil penalty to cease and desist from violations of Massachusetts Uniform Securities Act and to MSD entering an order censuring MLPFS for its actions associated with the matter.
10(d)(1)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES; UNDERTAKING
10(d)(1)(i).  The individuals named in the action or claim:
Bank of america Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: E-2009-0030
 04/07/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Massachusetts Securities Division
10(d)(1)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged that Bank of American Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without informing certain of its customers of the increased risk of illiquidity associated with hold the ARS. Among other things, the settlement includes findings that BAIS and BAI engaged in dishonest and unethical practices and failed to supervise its agents in violation of the Massachusetts Securities Laws. BAIS and BAS paid a civil penalty of $4,740,819.07.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties /Fines, Cease and Desist
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: SEC-2009-20
 05/05/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State Auditor and Commisioner of Securities of the State of Montana
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: AP-09-20
 05/13/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Commissioner of Securities of the State of Missouri
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-20668A-09-0181
 05/21/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Arizona Corporation Commission
10(d)(1)(v).  Description of the action or claim:
The ACC alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The ACC alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 05/27/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
California Department of Corporations
10(d)(1)(v).  Description of the action or claim:
The Department alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-4-3
 05/27/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Securities Commissioner of the State of Delaware
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-09-0153
 05/26/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Securities and Charities Division of the Office of the Mississippi Secretary of
10(d)(1)(v).  Description of the action or claim:
The Division alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Division alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: C09-V-004
 05/27/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Office of the Commissioner of Financial Institutions of Puerto Rico
10(d)(1)(v).  Description of the action or claim:
The OFCI alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The OFCI alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-060-S
 05/28/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Commissioner of the Department of Banking, Insurance, Securities and Healthcare
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/01/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Director of the South Dakota Department of Revenue and Regualtion Division of Se
10(d)(1)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/02/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Attorney General of the State of New York (NYAG)
10(d)(1)(v).  Description of the action or claim:
The NYAG alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The NYAG alleged that such conduct violated certain New York laws, including the Martin Act, Section 349 of the General Business Law and Section 63(12) of the Executive Law. BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-0096 CO
 06/08/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Indiana Securities Commissioner
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 2009-7-13
 06/09/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Director of the Department of Finance of the State of Idaho
10(d)(1)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: ENSC - 01385
 06/10/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Georgia Securities Commissioner
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/12/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
North Dakota Securities Commissioner
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/25/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Michigan Office of Financial and Insurance Regulation (OFIR)
10(d)(1)(v).  Description of the action or claim:
OFIR alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The OFIR alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: i09-113
 06/25/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Securities Dvision of the Office of the Nevada Secretary of State (Division)
10(d)(1)(v).  Description of the action or claim:
The Division alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Division alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-09-0033
 06/29/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Director of the Oregon Department of Consumer and Busienss Services (Director)
10(d)(1)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: CO-2009-0017
 06/29/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Alabama Securities Commission (Commission)
10(d)(1)(v).  Description of the action or claim:
The Commission alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commission alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: IC09-CDO-13
 07/03/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Securities Commissioner of Texas (Commissioner)
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: SEC-2009-09
 06/02/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Montana Securities Department (Department)
10(d)(1)(v).  Description of the action or claim:
Department alleged that MLFPSs conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated sections 30-10-201(13)(g) and 30-10-201(13)(k) of the Montana Code Annotated (Code). Without admitting or denying the Department 's allegations, MLPFS agreed to cease and desist from violating sections 30-10-201(13)(g) and 30-10-201(13)(k) of the Code , to comply with section 30-10-101, et. seq . of the Code and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors . MLPFS agreed to pay the State of Montana . a civil penalty of $412,977,04, as part of a$125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-09-0181
 06/03/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Office of the Mississippi Secretary of State Securities and Charities Division
10(d)(1)(v).  Description of the action or claim:
The Office of the Mississippi Secretary of State Securities and Charities Division (Division) alleged violations of sections 75-71-321(a)(F) and 75-71-321(b)(A) of the Mississippi Code, concerning the marketing and sale of auction rate securities (ARS) to retail and other customers by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPFS). Without admitting or denying the Division's allegations, MLPFS agreed to cease and desist from violating the Mississippi Securities Act (Act), to comply with, the Act and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Division a civil penalty of $308,582.49, as part of a $125,000,000.00 fine that will be allocated pt the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/03/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of South Dakota, Department of Revenue and Regulation, Division of Securit
10(d)(1)(v).  Description of the action or claim:
The Division alleged that MLPFS' conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated South Dakota Codified Laws (SDCL) 47-31B-412(d)(13) and SDCL 47-31B-412(d)(9). Without admitting or denying the allegations, MLFPS agreed to cease and desist from violating Chapter 47-31B of the SDCL, to comply with Chapter 47-31B of the SDCL, and to certain undertakings.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: C09-V-005
 06/10/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Commonwealth of Puerto Rico, Office of the Commissioner of Financial Institution
10(d)(1)(v).  Description of the action or claim:
The Commonwealth of Puerto Rico's Office of the Commissioner of Financial Institutions (OCFI) alleged that Merrill Lynch, Pierce, Fenner and Smith Incorporated's (MLPFS) conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Articles 204(a)(2)(G) and 204(a)(2)(J) of Act Number 60 of the Puerto Rico Uniform Securities Act (PRUSA), as well as Articles 25 and 28 of Regulation Number 6078 of the Puerto Rico Uniform Securities Act Regulation (PRUSAR). Without admitting or denying OCFI's allegations, MLPFS agreed to cease and desist from violating Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, to comply with Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, and to certain undertakings, including offering to buy back eligible AIRS from Eligible Investors. MLPFS agreed to pay OCFI a civil penalty of $250,106.24, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct related to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: C09-V-005
 06/10/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Commonwealth of Puerto Rico, Office of the Commissioner of Financial Institution
10(d)(1)(v).  Description of the action or claim:
The Commonwealth of Puerto Rico's Office of the Commissioner of Financial Institutions (OCFI) alleged that Merrill Lynch, Pierce, Fenner and Smith Incorporated's (MLPFS) conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Articles 204(a)(2)(G) and 204(a)(2)(J) of Act Number 60 of the Puerto Rico Uniform Securities Act (PRUSA), as well as Articles 25 and 28 of Regulation Number 6078 of the Puerto Rico Uniform Securities Act Regulation (PRUSAR). Without admitting or denying OCFI's allegations, MLPFS agreed to cease and desist from violating Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, to comply with Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, and to certain undertakings, including offering to buy back eligible AIRS from Eligible Investors. MLPFS agreed to pay OCFI a civil penalty of $250,106.24, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct related to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-064-S
 06/10/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Vermont Department of Banking, Insurance, Securities and Healthcare Adm
10(d)(1)(v).  Description of the action or claim:
BISHCA alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise in violation of V.S.A section 5412(d)(13) and (9) respectively. Without admitting or denying the allegations, MLPFS agreed to cease and desist from violating the Vermont Uniform Securities Act (VUSA), to comply the VUSA, and to certain undertakings and resolve all underlying conduct related to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-L-015
 06/17/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Colorado Division of Securities (Division)
10(d)(1)(v).  Description of the action or claim:
The Division alleged that MLPFS' conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest and unethical practices and failure to supervise in violation of C.R.S. sections 11-51-410(1)(g) and (i) respectively. Without admitting or denying the allegations, MLPFS agreed to cease and desist from violating the C.R.S. section 11-51-410(1)(g) and (i), to comply with the CVUSA, and to certain undertakings and resolve all underlying conduct related to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-0115 CO
 06/18/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Indiana Office of the Secretary of State Securities Division
10(d)(1)(v).  Description of the action or claim:
The State of Indiana Office of the Secretary of State Securities Division (Division ) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise in violation of Ind. Code sections 23-19-4-12(d)(13) and (9), respectively. Without admitting or denying the Division's allegations, MLPFS agreed to cease and desist from violating the Indiana Uniform Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible investors. MLPFS agreed to pay the Division a civil penalty of $900,208.25, as part of a $125,000,000.00 fine that Will be allocated at the discretion of the states to resolve all underlying conduct relating to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-03497A-09-0242
 06/16/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Arizona Corporation Commission
10(d)(1)(v).  Description of the action or claim:
The Arizona Corporation Commission (Commission) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise within the meaning of section 44-1961 of the Securities Act of Arizona. Without admitting or denying the Commission' s allegations, MLPFS agreed to cease and desist from violating the Securities Act of Arizona (Act), to comply with the Act and to certain undertakings, including offering to buy back eligible AIRS from Eligible Investors. MLPFS agreed to pay the Commission a civil penalty of $1,751,003.62 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 2009-7-14
 06/18/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Idaho Department of Finance
10(d)(1)(v).  Description of the action or claim:
The Idaho Department of Finance (Department) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Idaho Code sections 30-14-412(d)( 13) and IDAPA 12.01.08.104.11.8. Without admitting or denying the Department's allegations, MLPFS agreed to cease and desist from violating the Uniform Securities Act (2004) (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $306,733.86, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/22/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of North Dakota Securities Department
10(d)(1)(v).  Description of the action or claim:
The State of North Dakota Securities Department (Department) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest and unethical practices and failure to supervise in violation of N.D.C.C. sections 10-04-11(1)(c) and (m), respectively. Without admitting or denying the Department's allegations, MLPFS agreed to cease and desist from violating the Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $303,227.83, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 2009-AH-040
 06/22/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Commonwealth of Kentucky Public Protection Cabinet Department of Financial Insti
10(d)(1)(v).  Description of the action or claim:
The DFI alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated KRS 292.330(13)(a)7 and 9(a) for dishonest and unethical conduct and failure to supervise, respectively. Without admitting or denying the DFIs allegations, MLPFS agreed to cease and desist from violating the Kentucky Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay DFI a civil penalty of $377,555.56, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/26/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
California Department of Corporations (Department)
10(d)(1)(v).  Description of the action or claim:
The Department alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Title 10, Ch 3, Section 260.218 of the California Code of Regulations (Code) for failure to observe high standards of commercial honor and just and equitable principles of trade and Title 10, Ch 3, Section 260.218.4(a) of the Code for fialure to supervise employees with regard to the sale of securities. Without admitting or denying the Departments allegations, MLPFS agreed to cease and desist from violating the Code, to comply with the Code, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $13,000,541.28, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 06/25/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Michigan Department of Energy, Labor and Ecomnomic Growth Office of Fin
10(d)(1)(v).  Description of the action or claim:
OFIR alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Section 204 of the Uniform Securities Act (Act), MCL 451.604(a)(1)(g) and (a)(2) for dishonest and unethical practices and failure to reasonably supervise its employees and/or agents, respectively. Without admitting or denying the OFIR allegations, MLPFS agreed to cease and desist from violating the Act, to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of Michigan a civil penalty of $3,095,319.80, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: Order Number S-08-236-09-C001
 07/14/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Washington Securities Division
10(d)(1)(v).  Description of the action or claim:
The State of Washington Securities Division (Division) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated RCW 21, 20.110(1)(j) and (g). Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Securities Act of Washington (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of Washington a civil penalty of $1,021,622.95, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: S-09-0034
 06/29/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Oregon
10(d)(1)(v).  Description of the action or claim:
The State of Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities (DFCS) alleged that MLPFS engaged in dishonest or unethical practices in the securities business in Oregon in violation of ORS 59.205(2) and failed to supervise its employees with regard to the sale of auction rate securities (ARS) in violation of ORS 59.205(13), in connection with the marketing and sale of ARS to retail and other customers. Without admitting or denying the DFCSs allegations, MLPFS agreed to cease and desist from violating the Oregon Securities Law (Law), to comply with the Law, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay DFCS a civil penalty of $408,727.31 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: SEC-2009-00056
 07/15/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State Corporation Commission of Virginia
10(d)(1)(v).  Description of the action or claim:
The State Corporation Commission of Virginia (Commission) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commission alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09 E 021; KSC Number 2009-5609
 07/13/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Kansas Securities Commission (Commissioner)
10(d)(1)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: N/A
 07/14/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Rhode Island
10(d)(1)(v).  Description of the action or claim:
The State of Rhode Island Department of Business Regulation (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 10-6-01
 07/16/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Colorado
10(d)(1)(v).  Description of the action or claim:
The Securities Commissioner of the State of Colorado (Commissioner) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 0429-S-05/09
 07/28/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Florida
10(d)(1)(v).  Description of the action or claim:
The State of Florida Office of Financial Regulation (Office) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Office alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 12180
 07/24/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Minnesota
10(d)(1)(v).  Description of the action or claim:
The State of Minnesota Department of Commerce (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09046
 07/28/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of South Carolina
10(d)(1)(v).  Description of the action or claim:
The Securities Commissioner of the State of South Carolina (Commissioner) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: AOD 08-174
 07/02/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
Attorney General of New York
10(d)(1)(v).  Description of the action or claim:
The Attorney General of New York (NYAG) alleged that MLPFSs conduct in connection with the marketing and sale of auction rate securities (ARS) to certain of its customers violated Article 23-A of the General Business Law (Martin Act), section 349 of the General Business Law and section 63(12) of the Executive Law. Without admitting or denying the NYAGs allegations, MLPFS agreed to cease and desist from violating the Martin Act, section 349 of the General Business Law and/or section 63(12) of the Executive Law; to comply with the Martin Act, section 349 of the General Business Law and section 63(12) of the Executive Law; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of New York a civil penalty of $23,245,213.92 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09 e 020, KSC No. 2009-5608
 07/16/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Kansas
10(d)(1)(v).  Description of the action or claim:
The Office of the Securities Commissioner of the State of Kansas (Commissioner) alleged that MLPFSs conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated K.S.A 17-12a412(d)(13) and (9) for dishonest or unethical practices and failure to reasonably supervise its agents or employees, respectively. Without admitting or denying the Commissioners allegations, MLPFS agreed to cease and desist from violating the Kansas Uniform Securities Act (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $959,555.69 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: 09-046
 07/23/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Maine
10(d)(1)(v).  Description of the action or claim:
The Securities Administrator of the State of Maine (Administrator) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Administrator alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: AP-09-23
 07/30/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Missouri
10(d)(1)(v).  Description of the action or claim:
The State of Missouri Office of the Secretary of States Securities Division (Division) alleged that in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers MLFPS violated section 409.4-412(d)(13), RSMo. (Cum. Supp. 2008) and section 409.4-412(d)(9), RSMo. (Cum. Supp. 2008). Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Missouri Securities Act of 2003 (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $1,371,417.99 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: i09-153
 08/04/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Nevada
10(d)(1)(v).  Description of the action or claim:
The State of Nevada Office of the Secretary of States Securities Division (Division) alleged that in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers MLFPS engaged in dishonest or unethical practices and failed to properly supervise its sales representatives and/or employees. Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Nevada Uniform Securities Act (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $620,129.98 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(1)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(1)(ii).  Title of Action 10(d)(1)(iii).  Date of Action
Docket / Case Number: None
 08/17/2009
10(d)(1)(iv).  The Court or body taking the Action and location:
State of Nebraska
10(d)(1)(v).  Description of the action or claim:
The Nebraska Department of Banking and Finance (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2). ever found the applicant or a control affiliate to have been involved in a violation of investment-related regulations or statutes?
X Yes    No
10(d)(2)(i).  The individuals named in the action or claim:
NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 05/04/1998
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF COMPTROLLER OF THE CURRENCY
10(d)(2)(v).  Description of the action or claim:
OCC FOUND THAT NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) VIOLATED A CONDITION IN AN OCC APPROVAL LETTER AND THEREBY FAILED TO ADHERE TO AN OCC BANKING CIRCULAR WHICH PROVIDED GUIDANCE TO ALL NATIONAL BANKS CONCERNING THE SALE AND MARKETING OF INVESTMENT PRODUCTS ON BANK PREMISES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING CHARGES, NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) CONSENTED TO PAY A CIVIL MONEY PENALTY OF $750,000.
10(d)(2)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT ORDER
10(d)(2)(i).  The individuals named in the action or claim:
NATIONSBANK. N.A. (NKA BANK OF AMERICA, N.A.)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 05/04/1998
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF THE CURRENCY
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF A CONDITION IN AN OCC APPROVAL LETTER AND THEREBY FAILING TO ADHERE TO AN OCC BANKING CIRCULAR, WHICH PROVIDED GUIDANCE TO ALL NATIONAL BANKS CONCERNING THE SALE AND MARKETING OF INVESTMENT PRODUCTS ON BANK PREMISES, IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING CHARGES, NATIONSBANK (NKA BANK OF AMERICA, N.A.) CONSENTED TO PAY A CIVIL PENALTY OF $750,000.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
SECURITY PACIFIC NATIONAL TRUST CO. (NKA BANKAMERICA NATIONAL TRUST CO.)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 04/01/1992
10(d)(2)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY, FEDERAL RESERVE BOARD, IRS
10(d)(2)(v).  Description of the action or claim:
ALLEGATIONS INVOLVED CERTAIN SECURITIES LENDING ACTIVITIES OF SECURITY PACIFIC NATIONAL TRUST CO. (SPNT CO.) (NKA BANKAMERICA NATIONAL TRUST CO.) AND RELATED ACTIVITIES. THIS DISCLOSURE CONCERNS SPNT CO. (NKA BANKAMERICA NATIONAL TRUST CO.) AND RELATED ENTITIES THAT CEASED TO EXIST AFTER THEY WERE MERGED INTO BANKAMERICA CORPORATION.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
SEATTLE FIRST NATIONAL BANK
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: EA-94-4
 06/30/1994
10(d)(2)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(F)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17(F)(1) PROMULGATED THERE UNDER. WITHOUT ADMITTING OR DENYING THE MATTERS ASSERTED THEREIN, SEATTLE FIRST NATIONAL BANK (SEAFIRST), A WHOLLY-OWNED SUBSIDIARY OF SEAFIRST CORPORATION AND BANKAMERICA CORPORATION ENTERED INTO A JOINT CONSENT CEASE AND DESIST ORDER WITH THE SEC AND THE OCC. THE ORDER FOUND THAT SEAFIRST VIOLATED SECTION 17F1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1 PROMULGATED THERE UNDER, PROHIBITED VIOLATIONS IN THE FUTURE, AND REQUIRED SEAFIRST TO PAY A CIVIL MONEY PENALTY OF $75,000.00.
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist, $75,000 CIVIL PENALTY
10(d)(2)(i).  The individuals named in the action or claim:
CONTINENTAL BANK, N.A. (NKA BANK OF AMERICA ILLINOIS); BANK OF AMERICA NT&SA
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 01/01/1992
10(d)(2)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF CERTAIN RECORDKEEPING REQUIREMENTS UNDER THE UNITED STATES GOVERNMENT SECURITIES ACT AND COMPTROLLER'S RULES. IN JANUARY 1992, AS PART OF AN INDUSTRY-WIDE RESOLUTION OF AN INVESTIGATION OF CERTAIN MARKET PRACTICES FOR THE UNITED STATE GOVERNMENT SPONSORED ENTERPRISE SECURITIES, THE COMPTROLLER ISSUED CEASE AND DESIST ORDER TO BOFA, CBNA AND APPROXIMATELY 100 OTHER SECURITIES DEALERS (INCLUDING OTHER BANKS) REQUIRING THESE ENTITIES TO CEASE AND DESIST FROM FURTHER VIOLATIONS OF CERTAIN RECORDKEEPING REQUIREMENTS UNDER THE UNITED STATES GOVERNMENT SECURITIES ACT AND THE COMPTROLLER'S RULES AND TO PAY CIVIL MONEY PENALTIES. WITHOUT ADMITTING OR DENYING THE COMPTROLLER'S FINDINGS, BOFA AGREED TO PAY A FINE IN THE AMOUNT OF $100,000. CBNA, WHICH BECAME A WHOLLY-OWNED SUBSIDIARY OF BANKAMERICA CORPORATION IN SEPTEMBER 1994, AGREED TO PAY A FINE IN THE AMOUNT OF $100,000.
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist, Civil Fine
10(d)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA NT&SA
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 07/23/1987
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF BOOKS AND RECORDKEEPING PROVISIONS AS WELL AS OTHER PROVISIONS OF THE U.S. SECURITIES LAWS. BOFA WAS SANCTIONED BY THE OCC. PURSUANT TO THE ORDER, BOFA WAS CENSURED, TWO BOFA OFFICERS WERE SUSPENDED FOR SEVERAL DAYS AND BOFA WAS DIRECTED TO ADOPT CERTAIN POLICIES AND PROCEDURES AND TO CREATE A COMPLIANCE REVIEW COMMITTEE. THE ORDER WAS LIFTED IN 1991.
10(d)(2)(vi).  Disposition of action or claim:
Censure
10(d)(2)(i).  The individuals named in the action or claim:
FLEET FINANCIAL GROUP, INC. (PREDECESSOR TO FLEETBOSTON FINANCIAL CORPORATION N/K/A BANK OF AMERICA CORPORATION)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 01/01/1985
10(d)(2)(iv).  The Court or body taking the Action and location:
U.S. DEPARTMENT OF TREASURY
10(d)(2)(v).  Description of the action or claim:
NORSTAR BANCORP, INC., THE PREDECESSOR OF FLEET FINANCIAL GROUP, VOLUNTARILY BROUGHT TO THE ATTENTION OF THE TREASURY DEPARTMENT NUMEROUS VIOLATIONS OF THE BANK SECRECY ACT FOR FAILURE TO REPORT CURRENCY TRANSACTIONS BETWEEN 1980 AND 1985 BY THREE BANK SUBSIDIARIES. TREASURY DEPARTMENT ASSESSED AGAINST NORSTAR A CIVIL PENALTY OF $269,904 IN COMPLETE SETTLEMENT OF NORSTAR'S CIVIL LIABILITY FOR VIOLATIONS BY THREE BANK SUBSIDIARIES.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
FIRST NATIONAL BANK OF BOSTON
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: AA-SCP-92-110
 12/31/1990
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(2)(v).  Description of the action or claim:
THAT FNBB, IN CONNECTION WITH ITS CORPORATE TRUST BUSINESS, HAD VIOLATED CERTAIN RECORDKEEPING AND CUSTOMER RESPONSE PROVISIONS OF THE SEC'S TRANSFER AGENT REGULATIONS. THE COMPTROLLER ACCEPTED FNBB'S OFFER OF SETTLEMENT, UNDER WHICH FNBB CONSENTED TO THE COMPTROLLER'S ISSUANCE OF AN ORDER FINDING THAT FNBB HAD WILLFULLY VIOLATED CERTAIN RECORDKEEPING AND CUSTOMER RESPONSE PROVISIONS OF THE SEC'S TRANSFER AGENT REGULATIONS AND IMPOSING REMEDIAL MEASURES DESIGNED TO PREVENT THE RECURRENCE OF THE ALLEGED VIOLATIONS. THE COMPTROLLER TERMINATED ITS CONSENT ORDER ON MAY 1, 1992, FOLLOWING AN EXAMINATION IN WHICH IT DETERMINED THAT FNBB HAS SATISFACTORILY COMPLETED THE REQUIRED REMEDIAL ACTIONS.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
FIRST NATIONAL BANK OF BOSTON
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 01/16/1999
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(2)(v).  Description of the action or claim:
THAT THE FIRST NATIONAL BANK OF BOSTON, AS A MEMBER OF A SELLING GROUP INVOLVED IN THE DISTRIBUTION OF DEBT SECURITIES FOR CERTAIN GOVERNMENT SPONSORED ENTERPRISES, COMMITTED CERTAIN RECORDKEEPING VIOLATIONS RELATIVE TO CUSTOMER ORDERS FOR GSE SECURITIES. THE COMPTROLLER ACCEPTED FNBB'S OFFER OF SETTLEMENT UNDER WHICH FNBB CONSENTED TO THE ISSUANCE OF AN ORDER FINDING THAT FNBB (1) CEASE AND DESIST FROM VIOLATING THOSE PROVISIONS, (2) IMPLEMENT POLICIES AND PROCEDURES DESIGNED TO ENSURE FUTURE COMPLIANCE, (3) PAY A CIVIL PENALTY OF $100,000.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTY/FINE/UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 02/09/2005
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(2)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) SHALL CEASE AND DESIST FROM ENGAGING IN ACTS IN VIOLATION OF AND WILL COMPLY WITH THE MARTIN ACT, GENERAL BUSINESS LAW S.349 AND EXECUTIVE LAW S.63(12); BACAP AND BACAP DISTRIBUTORS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA SECURITIES LLC (BAS), $250 MILLION IN DISGORGEMENT AND A CIVIL MONEY PENALTY IN THE AMOUNT OF $125 MILLION.
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 02/09/2005
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(2)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT: (1) CMA AND CFDI AND AFFILIATE COLUMBIA WANGER ASSET MANAGEMENT LP, COLLECTIVELY, WITH AFFILIATE BANC OF AMERICA CAPITAL MANAGEMENT, LLC, AGREE TO REDUCE MANAGEMENT FEES CHARGED TO CERTAIN FUNDS DISTRIBUTED TO RETAIL INVESTORS BY $32M PER YEAR THROUGH 2009, FOR A TOTAL OF $160M IN FEE REDUCTIONS; (2) CMA AGREES NOT TO MANAGE OR ADVISE A FUND UNLESS THE FUND IMPLEMENTS CERTAIN CORPORATE GOVERNANCE PRACTICES, INCLUDING HAVING 75% OF TRUSTEES MEET INDEPENDENCE STANDARDS, HAVING AN INDEPENDENT CHAIRMAN, APPOINTING A SENIOR OFFICER WHO MEETS INDEPENDENCE STANDARDS TO, AMONG OTHERS, MONITOR COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS, STATE LAWS RESPECTING CONFLICTS OF INTEREST, FIDUCIARY DUTIES AND CODES OF ETHICS AND COMPLIANCE POLICIES AND MANAGE THE NEGOTIATION PROCESS FOR MANAGEMENT FEES; (3) CMA AGREES TO DEVELOP PROCEDURES FOR THE DISCLOSURE OF FEES AND COSTS; AND (4) CMA AND CFDI AGREE TO PAY, ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT AND A CIVIL MONEY PENALTY OF $70M.
10(d)(2)(vi).  Disposition of action or claim:
CEASE, DESIST AND DISGORGEMENT
10(d)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA CORPORATION
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: L03-005071
 03/01/2004
10(d)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COUNTY (NEW YORK) DISTRICT ATTORNEY
10(d)(2)(v).  Description of the action or claim:
BANK OF AMERICA CORPORATION (BAC) ALLEGEDLY HAD DEFICIENCIES IN CERTAIN INTERNAL ANTI-MONEY LAUNDERING CONTROLS RELATING TO SOUTH AMERICAN MONEY SERVICE BUSINESS CUSTOMERS. BAC ENTERED INTO A CIVIL SETTLEMENT AGREEMENT WITH THE NEW YORK COUNTY (NEW YORK) DISTRICT ATTORNEY (DA) ON SEPTEMBER 28, 2006. THE AGREEMENT PROVIDES THAT, FROM ABOUT 2002 TO 2004, BAC HAD DEFICIENCIES IN CERTAIN INTERNAL ANTI-MONEY LAUNDERING CONTROLS AND FAILED TO REACT APPROPRIATELY TO THE RISK PRESENTED BY CERTAIN SOUTH AMERICAN MONEY SERVICES BUSINESS CUSTOMERS, WHO MOVED FUNDS ILLEGALLY THROUGH BAC. THE AGREEMENT REQUIRES BAC TO MAKE A TOTAL PAYMENT OF $7.5 MILLION, TO COOPERATE WITH THE DA IN ONGOING INVESTIGATIONS, AND TO ABIDE BY ANTI-MONEY LAUNDERING CHANGES RECOMMENDED BY BAC'S REGULATORS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
NB HOLDINGS CORPORATION (F/K/A US TRUST CORPORATION) and UNITED STATES TRUST COMPANY, N.A. (F/K/A UNITED STATES TRUST COMPANY OF NEW YORK)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 01-010-B-HC/01-010-CMP-HC
 07/12/2001
10(d)(2)(iv).  The Court or body taking the Action and location:
FEDERAL RESERVE BOARD
10(d)(2)(v).  Description of the action or claim:
U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.), WITHOUT ADMITTING TO ANY ALLEGATIONS, CONSENTED ON JULY 12, 2001, TO THE ISSUANCE OF THE ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AND MONETARY PAYMENT ISSUED UPON CONSENT IN CONNECTION WITH THE ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND RELATING TO THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (AS OF 4/1/06 UNITED STATES TRUST COMPANY, N.A.).
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist, Monetary Fine
10(d)(2)(i).  The individuals named in the action or claim:
NB HOLDINGS CORPORATION (F/K/A US TRUST CORPORATION) and UNITED STATES TRUST COMPANY, N.A. (F/K/A UNITED STATES TRUST COMPANY OF NEW YORK)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 01-010-B-HC/01-010-CMP-HC
 07/12/2001
10(d)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STATE BANKING DEPARTMENT
10(d)(2)(v).  Description of the action or claim:
U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.), WITHOUT ADMITTING TO ANY ALLEGATIONS, CONSENTED ON JULY 12, 2001, TO THE ISSUANCE OF THE ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AND MONETARY PAYMENT ISSUED UPON CONSENT IN CONNECTION WITH THE ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND RELATING TO THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (AS OF 4/1/06 UNITED STATES TRUST COMPANY, N.A.).
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist, Monetary Fine
10(d)(2)(i).  The individuals named in the action or claim:
NB HOLDINGS CORPORATION (F/N/A U.S. TRUST CORPORATION) and UNITED STATES TRUST COMPANY, N.A. (NKA BANK OF AMERICA, N.A.)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 01-010-B-HC/01-010-CMP-HC
 07/12/2001
10(d)(2)(iv).  The Court or body taking the Action and location:
FEDERAL RESERVE BOARD
10(d)(2)(v).  Description of the action or claim:
THE FEDERAL RESERVE BOARD AND THE NEW YORK STATE BANKING DEPARTMENT ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.). ON JULY 11, 2001, U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.) PAID TO THE FEDERAL RESERVE BOARD A CIVIL MONEY PENALTY IN THE AMOUNT OF $5 MILLION AND MADE A $5 MILLION MONETARY PAYMENT OT THE STATE OF NEW YORK. U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.), WITHOUT ADMITTING TO ANY ALLEGATIONS, CONSENTED ON JULY 12, 2001, TO THE ISSUANCE OF THE ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AND MONETARY PAYMENT ISSUED UPON CONSENT IN CONNECTION WITH THE ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND RELATING TO THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (AS OF 4/1/06 UNITED STATES TRUST COMPANY, N.A.).
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2007-0658
 06/01/2006
10(d)(2)(iv).  The Court or body taking the Action and location:
MARYLAND SECURITIES COMMISSIONER
10(d)(2)(v).  Description of the action or claim:
RESPONDENT DID NOT REASONABLY SUPERVISE TWO AGENTS WHO MISAPPROPRIATED MONIES FROM CUSTOMERS WITHIN THE MEANING OF SECTION 11-412 (A)(10) OF THE MARYLAND SECURITIES ACT. CONSENT ORDER FOR RESPONDENT TO PAY $10,000 FINE, CEASE AND DESIST AND INCORPORATE REMEDIAL MEASURES INTO SUPERVISORY PROGRAM AS A RESULT OF NOT REASONABLY SUPERVISING TWO AGENTS WHO MISAPPROPRIATED MONIES FROM CUSTOMERS WITHIN THE MEANING OF SECTION 11-412 (A)(10) OF THE MARYLAND SECURITIES ACT.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 05/04/1998
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF THE CURRENCY
10(d)(2)(v).  Description of the action or claim:
OCC FOUND THAT NATIONSBANK, N.A. (N.K.A. BANK OF AMERICA, N.A.) VIOLATED A CONDITION IN AN OCC APPROVAL LETTER AND THEREBY FAILED TO ADHERE TO AN OCC BANKING CIRCULAR WHICH PROVIDED GUIDANCE TO ALL NATIONAL BANKS CONCERNING THE SALE AND MARKETING OF INVESTMENT PRODUCTS ON BANK PREMISES, IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. & NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING CHARGES NATIONSBANK, N.A. CONSENTED TO PAY A CIVIL MONEY PENALTY OF $750,000.00.
10(d)(2)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT ORDER
10(d)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 02/09/2005
10(d)(2)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(2)(v).  Description of the action or claim:
ON FEBRUARY 9, 2005, NEITHER ADMITTING NOR DENYING THE FINDINGS, BAS ENTERED INTO AN ASSURANCE OF DISCONTINUANCE WITH THE OFFICE OF THE NEW YORK ATTORNEY GENERAL TO SETTLE ALLEGATIONS IT HAD VIOLATED THE MARTIN ACT, EXECUTIVE LAW 63(12), AND THE GENERAL BUSINESS LAW 349. THE ASSURANCE OF DISCONTINUANCE FINDS THAT BAS, FROM AS EARLY AS JULY 2000 THROUGH JULY 2003, FACILITATED MARKET TIMING AND LATE TRADING BY SOME INTRODUCING BROKER-DEALERS AND A HEDGE FUND AND PROVIDED ACCOUNT MANAGEMENT TOOLS AND OTHER ASSISTANCE AND ENABLED INTRODUCING BROKER-DEALERS TO CONCEAL THEIR CLIENT'S MARKET TIMING ACTIVITIES FROM MUTUAL FUNDS.
10(d)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST, DISGORGEMENT
10(d)(2)(i).  The individuals named in the action or claim:
CRT SERVICES, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 10/31/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(d)(2)(v).  Description of the action or claim:
ALLEGED CRT SERVICES, INC. VIOLATED CHICAGO BOARD OF TRADE RULE 450.00. FINED $2,500. CRT SERVICES, INC. PAID $560,034.60 IN PAST DUE FESS ALONG WITH INTEREST IN THE AMOUNT OF $43,688.50.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
CRT SERVICES, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
N/A
 05/07/1984
10(d)(2)(iv).  The Court or body taking the Action and location:
BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(d)(2)(v).  Description of the action or claim:
ALLEGED THAT CRT SERVICES, INC. VIOLATED CHICAGO BOARD OF TRADE RULE 431.00 AND REGULATIONS 431.05,403.07 AND CAPITAL RULE 213.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
GPC SECURITIES, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: R-94-085
 07/18/1994
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
AMVESCAP SERVICES, INC. (NOW KNOWN AS GPC SECURITIES, INC.) MAINTAINED A MARKETING SALES OFFICE IN MASSACHUSETTS IN VIOLATION OF SECTION 201 OF THE MASSACHUSETTS UNIFORM SECURITIES ACT. (NOT REGISTERING AS A BROKER/DEALER).
10(d)(2)(vi).  Disposition of action or claim:
Order
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUNDS DISTRIBUTOR, INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/11/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF SECTION 4216 OF THE VERMONT SECURITIES ACT. MERRILL LYNCH FUNDS DISTRIBUTOR, INC. DENIED THAT IT FAILED TO RENEW A DEALERS' BOND IN A TIMELY MANNER. IT OBTAINED A REPLACEMENT BOND BACKDATED TO THE DATE OF PREVIOUS BOND LAPSE. FIRM AGREED TO PAY A FINE.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CONSENT ORDER 90-19
 06/26/1990
10(d)(2)(iv).  The Court or body taking the Action and location:
NEW JERSEY DEPARTMENT OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
SOLICITING, NEGOTIATING AND EFFECTING COVERAGES OF INSURANCES BY ONE OF ITS FORMER EMPLOYEES PRIOR TO HIS BEING LICENSED. MERRILL LYNCH LIFE AGENCY PAID IN FULL SETTLEMENT OF A CONSENT ORDER.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/13/1985
10(d)(2)(iv).  The Court or body taking the Action and location:
SOUTH CAROLINA DEPARTMENT OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY VIOLATED THE LICENSING PROVISIONS OF THE SOUTH CAROLINA INSURANCE CODE. MERRILL LYNCH LIFE AGENCY, WITHOUT ADMITTING ANY OF THE VIOLATIONS, CONSENTED TO AN ADMINISTRATIVE ASSESSMENT, AGREED THAT NONE OF ITS AGENTS WOULD ACT WITHOUT BEING LICENSED AND THAT IT WOULD MAINTAIN AN AGENCY LICENSE AT ALL TIMES IN WHICH IT TRANSACTS THE BUSINESS OF AN INSURANCE AGENT.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines and Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/04/1985
10(d)(2)(iv).  The Court or body taking the Action and location:
GEORGIA COMMISSIONER OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY VIOLATED THE LICENSING PROVISIONS OF THE GEORGIA INSURANCE CODE. MERRILL LYNCH LIFE AGENCY, WITHOUT ADMITTING ANY OF THE VIOLATIONS, CONSENTED TO ISSUANCE OF A CEASE AND DESIST ORDER AND A PENALTY.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/07/1984
10(d)(2)(iv).  The Court or body taking the Action and location:
NORTH CAROLINA COMMISSIONER OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY AND CERTAIN OF ITS AGENTS WERE NOT PROPERLY LICENSED IN CONNECTION WITH THE SALE OF CERTAIN ANNUITY CONTRACTS. MERRILL LYNCH LIFE AGENCY, WITHOUT ADMITTING OR DENYING ANY OF THE VIOLATIONS, AGREED TO SETTLE.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/11/1984
10(d)(2)(iv).  The Court or body taking the Action and location:
KENTUCKY DEPARTMENT OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY'S SOLICITATIONS OF CERTAIN ANNUITY CONTRACTS BY ACCOUNT EXECUTIVES NOT PROPERLY LICENSED AND NOT HOLDING A VALID CORPORATE LICENSE FOR PERIOD MARCH 1982 TO MAY 1983. KENTUCKY DEPARTMENT OF INSURANCE ACCEPTED AN OFFER OF SETTLEMENT MADE WITHOUT ADMITTING OR DENYING ANY VIOLATIONS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/11/1984
10(d)(2)(iv).  The Court or body taking the Action and location:
KANSAS COMMISSIONER OF INSURANCE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY'S VIOLATIONS OF THE KANSAS INSURANCE CODE IN CONNECTION WITH THE SALE OF CERTAIN ANNUITY CONTRACTS. CERTAIN MERRILL LYNCH LIFE AGENCY AGENTS WERE NOT PROPERLY LICENSED, FAILED TO DISCLOSE THAT ANNUITY CONTRACTS WERE GROUP CONTRACTS AND INFORMED SOME ANNUITY HOLDERS THAT CONTRACTS WERE GUARANTEED BY AN ENTITY OTHER THAN THE ISSUING CARRIER. MERRILL LYNCH LIFE AGENCY WITHOUT ADMITTING ANY OF THE VIOLATIONS CONSENTED TO A CEASE AND DESIST ORDER AND THE IMPOSITION OF A PENALTY.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/30/1984
10(d)(2)(iv).  The Court or body taking the Action and location:
NEW HAMPSHIRE INSURANCE DEPARTMENT
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH LIFE AGENCY AND ITS EMPLOYEES SOLD PRODUCTS WITHOUT BEING PROPERLY LICENSED. UNDERTAKING BY MERRILL LYNCH LIFE AGENCY THAT NO FURTHER SALES OF INSURANCE PRODUCTS IN NEW HAMPSHIRE WOULD BE DONE WITHOUT PROPER LICENSING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines and Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/20/1977
10(d)(2)(iv).  The Court or body taking the Action and location:
WISCONSIN COMMISSIONER OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
FIRM ENGAGED IN CONDUCT IN VIOLATION OF WISCONSIN UNIFORM SECURITIES LAW IN THE AREA OF AGENT REGISTRATION REQUIREMENTS. FIRM SUBMITTED AND DISTRIBUTED REVISED SUPERVISORY PROCEDURES AND INSTRUCTIONS FOR AGENTS CONCERNING COMPLIANCE WITH AGENT LICENSING PROVISIONS OF THE WISCONSIN STATUTE.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/29/1978
10(d)(2)(iv).  The Court or body taking the Action and location:
MASSACHUSETTS SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
FIRM VIOLATED CERTAIN PROVISIONS OF THE MASSACHUSETTS UNIFORM SECURITIES ACT AND CERTAIN RULES THERE UNDER. WITHOUT ADMITTING OR DENYING ANY OF THE CHARGES THE FIRM AGREED TO ACCEPT A TEN DAY SUSPENSION OF ITS BROKER DEALER REGISTRATION. THE SUSPENSION WAS CANCELLED CONDITIONED UPON THE FIRM'S FURTHER AGREEMENT TO DISTRIBUTE TO ITS BRANCH OFFICES A STATEMENT OF POLICY SETTING FORTH PROCEDURES TO PREVENT FURTHER VIOLATIONS
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: S-2548-I
 10/26/1988
10(d)(2)(iv).  The Court or body taking the Action and location:
ARIZONA CORPORATION COMMISSION
10(d)(2)(v).  Description of the action or claim:
THREE SALESPERSONS OFFERED TO SELL SECURITIES WITHIN OR FROM ARIZONA WITHOUT BEING REGISTERED. AN ORDER ASSESSING AN ADMINISTRATIVE PENALTY ON CONSENT WAS ENTERED ON 10/26/88.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/28/1980
10(d)(2)(iv).  The Court or body taking the Action and location:
GEORGIA SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
ALLEGED SALE OF SECURITIES IN GEORGIA BY AN ACCOUNT EXECUTIVE NOT REGISTERED IN GEORGIA. THE ORDER WAS ISSUED AFTER THE FIRM WAIVED ITS RIGHTS TO A HEARING AND AFTER CONSENTING TO ITS ENTRY WITHOUT ADMITTING OR DENYING THE ALLEGATION.
10(d)(2)(vi).  Disposition of action or claim:
Reprimand
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/30/1979
10(d)(2)(iv).  The Court or body taking the Action and location:
OKLAHOMA SECURITIES COMMSSION
10(d)(2)(v).  Description of the action or claim:
CUSTOMER COMPLAINT ALLEGING LACK OF SUITABILITY AND EXCESSIVE TRADING. OKLAHOMA COMMISSION ISSUED AN AMENDED FINAL ORDER REVOKING THE PREVIOUS ORDER SUSPENDING THE BRANCH OFFICE OF THE FIRM AND ACCEPTED THE FILING OF CERTAIN UNDERTAKINGS, DOCUMENT PROCEDURES AND INTERNAL CONTROLS.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/04/1980
10(d)(2)(iv).  The Court or body taking the Action and location:
ARKANSAS SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
FRAUD, MISREPRESENTATION, CHURNING AND FAILURE TO SUPERVISE IN CONNECTION WITH TRADING IN TWO ACCOUNTS. ARKANSAS INSTITUTED AN ADMINISTRATIVE PROCEEDING AGAINST THE FIRM, BRANCH MANAGER AND A FORMER ACCOUNT EXECUTIVE. ON 1/21/1981 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS THE FIRM AGREED TO AN UNDERTAKING IN RESOLUTION OF THE MATTER.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/30/1982
10(d)(2)(iv).  The Court or body taking the Action and location:
WISCONSIN SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
FIRM FAILED TO DETECT AND PREVENT UNAUTHORIZED TRANSACTIONS IN A CUSTOMER'S ACCOUNT AND FAILED TO FILE A COPY OF A CIVIL COMPLAINT AND ANSWER. FIRM ACCEPTED A CENSURE ON SEPTEMBER 30, 1982 IN AN ORDER SIGNED BY THE COMMISSIONER OF SECURITIES
10(d)(2)(vi).  Disposition of action or claim:
Censure
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 07/13/1983
10(d)(2)(iv).  The Court or body taking the Action and location:
MISSOURI DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
AN UNREGISTERED EMPLOYEE ACCEPTED AN ORDER TO SELL SECURITIES FROM A PUBLIC CUSTOMER. AS PART OF THE CONSENT ORDER, FIRM AGREED TO CERTAIN UNDERTAKINGS WITH RESPECT TO PROCEDURES INVOLVING CUSTOMER COMMUNICATIONS WITH NON-REGISTERED EMPLOYEES.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 88-0405-S
 04/25/1989
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT COMMISSIONER OF BANKING AND INSURANCE
10(d)(2)(v).  Description of the action or claim:
A SALES PERSON EMPLOYED BY FIRM ENGAGED IN TWO TRANSACTIONS IN VERMONT WITHOUT BEING REGISTERED. WHILE FIRM DENIED VIOLATION OF ANY VERMONT SECURITIES LAW OR REGULATION, AN ORDER ASSESSING COSTS AND FEES ON CONSENT WAS ENTERED.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/12/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
FLORIDA DEPARTMENT OF BANKING AND FINANCE
10(d)(2)(v).  Description of the action or claim:
TWO UNREGISTERED ASSOCIATED PERSONS ENGAGED IN SALES OF SECURITIES TO RESIDENTS OF THE STATE OF FLORIDA PRIOR TO SEPTEMBER 1988. A CONSENT FINAL ORDER WAS DOCKETED WHICH REQUIRED PAYMENT OF $3,000 AS AN ADMINISTRATIVE FEE BY THE FIRM. THE ORDER WAS BASED ON A STIPULATION AND CONSENT DATED 4/12/91.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/29/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
VIRGINIA STATE CORPORATION COMMISSION
10(d)(2)(v).  Description of the action or claim:
FIRM EMPLOYED AN UNREGISTERED AGENT. WITHOUT ADMITTING OR DENYING ALLEGATIONS FIRM CONSENTED TO THE ENTRY OF AN ORDER BY THE VIRGINIA STATE CORPORATION COMMISSION.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/26/1992
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT COMMISSIONER OF BANKING, INSURANCE AND SECURITIES
10(d)(2)(v).  Description of the action or claim:
A REPLACEMENT BOND FILING WAS OVERLOOKED IN 1989 IN VIOLATION OF THE VERMONT SECURITIES ACT. FIRM CONSENTED TO THE ENTRY OF AN ORDER ASSESSING $1,000.00 IN SETTLEMENT OF AN INQUIRY AND AN ADDITIONAL $500.00 IN COSTS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/01/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF VIRGINIA
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF STATE RULES RELATING TO THE MAINTENANCE OF RECORDS FOR REAL ESTATE PROGRAMS. FIRM CONSENTED WITHOUT ADMITTING OR DENYING ALLEGATIONS.
10(d)(2)(vi).  Disposition of action or claim:
MONETARY FINE
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 89-0880-S
 06/20/1990
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
SALES OF SECURITIES BY UNREGISTERED SALES REPRESENTATIVES IN THE STATE OF VERMONT. VERMONT SECURITIES DIVISION ENTERED A CONSENT ORDER AGAINST THE FIRM. IN SETTLEMENT OF THE MATTER, FIRM AGREED TO PAY A FINE AND TO CONTINUE TO ADDRESS THE PROBLEM OF REGISTRATION OF ITS SALES REPRESENTATIVES WITH A VIEW TO PREVENTING FUTURE VIOLATIONS OF THE SECURITIES ACT.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CA-93-12
 10/04/1993
10(d)(2)(iv).  The Court or body taking the Action and location:
RHODE ISLAND SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
CERTAIN SALES AGENTS OF THE FIRM WERE EMPLOYED AS INVESTMENT ADVISOR REPRESENTATIVES WITHOUT BEING LICENSED. FIRM ENTERED INTO A CONSENT AGREEMENT WITH THE STATE REPRESENTING THAT SUCH EMPLOYMENT WAS UNINTENTIONAL AND AGREED TO PAY BACK FEES OF $1,300 AND AN ADDITIONAL $14,000.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 1938-S-9/93
 09/24/1993
10(d)(2)(iv).  The Court or body taking the Action and location:
FLORIDA DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
OPERATING THREE BRANCH OFFICES IN THE STATE OF FLORIDA THAT WERE NOT LICENSED WITH THE DEPARTMENT. STATE AND FIRM ENTERED INTO A STIPULATION AND CONSENT AGREEMENT. FINAL ORDER DATED 9/24/1993.
10(d)(2)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT AGREEMENT
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/01/1995
10(d)(2)(iv).  The Court or body taking the Action and location:
D.C. AND THE MASS WATER RESOURCES AUTHORITY
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF 18 U.S.C. SECTIONS 1341, 1345, 1346 AND MASSACHUSETTS STATUTE G.L. 93A, SECTION 2. FIRM PAID $12.01 MILLION WHICH IS COMPOSED OF THE FOLLOWING: 8.8 MILLION IN AN ADMINISTRATIVE PAYMENT TO THE U.S., 2.5 MILLION IN A CIVIL PENALTY TO THE U.S., $500,000 IN A CIVIL PENALTY TO MASSACHUSETTS AND $300,000 FOR CERTAIN COSTS AND EXPENSES OF LITIGATION TO THE U.S. AND MASSACHUSETTS. FIRM HAS CONSENTED, WITHOUT ADMITTING OR DENYING ANY FINDINGS, TO THE ISSUANCE OF AN ORDER OF THE SEC CONTAINING FINDINGS THAT FIRM VIOLATED RULE G-17 OF THE MUNICIPAL SECURITIES RULEMAKING BOARD. UNDER THE ORDER FIRM IS CENSURED, IS ORDERED TO CEASE AND DESIST FROM ANY FUTURE VIOLATION OF RULE G-17, IS ORDERED TO PAY A CIVIL PENALTY OF 2.5 MILLION AND RESTITUTION OF 3.8 MILLION TO THE DISTRICT OF COLUMBIA AND THE MASSACHUSETTS WATER RESOURCES AUTHORITY AND TO COMPLY WITH ITS UNDERTAKING TO MAINTAIN CERTAIN PREVIOUSLY ADOPTED POLICIES AND PROCEDURES.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: S-97061(LX)
 08/06/1999
10(d)(2)(iv).  The Court or body taking the Action and location:
WISCONSIN DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
A REGISTERED REPRESENTATIVE ENGAGED IN EXCESSIVE AND UNAUTHORIZED TRADING IN CUSTOMERS' ACCOUNTS. THE FIRM DID NOT CONTEST THE MATTER AND SIGNED A WAIVER AND ORDER OF ASSESSMENT (CONSENT) VOLUNTARILY UNDERTAKING TO PAY $2,500 AS AN ADMINISTRATIVE ASSESSMENT.
10(d)(2)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2000-26
 05/15/2000
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS
10(d)(2)(v).  Description of the action or claim:
THE DIVISION ALLEGED THAT THE FIRM FAILED TO ADEQUATELY SUPERVISE TWO FINANCIAL CONSULTANTS IN ITS BOSTON OFFICE. IT WAS ALLEGED THAT ONE FINANCIAL CONSULTANT OVER CONCENTRATED CERTAIN SECURITIES IN CUSTOMERS' ACCOUNTS IN A MANNER NOT SUITABLE FOR THOSE ACCOUNTS WHILE THE OTHER FINANCIAL CONSULTANT ENGAGED IN A FRAUDULENT SCHEME TO STEAL MONEY FROM CUSTOMERS OVER A TEN (10) YEAR PERIOD. IN ADDITION TO AN ADMINISTRATIVE FINE, MERRILL LYNCH AGREED TO REIMBURSE THE MASSACHUSETTS INVESTOR EDUCATION FUND $100,000 FOR THE APPROXIMATE COST OF THE INVESTIGATION.
10(d)(2)(vi).  Disposition of action or claim:
ADMINISTRATIVE FINE, UNDERTAKING TO RETAIN A CONSULTANT TO REVIEW THE COMPLIANCE POLICIES AND PROCEDURES IN THE BOSTON OFFICE, AND AGREEMENT TO OFFER AN EXPEDITED MEDIATION PROCESS.
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/28/2001
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT DEPT. OF BANKING
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH, AS A RESULT OF AN ADMINISTRATIVE ERROR, INADVERTENTLY FAILED TO REGISTER, OR RENEW THE ANNUAL REGISTRATION OF APPROXIMATELY 30 FCS AND CSAS AS IARS IN THE STATE OF VERMONT IN EACH OF THE YEARS 1995, 1996, 1997, 1998 AND 1999. DURING THE LAST QUARTER OF 2000, MERRILL LYNCH FILED IAR REGISTRATION APPLICATIONS FOR ALL OF ITS PERSONNEL REQUIRING VERMONT REGISTRATION. MERRILL LYNCH, AS A RESULT OF AN ADMINISTRATIVE ERROR, INADVERTENTLY FAILED TO REGISTER, OR RENEW THE ANNUAL REGISTRATION OF APPROXIMATELY 30 FCS AND CSAS AS IARS IN THE STATE OF VERMONT IN EACH OF THE YEARS 1995, 1996, 1997, 1998 AND 1999. DURING THE LAST QUARTER OF 2000, MERRILL LYNCH FILED IAR REGISTRATION APPLICATIONS FOR ALL OF ITS PERSONNEL REQUIRING VERMONT REGISTRATION.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: INDEX NO. 02401522
 04/08/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
NEW YORK ATTORNEY GENERAL
10(d)(2)(v).  Description of the action or claim:
THE NY ATTORNEY GENERAL CONDUCTED AN INVESTIGATION CONCERNING THE PRACTICES RELATING TO THE OFFER, SALE, ISSUANCE, ADVERTISEMENT, PROMOTION, EXCHANGE, MARKETING, INVESTMENT ADVICE, DISTRIBUTION AND TRANSFER OF SECURITIES IN AND FROM THE STATE OF NEW YORK. IN ORDER TO SETTLE THIS MATTER AND WITH NO ADMISSION OF WRONGDOING OR LIABILITY, THE FIRM AGREED TO PAY $48,000,000.00 TO THE STATE OF NEW YORK, $50,000,000.00 TO THE REMAINING STATES, WASHINGTON, D.C. & PUERTO RICO AND $2,000,000.00 TO NASAA.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: INV99-022
 07/17/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF NEW HAMPSHIRE BUREAU OF SECURITIES REGULATION
10(d)(2)(v).  Description of the action or claim:
THE BUREAU ALLEGED THAT THE FIRM FAILED TO ADEQUATELY SUPERVISE A FINANCIAL ADVISOR IN IT'S MANCHESTER OFFICE. IT WAS ALLEGED THAT THE FINANCIAL ADVISOR SOLICITED CLIENTS TO PURCHASE STOCKS THAT WERE NOT BLUE SKIED OR COVERED BY THE FIRM'S RESEARCH DEPARTMENT, AGAINST REGULATORY REQUIREMENTS AND FIRM POLICY. IT WAS ALSO ALLEGED THAT THE FINANCIAL ADVISOR MISMARKED THE ORDERS AS UNSOLICITED. A SETTLEMENT WAS ENTERED INTO BY MERRILL LYNCH WITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS OR FINDINGS IN THE ORDER. AS PART OF AN UNDERTAKING MERRILL LYNCH AGREED TO DO THE FOLLOWING: (1) RETAIN A CONSULTANT TO REVIEW THE CURRENT COMPLIANCE POLICY AND PROCEDURES IN THE MANCHESTER BRANCH OFFICE WITH FOCUS ON CERTAIN SPECIFIED AREAS, (2) CIRCULATE A GLOBAL COMPLIANCE ALERT TO ALL U.S. PRIVATE CLIENT PERSONNEL ADDRESSING THE ISSUES RAISED IN THIS MATTER AND (3) OFFER RESCISSION OF THE PURCHASES OF THE SPECIFIC STOCKS BY THOSE CLIENTS OF THE FINANCIAL ADVISOR DURING THE RELEVANT PERIOD.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CASE NO. 01-3-5
 03/11/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF DELAWARE SECURITIES COMMISSIONER
10(d)(2)(v).  Description of the action or claim:
THE STATE OF DELAWARE LODGED AN INVESTIGATION INTO ALLEGATIONS OF UNAUTHORIZED TRADING BY A FINANCIAL ADVISOR IN A CUSTOMER'S ACCOUNT. IN ADDITION TO THE MONETARY FINE, MERRILL LYNCH AGREED TO MAKE RESTITUTION TO THE CUSTOMER IN THE AMOUNT OF $8,290.93.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 3513-S-7/02
 04/08/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
THE STATE OF FLORIDA
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF FLORIDA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF FLORIDA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2002-04-026
 09/24/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
PENNSYLVANIA SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF PENNSYLVANIA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF PENNSYLVANIA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SEC-2002-00028
 11/26/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
VIRGINIA DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF VIRGINIA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF VIRGINIA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SE22055819
 09/01/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
MINNESOTA DEPARTMENT OF COMMERCE
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF MINNESOTA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF MINNESOTA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SSB DKT NO 02-41, FIN-1486
 09/27/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
THE STATE OF TEXAS
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF TEXAS IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF TEXAS DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SEC-2003-00041
 01/30/2004
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF VIRGINIA; STATE CORPORATION COMMISSION
10(d)(2)(v).  Description of the action or claim:
THE COMMONWEALTH OF VIRGINIA LODGED AN INVESTIGATION INTO ALLEGATIONS OF UNSUITABLE TRADING BY FORMER FINANCIAL ADVISORS IN THE ACCOUNTS OF TWO CUSTOMERS. MERRILL LYNCH AGREED TO MAKE RESTITUTION TO THE CUSTOMERS IN THE AMOUNT OF $73,544.81 AND $268,723.12, RESPECTIVELY.
10(d)(2)(vi).  Disposition of action or claim:
Restitution
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CO-2002-6590-S
 01/30/2004
10(d)(2)(iv).  The Court or body taking the Action and location:
CONNECTICUT BANKING AUTHORITY
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF CONNECTICUT IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF CONNECTICUT DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SD-02-0083
 10/09/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
UTAH DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF UTAH IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF UTAH DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CO-2002-0028
 11/04/2002
10(d)(2)(iv).  The Court or body taking the Action and location:
ALABAMA SECURITIES COMMISSION
10(d)(2)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF ALABAMA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF ALABAMA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(2)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH LIMITED (BROKERS AND DEALERS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/20/1999
10(d)(2)(iv).  The Court or body taking the Action and location:
LONDON METAL EXCHANGE
10(d)(2)(v).  Description of the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH LIMITED, MERRILL LYNCH INTERNATIONAL INCORPORATED AND MERRILL LYNCH AND CO., INC. ALLEGED BY THE CFTC AND MERRILL LYNCH, PIERCE FENNER & SMITH LIMITED WAS ALLEGED BY THE LONDON METAL EXCHANGE TO HAVE AIDED AND ABETTED SUMITOMO CORPORATION AND GLOBAL METALS CORPORATION IN THEIR ALLEGED MANIPULATION OF COPPER PRICES. THE CFTC DISMISSED THE ACTION AS TO MERRILL LYNCH AND CO., INC. MERRILL LYNCH, PIERCE FENNER AND SMITH LIMITED AND MERRILL LYNCH INTERNATIONAL INCORPORATED WITHOUT ADMITTING OR DENYING ANY WRONGDOING AGREED TO A SETTLEMENT WITH THE CFTC PURSUANT TO WHICH THEY WILL PAY A $15 MILLION CIVIL PENALTY AND AGREE TO CEASE AND DESIST FROM VIOLATION OF CERTAIN PROVISIONS OF THE COMMODITY EXCHANGE ACT. MERRILL LYNCH, PIERCE, FENNER AND SMITH LIMITED AGREED TO A SETTLEMENT WITH LONDON METAL EXCHANGE PAYING A FINE OF 6.5 MILLION POUNDS STERLING (APPROX U.S., $10 MILLION).
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 89-0660-S
 01/08/1990
10(d)(2)(iv).  The Court or body taking the Action and location:
VERMONT SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
VIOLATION OF THE VERMONT SECURITIES ACT BY THE SALE OF UNITS OF A UNIT INVESTMENT TRUST TO VERMONT RESIDENTS THAT EXCEEDED THE AMOUNT REGISTERED IN VERMONT BY APPROXIMATELY $200,000. MERRILL LYNCH ACKNOWLEDGED THE VIOLATIONS AND MODIFIED ITS COMPLIANCE PROCEDURES TO CURTAIL THE REOCCURRENCE OF OVERSALES.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 0133-S-4/04
 06/17/2004
10(d)(2)(iv).  The Court or body taking the Action and location:
FLORIDA
10(d)(2)(v).  Description of the action or claim:
UNREGISTERED BRANCH ACTIVITY. DUE TO ADMINISTRATIVE ERROR, 2 OFFICES WERE NOT PROPERLY LICENSED WITH THE STATE OF FLORIDA. THEY WERE LICENSED WITH THE NASD AND NYSE. FIRM AGREED TO THE STIPULATION SET FORTH ABOVE. (FINE PAID AS OF 6/17/2004.)
10(d)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 95-12-01
 08/27/1997
10(d)(2)(iv).  The Court or body taking the Action and location:
THE SECURITIES DIVISION OF THE STATE OF DELAWARE
10(d)(2)(v).  Description of the action or claim:
ALLEGATION OF FAILURE TO SUPERVISE. THE ALLEGATIONS. ONCE MERRILL LYNCH PAID RESTITUTION TOTALING 100,000.00 ON OR BEFORE MARCH 17, 1998, THE SECURITIES DIVISION OF THE STATE OF DELAWARE FILED A NOTICE OF DISMISSAL WITH PREJUDICE OF THE CHARGES AGAINST MERRILL LYNCH.
10(d)(2)(vi).  Disposition of action or claim:
Restitution
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/12/1991
10(d)(2)(iv).  The Court or body taking the Action and location:
FLORIDA DIVISION OF SECURITIES AND INVESTOR PROTECTION
10(d)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT MERRILL LYNCH ALLOWED UNREGISTERED ASSOCIATED PERSONS TO SELL SECURITIES TO FLORIDA RESIDENTS FROM ITS MANCHESTER, NEW HAMPSHIRE BRANCH OFFICE. RESPONDENT MERRILL LYNCH ALLOWED UNREGISTERED ASSOCIATED PERSONS TO SELL SECURITIES TO FLORIDA RESIDENTS FROM ITS MANCHESTER, NEW HAMPSHIRE BRANCH. RESPONDENT AGREES TO PAY THE FLORIDA DEPARTMENT OF BANKING AND FINANCE $3000.00, PAYABLE TO THE ANTI-FRAUD TRUST FUND.
10(d)(2)(vi).  Disposition of action or claim:
Restitution
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 455-691 AND 158-194
 07/21/1977
10(d)(2)(iv).  The Court or body taking the Action and location:
THE STATE OF WISCONSIN
10(d)(2)(v).  Description of the action or claim:
ALLEGATION THAT FINANCIAL ADVISOR WAS NOT LICENSED IN STATE OF WISCONSIN. DECISION ENTERED STATING THAT AN AGENT PROVIDING ESSENTIAL SERVICES TO THE ACCOUNT OF A WISCONSIN INVESTOR MUST COMPLY WITH THE LICENSING REQUIREMENTS OF THE WISCONSIN SECURITIES LAW, NOTWITHSTANDING THE FACT THAT THE ACCOUNT IS CARRIED UNDER THE NAME OF A WISCONSIN LICENSED AGENT WHO ALSO PROVIDES CERTAIN SERVICES TO THE ACCOUNT. MERRILL LYNCH ORDERED TO PREPARE REVISED INTERNAL OPERATING PROCEDURES AND DISTRIBUTE THEM TO EACH OF ITS WISCONSIN AGENTS.
10(d)(2)(vi).  Disposition of action or claim:
Suspension
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/03/2003
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF NEW JERSEY OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LAW AND PUBLIC
10(d)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT UPON LEARNING OF SHORT TERM TRADING OF MUTUAL FUNDS BY THREE OF ITS FINANCIAL ADVISORS, THE FIRM FAILED TO TAKE EFFECTIVE ACTION TO HALT TRADING, ENHANCE SUPERVISION, OR ISSUE SUFFICIENT FOLLOW-UP INSTRUCTIONS TO ENSURE ADHERENCE TO FIRM POLICIES AND PROCEDURES, AS WELL AS SECURITIES LAWS AND REGULATIONS. MERRILL LYNCH NEITHER ADMITS NOR DENIES THE ALLEGATIONS, AND SOLELY FOR THE PURPOSES OF THIS PROCEEDING, PRIOR TO A HEARING AND WITHOUT ADJUDICATION OF ANY ISSUE OF LAW OR FACT, CONSENTS TO THE ENTRY OF THIS CONSENT ORDER AND VOLUNTARILY WAIVES THE RIGHT TO A HEARING AND JUDICIAL REVIEW.
10(d)(2)(vi).  Disposition of action or claim:
FINE
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2004-036
 05/31/2005
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF NEW JERSEY BUREAU OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED NEW JERSEY STATUTES WHEN IT TERMINATED THE IAR REGISTRATION OF A FINANCIAL ADVISOR IN ERROR. THIS ERROR CAUSED THE FINANCIAL ADVISOR TO ENGAGE IN BUSINESS WITHIN THE STATE WITHOUT THE PROPER REGISTRATION. IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED NEW JERSEY STATUTES WHEN IT TERMINATED THE IAR REGISTRATION OF A FINANCIAL ADVISOR IN ERROR. THIS ERROR CAUSED THE FINANCIAL ADVISOR TO ENGAGE IN BUSINESS WITHIN THE STATE WITHOUT THE PROPER REGISTRATION.
10(d)(2)(vi).  Disposition of action or claim:
FINE, CEASE AND DESIST
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/01/1979
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF ILLINOIS
10(d)(2)(v).  Description of the action or claim:
STATE OF ILLINOIS: MARCH 79 BULLETIN: ENFORCEMENT PROCEEDINGS HEARINGS TO BE HELD: 04/16/1979. STATE OF IL: 07/16/79 SECURITIES DEPARTMENT BULLETIN JULY 1979 CONSENT ORDER OF PROHIBITION ENTERED.
10(d)(2)(vi).  Disposition of action or claim:
Other
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SEC-2003-00041
 10/17/2006
10(d)(2)(iv).  The Court or body taking the Action and location:
STATE OF VIRGINIA
10(d)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE DEFENDANT VIOLATED COMMISSION RULES 21 VAC 5-20-280 A3 ON NUMEROUS OCCASIONS BY RECOMMENDING SECURITIES TO VIRGINIA INVESTORS THAT WERE NOT SUITABLE GIVEN THE INVESTORS' OBJECTIVES, FINANCIAL FOUNDATION REPORT PLANS, AND FINANCIAL CONDITION. IT WAS FURTHER ALLEGED THAT THE DEFENDANT FAILED TO EXERCISE DILIGENT SUPERVISION OVER THE SECURITIES ACTIVITIES OF AN AGENT IN YORK, PENNSYLVANIA AND ANOTHER AGENT IN WILLIAMSBURG, VA IN VIOLATION OF COMMISSION RULE 21 VAC 5-20-206 B. THE EXAMINATION PROJECT COMMENCED IN MARCH 2004 AND WAS COMPLETED IN SEPTEMBER 2005. THE THIRD PARTY EXAMINER WAS REQUIRED TO FOCUS ON (1) DEFENDANT'S RECOMMENDATIONS AND CLIENTS TRADING ACTIVITY COMPARED WITH THE CUSTOMER'S STATED OBJECTIVES, FINANCIAL PLANS (FFR'S), AND FINANCIAL CONDITION; (2) DEFENDANT'S WRITTEN SUPERVISORY PROCEDURES REGARDING NEW ACCOUNTS AND SECURITIES TRANSACTIONS RELATED TO CUSTOMER SUITABILITY; AND (3) DEFENDANT'S SEPARATE SYSTEM OF REVIEW REGARDING THE EFFECTIVE IMPLEMENTATION OF ITS SUPERVISORY PROCEDURES WITH REGARD TO CUSTOMER SUITABILITY. THE DIVISION OF SECURITIES ALSO CONDUCTED AN EXAMINATION OF A VIRGINIA OFFICE THAT FOCUSED ON THE SAME CRITERIA. THIS EXAMINATION BEGAN IN OCTOBER 2004 AND WAS COMPLETED IN NOVEMBER 2005, AND NEGOTIATIONS BEGAN TO CONCLUDE MATTERS ARISING FROM THE EXAMINATIONS. THOSE MATTERS WILL BE SETTLED IN CASE NUMBER SEC-2006-00070. THE DIVISION OF SECURITIES CONCLUDED THAT THE DEFENDANT HAD FULFILLED ITS OBLIGATIONS PURSUANT TO SEC-2003- 00041 ON OCTOBER 17, 2006.
10(d)(2)(vi).  Disposition of action or claim:
DISGORGEMENT AND UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SEC 2006-00070
 10/24/2006
10(d)(2)(iv).  The Court or body taking the Action and location:
VIRGINIA DIVISION OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
DILIGENT SUPERVISION OVER THE SECURITIES ACTIVITIES OF ALL OF ITS AGENTS, INCLUDING INSTANCES OF OVER-BURDENED BRANCH MANAGEMENT; (2) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 3, BY FAILING TO MAINTAIN ALL INFORMATION KNOWN ABOUT CUSTOMERS CONTAINED IN THE FFRS AND MERRILL LYNCH'S INTERNAL COMPUTER DESIGNATION FOR CLIENT ACCOUNT PROFILES (KDIS), INCLUDING THE FAILURE TO RECONCILE SUCH INFORMATION BETWEEN THE FFRS AND THE KDI SYSTEM, AND BY FAILING TO ESTABLISH A SUPERVISORY REVIEW TO ENSURE THAT APPROPRIATE DISCLOSURES WERE DOCUMENTED WHEN IT OFFERED ONLY THE STATE OF MAINE 529 PLAN WITHOUT COMPARISON OF THIS PLAN TO VIRGINIA'S IN-STATE 529 PLAN; AND (3) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 12 BY FAILING TO CONSISTENTLY NOTIFY CERTAIN CLIENTS WITH MLUA ACCOUNTS OF THE DIFFERENCE BETWEEN THE FEES THEY HAD INCURRED IN THE MLUA PROGRAM AND THE STANDARD TRANSACTION CHARGES THEY WOULD HAVE BEEN CHARGED HAD THE ACCOUNT NOT BEEN IN MLUA. DEFENDANT NEITHER ADMITTED, NOR DENIED THE ALLEGATIONS, BUT THE FIRM ADMITTED TO THE COMMISSION'S JURISDICTION OVER THE MATTER AND AGREED TO AND HAS CHANGED ITS POLICIES AND PROCEDURES TO CORRECT THE CRITICISMS NOTED. DEFENDANT ALSO HAS FULFILLED ITS OBLIGATIONS FOR SEC-2003-00041 AND MERRILL LYNCH HAS PAID $75,000 TO THE DIVISION TO DEFRAY THE COST OF THE INVESTIGATION.
10(d)(2)(vi).  Disposition of action or claim:
UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: SEC-2006-0026
 10/31/2006
10(d)(2)(iv).  The Court or body taking the Action and location:
VIRGINIA DEPARTMENT OF SECURITIES
10(d)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE DEFENDANT: (1) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 3 WHEN THE DEFENDANT, THROUGH ITS REGISTERED AGENT FRANCIS LEE SUMMERS, III, RECOMMENDED UNSUITABLE TRANSACTIONS BY ADVISING A VIRGINIA RESIDENT TO SELL STOCK SHARES TO PURCHASE OTHER SHARES OF STOCK THAT WERE UNSUITABLE, GIVEN THE INVESTOR'S OBJECTIVES; AND (2) VIOLATED SECURITIES RULE 21 VAC 5-20-260 B BY FAILING TO EXERCISE DILIGENT SUPERVISION OVER SUMMERS' SECURITIES RECOMMENDATIONS TO A VIRGINIA INVESTOR. AS A RESULT OF AN INVESTIGATION CONDUCTED BY THE DIVISION OF SECURITIES, IT WAS ALLEGED THAT THE DEFENDANT: (1) VIOLATED SECURITIES RULE 21 VAC 5-20-280 A 3 WHEN THE DEFENDANT, THROUGH ITS REGISTERED AGENT FRANCIS LEE SUMMERS, III, RECOMMENDED UNSUITABLE TRANSACTIONS BY ADVISING A VIRGINIA RESIDENT TO SELL STOCK SHARES TO PURCHASE OTHER SHARES OF STOCK THAT WERE UNSUITABLE, GIVEN THE INVESTOR'S OBJECTIVES; AND (2) VIOLATED SECURITIES RULE 21 VAC 5-20- 260 B BY FAILING TO EXERCISE DILIGENT SUPERVISION OVER MR. SUMMERS' SECURITIES RECOMMENDATIONS TO A VIRGINIA INVESTOR. IN LIEU OF A PENALTY ASSESSMENT, THE DEFENDANT AGREED TO AND OFFERED THE COMPLAINANT RESTITUTION IN THE AMOUNT OF $25,000.00. DEFENDANT ALSO REIMBURSED THE DIVISION OF SECURITIES FOR ITS COST OF INVESTIGATION, WHICH TOTALED $8,000.00. THIS MATTER IS NOW CLOSED.
10(d)(2)(vi).  Disposition of action or claim:
DISGORGEMENT AND RESTITUTION
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: CO-2006-7013-S
 11/22/2006
10(d)(2)(iv).  The Court or body taking the Action and location:
CONNECTICUT
10(d)(2)(v).  Description of the action or claim:
THE 11/22/2006 CONSENT ORDER ALLEGED THAT THE FIRM FAILED TO MAINTAIN CERTAIN BOOKS AND RECORDS RELATING TO TRADE EXECUTION IN ACCOUNTS MAINTAINED AT MUTUAL FUND COMPANIES FOR THE PURPOSE OF FACILITATING MARKET TIMING BY A HEDGE FUND CLIENT OF THE FIRM. THE TRADES WERE HANDLED BY AGENTS OF THE FIRM'S FORT LEE, NEW JERSEY BRANCH OFFICE. THE CONSENT ORDER ALSO CLAIMED THAT THE FIRM FAILED TO EXERCISE ADEQUATE SUPERVISORY CONTROLS OVER THE FORT LEE, NEW JERSEY AGENTS WHO CIRCUMVENTED THE FIRM'S POLICY AGAINST MARKET TIMING MUTUAL FUNDS. THE CONSENT ORDER FINED THE FIRM $1 MILLION AND IT WAS PAID ON 11/22/2006. THE CONSENT ORDER ALSO REQUIRED THAT THE FIRM CONTRIBUTE AN ADDITIONAL $1.5 MILLION OVER A THREE YEAR PERIOD TO THE MERRILL LYNCH & CO. FOUNDATION INC., AND EARMARK THAT AMOUNT TO PROMOTE FINANCIAL LITERACY IN PUBLIC SCHOOLS IN ALL MEMBER JURISDICTIONS OF THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION. IN ADDITION, THE CONSENT ORDER DIRECTED THE FIRM TO 1) PAY THE STATE OF CONNECTICUT DEPARTMENT OF EDUCATION $500,000 OVER THREE YEARS TO PROMOTE FINANCIAL LITERACY INITIATIVES IN CONNECTICUT PUBLIC SCHOOLS AS DETERMINED BY THE COMMISSIONER OF EDUCATION; AND 2) PAY $500,000 OVER THREE YEARS TO THE NATIONAL WHITE COLLAR CRIME CENTER TO TRAIN CONNECTICUT REGULATORY AND LAW ENFORCEMENT PERSONNEL IN INVESTIGATING AND PROSECUTING VIOLATIONS OF FINANCIAL, BANKING, CORPORATE AND SECURITIES LAWS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2008-0001
 04/13/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged violations of the Massachusetts Uniform Securities Act, which in part, prohibits unethical or dishonest conduct or practices in the securities business, concerning the sale of auction rate securities. Without admitting or denying the MSD's allegations, MLPFS agreed to certain undertakings, to cease and desist from violations of Massachusetts Uniform Securities Act and to MSD entering an order censuring MLPFS for its actions associated with the matter.
10(d)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST, CENSURE, UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket/Case Number: 2008-0058
 04/13/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(2)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged violations of the Massachusetts Uniform Securities Act, which in part, prohibits unethical or dishonest conduct or practices in the securities business, concerning the sale of auction rate securities (ARS) to retail and other customers by MLFPS. Without admitting or denying the MSD's allegations, MLPFS agreed to certain undertakings, including offering to but back eligible ARS from Eligible Investors. MLFPS agreed to pay a civil penalty to cease and desist from violations of Massachusetts Uniform Securities Act and to MSD entering an order censuring MLPFS for its actions associated with the matter.
10(d)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES; UNDERTAKING
10(d)(2)(i).  The individuals named in the action or claim:
Bank of america Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: E-2009-0030
 04/07/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Massachusetts Securities Division
10(d)(2)(v).  Description of the action or claim:
The Massachusetts Securities Division (MSD) alleged that Bank of American Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without informing certain of its customers of the increased risk of illiquidity associated with hold the ARS. Among other things, the settlement includes findings that BAIS and BAI engaged in dishonest and unethical practices and failed to supervise its agents in violation of the Massachusetts Securities Laws. BAIS and BAS paid a civil penalty of $4,740,819.07.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: SEC-2009-20
 05/05/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State Auditor and Commisioner of Securities of the State of Montana
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: AP-09-20
 05/13/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Commissioner of Securities of the State of Missouri
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-20668A-09-0181
 05/21/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Arizona Corporation Commission
10(d)(2)(v).  Description of the action or claim:
The ACC alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The ACC alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 05/27/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
California Department of Corporations
10(d)(2)(v).  Description of the action or claim:
The Department alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-4-3
 05/27/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Securities Commissioner of the State of Delaware
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-09-0153
 05/26/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Securities and Charities Division of the Office of the Mississippi Secretary of
10(d)(2)(v).  Description of the action or claim:
The Division alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Division alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: C09-V-004
 05/27/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Office of the Commissioner of Financial Institutions of Puerto Rico
10(d)(2)(v).  Description of the action or claim:
The OFCI alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The OFCI alleged that, through this conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. BAIS and BAS agreed to pay a civil penalty and enter into a consent order.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-060-S
 05/28/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Commissioner of the Department of Banking, Insurance, Securities and Healthcare
10(d)(2)(v).  Description of the action or claim:
The Vermont Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/01/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Director of the South Dakota Department of Revenue and Regualtion Division of Se
10(d)(2)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/02/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Attorney General of the State of New York (NYAG)
10(d)(2)(v).  Description of the action or claim:
The NYAG alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The NYAG alleged that such conduct violated certain New York laws, including the Martin Act, Section 349 of the General Business Law and Section 63(12) of the Executive Law. BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-0096 CO
 06/08/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Indiana Securities Commissioner
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 2009-7-13
 06/09/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Director of the Department of Finance of the State of Idaho
10(d)(2)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: ENSC - 01385
 06/10/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Georgia Securities Commissioner
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/12/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
North Dakota Securities Commissioner
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/25/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Michigan Office of Financial and Insurance Regulation (OFIR)
10(d)(2)(v).  Description of the action or claim:
OFIR alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The OFIR alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: i09-113
 06/25/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Securities Dvision of the Office of the Nevada Secretary of State (Division)
10(d)(2)(v).  Description of the action or claim:
The Division alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Division alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-09-0033
 06/29/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Director of the Oregon Department of Consumer and Busienss Services (Director)
10(d)(2)(v).  Description of the action or claim:
The Director alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Director alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: CO-2009-0017
 06/29/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Alabama Securities Commission (Commission)
10(d)(2)(v).  Description of the action or claim:
The Commission alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commission alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: IC09-CDO-13
 07/03/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Securities Commissioner of Texas (Commissioner)
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: SEC-2009-09
 06/02/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Montana Securities Department (Department)
10(d)(2)(v).  Description of the action or claim:
Department alleged that MLFPSs conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated sections 30-10-201(13)(g) and 30-10-201(13)(k) of the Montana Code Annotated (Code). Without admitting or denying the Department 's allegations, MLPFS agreed to cease and desist from violating sections 30-10-201(13)(g) and 30-10-201(13)(k) of the Code , to comply with section 30-10-101, et. seq . of the Code and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors . MLPFS agreed to pay the State of Montana . a civil penalty of $412,977,04, as part of a$125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-09-0181
 06/03/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Office of the Mississippi Secretary of State Securities and Charities Division
10(d)(2)(v).  Description of the action or claim:
The Office of the Mississippi Secretary of State Securities and Charities Division (Division) alleged violations of sections 75-71-321(a)(F) and 75-71-321(b)(A) of the Mississippi Code, concerning the marketing and sale of auction rate securities (ARS) to retail and other customers by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPFS). Without admitting or denying the Division's allegations, MLPFS agreed to cease and desist from violating the Mississippi Securities Act (Act), to comply with, the Act and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Division a civil penalty of $308,582.49, as part of a $125,000,000.00 fine that will be allocated pt the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/03/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of South Dakota, Department of Revenue and Regulation, Division of Securit
10(d)(2)(v).  Description of the action or claim:
The Division alleged that MLPFS' conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated South Dakota Codified Laws (SDCL) 47-31B-412(d)(13) and SDCL 47-31B-412(d)(9). Without admitting or denying the allegations, MLFPS agreed to cease and desist from violating Chapter 47-31B of the SDCL, to comply with Chapter 47-31B of the SDCL, and to certain undertakings.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: C09-V-005
 06/10/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Commonwealth of Puerto Rico, Office of the Commissioner of Financial Institution
10(d)(2)(v).  Description of the action or claim:
The Commonwealth of Puerto Rico's Office of the Commissioner of Financial Institutions (OCFI) alleged that Merrill Lynch, Pierce, Fenner & Smith Incorporated's (MLPFS) conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Articles 204(a)(2)(G) and 204(a)(2)(J) of Act Number 60 of the Puerto Rico Uniform Securities Act (PRUSA), as well as Articles 25 and 28 of Regulation Number 6078 of the Puerto Rico Uniform Securities Act Regulation (PRUSAR). Without admitting or denying OCFI's allegations, MLPFS agreed to cease and desist from violating Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, to comply with Act Number 60 of the PRUSA and Regulation Number 6078 of the PRUSAR, and to certain undertakings, including offering to buy back eligible AIRS from Eligible Investors. MLPFS agreed to pay OCFI a civil penalty of $250,106.24, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct related to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-064-S
 06/10/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Vermont Department of Banking, Insurance, Securities and Healthcare Adm
10(d)(2)(v).  Description of the action or claim:
BISHCA alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise in violation of V.S.A section 5412(d)(13) and (9) respectively. Without admitting or denying the allegations, MLPFS agreed to cease and desist from violating the Vermont Uniform Securities Act (VUSA), to comply the VUSA, and to certain undertakings and resolve all underlying conduct related to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-L-015
 06/17/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Colorado Division of Securities (Division)
10(d)(2)(v).  Description of the action or claim:
The Division alleged that MLPFS' conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest and unethical practices and failure to supervise in violation of C.R.S. sections 11-51-410(1)(g) and (i) respectively. Without admitting or denying the allegations, MLPFS agreed to cease and desist from violating the C.R.S. section 11-51-410(1)(g) and (i), to comply with the CVUSA, and to certain undertakings and resolve all underlying conduct related to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-0115 CO
 06/18/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Indiana Office of the Secretary of State Securities Division
10(d)(2)(v).  Description of the action or claim:
The State of Indiana Office of the Secretary of State Securities Division (Division ) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise in violation of Ind. Code sections 23-19-4-12(d)(13) and (9), respectively. Without admitting or denying the Division's allegations, MLPFS agreed to cease and desist from violating the Indiana Uniform Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible investors. MLPFS agreed to pay the Division a civil penalty of $900,208.25, as part of a $125,000,000.00 fine that Will be allocated at the discretion of the states to resolve all underlying conduct relating to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-03497A-09-0242
 06/16/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Arizona Corporation Commission
10(d)(2)(v).  Description of the action or claim:
The Arizona Corporation Commission (Commission) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest or unethical practices and failure to supervise within the meaning of section 44-1961 of the Securities Act of Arizona. Without admitting or denying the Commission' s allegations, MLPFS agreed to cease and desist from violating the Securities Act of Arizona (Act), to comply with the Act and to certain undertakings, including offering to buy back eligible AIRS from Eligible Investors. MLPFS agreed to pay the Commission a civil penalty of $1,751,003.62 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 2009-7-14
 06/18/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Idaho Department of Finance
10(d)(2)(v).  Description of the action or claim:
The Idaho Department of Finance (Department) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Idaho Code sections 30-14-412(d)( 13) and IDAPA 12.01.08.104.11.8. Without admitting or denying the Department's allegations, MLPFS agreed to cease and desist from violating the Uniform Securities Act (2004) (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $306,733.86, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to the sale of ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/22/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of North Dakota Securities Department
10(d)(2)(v).  Description of the action or claim:
The State of North Dakota Securities Department (Department) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers constituted dishonest and unethical practices and failure to supervise in violation of N.D.C.C. sections 10-04-11(1)(c) and (m), respectively. Without admitting or denying the Department's allegations, MLPFS agreed to cease and desist from violating the Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $303,227.83, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 2009-AH-040
 06/22/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Commonwealth of Kentucky Public Protection Cabinet Department of Financial Insti
10(d)(2)(v).  Description of the action or claim:
The DFI alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated KRS 292.330(13)(a)7 and 9(a) for dishonest and unethical conduct and failure to supervise, respectively. Without admitting or denying the DFIs allegations, MLPFS agreed to cease and desist from violating the Kentucky Securities Act (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay DFI a civil penalty of $377,555.56, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/26/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
California Department of Corporations (Department)
10(d)(2)(v).  Description of the action or claim:
The Department alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Title 10, Ch 3, Section 260.218 of the California Code of Regualtions (Code) for failure to observe high standards of commercial honor and just and equitable principles of trade and Title 10, Ch 3, Section 260.218.4(a) of the Code for fialure to supervise employees with regard to the sale of securities. Without admitting or denying the Departments allegations, MLPFS agreed to cease and desist from violating the Code, to comply with the Code, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Department a civil penalty of $13,000,541.28, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 06/25/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Michigan Department of Energy, Labor and Ecomnomic Growth Office of Fin
10(d)(2)(v).  Description of the action or claim:
OFIR alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated Section 204 of the Uniform Securities Act (Act), MCL 451.604(a)(1)(g) and (a)(2) for dishonest and unethical practices and failure to reasonably supervise its employees and/or agents, respectively. Without admitting or denying the OFIR allegations, MLPFS agreed to cease and desist from violating the Act, to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of Michigan a civil penalty of $3,095,319.80, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: SEC-2009-00056
 07/15/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State Corporation Commission of Virginia
10(d)(2)(v).  Description of the action or claim:
The State Corporation Commission of Virginia (Commission) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commission alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: S-09-0034
 06/29/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Oregon
10(d)(2)(v).  Description of the action or claim:
The State of Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities (DFCS) alleged that MLPFS engaged in dishonest or unethical practices in the securities business in Oregon in violation of ORS 59.205(2) and failed to supervise its employees with regard to the sale of auction rate securities (ARS) in violation of ORS 59.205(13), in connection with the marketing and sale of ARS to retail and other customers. Without admitting or denying the DFCSs allegations, MLPFS agreed to cease and desist from violating the Oregon Securities Law (Law), to comply with the Law, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay DFCS a civil penalty of $408,727.31 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: Order Number S-08-236-09-C001
 07/14/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Washington Securities Division
10(d)(2)(v).  Description of the action or claim:
The State of Washington Securities Division (Division) alleged that MLPFS conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated RCW 21, 20.110(1)(j) and (g). Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Securities Act of Washington (Act), to comply with the Act, and to certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of Washington a civil penalty of $1,021,622.95, as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: AOD 08-174
 07/02/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Attorney General of New York
10(d)(2)(v).  Description of the action or claim:
The Attorney General of New York (NYAG) alleged that MLPFSs conduct in connection with the marketing and sale of auction rate securities (ARS) to certain of its customers violated Artical 23-A of the General Business Law (Martin Act), section 349 of the General Business Law and section 63(12) of the Executive Law. Without admitting or denying the NYAGs allegations, MLPFS agreed to cease and desist from violating the Martin Act, section 349 of the General Business Law and/or section 63(12) of the Executive Law; to comply with the Martin Act, section 349 of the General Business Law and section 63(12) of the Executive Law; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the State of New York a civil penalty of $23,245,213.92 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09 E 021; KSC Number 2009-5609
 07/13/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
Kansas Securities Commission (Commissioner)
10(d)(2)(v).  Description of the action or claim:
The Commissioner alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: N/A
 07/14/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Rhode Island
10(d)(2)(v).  Description of the action or claim:
The State of Rhode Island Department of Business Regulation (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 10-6-01
 07/16/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Colorado
10(d)(2)(v).  Description of the action or claim:
The Securities Commissioner of the State of Colorado (Commissioner) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 0429-S-05/09
 07/28/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Florida
10(d)(2)(v).  Description of the action or claim:
The State of Florida Office of Financial Regulation (Office) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Office alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 12180
 07/24/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Minnesota
10(d)(2)(v).  Description of the action or claim:
The State of Minnesota Department of Commerce (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09046
 07/28/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of South Carolina
10(d)(2)(v).  Description of the action or claim:
The Securities Commissioner of the State of South Carolina (Commissioner) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Commissioner alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09-046
 07/23/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Maine
10(d)(2)(v).  Description of the action or claim:
The Securities Administrator of the State of Maine (Administrator) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Administrator alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: 09 e 020, KSC No. 2009-5608
 07/16/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Kansas
10(d)(2)(v).  Description of the action or claim:
The Office of the Securities Commissioner of the State of Kansas (Commissioner) alleged that MLPFSs conduct in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers violated K.S.A 17-12a412(d)(13) and (9) for dishonest or unethical practices and failure to reasonably supervise its agents or employees, respectively. Without admitting or denying the Commissioners allegations, MLPFS agreed to cease and desist from violating the Kansas Uniform Securities Act (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $959,555.69 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: AP-09-23
 07/30/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Missouri
10(d)(2)(v).  Description of the action or claim:
The State of Missouri Office of the Secretary of States Securities Division (Division) alleged that in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers MLFPS violated section 409.4-412(d)(13), RSMo. (Cum. Supp. 2008) and section 409.4-412(d)(9), RSMo. (Cum. Supp. 2008). Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Missouri Securities Act of 2003 (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $1,371,417.99 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: i09-153
 08/04/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Nevada
10(d)(2)(v).  Description of the action or claim:
The State of Nevada Office of the Secretary of States Securities Division (Division) alleged that in connection with the marketing and sale of auction rate securities (ARS) to retail and other customers MLFPS engaged in dishonest or unethical practices and failed to properly supervise its sales representatives and/or employees. Without admitting or denying the Divisions allegations, MLPFS agreed to cease and desist from violating the Nevada Uniform Securities Act (Act); to comply with the Act; and certain undertakings, including offering to buy back eligible ARS from Eligible Investors. MLPFS agreed to pay the Commissioner a civil penalty of $620,129.98 as part of a $125,000,000.00 fine that will be allocated at the Commonwealth of Massachusetts and other states' discretion to resolve all underlying conduct relating to ARS.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(2)(i).  The individuals named in the action or claim:
Bank of America Investment Services, Inc. and Bank of America Securities, LLC
10(d)(2)(ii).  Title of Action 10(d)(2)(iii).  Date of Action
Docket / Case Number: None
 08/17/2009
10(d)(2)(iv).  The Court or body taking the Action and location:
State of Nebraska
10(d)(2)(v).  Description of the action or claim:
The Nebraska Department of Banking and Finance (Department) alleged that Bank of America Investment Services, Inc. (BAIS) and Bank of America Securities, LLC (BAS) inappropriately marketed and sold auction rate securities (ARS) without adequately informing certain of their customers of the increased risks of illiquidity associated with ARS. The Department alleged that, through the conduct, BAIS and BAS engaged in dishonest and unethical practices and failed to properly supervise their agents. Without admitting or denying the allegations, BAIS and BAS agreed to certain corrective actions.
10(d)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist, Undertaking
10(d)(3). ever found the applicant or a control affiliate to have been a cause of an investment-related business having its authorization to do business denied, suspended, revoked, or restricted?
   Yes X No
10(d)(4). in the past ten years entered an order against the applicant or a control affiliate in connection with investment-related activity?
X Yes    No
10(d)(4)(i).  The individuals named in the action or claim:
NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 05/04/1998
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF COMPTROLLER OF THE CURRENCY
10(d)(4)(v).  Description of the action or claim:
OCC FOUND THAT NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) VIOLATED A CONDITION IN AN OCC APPROVAL LETTER AND THEREBY FAILED TO ADHERE TO AN OCC BANKING CIRCULAR WHICH PROVIDED GUIDANCE TO ALL NATIONAL BANKS CONCERNING THE SALE AND MARKETING OF INVESTMENT PRODUCTS ON BANK PREMISES IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. AND NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING CHARGES, NATIONSBANK, N.A. (NKA BANK OF AMERICA, N.A.) CONSENTED TO PAY A CIVIL MONEY PENALTY OF $750,000.
10(d)(4)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
SECURITY PACIFIC NATIONAL TRUST CO. (NKA BANKAMERICA NATIONAL TRUST CO.)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 04/01/1992
10(d)(4)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY, FEDERAL RESERVE BOARD, IRS
10(d)(4)(v).  Description of the action or claim:
ALLEGATIONS INVOLVED CERTAIN SECURITIES LENDING ACTIVITIES OF SECURITY PACIFIC NATIONAL TRUST CO. (SPNT CO.) (NKA BANKAMERICA NATIONAL TRUST CO.) AND RELATED ACTIVITIES. THIS DISCLOSURE CONCERNS SPNT CO. (NKA BANKAMERICA NATIONAL TRUST CO.) AND RELATED ENTITIES THAT CEASED TO EXIST AFTER THEY WERE MERGED INTO BANKAMERICA CORPORATION.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
SEATTLE FIRST NATIONAL BANK
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: EA-94-4
 06/30/1994
10(d)(4)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF SECTION 17(F)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17(F)(1) PROMULGATED THERE UNDER. WITHOUT ADMITTING OR DENYING THE MATTERS ASSERTED THEREIN, SEATTLE FIRST NATIONAL BANK (SEAFIRST), A WHOLLY-OWNED SUBSIDIARY OF SEAFIRST CORPORATION AND BANKAMERICA CORPORATION ENTERED INTO A JOINT CONSENT CEASE AND DESIST ORDER WITH THE SEC AND THE OCC. THE ORDER FOUND THAT SEAFIRST VIOLATED SECTION 17F1 OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17F1 PROMULGATED THERE UNDER, PROHIBITED VIOLATIONS IN THE FUTURE, AND REQUIRED SEAFIRST TO PAY A CIVIL MONEY PENALTY OF $75,000.00.
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist, $75,000 CIVIL PENALTY
10(d)(4)(i).  The individuals named in the action or claim:
CONTINENTAL BANK, N.A. (NKA BANK OF AMERICA ILLINOIS); BANK OF AMERICA NT&SA
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 01/01/1992
10(d)(4)(iv).  The Court or body taking the Action and location:
COMPTROLLER OF THE CURRENCY
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF CERTAIN RECORDKEEPING REQUIREMENTS UNDER THE UNITED STATES GOVERNMENT SECURITIES ACT AND COMPTROLLER'S RULES. IN JANUARY 1992, AS PART OF AN INDUSTRY-WIDE RESOLUTION OF AN INVESTIGATION OF CERTAIN MARKET PRACTICES FOR THE UNITED STATE GOVERNMENT SPONSORED ENTERPRISE SECURITIES, THE COMPTROLLER ISSUED CEASE AND DESIST ORDER TO BOFA, CBNA AND APPROXIMATELY 100 OTHER SECURITIES DEALERS (INCLUDING OTHER BANKS) REQUIRING THESE ENTITIES TO CEASE AND DESIST FROM FURTHER VIOLATIONS OF CERTAIN RECORDKEEPING REQUIREMENTS UNDER THE UNITED STATES GOVERNMENT SECURITIES ACT AND THE COMPTROLLER'S RULES AND TO PAY CIVIL MONEY PENALTIES. WITHOUT ADMITTING OR DENYING THE COMPTROLLER'S FINDINGS, BOFA AGREED TO PAY A FINE IN THE AMOUNT OF $100,000. CBNA, WHICH BECAME A WHOLLY-OWNED SUBSIDIARY OF BANKAMERICA CORPORATION IN SEPTEMBER 1994, AGREED TO PAY A FINE IN THE AMOUNT OF $100,000.
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist, Civil Fine
10(d)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA NT&SA
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 07/23/1987
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF BOOKS AND RECORDKEEPING PROVISIONS AS WELL AS OTHER PROVISIONS OF THE U.S. SECURITIES LAWS. BOFA WAS SANCTIONED BY THE OCC. PURSUANT TO THE ORDER, BOFA WAS CENSURED, TWO BOFA OFFICERS WERE SUSPENDED FOR SEVERAL DAYS AND BOFA WAS DIRECTED TO ADOPT CERTAIN POLICIES AND PROCEDURES AND TO CREATE A COMPLIANCE REVIEW COMMITTEE. THE ORDER WAS LIFTED IN 1991.
10(d)(4)(vi).  Disposition of action or claim:
Censure
10(d)(4)(i).  The individuals named in the action or claim:
FLEET FINANCIAL GROUP, INC. (PREDECESSOR TO FLEETBOSTON FINANCIAL CORPORATION N/K/A BANK OF AMERICA CORPORATION)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 01/01/1985
10(d)(4)(iv).  The Court or body taking the Action and location:
U.S. DEPARTMENT OF TREASURY
10(d)(4)(v).  Description of the action or claim:
NORSTAR BANCORP, INC., THE PREDECESSOR OF FLEET FINANCIAL GROUP, VOLUNTARILY BROUGHT TO THE ATTENTION OF THE TREASURY DEPARTMENT NUMEROUS VIOLATIONS OF THE BANK SECRECY ACT FOR FAILURE TO REPORT CURRENCY TRANSACTIONS BETWEEN 1980 AND 1985 BY THREE BANK SUBSIDIARIES. TREASURY DEPARTMENT ASSESSED AGAINST NORSTAR A CIVIL PENALTY OF $269,904 IN COMPLETE SETTLEMENT OF NORSTAR'S CIVIL LIABILITY FOR VIOLATIONS BY THREE BANK SUBSIDIARIES.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
FIRST NATIONAL BANK OF BOSTON
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: AA-SCP-92-110
 12/31/1990
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(4)(v).  Description of the action or claim:
THAT FNBB, IN CONNECTION WITH ITS CORPORATE TRUST BUSINESS, HAD VIOLATED CERTAIN RECORDKEEPING AND CUSTOMER RESPONSE PROVISIONS OF THE SEC'S TRANSFER AGENT REGULATIONS. THE COMPTROLLER ACCEPTED FNBB'S OFFER OF SETTLEMENT, UNDER WHICH FNBB CONSENTED TO THE COMPTROLLER'S ISSUANCE OF AN ORDER FINDING THAT FNBB HAD WILLFULLY VIOLATED CERTAIN RECORDKEEPING AND CUSTOMER RESPONSE PROVISIONS OF THE SEC'S TRANSFER AGENT REGULATIONS AND IMPOSING REMEDIAL MEASURES DESIGNED TO PREVENT THE RECURRENCE OF THE ALLEGED VIOLATIONS. THE COMPTROLLER TERMINATED ITS CONSENT ORDER ON MAY 1, 1992, FOLLOWING AN EXAMINATION IN WHICH IT DETERMINED THAT FNBB HAS SATISFACTORILY COMPLETED THE REQUIRED REMEDIAL ACTIONS.
10(d)(4)(vi).  Disposition of action or claim:
Undertaking
10(d)(4)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC. (FKA FLEET INVESTMENT ADVISORS, INC.)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 02/01/1991
10(d)(4)(iv).  The Court or body taking the Action and location:
PENNSYLVANIA SECURITIES COMMISSION
10(d)(4)(v).  Description of the action or claim:
ADMINISTRATIVE PROCEEDING BY PENNSYLVANIA SECURITIES COMMISSION REGARDING APPLICATION FOR REGISTRATION AS INVESTMENT ADVISOR. FLEET INVESTMENT ADVISORS, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) FAILED TO RESPOND TO WRITTEN REQUESTS AND A RELATED ORDER TO SUPPLY CERTAIN INFORMATION TO COMPLETE ITS APPLICATION. NO DAMAGES WERE ALLEGED.
10(d)(4)(vi).  Disposition of action or claim:
APPLICATION DENIED. NO PENALTIES, FINES OR OTHER PAYMENTS WERE ASSESSED
10(d)(4)(i).  The individuals named in the action or claim:
FIRST NATIONAL BANK OF BOSTON
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 01/16/1999
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(4)(v).  Description of the action or claim:
THAT THE FIRST NATIONAL BANK OF BOSTON, AS A MEMBER OF A SELLING GROUP INVOLVED IN THE DISTRIBUTION OF DEBT SECURITIES FOR CERTAIN GOVERNMENT SPONSORED ENTERPRISES, COMMITTED CERTAIN RECORDKEEPING VIOLATIONS RELATIVE TO CUSTOMER ORDERS FOR GSE SECURITIES. THE COMPTROLLER ACCEPTED FNBB'S OFFER OF SETTLEMENT UNDER WHICH FNBB CONSENTED TO THE ISSUANCE OF AN ORDER FINDING THAT FNBB (1) CEASE AND DESIST FROM VIOLATING THOSE PROVISIONS, (2) IMPLEMENT POLICIES AND PROCEDURES DESIGNED TO ENSURE FUTURE COMPLIANCE, (3) PAY A CIVIL PENALTY OF $100,000.
10(d)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTY/FINE/UNDERTAKING
10(d)(4)(i).  The individuals named in the action or claim:
BACAP DISTRIBUTORS, LLC and BANC OF AMERICA CAPITAL MANAGEMENT LLC
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 02/09/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(4)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT BANC OF AMERICA CAPITAL MANAGEMENT, LLC (BACAP) AND BACAP DISTRIBUTORS, LLC (BACAP DISTRIBUTORS) SHALL CEASE AND DESIST FROM ENGAGING IN ACTS IN VIOLATION OF AND WILL COMPLY WITH THE MARTIN ACT, GENERAL BUSINESS LAW S.349 AND EXECUTIVE LAW S.63(12); BACAP AND BACAP DISTRIBUTORS SHALL PAY, JOINTLY AND SEVERALLY WITH BANC OF AMERICA SECURITIES LLC (BAS), $250 MILLION IN DISGORGEMENT AND A CIVIL MONEY PENALTY IN THE AMOUNT OF $125 MILLION.
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(4)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 02/09/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(4)(v).  Description of the action or claim:
THE NYAG ASSURANCE OF DISCONTINUANCE PROVIDES THAT: (1) CMA AND CFDI AND AFFILIATE COLUMBIA WANGER ASSET MANAGEMENT LP, COLLECTIVELY, WITH AFFILIATE BANC OF AMERICA CAPITAL MANAGEMENT, LLC, AGREE TO REDUCE MANAGEMENT FEES CHARGED TO CERTAIN FUNDS DISTRIBUTED TO RETAIL INVESTORS BY $32M PER YEAR THROUGH 2009, FOR A TOTAL OF $160M IN FEE REDUCTIONS; (2) CMA AGREES NOT TO MANAGE OR ADVISE A FUND UNLESS THE FUND IMPLEMENTS CERTAIN CORPORATE GOVERNANCE PRACTICES, INCLUDING HAVING 75% OF TRUSTEES MEET INDEPENDENCE STANDARDS, HAVING AN INDEPENDENT CHAIRMAN, APPOINTING A SENIOR OFFICER WHO MEETS INDEPENDENCE STANDARDS TO, AMONG OTHERS, MONITOR COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS, STATE LAWS RESPECTING CONFLICTS OF INTEREST, FIDUCIARY DUTIES AND CODES OF ETHICS AND COMPLIANCE POLICIES AND MANAGE THE NEGOTIATION PROCESS FOR MANAGEMENT FEES; (3) CMA AGREES TO DEVELOP PROCEDURES FOR THE DISCLOSURE OF FEES AND COSTS; AND (4) CMA AND CFDI AGREE TO PAY, ON A JOINT AND SEVERAL BASIS, $70M IN DISGORGEMENT AND A CIVIL MONEY PENALTY OF $70M.
10(d)(4)(vi).  Disposition of action or claim:
CEASE, DESIST AND DISGORGEMENT
10(d)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA CORPORATION
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 02/09/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
FEDERAL RESERVE BANK OF RICHMOND
10(d)(4)(v).  Description of the action or claim:
THE BANK AGREED TO CONTINUE TO TAKE STEPS TO ADOPT AND IMPLEMENT CORRECTIVE ACTIONS AND BEST PRACTICE RECOMMENDATIONS OF THE INDEPENDENT CONSULTANTS AND TO ENHANCE THE ENTERPRISE-WIDE COMPLIANCE PROGRAM TO ENSURE COMPLIANCE WITH ALL APPLICABLE LAWS AND REGULATIONS, INCLUDING BUT NOT LIMITED TO SECURITIES LAWS AND REGULATIONS INCLUDING, AMONG OTHER THINGS, A PROCESS FOR RESOLVING OR ESCALATING COMPLIANCE ISSUES, ONGOING TRAINING ON POLICIES AND PROCEDURES FOR COMPLIANCE WITH LAWS AND REGULATIONS FOR CERTAIN STAFF OF THE BANK AND ITS SUBSIDIARIES, ENSURE PROCESSES FOR AN ENHANCED APPROVAL PROCESS FOR NEW CLIENTS, NEW OR UNIQUE INVESTMENT PRODUCTS, SERVICES OR TRANSACTIONS, AND MATERIAL CHANGES TO EXISTING PRODUCTS OR SERVICES, PROCEDURES TO ENSURE THOROUGH ASSESSMENT OF RISKS, POLICIES AND PROCEDURES TO ENSURE PRODUCTS, SERVICES AND ARRANGEMENTS ARE CONSISTENT WITH BUSINESS EXPERTISE, STRATEGY AND APPROVED RISK PROFILE, PROCEDURES FOR INTERNAL AUDIT, MECHANISMS FOR PERIODIC REVIEWS, MONITORING OF ENTERPRISE-WIDE ADOPTION AND EXECUTION OF NEW POLICIES AND PROCEDURES AND OTHER RECOMMENDATIONS OF THE INDEPENDENT CONSULTANTS, AND SUBMISSION OF PROGRESS REPORTS TO RESERVE BANK.
10(d)(4)(vi).  Disposition of action or claim:
WRITTEN AGREEMENT
10(d)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA, NATIONAL ASSOCIATION
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: AA-EC-04-35
 02/09/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF THE CURRENCY
10(d)(4)(v).  Description of the action or claim:
THE BANK HAS ENTERED INTO A SUPERVISORY WRITTEN AGREEMENT DATED 2/9/05 WITH THE OCC. UNDER THE TERMS OF THE WRITTEN AGREEMENT, THE BANK HAS SUBMITTED AN ACTION PLAN (PLAN) THAT IT SHALL IMPLEMENT AND ADHERE TO UNTIL IT RECEIVES FURTHER WRITTEN NOTICE FROM THE COMPTROLLER. THE PLAN PROVIDES FOR THE DEVELOPMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL POLICIES AND PROCEDURES FOR TRANSACTION DOCUMENTATION OF EACH SIGNIFICANT NEW CUSTOMER RELATIONSHIP, NEW OR UNIQUE PRODUCT OR SERVICE, OR ANY SIGNIFICANT CHANGE TO AN EXISTING CUSTOMER RELATIONSHIP, PRODUCT, SERVICE OR BUSINESS PRACTICE RECOMMENDED FOR APPROVAL BY THE WEALTH AND INVESTMENT MANAGEMENT GROUP; POLICIES AND PROCEDURES GOVERNING THE APPROVAL AND RISK MANAGEMENT OF EACH SIGNIFICANT NEW CUSTOMER RELATIONSHIP, NEW OR UNIQUE PRODUCT OR SERVICE OR ANY SIGNIFICANT CHANGE TO AN EXISTING CUSTOMER RELATIONSHIP, PRODUCT, SERVICE OR BUSINESS PRACTICE RECOMMENDED FOR APPROVAL BY THE WEALTH AND INVESTMENT MANAGEMENT GROUP; AND DEVELOPMENT OF AUDIT PROCEDURES TO PROVIDE COMPREHENSIVE COVERAGE OF ACTIVITY INVOLVING THE WEALTH AND INVESTMENT MANAGEMENT BUSINESS.
10(d)(4)(vi).  Disposition of action or claim:
SUPERVISORY WRITTEN AGREEMENT
10(d)(4)(i).  The individuals named in the action or claim:
NB HOLDINGS CORPORATION (F/K/A US TRUST CORPORATION) and UNITED STATES TRUST COMPANY, N.A. (F/K/A UNITED STATES TRUST COMPANY OF NEW YORK)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 01-010-B-HC/01-010-CMP-HC
 07/12/2001
10(d)(4)(iv).  The Court or body taking the Action and location:
NEW YORK STATE BANKING DEPARTMENT
10(d)(4)(v).  Description of the action or claim:
U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.), WITHOUT ADMITTING TO ANY ALLEGATIONS, CONSENTED ON JULY 12, 2001, TO THE ISSUANCE OF THE ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AND MONETARY PAYMENT ISSUED UPON CONSENT IN CONNECTION WITH THE ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND RELATING TO THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (AS OF 4/1/06 UNITED STATES TRUST COMPANY, N.A.).
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist, Monetary Fine
10(d)(4)(i).  The individuals named in the action or claim:
NB HOLDINGS CORPORATION (F/N/A U.S. TRUST CORPORATION) and UNITED STATES TRUST COMPANY, N.A. (NKA BANK OF AMERICA, N.A.)
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 01-010-B-HC/01-010-CMP-HC
 07/12/2001
10(d)(4)(iv).  The Court or body taking the Action and location:
FEDERAL RESERVE BOARD
10(d)(4)(v).  Description of the action or claim:
THE FEDERAL RESERVE BOARD AND THE NEW YORK STATE BANKING DEPARTMENT ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.). ON JULY 11, 2001, U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.) PAID TO THE FEDERAL RESERVE BOARD A CIVIL MONEY PENALTY IN THE AMOUNT OF $5 MILLION AND MADE A $5 MILLION MONETARY PAYMENT OT THE STATE OF NEW YORK. U.S. TRUST CORPORATION AND UNITED STATES TRUST COMPANY OF NEW YORK (EFFECTIVE 3/31/2006, UNITED STATES TRUST COMPANY OF NEW YORK ENGAGED IN A CHARTER CONVERSION INTO UNITED STATES TRUST COMPANY, N.A.), WITHOUT ADMITTING TO ANY ALLEGATIONS, CONSENTED ON JULY 12, 2001, TO THE ISSUANCE OF THE ORDER TO CEASE AND DESIST AND ORDER OF ASSESSMENT OF A CIVIL MONEY PENALTY AND MONETARY PAYMENT ISSUED UPON CONSENT IN CONNECTION WITH THE ALLEGED VIOLATIONS AND DEFICIENCIES RELATING TO THE LACK OF INTERNAL CONTROLS AND PROCEDURES AND INADEQUATE COMPLIANCE WITH THE BANK SECRECY ACT, AND RELATING TO THE FAILURE TO MAINTAIN ACCURATE AND COMPLETE BOOKS AND RECORDS IN CONNECTION WITH THE OPERATIONS AND ACTIVITIES OF THE STRATEGIC TRADING GROUP OF UNITED STATES TRUST COMPANY OF NEW YORK (AS OF 4/1/06 UNITED STATES TRUST COMPANY, N.A.).
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SB-08-005
 07/11/2008
10(d)(4)(iv).  The Court or body taking the Action and location:
DISTRICT OF COLUMBIA
10(d)(4)(v).  Description of the action or claim:
ON NOVEMBER 15, 2006 AND ON JANUARY 29, 2007, THE FIRM SUBMITTED TO THE DISTRICT OF COLUMBIA APPLICATIONS, ALONG WITH ACCOMPANYING NOTARIZED INVESTMENT ADVISER REPRESENTATIVE AFFIDAVITS ON BEHALF OF THREE INVESTMENT ADVISER REPRESENTATIVES, TO SERVE AS BANC OF AMERICA INVESTMENT SERVICES' (BAI) REGISTERED INVESTMENT ADVISER REPRESENTATIVE IN THE DISTRICT IN CONNECTION WITH THEIR RELOCATION TO A BAI OFFICE LOCATED IN THE DISTRICT. IN RESPONDING TO THE QUESTIONS ON THE REPRESENTATIVE AFFIDAVITS, BAI ANSWERED THAT THE INDIVIDUAL HAD IN FACT TRANSACTED INVESTMENT ADVISORY SERVICES WITH DISTRICT RESIDENTS WHILE EMPLOYED WITH BAI AND AFTER RELOCATING TO A BAI OFFICE LOCATED IN THE DISTRICT WITHOUT FIRST HAVING OBTAINED AN INVESTMENT ADVISER REPRESENTATIVE LICENSE FROM THE DEPARTMENT. ADMINISTRATIVE CONSENT AGREEMENT AND SETTLEMENT ORDER FOR RESPONDENT TO PAY $3000 FINE PURSUANT TO DISTRICT OF COLUMBIA OFFICIAL CODE SECTION 31-5606.02(B)(4) AND 16 DCMR 3700 ET SEQ NO LATER THAN 30 DAYS FROM THE DATE OF THE ORDER.
10(d)(4)(vi).  Disposition of action or claim:
ADMINISTRATIVE CONSENT AGREEMENT AND SETTLEMENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: DOCKET NUMBER 0300622
 12/18/2006
10(d)(4)(iv).  The Court or body taking the Action and location:
STATE OF ILLINOIS, SECRETARY OF STATE, SECURITIES DEPARTMENT
10(d)(4)(v).  Description of the action or claim:
THE STATE OF ILLINOIS, SECRETARY OF STATE, SECURITIES DEPARTMENT, ALLEGED THAT BEGINNING IN THE FIRST PART OF 2003, BAI'S PREDECESSOR, QUICK AND REILLY, INC., ENGAGED IN THE PRACTICE OF LIQUIDATING WORTHLESS SECURITIES IN CUSTOMER ACCOUNTS WITHOUT PRIOR AUTHORIZATION OF ACCOUNTHOLDERS. AS SUCCESSOR TO QUICK AND REILLY, INC. (CRD 11217), BANC OF AMERICA INVESTMENT SERVICES, INC. CONSENTED TO PAY A $250,000 FINE TO THE ILLINOIS SECRETARY OF STATE. THE FIRM ALSO CONSENTED TO PAY RESTITUTION/RESCISSION DIRECTLY TO AFFECTED CLIENTS. RESTITUTION TO ILLINOIS CLIENTS SHOULD BE MADE WITHIN 30 DAYS OF THE CONSENT ORDER. BAI SHALL MAKE RESTITUTION TO ALL OTHER CLIENTS AFFECTED NATIONWIDE WITHIN 180 DAYS.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 2007-0658
 06/01/2006
10(d)(4)(iv).  The Court or body taking the Action and location:
MARYLAND SECURITIES COMMISSIONER
10(d)(4)(v).  Description of the action or claim:
RESPONDENT DID NOT REASONABLY SUPERVISE TWO AGENTS WHO MISAPPROPRIATED MONIES FROM CUSTOMERS WITHIN THE MEANING OF SECTION 11-412 (A)(10) OF THE MARYLAND SECURITIES ACT. CONSENT ORDER FOR RESPONDENT TO PAY $10,000 FINE, CEASE AND DESIST AND INCORPORATE REMEDIAL MEASURES INTO SUPERVISORY PROGRAM AS A RESULT OF NOT REASONABLY SUPERVISING TWO AGENTS WHO MISAPPROPRIATED MONIES FROM CUSTOMERS WITHIN THE MEANING OF SECTION 11-412 (A)(10) OF THE MARYLAND SECURITIES ACT.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 05/04/1998
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF THE CURRENCY
10(d)(4)(v).  Description of the action or claim:
OCC FOUND THAT NATIONSBANK, N.A. (N.K.A. BANK OF AMERICA, N.A.) VIOLATED A CONDITION IN AN OCC APPROVAL LETTER AND THEREBY FAILED TO ADHERE TO AN OCC BANKING CIRCULAR WHICH PROVIDED GUIDANCE TO ALL NATIONAL BANKS CONCERNING THE SALE & MARKETING OF INVESTMENT PRODUCTS ON BANK PREMISES, IN ASSOCIATION WITH THE INITIAL PUBLIC OFFERING OF SHARES OF THE NATIONS GOVERNMENT INCOME TERM TRUST 2003, INC. & NATIONS GOVERNMENT INCOME TERM TRUST 2004, INC. WITHOUT ADMITTING OR DENYING CHARGES NATIONSBANK, N.A. CONSENTED TO PAY A CIVIL MONEY PENALTY OF $750,000.00.
10(d)(4)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
N/A
 02/09/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
OFFICE OF THE NEW YORK ATTORNEY GENERAL
10(d)(4)(v).  Description of the action or claim:
ON FEBRUARY 9, 2005, NEITHER ADMITTING NOR DENYING THE FINDINGS, BAS ENTERED INTO AN ASSURANCE OF DISCONTINUANCE WITH THE OFFICE OF THE NEW YORK ATTORNEY GENERAL TO SETTLE ALLEGATIONS IT HAD VIOLATED THE MARTIN ACT, EXECUTIVE LAW 63(12), AND THE GENERAL BUSINESS LAW 349. THE ASSURANCE OF DISCONTINUANCE FINDS THAT BAS, FROM AS EARLY AS JULY 2000 THROUGH JULY 2003, FACILITATED MARKET TIMING AND LATE TRADING BY SOME INTRODUCING BROKER-DEALERS AND A HEDGE FUND AND PROVIDED ACCOUNT MANAGEMENT TOOLS AND OTHER ASSISTANCE AND ENABLED INTRODUCING BROKER-DEALERS TO CONCEAL THEIR CLIENT'S MARKET TIMING ACTIVITIES FROM MUTUAL FUNDS.
10(d)(4)(vi).  Disposition of action or claim:
MONETARY/FINE, CENSURE, AND DISGORGEMENT/RESTITUTION
10(d)(4)(i).  The individuals named in the action or claim:
GPC SECURITIES, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: R-94-085
 07/18/1994
10(d)(4)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS SECURITIES DIVISION
10(d)(4)(v).  Description of the action or claim:
AMVESCAP SERVICES, INC. (NOW KNOWN AS GPC SECURITIES, INC.) MAINTAINED A MARKETING SALES OFFICE IN MASSACHUSETTS IN VIOLATION OF SECTION 201 OF THE MASSACHUSETTS UNIFORM SECURITIES ACT. (NOT REGISTERING AS A BROKER/DEALER).
10(d)(4)(vi).  Disposition of action or claim:
Order
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FINANCIAL MARKETS, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 06-028-S
 05/11/2006
10(d)(4)(iv).  The Court or body taking the Action and location:
VERMONT
10(d)(4)(v).  Description of the action or claim:
FIRM MADE REPRESENTATIONS OF THE TYPES OF ACTIVITY TO BE CONDUCTED IN THE STATE OF VERMONT AND AN ORDER WAS ENTERED INTO TO MEMORIALIZE THOSE REPRESENTATIONS.
10(d)(4)(vi).  Disposition of action or claim:
Order
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUNDS DISTRIBUTOR, INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/11/1991
10(d)(4)(iv).  The Court or body taking the Action and location:
VERMONT SECURITIES DIVISION
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF SECTION 4216 OF THE VERMONT SECURITIES ACT. MERRILL LYNCH FUNDS DISTRIBUTOR, INC. DENIED THAT IT FAILED TO RENEW A DEALERS' BOND IN A TIMELY MANNER. IT OBTAINED A REPLACEMENT BOND BACKDATED TO THE DATE OF PREVIOUS BOND LAPSE. FIRM AGREED TO PAY A FINE.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE AGENCY INC.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: CONSENT ORDER 90-19
 06/26/1990
10(d)(4)(iv).  The Court or body taking the Action and location:
NEW JERSEY DEPARTMENT OF INSURANCE
10(d)(4)(v).  Description of the action or claim:
SOLICITING, NEGOTIATING AND EFFECTING COVERAGES OF INSURANCES BY ONE OF ITS FORMER EMPLOYEES PRIOR TO HIS BEING LICENSED. MERRILL LYNCH LIFE AGENCY PAID IN FULL SETTLEMENT OF A CONSENT ORDER.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC. and MERRILL LYNCH, PIERCE, FENNER and SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/09/1990
10(d)(4)(iv).  The Court or body taking the Action and location:
MASSACHUSETTS SECRETARY OF STATE
10(d)(4)(v).  Description of the action or claim:
MISUSING INTERNAL USE MATERIALS. FIRM WAS TO AMEND ITS WRITTEN POLICY IN CONNECTION WITH RETAIL SALES TO THE PUBLIC IN MASSACHUSETTS, FILE SUCH MATERIALS WITH THE OFFICE OF THE SECRETARY OF STATE, IMPLEMENT A PERIODIC PROGRAM OF INSTRUCTION FOR ITS FINANCIAL CONSULTANTS CONCERNING INTERNAL USE MATERIALS AND REPORT PERIODICALLY COMPLIANCE WITH THE WRITTEN POLICY.
10(d)(4)(vi).  Disposition of action or claim:
Undertaking
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE INSURANCE CO.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SCDI FILE NUMBER 1998324-020-003
 01/27/2000
10(d)(4)(iv).  The Court or body taking the Action and location:
SOUTH CAROLINA DEPARTMENT OF INSURANCE
10(d)(4)(v).  Description of the action or claim:
MERRILL LYNCH LIFE INSURANCE COMPANY WAS ALLEGED TO HAVE OMITTED TO SEND ANOTHER INSURANCE COMPANY WRITTEN NOTICE OF A PROPOSED REPLACEMENT. MERRILL LYNCH LIFE INSURANCE COMPANY ACKNOWLEDGED THAT IT INADVERTENTLY FAILED IN ONE CASE TO SEND WRITTEN NOTICE TO ANOTHER INSURANCE COMPANY WHEN THAT COMPANY'S PRODUCT WAS EXCHANGED FOR A MERRILL LYNCH LIFE POLICY. MERRILL LYNCH LIFE MAINTAINED AND DOCUMENTED TO THE DEPARTMENT OF INSURANCE THAT THIS OMISSION WAS NOT INDICATIVE OF ITS USUAL STANDARDS AND ENTERED INTO A CONSENT ORDER.
10(d)(4)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH LIFE INSURANCE CO.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: MIA-105-2/00
 02/18/2000
10(d)(4)(iv).  The Court or body taking the Action and location:
MARYLAND INSURANCE ADMINISTRATION
10(d)(4)(v).  Description of the action or claim:
MERRILL LYNCH LIFE INSURANCE COMPANY USED VARIABLE LIFE ADVERTISING MATERIALS PRIOR TO SUBMISSION TO THE MARYLAND LIFE INSURANCE ADMINISTRATION IN VIOLATION OF THE ADMINISTRATION'S RULES. THE ACTION WAS RESOLVED BY VIRTUE OF MERRILL LYNCH LIFE INSURANCE COMPANY'S FILING OF THE VARIABLE LIFE ADVERTISING, CONSENTING TO MAKE ALL FUTURE ADVERTISING FILINGS IN A TIMELY MANNER AND PAYMENT OF A $2500 ADMINISTRATIVE PENALTY. THE MARYLAND INSURANCE ADMINISTRATION NOTES THAT MERRILL LYNCH LIFE INSURANCE COMPANY'S ADVERTISING EXCEPTIONS WERE NOT WILLFUL AND THAT APPROPRIATE CORRECTIVE ACTION WAS TAKEN.
10(d)(4)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/09/1990
10(d)(4)(iv).  The Court or body taking the Action and location:
MASSACHUSETTS SECRETARY OF STATE
10(d)(4)(v).  Description of the action or claim:
FIRM WAS TO AMEND ITS WRITTEN POLICY IN CONNECTION WITH RETAIL SALES TO THE PUBLIC IN MASSACHUSETTS, FILE SUCH MATERIALS WITH THE OFFICE OF THE SECRETARY OF STATE, IMPLEMENT A PERIODIC PROGRAM OF INSTRUCTION FOR ITS FINANCIAL CONSULTANTS CONCERNING INTERNAL USE MATERIALS AND REPORT PERIODICALLY COMPLIANCE WITH THE WRITTEN POLICY.
10(d)(4)(vi).  Disposition of action or claim:
Undertaking
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 88-0405-S
 04/25/1989
10(d)(4)(iv).  The Court or body taking the Action and location:
VERMONT COMMISSIONER OF BANKING AND INSURANCE
10(d)(4)(v).  Description of the action or claim:
A SALES PERSON EMPLOYED BY FIRM ENGAGED IN TWO TRANSACTIONS IN VERMONT WITHOUT BEING REGISTERED. WHILE FIRM DENIED VIOLATION OF ANY VERMONT SECURITIES LAW OR REGULATION, AN ORDER ASSESSING COSTS AND FEES ON CONSENT WAS ENTERED.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/12/1991
10(d)(4)(iv).  The Court or body taking the Action and location:
FLORIDA DEPARTMENT OF BANKING AND FINANCE
10(d)(4)(v).  Description of the action or claim:
TWO UNREGISTERED ASSOCIATED PERSONS ENGAGED IN SALES OF SECURITIES TO RESIDENTS OF THE STATE OF FLORIDA PRIOR TO SEPTEMBER 1988. A CONSENT FINAL ORDER WAS DOCKETED WHICH REQUIRED PAYMENT OF $3,000 AS AN ADMINISTRATIVE FEE BY THE FIRM. THE ORDER WAS BASED ON A STIPULATION AND CONSENT DATED 4/12/91.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/29/1991
10(d)(4)(iv).  The Court or body taking the Action and location:
VIRGINIA STATE CORPORATION COMMISSION
10(d)(4)(v).  Description of the action or claim:
FIRM EMPLOYED AN UNREGISTERED AGENT. WITHOUT ADMITTING OR DENYING ALLEGATIONS FIRM CONSENTED TO THE ENTRY OF AN ORDER BY THE VIRGINIA STATE CORPORATION COMMISSION.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/26/1992
10(d)(4)(iv).  The Court or body taking the Action and location:
VERMONT COMMISSIONER OF BANKING, INSURANCE AND SECURITIES
10(d)(4)(v).  Description of the action or claim:
A REPLACEMENT BOND FILING WAS OVERLOOKED IN 1989 IN VIOLATION OF THE VERMONT SECURITIES ACT. FIRM CONSENTED TO THE ENTRY OF AN ORDER ASSESSING $1,000.00 IN SETTLEMENT OF AN INQUIRY AND AN ADDITIONAL $500.00 IN COSTS.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/18/1992
10(d)(4)(iv).  The Court or body taking the Action and location:
INDIANA SECURITIES COMMISSION
10(d)(4)(v).  Description of the action or claim:
STATE ENTERED AN ORDER APPROVING A CONSENT AGREEMENT TO DISMISS AN ADMINISTRATIVE COMPLAINT AGAINST THE FIRM. FIRM AGREED TO PROVIDE RESTITUTION TO AN INDIANA RESIDENT. THE AGREEMENT ALSO PROVIDED THAT THE STIPULATION DID NOT CONSTITUTE ADMISSION OF GUILT.
10(d)(4)(vi).  Disposition of action or claim:
ORDER
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/01/1991
10(d)(4)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF VIRGINIA
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF STATE RULES RELATING TO THE MAINTENANCE OF RECORDS FOR REAL ESTATE PROGRAMS. FIRM CONSENTED WITHOUT ADMITTING OR DENYING ALLEGATIONS.
10(d)(4)(vi).  Disposition of action or claim:
MONETARY FINE
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 1938-S-9/93
 09/24/1993
10(d)(4)(iv).  The Court or body taking the Action and location:
FLORIDA DIVISION OF SECURITIES
10(d)(4)(v).  Description of the action or claim:
OPERATING THREE BRANCH OFFICES IN THE STATE OF FLORIDA THAT WERE NOT LICENSED WITH THE DEPARTMENT. STATE AND FIRM ENTERED INTO A STIPULATION AND CONSENT AGREEMENT. FINAL ORDER DATED 9/24/1993.
10(d)(4)(vi).  Disposition of action or claim:
STIPULATION AND CONSENT AGREEMENT
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/01/1995
10(d)(4)(iv).  The Court or body taking the Action and location:
D.C. AND THE MASS WATER RESOURCES AUTHORITY
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF 18 U.S.C. SECTIONS 1341, 1345, 1346 AND MASSACHUSETTS STATUTE G.L. 93A, SECTION 2. FIRM PAID $12.01 MILLION WHICH IS COMPOSED OF THE FOLLOWING: 8.8 MILLION IN AN ADMINISTRATIVE PAYMENT TO THE U.S., 2.5 MILLION IN A CIVIL PENALTY TO THE U.S., $500,000 IN A CIVIL PENALTY TO MASSACHUSETTS AND $300,000 FOR CERTAIN COSTS AND EXPENSES OF LITIGATION TO THE U.S. AND MASSACHUSETTS. FIRM HAS CONSENTED, WITHOUT ADMITTING OR DENYING ANY FINDINGS, TO THE ISSUANCE OF AN ORDER OF THE SEC CONTAINING FINDINGS THAT FIRM VIOLATED RULE G-17 OF THE MUNICIPAL SECURITIES RULEMAKING BOARD. UNDER THE ORDER FIRM IS CENSURED, IS ORDERED TO CEASE AND DESIST FROM ANY FUTURE VIOLATION OF RULE G-17, IS ORDERED TO PAY A CIVIL PENALTY OF 2.5 MILLION AND RESTITUTION OF 3.8 MILLION TO THE DISTRICT OF COLUMBIA AND THE MASSACHUSETTS WATER RESOURCES AUTHORITY AND TO COMPLY WITH ITS UNDERTAKING TO MAINTAIN CERTAIN PREVIOUSLY ADOPTED POLICIES AND PROCEDURES.
10(d)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH ASSET MANAGEMENT, L.P.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: ADMINISTRATIVE PROCEEDING 2258-S-10/95
 11/28/1995
10(d)(4)(iv).  The Court or body taking the Action and location:
FLORIDA DEPARTMENT OF BANKING AND FINANCE
10(d)(4)(v).  Description of the action or claim:
REGISTRANT OPERATED BRANCH OFFICES IN JACKSONVILLE AND ST. PETERSBURG WITHOUT HAVING REGISTERED SUCH OFFICES WITH THE DEPARTMENT. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, FIRM REIMBURSED THE DEPARTMENT $10,000 FOR COSTS OF INVESTIGATION.
10(d)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH ASSET MANAGEMENT, L.P.
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/01/1997
10(d)(4)(iv).  The Court or body taking the Action and location:
U.S. DEPARTMENT OF COMMERCE
10(d)(4)(v).  Description of the action or claim:
FIRM VIOLATED THREE PROVISIONS OF THE EXPORT ADMINISTRATION REGULATIONS - 15 C.F.R. 769.2(A), 769.(D)AND 769.6. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH ASSET MANAGEMENT, L.P. PAID A CIVIL PENALTY.
10(d)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: NO. 97-0659
 12/27/1999
10(d)(4)(iv).  The Court or body taking the Action and location:
SECURITIES COMMISSIONER OF MARYLAND
10(d)(4)(v).  Description of the action or claim:
IT WAS ALLEGED THAT TRANSACTIONS WERE UNSUITABLE IN MOSSIMO INC. STOCK AS TO CERTAIN CUSTOMERS PRIMARILY BECAUSE OF AN OVER CONCENTRATION; THAT CERTAIN OF THE FIRM'S FINANCIAL CONSULTANTS' ENGAGED IN EXCESSIVE TRADING IN CERTAIN ACCOUNTS; AND, THAT THE FIRM DID NOT TIMELY FILE AND IN SOME CASES DID NOT FILE CERTAIN REGULATORY REPORTS. THE CONSENT ORDER INCLUDED THE FIRM'S AGREEMENT TO REFUND COMMISSIONS PAID BY CERTAIN CUSTOMERS ON TRANSACTIONS IN MOSSIMO INC. STOCK IN THE AMOUNT OF $175,253. THIS SUM WAS PAID TO THE SECURITIES DIVISION OF MARYLAND ON OR ABOUT DECEMBER 27, 1999 FOR DISTRIBUTION TO CUSTOMERS. IN ADDITION TO THE FOREGOING, THE FIRM UNDERTOOK THE FOLLOWING WITH RESPECT TO ITS BALTIMORE OFFICE; CONTINUATION OF MANDATORY TRAINING SESSIONS; COMPLIANCE WITH POLICIES AND PROCEDURES OF THE FIRM; PROVIDE TO THE COMMISSIONER COPIES OF SALES PRACTICE COMPLAINTS RECEIVED IN THE YEARS 2000 AND 2001; MAINTENANCE OF ADEQUATE ADMINISTRATIVE PERSONNEL; REIMBURSEMENT OF THE REASONABLE COSTS INCURRED IN UP TO TWO INSPECTIONS WHICH MAY BE CONDUCTED BY THE SECURITIES DIVISION DURING THE NEXT THREE YEARS.
10(d)(4)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 2000-26
 05/15/2000
10(d)(4)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS
10(d)(4)(v).  Description of the action or claim:
THE DIVISION ALLEGED THAT THE FIRM FAILED TO ADEQUATELY SUPERVISE TWO FINANCIAL CONSULTANTS IN ITS BOSTON OFFICE. IT WAS ALLEGED THAT ONE FINANCIAL CONSULTANT OVERCONCENTRATED CERTAIN SECURITIES IN CUSTOMERS' ACCOUNTS IN A MANNER NOT SUITABLE FOR THOSE ACCOUNTS WHILE THE OTHER FINANCIAL CONSULTANT ENGAGED IN A FRAUDULENT SCHEME TO STEAL MONEY FROM CUSTOMERS OVER A TEN (10) YEAR PERIOD. IN ADDITION TO AN ADMINISTRATIVE FINE, MERRILL LYNCH AGREED TO REIMBURSE THE MASSACHUSETTS INVESTOR EDUCATION FUND $100,000 FOR THE APPROXIMATE COST OF THE INVESTIGATION.
10(d)(4)(vi).  Disposition of action or claim:
ADMINISTRATIVE FINE, UNDERTAKING TO RETAIN A CONSULTANT TO REVIEW THE COMPLIANCE POLICIES AND PROCEDURES IN THE BOSTON OFFICE, AND AGREEMENT TO OFFER AN EXPEDITED MEDIATION PROCESS.
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: INV99-022
 07/17/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
STATE OF NEW HAMPSHIRE BUREAU OF SECURITIES REGULATION
10(d)(4)(v).  Description of the action or claim:
THE BUREAU ALLEGED THAT THE FIRM FAILED TO ADEQUATELY SUPERVISE A FINANCIAL ADVISOR IN IT'S MANCHESTER OFFICE. IT WAS ALLEGED THAT THE FINANCIAL ADVISOR SOLICITED CLIENTS TO PURCHASE STOCKS THAT WERE NOT BLUE SKIED OR COVERED BY THE FIRM'S RESEARCH DEPARTMENT, AGAINST REGULATORY REQUIREMENTS AND FIRM POLICY. IT WAS ALSO ALLEGED THAT THE FINANCIAL ADVISOR MISMARKED THE ORDERS AS UNSOLICITED. A SETTLEMENT WAS ENTERED INTO BY MERRILL LYNCH WITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS OR FINDINGS IN THE ORDER. AS PART OF AN UNDERTAKING MERRILL LYNCH AGREED TO DO THE FOLLOWING: (1) RETAIN A CONSULTANT TO REVIEW THE CURRENT COMPLIANCE POLICY AND PROCEDURES IN THE MANCHESTER BRANCH OFFICE WITH FOCUS ON CERTAIN SPECIFIED AREAS, (2) CIRCULATE A GLOBAL COMPLIANCE ALERT TO ALL U.S. PRIVATE CLIENT PERSONNEL ADDRESSING THE ISSUES RAISED IN THIS MATTER AND (3) OFFER RESCISSION OF THE PURCHASES OF THE SPECIFIC STOCKS BY THOSE CLIENTS OF THE FINANCIAL ADVISOR DURING THE RELEVANT PERIOD.
10(d)(4)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, UNDERTAKING
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 3513-S-7/02
 04/08/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
THE STATE OF FLORIDA
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF FLORIDA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF FLORIDA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 2002-04-026
 09/24/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
PENNSYLVANIA SECURITIES COMMISSION
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF PENNSYLVANIA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF PENNSYLVANIA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SEC-2002-00028
 11/26/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
VIRGINIA DIVISION OF SECURITIES
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF VIRGINIA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF VIRGINIA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SE22055819
 09/01/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
MINNESOTA DEPARTMENT OF COMMERCE
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF MINNESOTA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF MINNESOTA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Undertaking
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SSB DKT NO 02-41, FIN-1486
 09/27/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
THE STATE OF TEXAS
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF TEXAS IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF TEXAS DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SEC-2003-00041
 01/30/2004
10(d)(4)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF VIRGINIA; STATE CORPORATION COMMISSION
10(d)(4)(v).  Description of the action or claim:
THE COMMONWEALTH OF VIRGINIA LODGED AN INVESTIGATION INTO ALLEGATIONS OF UNSUITABLE TRADING BY FORMER FINANCIAL ADVISORS IN THE ACCOUNTS OF TWO CUSTOMERS. MERRILL LYNCH AGREED TO MAKE RESTITUTION TO THE CUSTOMERS IN THE AMOUNT OF $73,544.81 AND $268,723.12, RESPECTIVELY.
10(d)(4)(vi).  Disposition of action or claim:
Restitution
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: CO-2002-6590-S
 01/30/2004
10(d)(4)(iv).  The Court or body taking the Action and location:
CONNECTICUT BANKING AUTHORITY
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF CONNECTICUT IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF CONNECTICUT DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: SD-02-0083
 10/09/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
UTAH DIVISION OF SECURITIES
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF UTAH IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF UTAH DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: CO-2002-0028
 11/04/2002
10(d)(4)(iv).  The Court or body taking the Action and location:
ALABAMA SECURITIES COMMISSION
10(d)(4)(v).  Description of the action or claim:
RESEARCH PRACTICES WERE IN QUESTION. THIS MATTER IS IN CONNECTION WITH THE $100 MILLION SETTLEMENT ENTERED INTO WITH THE NEW YORK STATE ATTORNEY GENERAL IN APRIL 2002 REGARDING THE FIRM'S RESEARCH PRACTICES. THE CONDITIONS OF THE FIRM'S SETTLEMENT WITH THE NEW YORK ATTORNEY GENERAL WERE DISCLOSED ON A FORM BD AMENDMENT FILED AT THE TIME OF THE SETTLEMENT. THE MONETARY FINE PAID TO THE STATE OF ALABAMA IS A PERCENTAGE OF THE $50 MILLION ALLOCATED TO THE REMAINING STATES. THIS PAYMENT TO THE STATE OF ALABAMA DOES NOT CONSTITUTE A SEPARATE PENALTY OR PROCEEDING.
10(d)(4)(vi).  Disposition of action or claim:
CONSENT ORDER
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 89-0660-S
 01/08/1990
10(d)(4)(iv).  The Court or body taking the Action and location:
VERMONT SECURITIES DIVISION
10(d)(4)(v).  Description of the action or claim:
VIOLATION OF THE VERMONT SECURITIES ACT BY THE SALE OF UNITS OF A UNIT INVESTMENT TRUST TO VERMONT RESIDENTS THAT EXCEEDED THE AMOUNT REGISTERED IN VERMONT BY APPROXIMATELY $200,000. MERRILL LYNCH ACKNOWLEDGED THE VIOLATIONS AND MODIFIED ITS COMPLIANCE PROCEDURES TO CURTAIL THE REOCCURRENCE OF OVERSALES.
10(d)(4)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 0133-S-4/04
 06/17/2004
10(d)(4)(iv).  The Court or body taking the Action and location:
FLORIDA
10(d)(4)(v).  Description of the action or claim:
UNREGISTERED BRANCH ACTIVITY. DUE TO ADMINISTRATIVE ERROR, 2 OFFICES WERE NOT PROPERLY LICENSED WITH THE STATE OF FLORIDA. THEY WERE LICENSED WITH THE NASD AND NYSE. FIRM AGREED TO THE STIPULATION SET FORTH ABOVE. (FINE PAID AS OF 6/17/2004.)
10(d)(4)(vi).  Disposition of action or claim:
Cease and Desist
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/03/2003
10(d)(4)(iv).  The Court or body taking the Action and location:
STATE OF NEW JERSEY OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LAW AND PUBLIC
10(d)(4)(v).  Description of the action or claim:
IT IS ALLEGED THAT UPON LEARNING OF SHORT TERM TRADING OF MUTUAL FUNDS BY THREE OF ITS FINANCIAL ADVISORS, THE FIRM FAILED TO TAKE EFFECTIVE ACTION TO HALT TRADING, ENHANCE SUPERVISION, OR ISSUE SUFFICIENT FOLLOW-UP INSTRUCTIONS TO ENSURE ADHERENCE TO FIRM POLICIES AND PROCEDURES, AS WELL AS SECURITIES LAWS AND REGULATIONS. MERRILL LYNCH NEITHER ADMITS NOR DENIES THE ALLEGATIONS, AND SOLELY FOR THE PURPOSES OF THIS PROCEEDING, PRIOR TO A HEARING AND WITHOUT ADJUDICATION OF ANY ISSUE OF LAW OR FACT, CONSENTS TO THE ENTRY OF THIS CONSENT ORDER AND VOLUNTARILY WAIVES THE RIGHT TO A HEARING AND JUDICIAL REVIEW.
10(d)(4)(vi).  Disposition of action or claim:
FINE
10(d)(4)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(d)(4)(ii).  Title of Action 10(d)(4)(iii).  Date of Action
Docket/Case Number: 2004-036
 05/31/2005
10(d)(4)(iv).  The Court or body taking the Action and location:
STATE OF NEW JERSEY BUREAU OF SECURITIES
10(d)(4)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED NEW JERSEY STATUTES WHEN IT TERMINATED THE IAR REGISTRATION OF A FINANCIAL ADVISOR IN ERROR. THIS ERROR CAUSED THE FINANCIAL ADVISOR TO ENGAGE IN BUSINESS WITHIN THE STATE WITHOUT THE PROPER REGISTRATION. IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED NEW JERSEY STATUTES WHEN IT TERMINATED THE IAR REGISTRATION OF A FINANCIAL ADVISOR IN ERROR. THIS ERROR CAUSED THE FINANCIAL ADVISOR TO ENGAGE IN BUSINESS WITHIN THE STATE WITHOUT THE PROPER REGISTRATION.
10(d)(4)(vi).  Disposition of action or claim:
FINE, CEASE AND DESIST
10(d)(5). ever denied, suspended, or revoked the applicant`s or a control affiliate`s registration or license, or prevented it from associating with an investment-related business, or otherwise disciplined it by restricting its activities?
X Yes    No
10(d)(5)(i).  The individuals named in the action or claim:
FLEET FINANCIAL GROUP, INC. (PREDECESSOR TO FLEETBOSTON FINANCIAL CORPORATION N/K/A BANK OF AMERICA CORPORATION)
10(d)(5)(ii).  Title of Action 10(d)(5)(iii).  Date of Action
N/A
 01/01/1983
10(d)(5)(iv).  The Court or body taking the Action and location:
OFFICE OF THE COMPTROLLER OF CURRENCY
10(d)(5)(v).  Description of the action or claim:
PRIOR TO ITS AFFILIATION WITH FLEET, SHAWMUT BANK OF BOSTON, N.A., ACCEPTED AN AGREEMENT IN 1983 WITH THE OFFICE OF THE COMPTROLLER OF CURRENCY THAT TEMPORARILY AND PARTIALLY RESTRICTED THE EXPANSION OF SHAWMUT'S TRANSFER AGENT SERVICING OPERATION. THE AGREEMENT WAS TERMINATED, REMOVING THIS RESTRICTION IN 1984. FLEET FINANCIAL GROUP MERGED WITH SHAWMUT NATIONAL CORPORATION IN 1995.
10(d)(5)(vi).  Disposition of action or claim:
AGREEMENT WAS TERMINATED
10(d)(5)(i).  The individuals named in the action or claim:
COLUMBIA MANAGEMENT ADVISORS, INC. (FKA FLEET INVESTMENT ADVISORS, INC.)
10(d)(5)(ii).  Title of Action 10(d)(5)(iii).  Date of Action
N/A
 02/01/1991
10(d)(5)(iv).  The Court or body taking the Action and location:
PENNSYLVANIA SECURITIES COMMISSION
10(d)(5)(v).  Description of the action or claim:
ADMINISTRATIVE PROCEEDING BY PENNSYLVANIA SECURITIES COMMISSION REGARDING APPLICATION FOR REGISTRATION AS INVESTMENT ADVISOR. FLEET INVESTMENT ADVISORS, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) FAILED TO RESPOND TO WRITTEN REQUESTS AND A RELATED ORDER TO SUPPLY CERTAIN INFORMATION TO COMPLETE ITS APPLICATION. NO DAMAGES WERE ALLEGED.
10(d)(5)(vi).  Disposition of action or claim:
APPLICATION DENIED. NO PENALTIES, FINES OR OTHER PAYMENTS WERE ASSESSED
10(d)(6). ever revoked or suspended the applicant`s or a control affiliate`s license as an attorney or accountant?
   Yes X No
10(e).  Has any self-regulatory organization or commodities exchange ever:
10(e)(1). found the applicant or a control affiliate to have made a false statement or omission?
X Yes    No
10(e)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(1)(ii).  Title of Action 10(e)(1)(iii).  Date of Action
Docket/Case Number: EAF03007200-01
 12/19/2005
10(e)(1)(iv).  The Court or body taking the Action and location:
NASD
10(e)(1)(v).  Description of the action or claim:
IN RECOMMENDING CERTAIN CLASS B AND C SHARE MUTUAL FUND PURCHASES TO CLIENTS, IT IS ALLEGED THAT THE FIRM DID NOT ADEQUATELY DISCLOSE, AT THE POINT OF PURCHASE, ON A CONSISTENT BASIS, THAT AN EQUAL INVESTMENT IN CLASS A SHARES WOULD GENERALLY HAVE BEEN MORE ECONOMICALLY ADVANTAGEOUS FOR CERTAIN CLIENTS. IT IS ALSO ALLEGED THAT THE FIRM'S SUPERVISORY PROCEDURES AND COMPLIANCE POLICIES WERE NOT REASONABLY ESTABLISHED, MAINTAINED AND ENFORCED WITH RESPECT TO PROVIDING, ON A CONSISTENT BASIS, ADEQUATE DISCLOSURE OF THE BENEFITS OF THE VARIOUS MUTUAL FUND SHARE CLASSES AS THEY APPLIED TO EACH INDIVIDUAL'S CIRCUMSTANCES. THE $14 MILLION FINE WAS PAID ON 01/09/2006. THE REMEDIATION PROCESS IS SCHEDULED TO BE COMPLETED WITHIN 270 DAYS OF 12/19/05 AND THE INDEPENDENT EXAMINER'S REPORT IS DUE WITHIN 420 DAYS FROM 12/19/05.
10(e)(1)(vi).  Disposition of action or claim:
CENSURE, FINE AND UNDERTAKING
10(e)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(1)(ii).  Title of Action 10(e)(1)(iii).  Date of Action
Docket/Case Number: E9B20030421-04
 03/15/2006
10(e)(1)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(1)(v).  Description of the action or claim:
MISREPRESENTATIONS AND OMISSIONS OF FACTS TO CUSTOMERS. IT IS ALSO ALLEGED THAT MERRILL LYNCH PERMITTED INDIVIDUALS LACKING THE PROPER LICENSES AS SECURITIES PRINCIPALS TO BE RESPONSIBLE FOR THE SUPERVISION OF THE ISAS AND THAT MERRILL LYNCH EMPLOYED AN INSUFFICIENT NUMBER OF REGISTERED PRINCIPALS TO REVIEW ALL OF THE TRANSACTIONS. IT IS FURTHER ALLEGED THAT IN 2002, THE FAC CONDUCTED THREE SALES CONTESTS WHICH IMPROPERLY AWARDED NON-CASH COMPENSATION TO ISAS BASED SOLELY ON THE SALE OF THE FIRM'S PROPRIETARY MUTUAL FUNDS. CONTESTS MUST BE BASED ON TOTAL SALES OF ALL PRODUCTS WITHIN A SINGLE CATEGORY, SUCH AS MUTUAL FUNDS. IT IS ALLEGED THAT MERRILL LYNCH FAILED TO DISCLOSE THAT THE ISAS OFTEN HAD FIVE YEARS OR LESS BROKERAGE EXPERIENCE, AND THAT WHEN MAKING RECOMMENDATIONS REGARDING SECURITIES, THEY WERE LIMITED TO MUTUAL FUNDS. FINALLY, IT IS ALLEGED THAT MERRILL LYNCH AMONG OTHER THINGS, LACKED ADEQUATE WRITTEN SUPERVISORY PROCEDURES REGARDING MUTUAL FUNDS RECOMMENDATIONS (INCLUDING SWITCH TRANSACTIONS); DID NOT CONDUCT ANNUAL COMPLIANCE AUDITS FOR TWO YEARS AND MUTUAL FUND SWITCHES WERE NOT ADEQUATELY REVIEWED BY MERRILL LYNCH PRINCIPALS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED 5,000,000.00.
10(e)(1)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY
10(e)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(1)(ii).  Title of Action 10(e)(1)(iii).  Date of Action
Docket/Case Number: 20042000136-01
 03/23/2006
10(e)(1)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(1)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO SUBMIT, FOR THE OFFSETTING RISK LESS PORTION OF THREE (3) TRANSACTIONS IN NASDAQ NATIONAL MARKET SECURITIES (NNM) EITHER A CLEARING-ONLY REPORT WITH A CAPACITY INDICATOR OF RISK LESS PRINCIPAL OR A NON-TAPE, NON-CLEARING REPORT WITH A CAPACITY INDICATOR OF RISK LESS PRINCIPAL; INCORRECTLY DESIGNATED AS .PRP THROUGH ACT LAST SALE REPORTS OF TWO (2) TRANSACTIONS IN NNM SECURITIES; IN SEVEN (7) INSTANCES FAILED TO REPORT THE CORRECT TIME OF EXECUTION THROUGH ACT THE LAST SALE REPORTS OF TRANSACTIONS IN ELIGIBLE SECURITIES FOR WHICH THE FIRM HAS RECORDING AND REPORTING OBLIGATIONS; IN TEN (10) INSTANCES FAILED TO REPORT TO ACT THE CORRECT SYMBOL INDICATING WHETHER THE FIRM EXECUTED TRANSACTIONS IN ELIGIBLE SECURITIES AS PRINCIPAL, RISK LESS PRINCIPAL, OR AGENT; IN TWO (2) INSTANCES FAILED TO REPORT TO ACT THE CORRECT SYMBOL INDICATING WHETHER TRANSACTIONS IN ELIGIBLE SECURITIES WERE A BUY, SELL, SELL SHORT, SELL SHORT EXEMPT, OR CROSS; FAILED WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH ACT LAST SALE REPORTS OF THREE (3) TRANSACTIONS IN CONSOLIDATED QUOTATION SYSTEM (CQS) SECURITIES AND FAILED TO DESIGNATE THROUGH ACT SUCH LAST SALE REPORTS AS LATE; INACCURATELY REPORTED THE PRICE THROUGH ACT OF ONE (1) LAST SALE REPORT OF A TRANSACTION IN A CQS SECURITY; IN SEPTEMBER 2003, FAILED TO ACCURATELY REPORT THE CUMULATIVE NUMBER OF SHARES OF COVERED ORDERS CANCELLED PRIOR TO EXECUTION IN NATIONAL MARKET SYSTEM SECURITIES THAT IT RECEIVED FOR EXECUTION FROM ANY PERSON AND ERRONEOUSLY INCLUDED NOT HELD ORDERS IN THE REPORT; FAILED IN ORDERS TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO CUSTOMERS ITS CORRECT CAPACITY TO THE TRANSACTION FOR TWO (2) ORDERS; FAILED IN TWO (2) INSTANCES TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THE CORRECT REPORTED PRICE; FOR A TOTAL OF THREE (3) FAILED TO SHOW EITHER THE CORRECT TIME OF RECEIPT AND/OR THE EXECUTION ON THE MEMORANDUM OF BROKERAGE ORDERS; IT IS ALSO ALLEGED THAT MERRILL LYNCH FAILED TO SHOW THE TERMS AND CONDITIONS ON THE MEMORANDUM OF BROKERAGE ORDERS FOR FIVE (5) ORDERS; AND THE FIRM'S SUPERVISORY SYSTEM FAILED TO PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING THE REGISTRATION OF ASSOCIATED PERSONS, THE FRONT RUNNING OF ORDERS IN CQS SECURITIES, SEC RULES 11AC1-5 AND 11AC1-6, AND NASD'S THREE QUOTE RULE. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO A CENSURE AND $45,000 FINE (PAID ON 4/17/2006), AS WELL AS UNDERTAKINGS TO REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES CONCERNING THE AFOREMENTIONED ALLEGATIONS.
10(e)(1)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY
10(e)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(1)(ii).  Title of Action 10(e)(1)(iii).  Date of Action
Docket/Case Number: 20050034676-01
 11/20/2006
10(e)(1)(iv).  The Court or body taking the Action and location:
NASD
10(e)(1)(v).  Description of the action or claim:
IT IS ALLEGED THAT RESPONDENT FAILED TO INCLUDE A LEGEND REGARDING THE EXISTENCE OF CONTINGENT DEFERRED SALES CHARGES ON CERTAIN WRITTEN CONFIRMATIONS IT PROVIDED ITS CUSTOMERS EFFECTING FIRM'S EXCHANGE TRANSACTIONS AND EXECUTED TRANSACTIONS IN CALLABLE STRIDES EQUITY-LINKED FIXED INCOME SECURITIES ISSUED BY THE PARENT COMPANY IN CUSTOMERS DISCRETIONARY ACCOUNTS WITHOUT OBTAINING PRIOR WRITTEN APPROVAL FROM THE CUSTOMERS. WITHOUT ADMITTING OR DENYING THE FINDINGS; RESPONDENT MEMBER FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $20,000.00, WHICH WAS PAID ON DECEMBER 8, 2006.
10(e)(1)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2). found the applicant or a control affiliate to have been involved in a violation of its rules?
X Yes    No
10(e)(2)(i).  The individuals named in the action or claim:
FIRST REPUBLIC BANK SECURITIES COMPANY (NKA NCNB TEXAS SECURITIES, INC.)
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 03/30/1990
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
THE ALLEGATION ALLEGES THAT THE CONTROL AFFILIATE FILED THEIR FOCUS PART I REPORT FOR THE MONTH OF JULY ONE BUSINESS DAY LATE. FIRST REPUBLIC BANK SECURITIES COMPANY (NKA NCNB TEXAS SECURITIES, INC.) ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT WITH THE NASD AND PAID A $250 FINE (DATE FINE PAID IS UNKNOWN).
10(e)(2)(vi).  Disposition of action or claim:
LETTER OF AWC, $250 FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA, N.A.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2004-INV-12B
 08/25/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT BANK OF AMERICA, N.A., BY VIRTUE OF REGULATION 9B.07, EXECUTED TRADES INVOLVING PRE-EXECUTION COMMUNICATIONS WHICH WERE NOT ENTERED IN ACCORDANCE WITH PRESCRIBED TIME REQUIREMENTS AND PROCEDURES, IN VIOLATION OF REGULATION 9B.16. WITHOUT ADMITTING OR DENYING ANY VIOLATION OF REGULATION 9B.16, BANK OF AMERICA, N.A. AGREED TO PAY A FINE OF $20,000.00 IN SETTLEMENT OF THIS MATTER.
10(e)(2)(vi).  Disposition of action or claim:
FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E062004038601
 01/26/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 3011(A) AND (B), MSRB RULE G-41 - RESPONDENT MEMBER ALLEGEDLY FAILED TO OBTAIN THE NAMES OF BENEFICIAL OWNERS FOR CERTAIN ACCOUNTS. THE MEMBER'S PROCEDURES REQUIRED SUCH CUSTOMER INFORMATION. THE FIRM ALSO ALLEGEDLY DID NOT HAVE ADEQUATE COMMUNICATION WITH ITS PARENT CORPORATION AS TO WHETHER A SUSPICIOUS ACTIVITY REPORT (SAR) SHOULD BE FILED AND WHETHER A SAR HAD IN FACT BEEN FILED. WITHOUT ADMITTING OR DENYING THE FINDINGS, BANC OF AMERICA INVESTMENT SERVICES, INC., CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED AND FINED $3,000,000.00.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED $3,000,000.00.
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: EAF0401010002
 12/19/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD CONDUCT RULES 2110, 3010, 2210(D)(1): RESPONDENT MEMBER FIRM FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM, INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNED TO REVIEW AND MONITOR ITS FEE-BASED BROKERAGE BUSINESS. AS A RESULT OF THESE DEFICIENCIES, THE FIRM ALLOWED CUSTOMERS TO CONTINUE IN THE PORTFOLIO EDGE ACCOUNT WITHOUT ASSESSING WHETHER THE ACCOUNT REMAINED APPROPRIATE FOR THOSE CUSTOMERS, IT FAILED TO ESTABLISH AND MONITOR THE MANUAL PROCESSING OF TRADES TO ENSURE THAT CUSTOMERS WERE NOT CHARGED A COMMISSION FOR TRANSACTIONS IN ELIGIBLE ASSETS AND TO ENSURE THAT ADEQUATE DISCLOSURES WERE MADE TO CUSTOMERS REGARDING THE FEES THAT WOULD BE CHARGED TO THE ACCOUNTS FOR CERTAIN TRANSACTIONS. THE FIRM USED WRITTEN COMMUNICATIONS WITH THE PUBLIC, INCLUDING ADVERTISING AND SALES LITERATURE, THAT OMITTED MATERIAL INFORMATION AND FAILED TO PROVIDE A SOUND BASIS FOR EVALUATING THE FACTS IN REGARD TO THE ACCOUNT. WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT MEMBER FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED, FINED $500,000 AND ORDERED TO PAY RESTITUTION OF $89,625 PLUS INTEREST. SATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION SHALL BE PROVIDED TO NASD NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC. IF FOR ANY REASON RESPONDENT CANNOT LOCATE CUSTOMER, AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN SUCH PERIOD, OR SUCH ADDITIONAL PERIOD AGREED TO BY THE STAFF, RESPONDENT SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LAST KNOW TO HAVE RESIDED.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E102003158301
 12/01/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
THE NASD ALLEGED THAT QUICK AND REILLY, INC. (PRIOR TO THE 10/20/2004 MERGER WITH BANC OF AMERICA INVESTMENT SERVICES, INC.) FAILED TO MAINTAIN AND ENFORCE AN ADEQUATE SYSTEM TO SUPERVISE THE ACTIVITIES OF CERTAIN REGISTERED REPRESENTATIVES, WITH RESPECT TO THE SALE OF VARIABLE ANNUITIES. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, QUICK AND REILLY, INC. (N/K/A BANC OF AMERICA INVESTMENT SERVICES, INC., AS OF A 10/20/2004 MERGER) CONSENTED TO A CENSURE AND A FINE OF $75,000.00.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2005001870-01
 08/08/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
THE NASD ALLEGED THAT BANC OF AMERICA INVESTMENT SERVICES, INC. (I) FAILED TO COMPLY WITH TRACE REPORTING REQUIREMENTS FROM JANUARY 1, 2004 THROUGH MARCH 31, 2004 BY NOT REPORTING TO TRACE CERTAIN TRANSACTIONS WITHIN 45 MINUTES OF EXECUTION AND BY REPORTING TO TRACE CERTAIN TRANSACTIONS THAT IT WAS NOT REQUIRED TO REPORT, AND (II) FAILED TO HAVE A SUPERVISORY SYSTEM REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING ACCURATE TRACE REPORTING. THE NASD ASSERTED THAT SUCH PURPORTED ACTIONS VIOLATED NASD RULES 2110, 3010, 6230 (A) AND 6230(E). WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BANC OF AMERICA INVESTMENT SERVICES, INC. CONSENTED TO A CENSURE, A FINE OF $17,500 AND AN UNDERTAKING TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES REGARDING ACCURATE TRACE REPORTING WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THE AWC.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
NYSE HEARING PANEL DECISION 06-38
 05/10/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
THE NYSE DIVISION OF ENFORCEMENT ALLEGED THAT QUICK AND REILLY, INC. (PRIOR TO THE 10/20/2004 MERGER WITH BANC OF AMERICA INVESTMENT SERVICES, INC.) FAILED TO RETAIN CERTAIN INTRA-FIRM EMAIL COMMUNICATIONS AND FAILED TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS WITH RESPECT TO THE RETENTION OF CERTAIN INTRA-FIRM EMAIL COMMUNICATIONS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, QUICK AND REILLY, INC. (N/K/A BANC OF AMERICA INVESTMENT SERVICES, INC., AS OF A 10/20/2004 MERGER) CONSENTED TO A CENSURE AND PAID A FINE OF $200,000 ON 7/19/2006.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C07050036
 06/28/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
MSRB RULE G-14 AND G-27 RESPONDENT FIRM FAILED TO TIMELY REPORT ITS MUNICIPAL SECURITIES CUSTOMER TRANSACTIONS TO THE MSRB. THE FIRM FAILED TO MONITOR ITS TRADE REPORTING TO ENSURE COMPLIANCE WITH MSRB RULE G-14. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRM CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $90,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CAF040101
 11/30/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
ARTICLE V, SECTIONS 2(C) & 3(B) OF NASD'S BY-LAWS, & NASD RULES 2110 & 3010 - BANC OF AMERICA INVESTMENT SERVICES, INC. FILED AT LEAST 170 LATE AMENDMENTS TO FORMS U4 AND U5, WHICH REPRESENTED APPROX. 56% OF THE REQUIRED AMENDMENTS RELATING TO REPORTABLE CUSTOMER COMPLAINTS, REGULATORY ACTIONS AND CRIMINAL DISCLOSURES. DURING THE RELEVANT PERIOD, BANC OF AMERICA INVESTMENT SERVICES, INC.'S SUPERVISORY SYSTEM & PROCEDURES WERE NOT REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH ITS ARTICLE V REPORTING OBLIGATIONS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BANC OF AMERICA INVESTMENT SERVICES, INC. (BAI), CONSENTED TO THE DESCRIBED SANCTIONS & TO THE ENTRY OF FINDINGS, THEREFORE, IT IS CENSURED & FINED $200,000.00 WHICH SHALL BE PAID WITHIN 10 DAYS OF NOTICE OF ACCEPTANCE OF THIS AWC. IN ADDITION, BAI SHALL COMPLY WITH THE FOLLOWING UNDERTAKINGS; (1) PROMPTLY FOLLOWING NOTICE OF ACCEPTANCE OF THIS AWC, BAI'S INTERNAL AUDIT DEPARTMENT OR PERSONNEL NOT DIRECTLY RESPONSIBLE FOR BAI'S ARTICLE V REPORTING OBLIGATIONS & THEIR IMMEDIATE SUPERVISORS SHALL CONDUCT AN AUDIT TO ASSESS THE EFFECTIVENESS OF ITS SYSTEM & PROCEDURES FOR ENSURING TIMELY FILING OF FORM U4 AND U5 AMENDMENTS SUMMARIZING FINDINGS & RECOMMENDATIONS & SHALL FOR THE NEXT FOUR CALENDAR QUARTERS BEGINNING FOURTH QUARTER 2004, CONDUCT A SIMILAR AUDIT & PREPARE A SIMILAR WRITTEN AUDIT REPORT. (2) NO LATER THAN 90 DAYS AFTER NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICER OF THE FIRM SHALL CERTIFY IN WRITING TO NASD THAT AN AUDIT WAS CONDUCTED & THE OFFICER HAS REVIEWED THE CURRENT AUDIT REPORT. (3) NO LATER THAN 60 DAYS AFTER THE DATE OF THE CURRENT AUDIT REPORT, AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT THE FIRM HAS IMPLEMENTED, OR HAS BEGUN TO IMPLEMENT, ANY RECOMMENDATIONS WITHIN A SPECIFIED TIME PERIOD. (4) NO LATER THAN 60 DAYS AFTER THE LAST DAY OF THE NEXT FOUR QUARTERS, AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT AN AUDIT WAS CONDUCTED, THE CURRENT AUDIT REPORT WAS REVIEWED, & RECOMMENDATIONS IMPLEMENTED, OR BEGUN TO BE IMPLEMENTED. (5) NO LATER THAN 6 MONTHS AFTER NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT BAI HAS REVIEWED ITS SYSTEM & PROCEDURES FOR COMPLYING WITH ITS ARTICLE V REPORTING OBLIGATIONS & HAS ESTABLISHED A SYSTEM & PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH REPORTING REQUIREMENTS SET FORTH THEREIN.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA INVESTMENT SERVICES, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C07980030-AWC
 05/29/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
NASDR ALLEGED THAT NATIONSBANC INVESTMENTS, INC. (NKA BANC OF AMERICA INVESTMENT SERVICES, INC.) VIOLATED MEMBERSHIP AND REGISTRATION RULES 1120(A) AND 1021 REGARDING A FORMER DIRECTOR'S REGISTRATION STATUS AND VIOLATED NASD CONDUCT RULE 3010 PERTAINING TO WRITTEN SUPERVISORY RULES WITH REGARD TO OUTSIDE DIRECTORS. NASDR ALLEGED THAT THE FORMER DIRECTOR FAILED TO SATISFY THE REGULATORY ELEMENT OF THE CONTINUING EDUCATION PROGRAM AND PERFORMED DUTIES WHILE NOT PROPERLY REGISTERED AS A PRINCIPAL THEREBY VIOLATING MEMBERSHIP AND REGISTRATION RULE 1021 AND 1120(A). WITHOUT ADMITTING OR DENYING ALLEGATIONS, NATIONSBANC INVESTMENTS, INC. CONSENTED TO A CENSURE AND FINE OF $1,000 FOR VIOLATION OF RULE 1120(A); CENSURE AND FINE OF $5,000 FOR VIOLATION OF RULE 1021 AND CENSURE AND FINE OF $5,000 FOR VIOLATION OF RULE 3010. WITHOUT ADMITTING OR DENYING ALLEGATIONS, THE FORMER DIRECTOR CONSENTED TO A CENSURE AND FINE OF $2,500 FOR VIOLATION OF RULE 1120(A) AND A CENSURE AND FINE OF $5,000 JOINT AND SEVERAL WITH THE FIRM, FOR VIOLATION OF RULE 1021.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20060041509-01
 06/26/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINRA
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 4632, 4632(E), 6130(D) - BANC OF AMERICA SECURITIES LLC FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT TO THE NATIONAL MARKET CENTER (NMC NOW THE FINRA/NASDAQ TRADE REPORTING FACILITY) LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES AND FAILED TO DESIGNATE SOME OF THEM AS LATE; FAILED TO REPORT TO THE NMC THE CORRECT SYMBOL INDICATING WHETHER TRANSACTIONS WERE BUY, SELL, SELL SHORT, SELL SHORT EXEMPT OR CROSS FOR TRANSACTIONS IN REPORTABLE SECURITIES; FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT TO THE NMC LAST SALE REPORTS OF TRANSACTIONS IN NASDAQ NATIONAL MARKET AND SMALL CAP SECURITIES; AND THE FIRM REPORTED TO THE NMC LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES IT WAS NOT REQUIRED TO REPORT. THE FIRM INCORRECTLY MEDIA REPORTED TO THE NASD/NASDAQ TRF CLEARING TRANSACTIONS IN REPORTABLE SECURITIES AND FAILED TO REPORT TO THE NASD/NASDAQ TRF THE CORRECT SYMBOL INDICATING WHETHER IT EXECUTED TRANSACTIONS IN REPORTABLE SECURITIES IN A PRINCIPAL OR AGENCY CAPACITY. WITHOUT ADMITTING OR DENYING THE FINDINGS, BANC OF AMERICA SECURITIES LLC (BAS) CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, BAS IS CENSURED AND FINE $25,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINE $25,000
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20041000170-01
 12/31/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
FINRA
10(e)(2)(v).  Description of the action or claim:
NASD RULES 3370, 6230(C)(6) - BANC OF AMERICA SECURITIES LLC ACCEPTED CUSTOMER SHORT SALE ORDERS IN CERTAIN SECURITIES AND, FOR EACH ORDER, FAILED TO MAKE/ANNOTATE AN AFFIRMATIVE DETERMINATION THAT THE FIRM WOULD RECEIVE DELIVERY OF THE SECURITY ON BEHALF OF THE CUSTOMER OR THAT THE FIRM COULD BORROW THE SECURITY ON BEHALF OF THE CUSTOMER FOR DELIVERY BY SETTLEMENT DATE. THE FIRM FAILED TO REPORT TO TRACE THE CORRECT CONTRA-PARTY'S IDENTIFIER FOR TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $12,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED $12,000
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 07-129
 06/29/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCMENT
10(e)(2)(v).  Description of the action or claim:
6/29/07 STIPULATION AND CONSENT TO PENALTY FILED BY NYSE REGULATION'S DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: WITHOUT ADMITTING OR DENYING GUILT, BANC OF AMERICA SECURITIES LLC CONSENTS TO FINDINGS THAT IT VIOLATED:1. NYSE RULE 401(A) BY FAILING TO ADHERE TO THE PRINCIPLES OF GOOD BUSINESS PRACTICE IN THAT THE FIRM FAILED TO ENSURE THE DELIVERY OF PROSPECTUSES IN CONNECTION WITH CERTAIN SALES OF REGISTERED SECURITIES IN VIOLATION OF SECTION 5(B)(2) OF THE SECURITIES ACT OF 1933;2.NYSE RULE 1100(B) BY FAILING TO DELIVER PRODUCT DESCRIPTIONS TO CUSTOMERS THAT PURCHASED EXCHANGE TRADED FUNDS (ETFS); AND 3. NYSE RULE 342 BY FAILING TO PROVIDE FOR, ESTABLISH AND MAINTAIN APPROPRIATE PROCEDURES OF SUPERVISION AND CONTROL INCLUDING A SYSTEM OF FOLLOW-UP AND REVIEW, WITH RESPECT TO ITS OPERATIONAL AND TECHNOLOGICAL ACTIVITIES RELATING TO THE DELIVERY OF PRODUCT DESCRIPTIONS AND PROSPECTUSES WITH RESPECT TO ETF SHARES AND AN OFFERING OF A CERTAIN EQUITY SECURITY. STIPULATED SANCTION: THE IMPOSITION BY THE NYSE OF: 1. CENSURE;2. A FINE IN THE AMOUNT OF $375,000; AND 3. AN UNDERTAKING TO PROVIDE ENFORCEMENT WITH A WRITTEN CERTIFICATION THAT ITS CURRENT POLICIES AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY AND OPERATIONAL POLICIES AND PROCEDURES, REGARDING THE DELIVERY OF PROSPECTUSES AND PRODUCT DESCRIPTIONS ARE REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND NYSE RULES APPLICABLE TO THE DELIVERY OF PROSPECTUSES AND PRODUCT DESCRIPTIONS. THE FIRM WILL PROVIDE ENFORCEMENT WITH THIS WRITTEN CERTIFICATION WITHIN 90 DAYS FROM THE DATE THAT A HEARING PANEL DECISION IN THIS MATTER BECOMES FINAL.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, A $375,000 FINE, AND AN UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2005001788101
 06/19/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULE 6955(A): BANC OF AMERICA SECURITIES (BAS) FAILED TO REPAIR 42,073 REPORTABLE ORDER EVENTS (ROES) THAT WERE REJECTED BY ORDER AUDIT TRAIL SYSTEM (OATS) FOR CONTEXT AND SYNTAX ERRORS AND WERE REPAIRABLE. WITHOUT ADMITTING OR DENYING THE FINDINGS, BAS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, BAS IS CENSURED AND FINED $12,500.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED $12,500
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050000186-01
 05/29/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 3010, 4632(A), 4632(E), 6230(C)(6), 6620(A), 6955(A) - BANC OF AMERICA SECURITIES TRANSMITTED TO OATS EXECUTION REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA SO THAT THE OATS SYSTEM WAS UNABLE TO LINK THE EXECUTION REPORTS TO THE RELATED TRADE REPORTS IN AN NASD TRADE REPORTING SYSTEM; ERRONEOUSLY REPORTED TO OATS EXECUTION CODES WITH THE EXCEPTION CODE OF "R" FOR RISK LESS PRINCIPAL TRADES IT REPORTED UNDER THE ALTERNATIVE APPROACH; FAILED TO REPAIR REPORTABLE ORDER EVENTS (ROES) THAT WERE REJECTED BY OATS FOR CONTEXT AND SYNTAX ERRORS AND WERE REPAIRABLE; SUBMITTED TO OATS ROUTE OR COMBINED ORDER/ROUTE REPORTS THAT THE OATS SYSTEM WAS UNABLE TO LINK TO THE RELATED ORDER ROUTED TO THE NASDAQ EXCHANGE OR TO THE CORRESPONDING NEW ORDER SUBMITTED BY THE DESTINATION MEMBER FIRM DUE TO INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA; FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT TO THE TRADE REPORTING FACILITY LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES; FAILED, WITHIN 90 SECONDS, TO TRANSMIT TO THE OTC REPORTING FACILITY LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES; REPORTED LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES TO THE TRADE REPORTING FACILITY IT WAS NOT REQUIRED TO REPORT; FAILED TO REPORT TO TRACE THE CORRECT CONTRAPARTY'S IDENTIFIER FOR TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES; THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING TRACE REPORTING, ORDER HANDLING AND SOFT DOLLAR ACCOUNTS AND TRADING; AND TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED, FINED $60,000 AND REQUIRED TO REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES CONCERNING TRACE REPORTING, ORDER HANDLING AND SOFT DOLLAR ACCOUNTS AND TRADING WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THIS AWC BY THE NAC.
10(e)(2)(vi).  Disposition of action or claim:
ENSURED, FINED $60,000 AND REQUIRED TO REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050000639-01
 03/12/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASDAQ SMALL CAP (SC) SECURITIES AND OTC EQUITY SECURITIES. THE FINDINGS ALSO STATED THAT BAS FAILED TO ENFORCE ITS WRITTEN SUPERVISORY PROCEDURES FOR TRADE REPORTING AND FAILED TO DESIGNATE AS ".T" THROUGH ACT LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES EXECUTED OUTSIDE NORMAL MARKET HOURS. THE FINDINGS ALSO INCLUDED THAT BAS TRANSMITTED TO THE ORDER AUDIT TRAIL SYSTEM (OATS) REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA, EFFECTED SHORT SALES IN CERTAIN SECURITIES FOR THE FIRM'S PROPRIETARY ACCOUNT AND FAILED TO MAKE/ANNOTATE AN AFFIRMATIVE DETERMINATION THAT THE FIRM COULD BORROW THE SECURITIES OR OTHERWISE PROVIDE FOR DELIVERY OF THE SECURITIES BY SETTLEMENT DATE. NASD FOUND THAT BAS EXECUTED SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDER TICKETS AS SHORT FOR THOSE ORDERS; FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS ITS CORRECT CAPACITY IN THE TRANSACTION, THAT THE TRANSACTION WAS EXECUTED AT AN AVERAGE PRICE AND THAT IT WAS A MARKET MAKER. NASD ALSO FOUND THAT BAS FAILED TO REPORT TO ACT THE CORRECT SYMBOL INDICATING WHETHER THE TRANSACTION WAS A BUY, SELL, SELL SHORT, SELL SHORT EXEMPT OR CROSS FOR TRANSACTIONS IN ELIGIBLE SECURITIES. IN ADDITION, NASD DETERMINED THAT BAS' SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING REGISTRATION, SEC RULE 11AC1-6, SHORT SALES, BID TEST AND BOOKS AND RECORDS. WITHOUT ADMITTING OR DENYING THE FINDINGS, BANC OF AMERICA SECURITIES LLC, CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM WAS CENSURED, FINED $56,500 AND REQUIRED TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES AND SUPERVISORY ENFORCEMENT WITH RESPECT TO REGISTRATIONS, SEC RULE 11AC1-6, SHORT SALES, BID TEST AND BOOKS AND RECORDS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E072005014801
 08/17/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
MSRB RULES G-36 AND G-27 - THE FIRM FILED EIGHT MSRB FORMS G-36(OS) AND (ARD) IN AN UNTIMELY MANNER IN THAT THEY WERE FILED FROM ONE TO FIVE DAYS LATE. THE FIRM ALSO FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE FILING REQUIREMENTS OF MSRB RULE G-36. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE THE FIRM IS CENSURED, FINED $13,000 ORDERED TO CERTIFY IN WRITING TO NASD ITS COMPLIANCE WITH THE FILING REQUIREMENTS OF MSRB RULE G-36, ON A QUARTERLY BASIS FOR A PERIOD OF ONE YEAR, COMMENCING WITH THE THIRD QUARTER OF 2006.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. 2005-157
 05/09/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
INTERNATIONAL SECURITIES EXCHANGE
10(e)(2)(v).  Description of the action or claim:
ALLEGED VIOLATION OF ISE RULE 1902. WITHOUT ADMITTING OR DENYING ALLEGATIONS, BANC OF AMERICA SECURITIES, LLC ACCEPTS AND CONSENTS TO THE ENTRY OF FINDINGS THAT ON 146 OCCASIONS DURING THE PERIOD SEPTEMBER 2005, BAS EFFECTED TRANSACTIONS IN OPTIONS SERIES AT PRICES THAT WERE INFERIOR TO THE NATIONAL BEST BID OR OFFER IN VIOLATION OF ISE RULE 1902. BAS CONSENTED TO A FINE $3500.00.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 05-161
 08/25/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF SEA RULES 15C3-3, 15C3-1 AND 17A-5 AND EXCHANGE RULE 342(A) AND (B). ON FEBRUARY 17, 2006, BAS WAS CENSURED AND FINED $60,000 IN CONNECTION WITH FINDINGS FROM THE FIRM'S 2002 FINOP EXAMINATION INVOLVING EXCHANGE ACT RULES 15C3-1, 15C3-3 AND 17A-5 AND NYSE RULE 342(A) & (B). FOR THE PURPOSE OF SETTLING THE MATTER, BAS AGREED TO THE SANCTIONS WITHOUT ADMITTING OR DENYING GUILT.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 06-281
 05/17/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
BANC OF AMERICA SECURITIES LLC VIOLATED AMEX RULE 30 AND AMEX INFORMATION CIRCULAR #95-136, IN THAT THE FIRM FAILED TO FILE A CORRECT MID-MONTH SHORT INTEREST REPORT TO THE AMEX IN MAY 2005. CENSURED AND FINED $6,500.00.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050051
 05/02/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULE 2110; NASD MARKETPLACE RULE 6420 (A) - DURING A REVIEW PERIOD (9/01/02 - 12/31/02), BANC OF AMERICA SECURITIES, LLC (BAS) ENGAGED IN A PATTERN OF LATE TRANSACTION REPORTING WITHOUT EXCEPTIONAL CIRCUMSTANCES. IN ADDITION, BAS FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH ACT LAST SALE REPORTS OF TRANSACTIONS IN ELIGIBLE SECURITIES AND FAILED TO DESIGNATE THROUGH ACT SUCH LAST SALE REPORTS AS LATE. ALSO, IN A LATER REVIEW PERIOD (1-01-03 - 4/30/03), BAS FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH ACT LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BAS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, BAS IS CENSURED AND FINED $15,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050031
 03/22/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD CONDUCT RULES 2110, 3010, NASD MARKETPLACE RULE 6955(A), SEC RULE 10B-10, 11AC1-6(C)(2). BANC OF AMERICA SECURITIES, LLC (BAS) FAILED TO NOTIFY CUSTOMERS ANNUALLY OF THE AVAILABILITY UPON REQUEST OF THE VENUES TO WHICH CUSTOMER'S ORDERS WERE ROUTED FOR EXECUTION IN THE SIX MONTHS PRIOR TO THE REQUEST, WHETHER THE ORDERS WERE DIRECTED OR NON-DIRECTED, AND THE TIME OF THE TRANSACTIONS THAT RESULTED FROM SUCH ORDERS; BAS' SUPERVISORY SYSTEM, SPECIFICALLY, BAS' WRITTEN SUPERVISORY PROCEDURES, DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO APPLICABLE SECURITIES LAWS, REGULATIONS, AND RULES OF NASD, CONCERNING SEC RULES 11AC1-5,AND 11AC1-6, TRADE REPORTING, OATS DATA SUBMISSION, ANTI-INTIMIDATION AND COORDINATION, AND COMPLIANCE WITH AFFIRMATIVE DETERMINATION AND BID TEST RULE REQUIREMENTS. FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT IT WAS A MARKET MAKER IN SECURITY ON OCCASIONS WHEN IT ACTED AS PRINCIPAL FOR ITS OWN ACCOUNT; TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE, OR IMPROPERLY FORMATTED DATA, AND FAILED TO SUBMIT REQUIRED INFORMATION TO OATS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BAS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $25,000, AND REQUIRED TO REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES CONCERNING SEC RULES 11AC1-5, AND 11AC1-6, TRADE REPORTING, OATS DATA SUBMISSION, ANTI-INTIMIDATION AND COORDINATION, AND COMPLIANCE WITH AFFIRMATIVE DETERMINATION AND BID TEST RULE REQUIREMENTS, WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THE AWC.
10(e)(2)(vi).  Disposition of action or claim:
Acceptance, Waiver & Consent(AWC)
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050028
 03/16/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULE 3370 - BANC OF AMERICA SECURITIES, LLC (BAS) ACCEPTED CUSTOMER LONG SALE ORDERS IN CERTAIN SECURITIES & FOR EACH ORDER, FAILED TO MAKE/ANNOTATE AN AFFIRMATIVE DETERMINATION THAT THE CUSTOMER OWNED THE SECURITY AND WOULD DELIVER IT IN GOOD DELIVERABLE FORM WITHIN THREE BUSINESS DAYS OF THE EXECUTION OF THE ORDER. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BOFA CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED AND FINED $7,500.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 05-58
 02/23/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED EXCHANGE RULE 904 BY ALLOWING FIRM TO (I) EXCEED THE PRESCRIBED POSITION LIMIT IN UDU OPTIONS BY 1,500 CONTRACTS FOR THE PERIOD FROM DECEMBER 2, 2003 UNTIL JANUARY 12, 2004, OR 28 TRADING DAYS; AND (II)EXCEEDED THE PRESCRIBED POSITION LIMIT IN SMH OPTIONS IN THE FIRM'S PROPRIETARY TRADING ACCOUNT BY 5,231 CONTRACTS ON NOVEMBER 18, 2004; AND VIOLATED EXCHANGE RULE 16 BY FAILING TO ADHERE TO THE PRINCIPLES OF GOOD BUSINESS PRACTICE IN THE CONDUCT OF ITS BUSINESS AFFAIRS, BY NOT MODIFYING ITS INTERNAL SYSTEMS TO ACCOUNT FOR A SIGNIFICANT REGULATORY CHANGE IMPLEMENTED BY THE OPTIONS CLEARING CORPORATION ("OCC") WITH RESPECT TO THE CALCULATION OF POSITION LIMITS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 04-04/33765
 09/10/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
PACIFIC STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
FAILED TO MAINTAIN CONTINUOUS, 2-SIDED Q ORDERS IN VIOLATION OF PCXE RULE 7.23(A)(1).
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C05040057
 07/20/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
MSRB RULES G-17 AND G-30(A) ON OR ABOUT AUGUST 21, 2002, A PUBLIC CUSTOMER REQUESTED THAT BANC OF AMERICA SECURITIES LLC LIQUIDATE A MUNICIPAL SECURITY POSITION. BANC OF AMERICA SECURITIES LLC CONTACTED A BROKER'S BROKER AND OBTAINED BIDS FOR THE CUSTOMER'S SECURITY. BASED ON THE BIDS PROVIDED BY THE BROKER'S BROKER, THE FIRM PURCHASED THE SECURITY FROM THE CUSTOMER FOR ITS OWN ACCOUNT AND THEN SOLD THE SECURITY TO THE BROKER'S BROKER AT A NOMINAL GAIN. IN THIS INSTANCE, THE PRICE PAID TO THE CUSTOMER, AND RECEIVED BY THE FIRM, WAS BELOW THE FAIR MARKET VALUE OF THE SECURITY IN AN AMOUNT EQUAL TO 11.34% BY RELYING SOLELY ON THE BIDS PROVIDED BY THE BROKER'S BROKER TO DETERMINE THE FAIR MARKET VALUE OF THE SECURITY, BANC OF AMERICA SECURITIES LLC FAILED TO INSURE THAT THE TRANSACTION WAS EXECUTED AT AN AGGREGATE PRICE THAT WAS FAIR AND REASONABLE. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BANC OF AMERICA SECURITIES LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED AND FINED IN THE AMOUNT OF $7,500.00. ADDITIONALLY, BANC OF AMERICA SECURITIES LLC SHALL PAY CUSTOMER RESTITUTION IN THE AMOUNT OF $7,163.10, PLUS INTEREST. THE IMPOSITION OF A RESTITUTION ORDER OR ANY OTHER MONETARY SANCTION HEREIN DOES NOT PRECLUDE THE CUSTOMER FROM PURSUING ITS OWN ACTION TO OBTAIN RESTITUTION OR OTHER REMEDIES. SATISFACTORY PROOF OF PAYMENT OF RESTITUTION SHALL BE PROVIDED TO NASD NO LATER THAN 90 DAYS AFTER ACCEPTANCE OF THIS AWC, THE FIRM SHALL PROVIDE NASD WITH A COPY OF ITS UPDATE SUPERVISORY PROCEDURES AS THEY RELATE TO THE DETERMINATION OF THE FAIR MARKET VALUE OF MUNICIPAL SECURITIES BEING BOUGHT OR SOLD FROM A PUBLIC CUSTOMER.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030083
 03/28/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD CONDUCT RULE 2110 AND NASD MARKETPLACE RULE 6955 (A) - RESPONDENT MEMBER (FIRM) FAILED TO TIMELY REPORT TO OATS REPORTABLE ORDER EVENTS. ON MARCH 27, 2003, THE NASD ACCEPTED A LETTER OF ACCEPTANCE, WAIVER, AND CONSENT PURSUANT TO WHICH BAS CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TO A FINE OF $5,000 AND A FINDING OF VIOLATIONS OF NASD RULES 6955(A) (ORDER AUDIT TRAIL SYSTEM REPORTING) AND 2110.
10(e)(2)(vi).  Disposition of action or claim:
LETTER OF ACCEPTANCE, WAIVER, AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 03/21/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
03/21/2003 STIPULATION AND CONSENT TO PENALTY FILED BY NYSE DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: BANC OF AMERICA SECURITIES, LLC, WITHOUT ADMITTING OR DENYING GUILT, CONSENTED TO FINDINGS THAT IT VIOLATED THE EXCHANGE'S MARKET-ON-CLOSE AND LIMIT-ON-CLOSE ORDER ENTRY AND CANCELLATION PROCEDURES AND POLICY APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION AND SET FORTH IN EXCHANGE INFORMATION MEMORANDA 98-20 AND 99-51. STIPULATED SANCTION: CENSURE AND A FINE OF $75,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND A FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030021
 02/06/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
ON FEBRUARY 6, 2003, THE NASD ACCEPTED A LETTER OF ACCEPTANCE, WAIVER, AND CONSENT PURSUANT TO WHICH BAS CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TO CENSURE, A FINE OF $80,000, AND THE ENTRY OF A FINDING OF A VIOLATION OF NASD RULES 6130(B) AND 2110; NASD RULE 4613(E); NASD RULE 4613(E) (1)(C) AND NASD RULE 3360 AND NASD RULE 2110 AND 3010. BAS ALSO UNDERTOOK (AND HAS SINCE COMPLIED WITH SUCH UNDERTAKING) TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES TO ADDRESS THE ALLEGED VIOLATION OF NASD RULES 3360. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BAS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED, FINED $80,000.00 (COMPOSED OF $15,000.00 FINE FOR THE VIOLATIONS OF THE ACT RULES, A $15,000.00 FINE FOR THE VIOLATIONS OF THE LOCKED/CROSS MARKET RULE, A $25.000.00 FINE FOR THE VIOLATIONS OF THE TRADE-OR-MOVE RULE, A $20,000.00 FINE FOR THE VIOLATIONS OF NASD CONDUCT RULE 3360 AND A $5,000.00 FINE FOR SUPERVISORY VIOLATIONS.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD#: 01-198
 08/02/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NYSE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
08/02/2001 STIPULATION AND CONSENT TO PENALTY FILED BY THE NYSE DIVISION OF ENFORCEMENT AND PENDING CONSENTED TO FINDINGS:A.1.VIOLATED SEC RULE 15C3-3(E) OF THE SEA IN THAT: (A) ON ONE OR MORE OCCASIONS THE SPECIAL RESERVE ACCOUNT FOR THE BENEFIT OF CUSTOMERS WAS DEFICIENT; AND (B) ON ONE OR MORE OCCASIONS THE SPECIAL RESERVE ACCOUNT FOR THE BENEFIT OF CUSTOMERS CONTAINED INTRA-DAY DEFICIENCIES RESULTING FROM THE WITHDRAWAL OF COLLATERAL. 2.VIOLATED SEC RULE 15C3-3(E) OF THE SEA IN THAT BY RECALLING CUSTOMERS STOCK LOANS ON FRIDAYS AND REINSTATING THEM SHORTLY THEREAFTER THE FIRM CIRCUMVENTED THE CUSTOMER RESERVE ACCOUNT REQUIREMENT.3.VIOLATED EXCHANGE RULE 342 IN THAT IT FAILED TO PROVIDE FOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLS INCLUDING A SYSTEM OF FOLLOW UP AND REVIEW OF ITS BUSINESS ACTIVITIES TO ENSURE COMPLIANCE WITH THE RULES RELATING TO THE SPECIAL RESERVE BANK ACCOUNT FOR THE BENEFIT OF CUSTOMERS. B. THE IMPOSITION BY THE EXCHANGE OF A PENALTY OF A: 1) CENSURE; AND 2) FINE OF $290,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS000100
 05/30/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULE 3320, NASD MARKET PLACE RULE 4613(B), AND SEC RULE 11AC1-1 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT CONSENTED TO THE ENTRY OF FINDINGS THAT IT, AS A REGISTERED MARKET MAKER IN THE SECURITIES, FAILED TO EXECUTE THE ORDERS UPON PRESENTMENT AND THEREBY FAILED TO HONOR ITS PUBLISHED QUOTATIONS. CENSURE AND A FINE OF $7,500.00.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 990039
 12/01/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF NASD RULE 2110; VIOLATION OF IM 2110-2; VIOLATION OF NASD RULE 3010; AND VIOLATION OF NASD RULE 2320. A CENSURE AND $15,000 FINE (COMPOSED OF A $5,000 FINE FOR THE VIOLATIONS OF THE LIMIT ORDER PROTECTION INTERPRETATION AND THE DUTY OF BEST EXECUTION, A $5,000 FINE FOR VIOLATIONS OF SEC RULE 11AC1-4, AND A $5,000 FINE FOR THE SUPERVISORY VIOLATIONS), RESTITUTION TO EACH CUSTOMER DESCRIBED IN NOTICE FOR THE TOTAL AMOUNT OF $968.75 PLUS INTEREST.
10(e)(2)(vi).  Disposition of action or claim:
CENSURED AND FINED
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 11/04/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
THE BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CBOT REGULATIONS 431.06 AND 431.07 AND CAPITAL RULES 201, 203 AND 213. FAILURE TO MEET ADJUSTED NET CAPITAL REQUIREMENTS FROM FCM'S. THE COMMITTEE IMPOSED A FINE OF $40,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/ADocket/Case Number: CMS000260
 09/30/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
TMMS EXAMINATION FINDINGS INCLUDING VIOLATIONS OF NASD CONDUCT RULES 2110, 2320, 3110, NASD MARKETPLACE RULE 6130 AND SEC RULES 10B-10, 17A-3 AND 11AC1-4. NASD ACCEPTED AWC ON 12/29/2000 CONCERNING 1998 TMMS EXAM.
10(e)(2)(vi).  Disposition of action or claim:
ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 09/10/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULE 980(B)(1) BANC OF AMERICA SECURITIES LLC FAILED TO SUBMIT CONTRARY EXERCISE ADVISE NOTICES TO THE EXCHANGE OR THE OCC IN CONNECTION WITH ITS DECISION TO EXERCISE ITS CUSTOMERS LONG OPTIONS POSITIONS. PAID FINE OF $5,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS980009AWC
 09/30/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FAILURE TO PROVIDE WRITTEN NOTIFICATION THAT THE PRICE TO CUSTOMER WAS AN AVERAGE PRICE. FAILURE TO EXECUTE 1 LIMIT ORDER. FAILURE TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES REGARDING TRADE REPORTING, BEST EXECUTION, SOES, AND LIMIT ORDER PROTECTION INTERPRETATIONS. A CENSURE AND A FINE OF $7,000 ($5,000 FOR SUPERVISION VIOLATION AND $1,000 FINE FOR LIMIT ORDER VIOLATION, AND A $1,000 FINE FOR SEC RULE 10B-10 VIOLATION.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND A FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS010113
 06/01/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
EIGHT MARKET REGULATION REVIEWS CONDUCTED IN 1997, 1999 AND 2000 AS WELL AS A TMMS REVIEW CONDUCTED IN 1999 RESULTED IN ALLEGATIONS CONCERNING VIOLATIONS OF NASD RULES RELATED TO LOCKED AND CROSSED MARKETS, TRADE OR MOVE, TRADE OR FADE, FIRM QUOTE OBLIGATIONS, SHORT SALES, LIMIT ORDER DISPLAY, LIMIT ORDER PROTECTION, BEST EXECUTION AND SUPERVISION. NASDR ODA AND NAC ACCEPTED AND AWC IMPOSING A FINE OF $110,000.00 IN CONNECTION WITH EIGHT DIFFERENT MARKET REGULATION REVIEWS COVERING ACTIVITY IN 1997, 1999 AND 2000 AS WELL AS THE 1999 TMMS REVIEW RESULTS.
10(e)(2)(vi).  Disposition of action or claim:
ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CO1970007
 01/08/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
ROBERTSON, STEPHENS & CO LLC FAILED TO ESTABLISH AND IMPLEMENT WRITTEN SUPERVISORY PROCEDURE REGARDING MSRB RULE G-37 AND FAILED TO REPORT TO THE MSRB CERTAIN POLITICAL CONTRIBUTIONS MADE BY THE FIRM AND ITS EXECUTIVE OFFICER. RSCO AGREED TO AWC AND PENALTIES IN THE INTEREST OF TIME EVEN THOUGH RSCO DOES NOT ENGAGE IN MUNICIPAL BOND UNDERWRITING AND THE MSRB HAS SINCE CHANGED RULE G-37 TO ELIMINATE EXECUTIVE OFFICER REPORTING.
10(e)(2)(vi).  Disposition of action or claim:
ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C07960033
 06/05/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
RESPONDENT MEMBER FAILED TO ENSURE THAT RESPONDENT MEREDITH WAS PROPERLY QUALIFIED AS A S24 WHEN ADVISED BY THE NASD. ON JUNE 5, 1996, DISTRICT NO7 NOTIFIED NATIONSBANC CAPITAL MARKETS, INC. AND GREGORY P. MEREDITH THAT THE AWC NO. C07960033 WAS ACCEPTED; THEREFORE, THEY ARE CENSURED AND FINED $5000 J AND S. $5000 PAID J AND S ON 06/21/1996.
10(e)(2)(vi).  Disposition of action or claim:
ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C07960034
 06/05/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
RESPONDENT MEMBER FAILED TO ENSURE THAT RESPONDENT MALLORY WAS PROPERLY QUALIFIED AS A GENERAL SECURITIES PRINCIPAL WHEN ADVISED BY THE NASD. ON JUNE 5, 1996, DISTRICT NO7 NOTIFIED NATIONSBANC CAPITAL MARKETS, INC. AND JOHN M. MALLORY THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. C07960034 WAS ACCEPTED THEREFORE, THEY'RE CENSURED AND FINED $5000 JOINTLY AND SEVERALLY. $5000 PAID J AND S ON 06/21/1996.
10(e)(2)(vi).  Disposition of action or claim:
ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(i).  The individuals named in the action or claim:
BANC OF AMERICA SECURITIES LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS980070AWC
 02/21/1995
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
ROBERTSON STEPHENS ALLEGED TO BE IN VIOLATION OF SEC ACT RULE 11AC 1, NASD CONDUCT RULE 3320 AND NASD MARKETPLACE RULE 4613(B) AS WELL AS FAILURE TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN PROCEDURES PERTAINING TO THESE RULES. CENSURE AND A FINE OF $12,500 ($10,000 FOR THE BACKING AWAY VIOLATION AND $2,500 FOR THE FAILURE TO SUPERVISE VIOLATION).
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 08/11/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
THE BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
ALLEGED FIRM FAILED TO ACCURATELY AND COMPLETELY RECORD THE TIMES AT WHICH CERTAIN TRADES TO BE CLEARED BY IT OCCURRED IN THE MANNER PRESCRIBED BY THE CHICAGO BOARD OF TRADE. THE BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE ORDERED CRT SERVICES, INC. TO PAY A $500.00 FINE. THE BUSINESS CONDUCT COMMITTEE FINED CRT SERVICES, INC. $2,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 07/25/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
THE BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF EXCHANGE RULES 4.2 AND 13.1 AND SECTION 15(C) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 15C3-1. THESE VIOLATIONS RELATED TO THE UNDERCAPITALIZATION OF CRT SERVICES, INC.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 01/31/1988
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION RELATING TO MARGINING OF OUT-OF-THE-MONEY SHORT POSITIONS. THE CHICAGO MERCANTILE EXCHANGE ORDERED CRT SERVICES, INC. TO PAY A $3,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 02/03/1987
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE - BUSINESS CONDUCT COMMITTEE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CBOE RULE 8.1. A JOINT AND SEVERAL FINE IN THE AMOUNT OF $1,000 WAS IMPOSED ON THE PARTNERSHIP AND ON THE INDIVIDUAL MARKET MAKERS INVOLVED.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 10/07/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE BUSINESS CONDUCT COMMITTEE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CBOT REGULATIONS 350.09, 465.01, 545.02 AND RULE 504.00. THE COMMITTEE FOUND THAT CRT SERVICES, INC. HAD VIOLATED CBOT REGULATIONS 350.09, 465.01, 545.02 AND RULE 504.00. THESE VIOLATIONS WERE DUE TO THE FAILURE OF CRT SERVICES, INC. IN ITS CAPACITY AS A CLEARING FIRM TO PROPERLY DOCUMENT AND RECORD A SIGNIFICANT NUMBER OF TRADES AND TO MAINTAIN AND FURNISH ADEQUATE RECORDS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 11/28/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE BUSINESS CONDUCT COMMITTEE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CME RULE 985A(1). NO FINE WAS IMPOSED DUE TO ACTIONS TAKEN BY THE CBOT WITH RESPECT TO THE SAME ERRORS IN AN EARLIER INCIDENT. CEASE AND DESIST FROM FURTHER VIOLATIONS.
10(e)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST
10(e)(2)(i).  The individuals named in the action or claim:
CHICAGO RESEARCH & TRADING GROUP, LTD.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
N/A
 06/14/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
THE BUSINESS CONDUCT COMMITTEE OF THE CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CBOE RULE 4.11 AND 24.4 WHICH PROHIBITS MEMBERS FROM VIOLATING ESTABLISHED POSITION LIMITS ON OPTIONS CONTRACTS ON THE SAME SIDE OF THE MARKET. A JOINT AND SEVERAL FINE IN THE AMOUNT OF $4,000 WAS IMPOSED.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 03-104
 11/29/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
THE FIRM: VIOLATED SECTION 11A OF THE SECURITIES EXCHANGE ACT OF 1934, SECURITIES AND EXCHANGE COMMISSION RULE 11AC1-4(B)(1) THERE UNDER, AND EXCHANGE RULE 79A.15 IN THAT THE FIRM, ON ONE OR MORE OCCASIONS, THROUGH ITS SPECIALISTS, FAILED TO PUBLISH IMMEDIATELY A BID OR OFFER THAT REFLECTS THE PRICE AND FULL SIZE OF EACH CUSTOMER LIMIT ORDER HELD BY THE FIRM THAT WAS AT A PRICE THAT WOULD IMPROVE THE BID OR OFFER IN ONE OR MORE OF ITS SPECIALTY SECURITIES. VIOLATED EXCHANGE RULE 104.10 IN THAT, THROUGH A MEMBER ASSOCIATED WITH THE FIRM AS A SPECIALIST, THE FIRM FAILED TO MAINTAIN A FAIR AND ORDERLY MARKET IN AN EXCHANGE-LISTED SECURITY FOR WHICH THEY ACTED AS SPECIALIST BY HAVING FAILED TO PARTICIPATE ADEQUATELY AGAINST THE MARKET TREND DURING A PERIOD OF SIGNIFICANT MARKET DECLINE. VIOLATED EXCHANGE RULE 104.10 IN THAT, THROUGH A MEMBER ASSOCIATED WITH THE FIRM AS A SPECIALIST, THE FIRM FAILED TO COMPLY WITH THE SPECIALISTS NEGATIVE OBLIGATION BY HAVING EFFECTED A TRANSACTION IN AN EXCHANGE-LISTED SECURITY FOR WHICH THEY ACTED AS SPECIALIST WHEN SUCH DEALING WAS NOT NECESSARY TO THE MAINTENANCE OF A FAIR AND ORDERLY MARKET. VIOLATED EXCHANGE RULE 104.10(6) IN THAT, THROUGH A MEMBER ASSOCIATED WITH THE FIRM AS A SPECIALIST, THE FIRM FAILED TO MAINTAIN A FAIR AND ORDERLY MARKET IN AN EXCHANGE LISTED SECURITY FOR WHICH THEY ACTED AS SPECIALIST BY HAVING FAILED TO PARTICIPATE ADEQUATELY AS A DEALER ON THE OPPOSITE SIDE OF THE MARKET FOLLOWING A SERIES OF RE-LIQUIFICATION TRADES THEY MADE FOR THE FIRM'S DEALER ACCOUNT ON DESTABILIZING TICKS. $150000 FINE TO BE PAID WITHIN 45 DAYS OF JULY 11, 2003.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE & FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD# 04-49
 03/29/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
1. VIOLATED SECTION 11(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SEC REGULATION 240.11B-1 THERE UNDER BY EFFECTING PROHIBITED TRANSACTIONS FOR THE FIRM'S DEALER ACCOUNT THROUGH CERTAIN OF ITS REGISTERED SPECIALISTS ON THE FLOOR OF THE EXCHANGE THAT WERE NOT REASONABLY NECESSARY TO MAINTAIN A FAIR AND ORDERLY MARKET; 2.VIOLATED EXCHANGE RULE 92 IN THAT THE FIRM, THROUGH CERTAIN OF ITS REGISTERED SPECIALISTS ON THE FLOOR OF THE EXCHANGE, EFFECTED CERTAIN TRANSACTIONS FOR THE FIRM'S ACCOUNT WHILE HOLDING UNEXECUTED CUSTOMER ORDERS THAT COULD HAVE BEEN EXECUTED AT THE SAME PRICE; 3. VIOLATED EXCHANGE RULE 104 BY EFFECTING CERTAIN TRANSACTIONS FOR THE FIRM'S DEALER ACCOUNT THROUGH CERTAIN OF ITS REGISTERED SPECIALISTS ON THE FLOOR OF THE EXCHANGE THAT WERE NOT REASONABLY NECESSARY TO MAINTAIN A FAIR AND ORDERLY MARKET, AND FAILING TO EFFECTIVELY REPRESENT AND EXECUTE AGENCY ORDERS ENTRUSTED TO THE FIRM; 4. VIOLATED EXCHANGE RULE 123B(D) IN THAT THE FIRM, THROUGH CERTAIN OF ITS REGISTERED SPECIALISTS ON THE FLOOR OF THE EXCHANGE, FAILED TO EXECUTE CERTAIN SYSTEM ORDERS IN ACCORDANCE WITH EXCHANGE AUCTION MARKET RULES AND PROCEDURES, INCLUDING REQUIREMENTS TO EXPOSE ORDERS TO BUYING AND SELLING INTEREST IN THE TRADING CROWD AND TO CROSS ORDERS BEFORE BUYING OR SELLING FOR THE FIRM'S DEALER ACCOUNT; 5. ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE IN VIOLATION OF EXCHANGE RULE 476(A)(6) IN THAT THE FIRM, THROUGH CERTAIN OF ITS REGISTERED SPECIALISTS WITH RESPECT TO CERTAIN TRANSACTIONS ON THE FLOOR OF THE EXCHANGE. FINE: $21,083,875 DISGORGEMENT: $38,013,594 TOTAL FINE OF $59,097,469 PAID BY FLEET SPECIALIST 4/7/2004.
10(e)(2)(vi).  Disposition of action or claim:
DISGORGEMENT, CENSURE, FINE AND UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD#06-39
 01/06/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
THE APPLICANT AND THE NYSE DIVISION OF ENFORCEMENT HAVE ENTERED INTO A STIPULATION AND CONSENT TO PENALTY TO RESOLVE AN INVESTIGATION INTO THE FAILURE OF THE FIRM TO RETAIN CERTAIN INTRA-FIRM EMAIL COMMUNICATIONS. THE APPLICANT AND THE NYSE DIVISION OF ENFORCEMENT HAVE ENTERED INTO A STIPULATION AND CONSENT TO PENALTY TO RESOLVE AN INVESTIGATION INTO THE FAILURE OF THE FIRM TO RETAIN CERTAIN INTRA-FIRM EMAIL COMMUNICATIONS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
BANK OF AMERICA SPECIALISTS
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD#06-229
 12/14/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
STIPULATION AND CONSENT TO PENALTY FILED BY NYSE REGULATION DIVISION OF ENFORCEMENT AND PENDING CONSENTED TO FINDINGS: 1.VIOLATED RULE 11AC1-1 OF THE EXCHANGE ACT (NOW DESIGNATED AS RULE 602(B) UNDER REGULATION NMS), AND NYSE RULE 60, IN THAT A. MARKETABLE ORDERS DID NOT RECEIVE THE PRICE OF THE PUBLISHED QUOTATION THAT WAS IN EFFECT AT THE TIME THE ORDER BECAME VIEWABLE ON THE DISPLAY BOOK; AND B. ITS COMMITMENTS WERE NOT EXECUTED AGAINST THE PUBLISHED QUOTATION BEFORE THE COMMITMENT EXPIRED.2.VIOLATED RULE 11AC1-4 OF THE EXCHANGE ACT (NOW DESIGNATED AS RULE 604 UNDER REGULATION NMS), AND NYSE RULE 79A.15, IN THAT ELIGIBLE LIMIT ORDERS WERE NOT DISPLAYED IMMEDIATELY (I.E., AS SOON AS PRACTICABLE).3.VIOLATED NYSE RULE 440B AND SECTION 10(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10A-1(A), IN THAT THE FIRM EXECUTED SHORT SALES ON MINUS OR ZERO MINUS TICKS.4.VIOLATED NYSE RULE 342 IN THAT, IN ITS SUPERVISION OF SPECIALIST FIRM QUOTE ACTIVITIES, THE FIRM USED NEW SURVEILLANCE TECHNOLOGY AS IT BECAME AVAILABLE, BUT DID NOT HAVE WRITTEN SUPERVISORY PROCEDURES SPECIFICALLY RELATING TO THE FIRM QUOTE RULE DURING THE PERIOD FROM JANUARY 2003 THROUGH AUGUST 2005. STIPULATED SANCTION: THE IMPOSITION BY THE NYSE OF A CENSURE AND A $500,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
First Republic Securities Company, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20060058629-01
 03/16/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
MSRB RULE-G-14- RESPONDENT MEMBER FAILED TO REPORT INFORMATION ABOUT MUNICIPAL SECURITIES TRANSACTIONS WITHIN 15 MINUTES OF TIME OF TRADE TO THE REAL-TIME TRANSACTIONS REPORTING SYSTEM (RTRS). THE FINDINGS STATED THAT THE FIRM IMPROPERLY REPORTED "PURCHASE AND SALES TRANSACTIONS EFFECTED IN MUNICIPAL SECURITIES TO THE RTRS WHEN THE INTER-DEALER DELIVERIES WERE STEP-OUT" AND THUS, WERE NOT INTER-DEALER TRANSACTIONS REPORTABLE TO THE RTRS. THE FINDINGS ALSO STATED THAT, IN TRANSACTIONS WITH CUSTOMERS, THE FIRM FAILED TO INCLUDE SPECIFIC ITEMS OF INFORMATION LISTED FOR THE TRANSACTIONS IN THE SPECIFICATIONS FOR REAL-TIME REPORTING OF MUNICIPAL SECURITIES TRANSACTIONS AND FAILED TO REPORT SOME TRANSACTIONS BY THE END OF THE DAY ON WHICH THE TRADES WERE EXECUTED, AS PRESCRIBED BY RULE G-14 RTRS PROCEDURES.
10(e)(2)(vi).  Disposition of action or claim:
FINED $5,000.00
10(e)(2)(i).  The individuals named in the action or claim:
BROADCORT CAPITAL CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/13/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
BROADCORT CAPITAL CORP. PERMITTED PERSONS TO SERVE ON ITS BOARD OF DIRECTORS WITHOUT THE APPROPRIATE GENERAL SECURITIES PRINCIPAL REGISTRATIONS AND FAILURE TO REGISTER A MUNICIPAL SECURITIES PRINCIPAL.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES OF PUERTO RICO, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C10970109
 05/19/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES OF PUERTO RICO, INC. FAILED TO PROPERLY CLASSIFY CERTAIN ASSETS FOR ITS NET CAPITAL COMPUTATIONS DURING 1996.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 194-68
 12/02/1994
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE,SUGAR, AND COCOA EXCHANGE INC.
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED THE SPECULATIVE POSITION LIMIT RULE 13.04(B) WHERE A CUSTOMER ACCOUNT EXCEEDED THE MARCH 1995 SUGAR 14 SINGLE MONTH LIMIT OF 1000 CONTRACTS. MERRILL LYNCH FUTURES INC. WITHOUT ADMITTING OF DENYING THE VIOLATION AGREED TO PAY A FINE FOR SEVEN SUCH APPARENT VIOLATIONS OF RULE 13.04.
10(e)(2)(vi).  Disposition of action or claim:
FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 92-EX-10
 12/15/1992
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF REGULATION 416.01 - FAILING TO NOTIFY OF THE OPENING AND/OR CLOSING OF CERTAIN OMNIBUS ACCOUNTS. REGULATION 545.02 FAILING TO MAINTAIN ACCURATE BOOKS AND RECORDS. RULE 504.00 - ENGAGED IN ACTS DETRIMENTAL TO THE INTEREST AND WELFARE OF THE ASSOCIATION. MERRILL LYNCH FUTURES INC. WITHOUT ADMITTING OR DENYING VIOLATION OF REGULATIONS 416.01 AND 545.02 AGREED TO PAY A FINE. THE COMMITTEE AGREED TO DISMISS THE CHARGE THE FIRM VIOLATED RULE 504.00
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C10920086
 07/01/1992
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SEURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF TREASURY RULES 404.2 AND 405.3 IN THAT THE FIRM FAILED TO KEEP CURRENT ITS BOOKS AND RECORDS FOR THE PERIOD OCTOBER 29,1991 THROUGH NOVEMBER 18, 1991, AND FAILED TO NOTIFY THE NASD OF SUCH CONDITION DURING THE PERIOD OF TIME. THE FIRM CONSENTED TO A SANCTION OF CENSURE AND A $7,500 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Acceptance, Waiver & Consent (AWC)
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/08/1981
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATING RULE 432 SUBSECTION 0 IN THAT IT PERMITTED A CUSTOMER TO NET OUT 99 SHORT POSITIONS AGAINST 99 LONG POSITIONS. THE CHICAGO MERCANTILE EXCHANGE ISSUED A CEASE AND DESIST ORDER BY CONSENT WITH MERRILL LYNCH FUTURES INC.
10(e)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/27/1990
10(e)(2)(iv).  The Court or body taking the Action and location:
COMMODITY EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES, INC. FAILED TO MAINTAIN THE SPECIAL REQUIREMENTS FOR CLEARING IN THAT TWO INDIVIDUAL MEMBERS, WHOSE MEMBERSHIPS HAD BEEN ASSIGNED TO MERRILL LYNCH FUTURES INC. FOR CLEARING PRIVILEGES, VIOLATED THE 903.B.4. RESTRICTIONS PLACED ON THESE MEMBERSHIPS. IN DOING SO, MLF VIOLATED EXCHANGE RULE 902.A. IN ACCORDANCE WITH THE SETTLEMENT OFFER, THE COMMITTEE IMPOSED A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/29/1990
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
THE CHICAGO BOARD OF TRADE VOTED TO ACCEPT A JOINT OFFER OF SETTLEMENT SUBMITTED BY FIRM AND MERRILL LYNCH GOVERNMENT SECURITIES, INC. WITHOUT ADMITTING OR DENYING THE VIOLATIONS, FIRM AND MERRILL LYNCH GOVERNMENT SECURITIES, INC. AGREED TO PAY A PENALTY IN THE AGGREGATE AMOUNT OF $30,000 AND FURTHER AGREED TO IMPLEMENT CERTAIN CORRECTIVE MEASURES.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1990
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF AMERICAN STOCK EXCHANGE'S ARTICLE V, SECTION 49(J). WITHOUT ADMITTING OR DENYING THE STIPULATION OF FACTS, FIRM CONSENTED TO A PENALTY FOR SUBMITTING INACCURATE EXECUTING AND CONTRA BROKERS; BADGE NUMBERS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/23/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CME RULE 732, AFTER FINDING THAT MERRILL LYNCH FUTURES INC. FAILED TO DELVER TIMELY THE CURRENCIES UNDERLYING 86 JAPANESE YEN FUTURES CONTRACTS. CHICAGO MERCANTILE EXCHANGE FOUND MERRILL LYNCH FUTURES TO BE IN VIOLATION OF CME RULE 732.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC. and MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/01/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
FIRM FAILED TO SUPERVISE THREE REGISTERED REPRESENTATIVES LOCATED IN TWO OF ITS BRANCH OFFICES DURING THE PERIOD 1982 THROUGH 1985.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/22/1988
10(e)(2)(iv).  The Court or body taking the Action and location:
COMMODITY EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF COMMODITY EXCHANGE RULES 4.21, NONCOMPETITIVE TRADING AND 4.27, PREARRANGED TRADING. BASED ON AN OFFER OF SETTLEMENT IT WAS DETERMINED TO IMPOSE A CENSURE.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/11/1987
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED REGULATION 5.05 BY SUBMITTING INACCURATE COTTON FUTURES "SPEC-HEDGE" REPORTS FOR DECEMBER 12, 1986 AND JANUARY 9, 1987. THE EXCHANGE ACCEPTED A STIPULATION AND CONSENT IN WHICH FIRM, WITHOUT ADMITTING OR DENYING ALLEGATIONS, AGREED TO PAY A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/26/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE,SUGAR,AND COCOA EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. ENGAGED IN PREARRANGED TRADING. AFTER A DISCIPLINARY PROCEEDING MERRILL LYNCH FUTURES INC. WAS FINED.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/19/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED NEW YORK COTTON EXCHANGE RULE 5.03(B) - FAILURE TO PREPARE PROPERLY, TIMESTAMP AND MAINTAIN ORDER TICKETS. THE EXCHANGE AGREED TO ACCEPT FIRMS' OFFER OF SETTLEMENT.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/18/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS WITH RESPECT TO THE PREPARATION, TIME-STAMPING, AND MAINTENANCE OF ORDER TICKETS IN THE DALLAS, TEXAS BRANCH OFFICE DURING THE PERIOD DECEMBER 1980 THROUGH JUNE 1982. THE FIRM WITHOUT ADMITTING OR DENYING THE ALLEGATIONS SET FORTH IN THE INVESTIGATION REPORT EXECUTED A STIPULATION AND CONSENT IN SETTLEMENT OF THE PROCEEDING.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
SECURITIES OPTIONS CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/01/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
THE CHICAGO BOARD OPTIONS EXCHANGE INC
10(e)(2)(v).  Description of the action or claim:
DURING AUGUST 1985 SECURITIES OPTIONS CORPORATION INCORRECTLY COMPUTED ITS NET CAPITAL AND AS A RESULT CONDUCTED BUSINESS BELOW THE MINIMAL NET CAPITAL REQUIREMENT FOR A TWO-DAY PERIOD THEREAFTER. SECURITIES OPTIONS CORPORATION AGREED TO A CENSURE AND PAYMENT OF A FINE OF $1,500.00
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/06/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED RULE 9.01(C) BY SENDING A BUY AND SELL ORDER FOR SAME PRINCIPAL TO THE COTTON TRADE RING AND ALLOWING THOSE ORDERS TO TRADE AGAINST EACH OTHER. THE NEW YORK COTTON EXCHANGE ACCEPTED A STIPULATION AND CONSENT WHEREBY FIRM PAID A FINE AND AGREED TO A CEASE AND DESIST ORDER.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/23/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED RULE 9.01(C) BY SENDING A BUY AND SELL ORDER FOR SAME PRINCIPAL TO THE COTTON TRADE RING AND ALLOWING THOSE ORDERS TO TRADE AGAINST EACH OTHER. THE NEW YORK COTTON EXCHANGE ACCEPTED A STIPULATION AND CONSENT WHEREBY FIRM PAID A FINE AND AGREED TO A CEASE AND DESIST ORDER.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Cease and Desist
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/04/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE,SUGAR AND COCOA EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF COFFEE, SUGAR & COCOA MEMBER RULE 1.12(C),(D) & (E) (FAILURE TO PREPARE AND PROPERLY TIMESTAMP OFFICE ORDER TICKETS). THE EXCHANGE AGREED TO ACCEPT MERRILL LYNCH FUTURES, INC. OFFER OF SETTLEMENT.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/06/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATED CBT REGULATION 1842.01, IN THAT MERRILL LYNCH FUTURES INC. FAILED TO HAVE DECEMBER '84 U.S. TREASURY BONDS (T-BONDS) IN ACCEPTABLE DELIVERY FROM AT ITS DELIVERY BANK BY 10:00 A.M. ON THE DELIVERY DAY FOR SUCH T-BONDS. THE FIRM ENTERED INTO AN OFFER OF SETTLEMENT AND AGREED TO A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/08/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK COTTON EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED NEW YORK COTTON EXCHANGE RULES 9.10(A) AND 9.01(C). PURSUANT TO THE TERMS OF THE OFFER OF SETTLEMENT MERRILL LYNCH FUTURES INC. WAS ORDERED TO PAY A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 09/05/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
EMPLOYEES OF MERRILL LYNCH FUTURES INC. DID NOT TIMELY RECORD TRADE INFORMATION WITH REGARD TO RELATED ACCOUNTS. TO PLEDGE TO ENFORCE THE RULES OF THE EXCHANGE. UNDERTAKING TO ADOPT PROCEDURES TO ENSURE EMPLOYEES TIMELY RECORD TRADE INFORMATION.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines and Undertaking
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/08/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF EXCHANGE RULES RELATING TO EX-PIT AND EFP TRANSACTIONS ON THE NEW YORK MERCANTILE EXCHANGE BEGINNING DECEMBER 1981. MERRILL LYNCH FUTURES, INC. AGREED TO THE IMPOSITION OF A PENALTY OF $7,500.00.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/19/1983
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE, SUGAR AND COCOA EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF SUGAR TRADE RULE 12.23 (MEMBERS CARRYING ACCOUNTS FOR OTHERS MUST ACT DILIGENTLY IN REPORTING AND CORRECTING ERRORS IN THEIR POSITIONS). THE EXCHANGE AGREED TO ACCEPT MERRILL LYNCH FUTURES, INC. OFFER OF SETTLEMENT.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/01/1983
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE, SUGAR AND COCOA EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES INC. VIOLATED RULE 214(A) AND (C) (FAILURE TO FILE TIMELY YEAR-END AND SECOND -QUARTER BALANCE SHEET AND INCOME STATEMENTS AND FAILURE TO NOTIFY THE CLEARING CORPORATION THAT THE WORKING CAPITAL OF THE MEMBER DECREASED BY MORE THAT 20% FROM THE WORKING CAPITAL SHOWN ON THE LAST FINANCIAL STATEMENT FILED). FIRM WAS ORDERED TO PAY FINES OF $2,000.00 AND $2,000.00 FOR THE RESPECTIVE VIOLATIONS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1983
10(e)(2)(iv).  The Court or body taking the Action and location:
COFFEE, SUGAR AND COCOA EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULES RELATING TO THE REPORTING OF OPEN FUTURES POSITION ON THE EXCHANGE. MERRILL LYNCH FUTURES, INC. AGREED TO THE IMPOSITION OF A $5,000.00 PENALTY IN A DISCIPLINARY PROCEEDING.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/06/1982
10(e)(2)(iv).  The Court or body taking the Action and location:
THE CHICAGO BOARD OF TRADE CLEARING CORPORATION
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES, INC. ERRONEOUSLY OVERSTATED A DELIVERY COMMITMENT. MERRILL LYNCH FUTURES, INC. WAS ALSO ASKED TO PAY STORAGE CHARGES IN THE AMOUNT OF $2,735.00
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
SECURITIES OPTIONS CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/24/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE, INC.
10(e)(2)(v).  Description of the action or claim:
DURING THE APPROXIMATE PERIOD IN OR ABOUT OCTOBER 1987 AND IN OR ABOUT NOVEMBER 1988, SECURITIES OPTIONS CORP. FAILED TO REFLECT THE ACCOUNT OF A NOMINEE ON THE FIRM'S FINANCIAL STATEMENTS AND NET CAPITAL COMPUTATIONS. THE CBOE ACCEPTED AN OFFER BY SECURITIES OPTIONS CORP. WHEREIN WITHOUT ADMITTING OR DENYING THE VIOLATIONS ALLEGED IT CONSENTED TO THE IMPOSITION OF A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BROADCORT CAPITAL CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/17/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF EXCHANGE RULE 132.30 AND FAILURE TO SUBMIT THE AUDIT TRAIL DATA IN ORDER TO QUALIFY THE CLEARING AGENCY REGARDING STOCK TRANSACTIONS FOR THE WEEKS OF 9/12/88 AND 10/17/88. THE EXCHANGE FINED THE FIRM.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
BROADCORT CAPITAL CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C10970093
 09/04/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF NASD RULES 1022(A) AND 1032(A)(1), AND MSRB RULES G-2 AND G-3. FIRM PERMITTED FIVE OFFICERS, INCLUDING THE FIRM'S PRESIDENT TO PARTICIPATE AS MEMBERS OF THE BOARD OF DIRECTORS WITHOUT GENERAL SECURITIES PRINCIPAL OR GENERAL SECURITIES REPRESENTATIVE REGISTRATIONS. FIRM FAILED TO REGISTER A MUNICIPAL SECURITIES PRINCIPAL ALTHOUGH IT WAS ENGAGED IN MUNICIPAL SECURITIES BUSINESS DURING THIS PERIOD.
10(e)(2)(vi).  Disposition of action or claim:
Acceptance, Waiver & Consent (AWC)
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS950113(A)
 07/15/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IN VIOLATION OF PART X, SECTION 2(B)(2) AND PART XI, SECTION 2(B)(2) OF SCHEDULE D AND SECTION 2 OF SCHEDULE G TO THE ASSOCIATION'S BY-LAWS FOR REPORTING OR CAUSING TO BE REPORTED NUMEROUS TRANSACTIONS TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) SUBMITTED AND WAS ACCEPTED BY THE MARKET SURVEILLANCE AND NATIONAL BUSINESS CONDUCT COMMITTEES. FIRM SHALL UNDERTAKE TO IMPLEMENT ITS SUPERVISORY PROCEDURES TO PREVENT SUCH A PATTERN OR PRACTICE OF LATE TRADE REPORTING. SUCH PROCEDURES SHALL BE SUBMITTED TO THE MARKET REGULATION DEPARTMENT WITHIN TEN BUSINESS DAYS OF FIRM'S SUBMISSION OF ITS ACCEPTANCE OF THIS AWC. IN ADDITION, THE FIRM SHALL UNDERTAKE TO ARRANGE WITH INSTINET A PROCEDURE THAT WILL ENABLE THE INSTINET TERMINALS TO IDENTIFY THE USER, RATHER THAN THE LESSEE.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
HERZOG, HEINE, GEDULD, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: QMR96-106
 08/07/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF NASD RULES 4632.2100 AND 3110. ALLEGED MISUSE OF LATE MODIFIER IN NASDAQ SECURITY (AUGI). FAILED TO PRESERVE THE MEMORANDUM OF BROKERAGE ORDERS. $20,000.00 FINE OF WHICH $5,000.00 WAS FOR TRADE REPORTING VIOLATION AND $15,000.00 WAS FOR RECORD KEEPING VIOLATION.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 00-RFT-046
 08/14/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES WAS FINED FOR VIOLATIONS OF REGULATION 332.02, IN THAT THE FIRM FAILED TO SUBMIT ONLY THE BRACKET INFORMATION SUBMITTED TO IT BY THE MEMBERS EXECUTING THE TRADES ON THE RECORD OF TRANSACTIONS SUBMITTED TO THE CLEARING HOUSE AND FOR VIOLATIONS OF REGULATION 332.08, IN THAT THE FIRM FAILED TO MAKE ALL TRADE DATA SUBMISSIONS IN A CORRECT MANNER. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH AGREED TO THE FINE IN ORDER TO SETTLE THIS MATTER.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
FAM DISTRIBUTORS, INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C9B020013
 02/08/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT FAMD VIOLATED NASD MEMBERSHIP AND REGISTRATION RULES 1031, 1120 AND NASD CONDUCT RULES 2110 AND 3010(B) FOR FAILING TO PROPERLY QUALIFY AND/OR REGISTER A REPRESENTATIVE IN THE APPROPRIATE CAPACITY, AS WELL AS PERMITTED FOUR REPRESENTATIVES TO PERFORM DUTIES WHILE THEIR REGISTRATION STATUS WAS INACTIVE DUE TO THEIR FAILURE TO TIMELY COMPLETE THE REGULATORY ELEMENT OF THE NASD'S CONTINUING EDUCATION RULE. WITHOUT ADMITTING OR DENYING, FAMD ENTERED INTO AN AWC AND AGREED TO A CENSURE AND FINE OF $12,000. FAMD HAS BEEN AN NASD MEMBER FIRM FOR MORE THAN 30 YEARS AND THIS ACTION REPRESENTS THE FIRST DISCIPLINARY ACTION AGAINST FAMD BY ANY REGULATORY BODY. THERE IS NO EVIDENCE THAT THE INDIVIDUALS WHOSE REGISTRATION STATUS WAS AFFECTED HAD ANY KNOWLEDGE THAT THEY WERE DOING BUSINESS AT A TIME WHEN THEIR REGISTRATIONS HAD BECOME INACTIVE. NOR IS THERE ANY EVIDENCE THAT PERSONS RESPONSIBLE FOR FAMD REGISTRATIONS DURING THE RELEVANT TIME PERIOD NEGLECTED THEIR DUTIES. ANY PARTICULAR TRANSACTION WITH A PUBLIC CUSTOMER THAT MAY HAVE OCCURRED IN THE WAKE OF PRESENTATIONS BY THE FAMD REGISTERED PERSONS AT ISSUE, WOULD HAVE ARISEN FROM DISCUSSIONS WITH A REGISTERED PERSON AT THE MEMBER FIRM AT WHICH SUCH CUSTOMERS RETAINED ACCOUNTS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines and Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH GOVERNMENT SECURITIES INC.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2006007511101
 06/17/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(e)(2)(v).  Description of the action or claim:
SEC RULES 17A-3, 17A-5, 17A-11 AND NASD RULES 2110, 3010 AND 3110: RESPONDENT FIRM FAILED TO RECONCILE PRINCIPAL AND INTEREST PAYMENTS RELATING TO MORTGAGE-BACKED SECURITIES AND US TREASURES, PRIMARILY IN CONNECTION WITH REPURCHASE AGREEMENTS AND REVISED REPURCHASE AGREEMENTS. WHILE NEARLY ALL OF THE TRANSACTIONS SETTLED PROPERLY, AND NO CUSTOMERS WERE HARMED, MORE THAN TWO BILLION DOLLARS REMAINED UNRECONCILED AT ONE POINT. ITS BOOKS AND RECORDS WERE INACCURATE FROM APPROX. DECEMBER 21, 2005 TO APRIL 2007. THE FIRM ALSO FILED AN INACCURATE FOGS REPORT FOR THE PERIOD ENDED DECEMBER 29, 2006. THE FIRM HAD AT ALL TIMES EXCESS LIQUID CAPITAL ABOVE ITS REQUIREMENTS AND THE FIRM'S DEPOSITS TO ITS (K)(2)(I) SEGREGATED ACCOUNT HAD BEEN SUFFICIENT THROUGHOUT THE PERIOD IN QUESTION. THE FIRM HAD AN INADEQUATE SUPERVISORY SYSTEM AND CONTROL IN PLACE REGARDING THE ACTIVITIES OF ITS UNIT RESPONSIBLE FOR PROCESSING PRINCIPAL AND INTEREST PAYMENT ACTIVITY. IT'S PROCEDURES FOR INTERNAL FIRM COMMUNICATIONS WERE INADEQUATE, RESULTING IN A LENGTHY DELAY BEFORE THE PROBLEMS WERE KNOWN BY THE FIRM REGULATORY PERSONNEL AND REPORTED TO FINRA. WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT MEMBER FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $140,000.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/01/1990
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF ARTICLE V, SECTION 4(J). WITHOUT ADMITTING OR DENYING THE STIPULATION OF FACTS FIRM CONSENTED TO A PENALTY FOR SUBMITTING INACCURATE EXECUTING AND CONTRA BROKERS' BADGE NUMBERS.
10(e)(2)(vi).  Disposition of action or claim:
FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/17/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF EXCHANGE RULE 132.30 AND FAILURE TO SUBMIT THE AUDIT TRAIL DATA IN ORDER TO QUALIFY THE CLEARING AGENCY REGARDING STOCK TRANSACTIONS FOR THE WEEKS OF 9/12/88 AND 10/17/88. THE EXCHANGE FINED THE FIRM.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS950113(A)
 07/15/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
IN VIOLATION OF PART X, SECTION 2(B)(2) AND PART XI, SECTION 2(B)(2) OF SCHEDULE D AND SECTION 2 OF SCHEDULE G TO THE ASSOCIATION'S BY-LAWS FOR REPORTING OR CAUSING TO BE REPORTED NUMEROUS TRANSACTIONS TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) SUBMITTED AND WAS ACCEPTED BY THE MARKET SURVEILLANCE AND NATIONAL BUSINESS CONDUCT COMMITTEES. FIRM SHALL UNDERTAKE TO IMPLEMENT ITS SUPERVISORY PROCEDURES TO PREVENT SUCH A PATTERN OR PRACTICE OF LATE TRADE REPORTING. SUCH PROCEDURES SHALL BE SUBMITTED TO THE MARKET REGULATION DEPARTMENT WITHIN TEN BUSINESS DAYS OF FIRM'S SUBMISSION OF ITS ACCEPTANCE OF THIS AWC. IN ADDITION, FIRM SHALL UNDERTAKE TO ARRANGE WITH INSTINET A PROCEDURE THAT WILL ENABLE THE INSTINET TERMINALS TO IDENTIFY THE USER, RATHER THAN THE LESSEE.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS010184
 12/17/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC
10(e)(2)(v).  Description of the action or claim:
$20,000 SETTLEMENT OF AWC FOR VIOLATIONS OF SHORT INTEREST REPORTING REQUIREMENTS. ON DECEMBER 17, 2001, MERRILL LYNCH PAID $20,000 TO SETTLE AN AWC RELATED TO LATE REPORTING OF SHORT INTEREST.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: ENFORCEMENT NO. 2001-13
 12/05/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
PHILADELPHIA STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH PROFESSIONAL CLEARING CORP. (ML PRO) VIOLATED EXCHANGE RULES 1042A AND 748 IN THAT ML PRO ACCEPTED MEMORANDA TO EXERCISE (SOX) OPTIONS LATER THAN FIVE (5) MINUTES AFTER THE CLOSING OF TRADING AND EXERCISED THE SOX OPTIONS FOR ITS CUSTOMER; FAILED TO SUBMIT EXERCISE ADVICES ON A FORM PRESCRIBED BY THE EXCHANGE TO THE SURVEILLANCE POST; AND FAILED TO HAVE ANY WRITTEN PROCEDURES REGARDING THE ACCEPTANCE OF EXCHANGE INDEX OPTION CONTRACT MEMORANDA TO EXERCISE, NOR DID IT HAVE PROCEDURES REGARDING THE DELIVERY OF EXERCISE ADVICE FORMS TO THE SURVEILLANCE POST AT THE EXCHANGE. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH PROFESSIONAL CLEARING CORP. ENTERED INTO A SETTLEMENT WITH THE PHILADELPHIA STOCK EXCHANGE AND AGREED TO A FINE OF $20,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2004200005701
 12/05/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
THE FIRM SUBMITTED OATS REPORTS THAT WERE NOT IN THE ELECTRONIC FORM PRESCRIBED BY NASD AND WERE REPAIRABLE. SUBJECT REPORTS WERE REJECTED BY THE OATS SYSTEM AND NOTICE OF SUCH REJECTION WAS MADE AVAILABLE TO THE FIRM ON THE OATS WEBSITE. THE FIRM DID NOT REPLACE 100% OF THE REPORTS AND THE SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING COMPLIANCE WITH OATS RULES. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH PROFESSIONAL CLEARING CORP CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE THE FIRM IS CENSURED AND FINED $23,000.00 TO BE PAID ON 9/23/2005.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050003128-01
 05/05/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 6955(A) - MERRILL LYNCH TRANSMITTED TO THE ORDER AUDIT TRAIL SYSTEM (OATS) ROUTE OR COMBINED ORDER/ROUTE REPORTS THAT CONTAINED EITHER INACCURATE, INCOMPLETE, OR IMPROPERLY FORMATTED DATA IN THAT THE REPORTS CONTAINED INACCURATE ROUTED ORDER IDS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20060042271-01
 02/22/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULE 6955(A) - MERRILL LYNCH PROFESSIONAL CLEARING CORP. FAILED TO TIMELY REPORT TO OATS REPORTABLE ORDER EVENTS (ROES) AND FAILED TO SUBMIT REQUIRED INFORMATION CONCERNING ROES TO OATS ON TWO BUSINESS DAYS. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS. THEREFORE, THE FIRM IS CENSURED AND FINED $15,000.00.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20060041382-01
 06/26/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
SEC RULE 203(B)(3), NASD RULES 2110, 3010 - DURING THE TIME PERIOD PRIOR TO MERRILL LYNCH PROFESSIONAL CLEARING CORP'S ACQUISITION OF PAX CLEARING CORP, PAX CLEARING CORP (NOW MERRILL LYNCH PROFESSIONAL CLEARING CORPORATION) HAD A FAIL-TO-DELIVER POSITION IN A THRESHOLD SECURITY FOR 13 CONSECUTIVE SETTLEMENT DAYS AND FAILED TO TIMELY ALLOCATE ITS FAIL-TO-DELIVER POSITION UNDER SEC RULE 203(B)(3)(IV) TO THE REGISTERED BROKER-DEALER THAT MAINTAINED THE POSITION AND FOR WHOM THE FIRM CLEARED; THE OBLIGATION TO CLOSE OUT THE FAIL-TO-DELIVER POSITION REMAINED WITH THE FIRM AND THE FIRM FAILED TO IMMEDIATELY CLOSE OUT THE FAIL-TO-DELIVER POSITION BY PURCHASING SECURITIES OF LIKE KIND AND QUANTITY. THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES RELATING TO SEC RULE 203 (B)(3)(THRESHOLD SECURITIES). WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $12,500.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20060046100-01
 01/28/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 3010, 6955(A) - MERRILL LYNCH PROFESSIONAL CLEARING CORP. TRANSMITTED TO OATS NEW ORDER REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA - THE REPORTS MISIDENTIFIED THE MEMBER STATUS OF THE ROUTING FIRM. THE FIRM REPORTED TO OATS ROUTE OR COMBINED ORDER/ROUTE REPORTS THAT THE OATS SYSTEM WAS UNABLE TO LINK TO THE RELATED ORDER ROUTED TO SUPERMONTAGE DUE TO INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA. THE FIRM TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA-REPORTS OMITTED A SPECIAL HANDLING CODE AND/OR CONTAINED AN INACCURATE DISPLAY FLAG. THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING THE THREE QUOTE RULE, TRADE AND OATS REPORTING. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED, FINED $35,000 AND REQUIRED TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO THE THREE QUOTE RULE, TRADE AND OATS REPORTING WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THIS AWC BY THE NAC. FINE OF $35,000. WAS PAID ON 02/15/2008.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CENSURE, UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2007009473301
 11/14/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINRA
10(e)(2)(v).  Description of the action or claim:
SECTION 17A OF THE EXCHANGE ACT, SEC RULES 17A-3, 17A-4, 17A-5 THERE UNDER, SECTION 15(C) OF THE SECURITIES AND EXCHANGE ACT OF 1934, SEC RULE 15C3-3(E)THERE UNDER, NASD RULES 2110, 3010, 3110 - MERRILL LYNCH PROFESSIONAL CLEARING CORP. FAILED TO PROPERLY COMPUTE AND MAINTAIN ITS PROPRIETARY ACCOUNT OF AN INTRODUCING BROKER (PAIB) CUSTOMER RESERVE FORMULA REQUIREMENTS, CAUSING ITS SPECIAL RESERVE BANK ACCOUNT FOR THE EXCLUSIVE BENEFIT FOR ITS CUSTOMERS TO BE UNDER FUNDED. THE FIRM FILED INACCURATE FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE (FOCUS) REPORTS WITH THE NEW YORK STOCK EXCHANGE. THE FIRM FAILED TO MAKE AND MAINTAIN ACCURATE RECORDS IDENTIFYING PROPRIETARY ACCOUNTS NECESSARY FOR COMPUTATION OF ITS PAIB RESERVE FORMULA REQUIREMENT. THE FIRM FAILED TO PROVIDE FOR REASONABLE SUPERVISION OF CERTAIN BUSINESS ACTIVITIES TO DETECT AND PREVENT THESE VIOLATIONS. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $100,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/23/1979
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED SECTIONS 9.7 AND 9.8 OF THE CBOE RULES. CBOE RULES REQUIRE WRITTEN APPROVAL BY A MANAGER/REGISTERED OPTIONS PRINCIPAL PRIOR TO THE ENTRY OF ANY ORDER IN AN OPTION ACCOUNT. CBOE ACCEPTED FIRM'S OFFER OF SETTLEMENT AND IMPOSED THE AGREED UPON FINE OF $1,000.
10(e)(2)(vi).  Disposition of action or claim:
FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 07/19/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
FIRM AND OFFICE MANAGER FAILED TO REASONABLY SUPERVISE AN ACCOUNT EXECUTIVE WHO RECOMMENDED OPTION TRANSACTIONS TO A PUBLIC CUSTOMER WHICH WERE UNSUITABLE. THE FIRM WITHOUT ADMITTING OR DENYING THAT A VIOLATION HAD BEEN COMMITTED, ACCEPTED FINES AND EXECUTED A LETTER OF CONSENT IN SETTLEMENT OF THE CBOE PROCEEDING.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/14/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
A NUMBER OF CBOE RULE VIOLATIONS REQUIRING THE TIMELY FILING OF EXERCISE ADVISE FORMS AND EXERCISE NOTICES. CBOE BUSINESS CONDUCT COMMITTEE ACCEPTED A LETTER OF CONSENT-ADMONISHED AND FINED FIRM.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, ADMONISHED
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/24/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
DURING THE APPROXIMATE PERIOD IN OR ABOUT OCTOBER 1987 AND IN OR ABOUT NOVEMBER 1988 SECURITIES OPTIONS CORPORATION FAILED TO REFLECT THE ACCOUNT OF A NOMINEE ON THE FIRMS FINANCIAL STATEMENTS AND NET CAPITAL COMPUTATIONS. THE CBOE ACCEPTED AN OFFER BY SECURITIES OPTIONS CORPORATION WHEREIN WITHOUT ADMITTING OR DENYING THE VIOLATIONS ALLEGED IT CONSENTED TO THE IMPOSITION OF A FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/02/1981
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FIRM FAILED TO REASONABLY SUPERVISE THE ACTION OF AN ACCOUNT EXECUTIVE WHO ALLEGEDLY ENGAGED IN UNSUITABLE TRANSACTIONS FOR AN ACCOUNT OF A CUSTOMER. NASD ACCEPTED FIRMS' OFFER OF SETTLEMENT, CENSURE AND FINE.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE.
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/30/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FAILURE TO SUPERVISE ACTIVITIES OF TWO FORMER ACCOUNT EXECUTIVES AND THEIR HANDLING OF THREE UNRELATED OPTION ACCOUNTS IN 1979 AND 1980. THE CHARGES AGAINST THE ACCOUNT EXECUTIVES DEALT WITH THE RECOMMENDATIONS OF UNSUITABLE OPTIONS TRANSACTIONS. NASD ACCEPTED AN OFFER OF SETTLEMENT.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: LA-4012
 05/19/1986
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
THE ACCOUNT OF A PUBLIC CUSTOMER AS EXCESSIVELY TRADED DURING PERIODS JUNE 1982 THROUGH AUGUST 1083 BY AN ACCOUNT EXECUTIVE. FIRM FAILED TO REVIEW AND MONITOR ACTIVITY IN THE ACCOUNT. FIRM WAS CENSURED AND FINED.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/19/1982
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
FIRM VIOLATED AN EXCHANGE RULE IN THAT BETWEEN JANUARY 21 AND FEBRUARY 17, 1982 FIRM FURNISHED INCORRECT INFORMATION REGARDING DAILY TRADING ACTIVITY TO THE BOARD OF TRADE CLEARING CORPORATION. BOARD OF TRADE CLEARING CORPORATION ORDERED FIRM TO CEASE AND DESIST FROM VIOLATION.
10(e)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/31/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF THE BOARD OF GOVERNOR'S FREE-RIDING AND WITHHOLDING INTERPRETATION, ARTICLE III, SECTION 1 OF THE NASD'S RULES OF FAIR PRACTICE REGARDING THE PUBLIC DISTRIBUTION OF SECURITIES ISSUED IN CONVERSION OFFERINGS BY CERTAIN SAVINGS AND LOAN ASSOCIATIONS. FIRM CONSENTED TO A CENSURE AND FINE OF $7500.00. FINANCIAL CONSULTANTS CONSENTED TO CENSURES AND FINES RANGING FROM $1000 TO 9500. BRANCH MANAGER CONSENTED TO A CENSURE AND FINE OF $2500 BASED ON THE VIOLATION AND FOR FAILURE TO COMPLY WITH SECTION 27 OF THE RULES OF FAIR PRACTICE.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/17/1984
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF AN EXISTING CEASE AND DESIST ORDER. FIRM WAS ORDERED TO PREVENT TRADING IN DISCRETIONARY ACCOUNTS WITH EQUITY LESS THAN $5000.00 AND WAS REQUIRED TO PERFORM CERTAIN FUNCTIONS RELATING TO THE HANDLING OF DISCRETIONARY ACCOUNTS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/15/1988
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF FREE-RIDING AND WITHHOLDING INTERPRETATION, ARTICLE III, SECTION 1 OF THE RULES OF FAIR PRACTICE. FIRM EXECUTED TWO LETTERS OF ACCEPTANCE WAIVER AND CONSENT #NY6099 AND #NY7000. THERE WERE NO SHARES WITHHELD FOR THE FIRMS' ACCOUNT AND THE TRANSACTIONS INVOLVED CONSTITUTED APPROXIMATELY 1/4 OF 1% OF THE SHARES SOLD BY THE FIRM IN THE PUBLIC OFFERINGS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/01/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
FIRM FAILED TO SUPERVISE THREE REGISTERED REPRESENTATIVES LOCATED IN TWO OF ITS BRANCH OFFICES DURING THE PERIOD 1984 THROUGH 1985. FIRM CONSENTED TO THE IMPOSITION OF A FINE AND CENSURE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 03/26/1987
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
FIRM VIOLATED REGULATION 480.87 IN THAT IT FAILED TO NOTIFY THE EXCHANGE IN A TIMELY NATURE THROUGH THE NATIONAL FUTURES ASSOCIATION OF THE TERMINATION OF A SIGNIFICANT NUMBER OF REGISTERED COMMODITY REPRESENTATIVES WHO LEFT THE FIRMS' EMPLOY. FIRM WAS FINED.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/21/1989
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULE 450.00 IN THAT FIRM FAILED TO REMIT EXCHANGE SERVICE FEES AND RULE 504.00 IN THAT FIRM ENGAGED IN ACTS DETRIMENTAL TO THE INTEREST AND WELFARE OF THE EXCHANGE. THE CHICAGO MERCANTILE EXCHANGE ISSUED A CEASE AND DESIST ORDER BY AGREEMENT WITH MERRILL LYNCH FUTURES INC. AN OFFER OF SETTLEMENT SUBMITTED BY THE FIRM AGREED TO PAY CERTAIN FEES, INTEREST AND A FINE WITHOUT ADMITTING OR DENYING A VIOLATION OF RULES.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/21/1982
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO MERCANTILE EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF A SPECULATIVE JOINT LIMIT RULE BY A CUSTOMER. FIRM CONSENTED TO A CEASE AND DESIST ORDER.
10(e)(2)(vi).  Disposition of action or claim:
Cease and Desist
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/22/1991
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF TRADE
10(e)(2)(v).  Description of the action or claim:
COMMITTEE VOTED TO ACCEPT AN OFFER OF SETTLEMENT SUBMITTED BY THE FIRM. WITHOUT ADMITTING OR DENYING ANY ALLEGATIONS, MLPFS AGREED TO PAY A FINE OF $1,000.00
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 12/01/1980
10(e)(2)(iv).  The Court or body taking the Action and location:
COMMODITY EXCHANGE INC.
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULES RELATING TO CUSTOMER'S POSITION LIMITS. IN A DISCIPLINARY PROCEEDING A FINE WAS IMPOSED.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/27/1991
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
THE FIRM FAILED TO SUPERVISE A FINANCIAL CONSULTANT WHO ALLEGEDLY MADE UNSUITABLE RECOMMENDATIONS TO HIS CUSTOMERS. THE NASD ACCEPTED OFFERS OF SETTLEMENT RESULTING IN THE IMPOSITION OF A CENSURE AND A FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C11920017
 03/16/1993
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF ARTICLE III, SECTIONS 1 AND 27(A) OF THE ASSOCIATION'S RULES OF FAIR PRACTICE. FIRM ACCEPTED AND CONSENTED TO THE FINDINGS THAT SUCH CONDUCT IS IN VIOLATION AND CONSENTS TO A PENALTY OF CENSURE AND FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 950055
 04/19/1995
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
DURING ONE WEEK IN 1994, FIRM REPORTED 3.1 PERCENT OF ITS TRADE REPORTS WITH A .SLD MODIFIER DESIGNATING A REPORT IN EXCESS OF 90 SECONDS. FIRM FILED A MITIGATION STATEMENT AND SETTLED THE MATTER WITHOUT ADMITTING OR DENYING THE CLAIMS ASSERTED.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 950055
 09/11/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CONDUCT RULES - SEC. 2110 - FIRM PERMITTED TEN OFFICERS TO ACT IN THE CAPACITY OF A GENERAL SECURITIES PRINCIPAL; AND/OR REPRESENTATIVE WITHOUT APPROPRIATE REGISTRATIONS. SEC. 3010 - FAILING TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES AND ADEQUATELY SUPERVISE REGISTRATION STATUS OF THOSE ACTING IN THE CAPACITY OF A GENERAL SECURITIES PRINCIPAL.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 960189 AWC
 11/06/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FIRM ENTERED QUOTATIONS IN THE NASDAQ STOCK MARKET SECURITIES THAT EXCEEDED THE PARAMETERS FOR MAXIMUM ALLOWABLE SPREADS PURSUANT TO MARKETPLACE RULE 4613 (D).
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 960092 AWC
 04/21/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FIRM FAILED TO FILE OPTION POSITION REPORTS FOR CONVENTIONAL OVER THE COUNTER OPTION POSITIONS. CONSENT TO CENSURE AND FINE WAS ACCEPTED BY NASD.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C00 5970025
 05/01/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CONDUCT RULE 3010 - FAILED TO (1) PREVENT THE COLLECTION FUNDS FROM MUTUAL FUND SPONSORS IN EXCESS OF THOSE REASONABLY AUTHORIZED TO BE USED IN CONNECTION WITH PROPOSED EDUCATIONAL MEETINGS IN ITS MISSISSIPPI COMPLEX AND (2) SEPARATELY IDENTIFY SUCH FUNDS. FIRM WILL UNDERTAKE TO ENFORCE AND MONITOR THE REVISED PROCEDURES WHICH IT HAD IMPLEMENTED AND DESIGNED TO THE SATISFACTION OF THE NASD.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C8A970014
 04/04/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATED AND FAILED TO SUPERVISE REGARDING RULES 2110 & 3010 IN CONNECTION WITH THE SALE OF 100 SHARES OF A HOT ISSUE TO A RESTRICTED PERSON. CENSURED, FINED $5,000.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: ADMINISTRATIVE PROCEEDING FILE 3-8024
 04/22/1993
10(e)(2)(iv).  The Court or body taking the Action and location:
SECURITIES AND EXCHANGE COMMISSION
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULE 22C-1 OF THE INVESTMENT COMPANY ACT OF 1940 FROM 1972 THROUGH 1987. CONSENTED TO THE ISSUANCE OF A CEASE AND DESIST AND AN UNDERTAKING TO COMPENSATE AFFECTED UNITHOLDERS.
10(e)(2)(vi).  Disposition of action or claim:
Cease and Desist, UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 93-29
 05/21/1992
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULE 476(A)(6), REGULATIONS 240.17A-3.15C3-3, 240.17A-5,240.10B-10. FIRM'S CONVERSION PRACTICES BETWEEN 1985 & 1988 WERE INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE. FIRM AGREED TO A CENSURE AND FINE. FIRM WAS EXONERATED OF THE CHARGES THAT IT VIOLATED (I) NYSE RULE 476(A)(6) JUST AND EQUITABLE PRINCIPLES OF TRADE STANDARD, (II) REGULATION 240.145C3-3-3 RESERVE BANK ACCOUNT REQUIREMENTS AN (III) REGULATION 240.17A 5 FOCUS REPORT REQUIREMENTS. FIRM WAS FOUND TO HAVE ACTED IN GOOD FAITH AND THAT THE INTENT OF THE CUSTOMERS WAS FULFILLED AND NO CUSTOMER WAS HARMED OR PLACED AT RISK BY FIRMS' PRACTICES.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE, UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 93-D-08
 07/21/1993
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF ARTICLE V SECTION 4(H) OF THE AMEX CONSTITUTION BY EFFECTING TRANSACTIONS IN AN OPTION WHEN HAVING KNOWLEDGE OF A PENDING TRANSACTION IN UNDERLYING STOCK. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS CONSENTED TO THE IMPOSITION OF A FINE AND CENSURE AND AGREED TO DISTRIBUTE CERTAIN AMEX RELEASES TO ITS PERSONNEL.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE, UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 96-0004
 03/01/1996
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF RULES 4.11 AN 24.4(A) REGARDING POSITION LIMITS THROUGH THE CONTROL OF SHORT CALL AND LONG PUT POSITION OF NDX OPTION CONTRACTS IN OCTOBER 1995. THE FIRM CONSENTED TO THE IMPOSITION OF A $7,200 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 95-0021
 09/01/1995
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATION OF CBOE RULE 4.11 REGARDING POSITION LIMITS THROUGH THE ESTABLISHMENT OF LONG CALL, SHORT PUT POSITIONS ON TELEFONOS DE MEXICO IN DECEMBER 1993. ACCEPTANCE OF THE FIRM'S LETTER OF CONSENT TO THE IMPOSITION OF A $20,000.00 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS940118
 08/18/1995
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
ALLEGED VIOLATIONS OF THE FIRM QUOTE RULE AND RELATED SUPERVISORY REQUIREMENTS. THE MATTER WAS SETTLED WITHOUT ADMITTING OR DENYING THE VIOLATIONS. THERE WERE NO ALLEGATIONS THAT THE VIOLATIONS WERE INTENTIONAL.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 990053 AWC
 05/26/1999
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF THE NASD'S REPORTING REQUIREMENTS TO ITS FIXED INCOME PRICING SYSTEM. CENSURE AND $5,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/03/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE (CBOE)
10(e)(2)(v).  Description of the action or claim:
FIRM AND OFFICE MANAGER FAILED TO SUPERVISE REGARDING OPTIONS TRANSACTIONS THAT WERE ALLEGED UNSUITABLE IN A NUMBER OF CUSTOMER ACCOUNTS DURING FEBRUARY 1982 THROUGH FEBRUARY 1983. THE BUSINESS CONDUCT COMMITTEE OF THE CBOE ACCEPTED THE OFFER OF CONSENT AND ISSUED A DECISION CENSURING THE FIRM AND ASSESSING A FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 07/26/1985
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE (CBOE)
10(e)(2)(v).  Description of the action or claim:
FAILURE TO SUPERVISE AN ACCOUNT EXECUTIVE WHO PERMITTED A PUBLIC CUSTOMER TO TRADE OPTIONS BEYOND HIS FINANCIAL MEANS AND RECOMMENDED OTHERWISE UNSUITABLE TRANSACTIONS. IN SETTLEMENT OF THE PROCEEDING THE FIRM AND THE BRANCH MANAGER WERE JOINTLY AND SEVERALLY FINED AND CENSURED.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/26/1987
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE (CBOE)
10(e)(2)(v).  Description of the action or claim:
FOR A FIVE DAY PERIOD IN JULY, 1986 A PUBLIC CUSTOMER AND A FINANCIAL CONSULTANT CONTROLLED AN AGGREGATE LONG CALL, SHORT PUT POSITION OF OEX OPTION CONTRACTS IN EXCESS OF THOSE PERMITTED BY CBOE RULES. THE CBOE ACCEPTED A JOINT OFFER OF SETTLEMENT ON BEHALF OF THE FIRM AND ITS FINANCIAL CONSULTANT.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/31/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
THE FIRM FAILED TO INSURE THE SUPERVISION OF A REGISTERED REPRESENTATIVE'S BROKERAGE OF STOCK AND OPTIONS ORDERS FOR CUSTOMER ACCOUNTS. THE FIRM NEITHER ADMITTED NOR DENIED THE VIOLATIONS ALLEGED IN THE STATEMENT OF CHARGES.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS 000041 AWC
 06/13/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
BOOKS AND RECORDS VIOLATION RELATED TO NASDAQ MARKET MAKING. MERRILL LYNCH, PIERCE, FENNER & SMITH INC. WAS FINED AND CENSURED FOR VIOLATIONS RELATED TO BOOKS AND RECORDS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HEARING PANEL DECISION 00-109
 08/30/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
MLPFS CONSENTED TO NYSE DECISION WITHOUT ADMITTING OR DENYING THAT ON 3 DAYS IN 1998,IT HAD A NET CAPITAL DEFICIENCY AND OBTAINED APPROVAL TO PREPAY PART OF A SUBORDINATED LOAN. IN ADDITION, BETWEEN 1995 AND 1998, MLPFS FAILED TO TIMELY FILE FORMS CONCERNING CERTAIN REPORTABLE EVENTS RELATING TO THE FIRM AND ITS EMPLOYEES. MLPFS IS TO CONDUCT A REVIEW OF ITS REGULATORY REPORTING PROCEDURES AND SUBMIT A REPORT ON SUCH PROCEDURES AND ANY ENHANCEMENTS WITHIN 120 DAYS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS000225
 11/22/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF NASD MARKET MAKING RULES RELATED TO BEST EXECUTION, SHORT SALE, LIMIT ORDER DISPLAY, AND LATE REPORTING. ON DECEMBER 20, 2000 ML PAID $97,000 TO SETTLE AN AWC RELATED TO ALLEGED VIOLATION OF NASD MARKET MAKING RULES RELATED TO BEST EXECUTION, SHORT SALE REPORTING, LIMIT ORDERS DISPLAY, LATE REPORTING OF TRADES, AND LOCKED AND CROSSED MARKETS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: AWC. NO.C11000026
 11/01/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
ALLEGED VIOLATION OF NASD CONDUCT RULES 3010 AND 2110. 25,000.00 FINE PAID NOVEMBER 22, 2000
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 99-022
 04/01/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
ML SETTLED WITH THE ASE AND STIPULATED THAT IT VIOLATED ASE RULE 904 (A), IN THAT IN 1998, IT EFFECTED OPENING TRADES IN OPTIONS FOR A CUSTOMER, WHICH RESULTED IN AN UNHEDGED OPTION POSITION THAT EXCEEDED POSITION LIMITS. ALL TRANSACTIONS WERE UNSOLICITED. THE CLIENT REFUSED TO BRING THE OPTION POSITION INTO COMPLIANCE. THE FIRM WAS COMPELLED TO EFFECT FORCED LIQUIDATIONS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/30/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC IN THAT THEY VIOLATED NASD MARKETPLACE RULE 6240(A)(2) AND NASD CONDUCT RULE 2110 FOR FAILING TO REPORT TO THE FIXED INCOME PRICING SYSTEM (FIPS) 78 TRANSACTIONS IN FIPS SECURITIES WITHIN FIVE MINUTES AFTER EXECUTION, AND NASD MARKETPLACE RULE 6240(B)(3) IN THAT MERRILL LYNCH INCORRECTLY REPORTED TO FIPS 260 TRANSACTIONS IN FIPS SECURITIES. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC IN THAT THEY VIOLATED NASD MARKETPLACE RULE 6240(A)(2) AND NASD CONDUCT RULE 2110 FOR FAILING TO REPORT TO THE FIXED INCOME PRICING SYSTEM (FIPS) 78 TRANSACTIONS IN FIPS SECURITIES WITHIN FIVE MINUTES AFTER EXECUTION, AND NASD MARKETPLACE RULE 6240(B)(3) IN THAT MERRILL LYNCH INCORRECTLY REPORTED TO FIPS 260 TRANSACTIONS IN FIPS SECURITIES.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS010109
 06/25/2001
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD REGULATION, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT FROM NOVEMBER 27, 2000 THROUGH DECEMBER 1, 2000, MERRILL LYNCH LOCKED/CROSSED THE MARKET DURING THE PRE-OPENING MARKET PERIOD AND: (1) FAILED TO IMMEDIATELY SEND A TRADE-OR-MOVE MESSAGE THROUGH SELECTNET TO THE MARKET PARTICIPANTS WHOSE QUOTE IT LOCKED OR CROSSED: AND/OR (2) FAILED TO SEND A TRADE-OR-MOVE MESSAGE(S) THROUGH SELECTNET WITH AN AGGREGATE SIZE OF AT LEAST 5,000 SHARES TO ALL MARKET PARTICIPANTS WHOSE QUOTES IT LOCKED/CROSSED. THE ALLEGED CONDUCT CONSTITUTES VIOLATIONS OF NASD MARKETPLACE RULE 4613 (E)(1)(C). WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND FINE OF $25,000.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C10020077
 08/07/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED ARTICLE V, SECTION 3(A) OF THE NASD BY-LAWS IN THAT IT FAILED TO FILE FORMS U-5 WITHIN 30 DAYS OF TERMINATION OF THE ASSOCIATED PERSON. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH AGREED TO A FINE AND AN UNDERTAKING THAT IT WILL REVIEW AND REVISE THE CURRENT POLICIES AND PROCEDURES REGARDING THE REPORTING OF FORM U-5 TERMINATION NOTICES AND ADVISE THE NASD OF THE FIRM'S PROGRESS AT REGULAR INTERVALS.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, UNDERTAKINGS
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS020153
 08/30/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD MARKETPLACE RULE 6130(D) IN THAT IT FAILED TO REPORT TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE ("ACT") SPECIFIC TRANSACTIONS FOR CERTAIN ELIGIBLE SECURITIES. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $7,500 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: ENFORCEMENT CASE NO. OS0107021
 07/02/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
PACIFIC EXCHANGE, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT ON SPECIFIC DATES DURING MARCH AND APRIL 2001, MERRILL LYNCH VIOLATED EXCHANGE RULE 6.8(A) IN THAT IT FAILED TO MAINTAIN AN AGGREGATE SHORT PUT/LONG CALL POSITION IN EACH OPTION CLASS OF NO MORE THAN 75,000 CONTRACTS. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH AGREED TO A CENSURE AND A $10,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS020227
 12/03/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 IN THAT IT FAILED TO TIMELY TRANSMIT TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE (ACT) CERTAIN LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $7500 FINE.
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: EXCHANGE HEARING PANEL DECISION 02-228
 12/18/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED RULE 346(F) BY HAVING PERSONS ASSOCIATED WITH IT WHO WERE SUBJECT TO STATUTORY DISQUALIFICATION; VIOLATED 352(A)(9) BY FAILING TO PROMPTLY REPORT ITS ASSOCIATION WITH PERSONS SUBJECT TO STATUTORY DISQUALIFICATION; VIOLATED RULE 342 BY FAILING TO PROVIDE FOR, ESTABLISH, AND MAINTAIN ADEQUATE PROCEDURES TO ENSURE COMPLIANCE WITH EXCHANGE RULES AND FEDERAL SECURITIES LAWS RELATING TO EMPLOYMENT OF STATUTORY DISQUALIFIED INDIVIDUALS. IN ADDITION TO THE ADMINISTRATIVE PENALTY, MERRILL LYNCH AGREED TO A CENSURE AND AN UNDERTAKING
10(e)(2)(vi).  Disposition of action or claim:
CIVIL AND ADMINISTRATIVE PENALTIES/FINES, UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CAF0300028
 04/24/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
THE EXCHANGE ACT AND RULE 15C1-2 THERE UNDER, AS WELL AS NASD RULE 2110, 2210 AND 3010 IN CONNECTION WITH ITS INVESTIGATION INTO RESEARCH ANALYST CONFLICTS OF INTEREST. AS PART OF A JOINT SETTLEMENT WITH THE SEC, THE NASD AND THE NYSE ARISING FROM A JOINT INVESTIGATION BY THE SEC, THE NASD AND THE NYSE INTO RESEARCH ANALYSTS CONFLICTS OF INTEREST, MLPFS ENTERED INTO A SETTLEMENT WITH THE NASD. PURSUANT TO THE TERMS OF THE SETTLEMENT WITH THE NASD, MLPFS SUBMITTED, AND THE NASD ACCEPTED, A LETTER OF ACCEPTANCE, WAIVER AND CONSENT WHEREBY MLPFS, WITHOUT ADMITTING OR DENYING THE NASD'S ALLEGATIONS, CONSENTED TO A CENSURE. IN ADDITION, MLPFS AGREED TO A PAYMENT OF (I) $100 MILLION, WHICH WAS OFFSET IN ITS ENTIRETY BY THE AMOUNT ALREADY PAID BY MLPFS IN THE RELATED PROCEEDING WITH THE STATE OF NEW YORK AND OTHER STATES (II) $75 MILLION TO FUND THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS; AND (III) $25 MILLION TO PROMOTE INVESTOR EDUCATION. THE PAYMENTS FOR THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS AND TO PROMOTE INVESTOR EDUCATION ARE REQUIRED TO BE MADE OVER THE COURSE OF THE NEXT FIVE YEARS. MLPFS ALSO AGREED TO COMPLY WITH CERTAIN UNDERTAKINGS. SIMILAR DISCLOSURE HAS BEEN MADE WITH RESPECT TO THE DETAILS OF THE RELATED SETTLEMENTS WITH THE SEC AND NYSE ARISING FROM THE JOINT INVESTIGATION.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, PAYMENTS FOR THE PROVISION OF INDEPENDENT RESEARCH AND TO PROMOTE INVESTOR EDUCATION, A CENSURE AND COMPLIANCE WITH CERTAIN UNDERTAKINGS.
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: EXCHANGE HEARING PANEL DECISION 03-67
 04/22/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
4/22/2003
10(e)(2)(v).  Description of the action or claim:
THE NYSE ALLEGED, AND MLPFS NEITHER ADMITTED NOR DENIED THE ALLEGATIONS, THAT MLPFS VIOLATED SECTION 15(C) OF THE EXCHANGE ACT AND RULE 15C1-2 THERE UNDER, AS WELL AS NYSE RULE 342,401,472 AND 476 IN CONNECTION WITH ITS INVESTIGATION INTO RESEARCH ANALYSTS CONFLICTS OF INTEREST. AS PART OF A JOINT SETTLEMENT WITH THE SEC, THE NASD AND THE NYSE ARISING FROM A JOINT INVESTIGATION BY THE SEC, THE NASD AND THE NYSE INTO RESEARCH ANALYSTS CONFLICTS OF INTEREST, MLPFS ENTERED INTO A SETTLEMENT WITH THE NYSE. PURSUANT TO THE TERMS OF THE SETTLEMENT, WITH THE NYSE, AN NYSE HEARING PANEL ACCEPTED A STIPULATION AND CONSENT ENTERED INTO BETWEEN THE NYSE DIVISION OF ENFORCEMENT AND MLPFS WHEREBY MLPFS, WITHOUT ADMITTING OR DENYING THE NYSE'S ALLEGATIONS, CONSENTED TO A CENSURE. IN ADDITION, MLPFS AGREED TO A PAYMENT OF: (I) $100 MILLION, WHICH WAS OFFSET IN ITS ENTIRETY BY THE AMOUNT ALREADY PAID BY MLPFS IN THE RELATED PROCEEDING WITH THE STATE OF NEW YORK AND OTHER STATES; (II) $75 MILLION TO FUND THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS; AND (III) $25 MILLION TO PROMOTE INVESTOR EDUCATION. THE PAYMENTS FOR THE PROVISION OF INDEPENDENT RESEARCH TO INVESTORS AND TO PROMOTE INVESTOR EDUCATION ARE REQUIRED TO BE MADE OVER THE COURSE OF THE NEXT FIVE YEARS. MLPFS ALSO AGREED TO COMPLY WITH CERTAIN UNDERTAKINGS. SIMILAR DISCLOSURE HAS BEEN MADE WITH RESPECT TO THE DETAILS OF THE RELATED SETTLEMENTS WITH THE SEC AND THE NASD ARISING FROM THE JOINT INVESTIGATION.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, PAYMENTS FOR THE PROVISION OF INDEPENDENT RESEARCH AND TO PROMOTE INVESTOR EDUCATION, A CENSURE AND COMPLIANCE WITH CERTAIN UNDERTAKINGS.
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030142
 06/23/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD RULES 2110, 2320(G), 3010 AND 3110(B)(2), AND SEC RULE 11AC1-4 IN THAT IT FAILED TO DETERMINE THE BEST INTER-DEALER MARKET IN CONNECTION WITH SEVEN TRANSACTIONS IN NON-NASDAQ SECURITIES. IT WAS FURTHER ALLEGED THAT THE FIRM FAILED TO IMMEDIATELY DISPLAY CUSTOMER LIMIT ORDERS IN NASDAQ SECURITIES IN ITS PUBLIC QUOTATION. FURTHER, THE FIRM'S SUPERVISORY SYSTEM WAS NOT ADEQUATE TO ACHIEVE COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS CONCERNING OBTAINING AND DOCUMENTING QUOTATIONS IN NON-NASDAQ SECURITIES. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $12,500 FINE. IN ADDITION, THE FIRM AGREED TO AN UNDERTAKING TO REVISE ITS SUPERVISORY PROCEDURES WITH RESPECT TO THE APPLICABLE LAWS AND REGULATIONS CONCERNING OBTAINING AND DOCUMENTING QUOTATIONS IN NON-NASDAQ SECURITIES WITHIN 30 DAYS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030093
 04/21/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 AND NASD MARKETPLACE RULE 6955 IN THAT THE FIRM REPORTED EXECUTION REPORTS TO ORDER AUDIT TRAIL (OATS) THAT FAILED TO MATCH TO AN ACT TRADE REPORT. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $10,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030090
 04/21/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT ON SPECIFIC DAYS, MERRILL LYNCH WAS A PARTY TO LOCKED/CROSSED MARKET CONDITION PRIOR TO THE MARKET OPENING AND RECEIVED A TRADE-OR-MOVE MESSAGE IN EACH INSTANCE THROUGH SELECTNET. WITHIN 30 SECONDS OF RECEIVING THE MESSAGES, THE FIRM FAILED TO FILL THE INCOMING TRADE-OR-MOVE MESSAGE FOR THE FULL SIZE OF THE MESSAGE OR MOVE DOWN ITS BID OFFER BY A QUOTATION INCREMENT THAT WOULD HAVE UNLOCKED/UNCROSSED THE MARKET. THE ALLEGED CONDUCT CONSTITUTES VIOLATIONS OF NASD MARKETPLACE RULE 4613 (E)(1)(C). WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND FINE OF $15,000.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030195
 08/27/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 AND NASD MARKETPLACE RULE 6620 IN THAT IT FAILED TO TIMELY TRANSMIT TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE (ACT) CERTAIN LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES, AND FAILED TO DESIGNATE THROUGH ACT SUCH LAST SALE REPORTS AS LATE. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO A AWC AND AGREED TO A CENSURE AND A $8000.00 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS020182
 10/01/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD RULE 3360 IN THAT IT FAILED TO PROPERLY SUBMIT TO NASD ITS SHORT INTEREST POSITION REPORT. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A $2000.00 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030108
 04/28/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULES 2110 AND 3010, NASD MARKETPLACE RULE 6740, AND SEC RULE 15C2-11 AFTER THE NASD CONDUCTED A REVIEW OF THE FIRM'S QUOTING ACTIVITY ON A SPECIFIC DATE FOR A SPECIFIED OTC SECURITY. IT WAS FURTHER ALLEGED THAT THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR ADEQUATE COMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING SEC RULE 15C2-11 AND NASD MARKETPLACE RULE 6740. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $10,000 FINE. IN ADDITION, THE FIRM AGREED TO AN UNDERTAKING IN WHICH IT WILL REVISE ITS WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING SEC RULE 15C2-11 AND NASD MARKETPLACE RULE 6740 WITHIN 30 DAYS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030251
 10/31/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULES 2110, 2860(B)(5)(A), 2860(B)(A)(V) AND 3010 IN THAT IT FAILED TO FILE A REPORT WITH THE NASD WITH RESPECT TO EACH ACCOUNT WHICH HAD ESTABLISHED AN AGGREGATE POSITION OF 200 OR MORE CONVENTIONAL OPTION CONTRACTS ON THE SAME SIDE OF THE MARKET COVERING THE SAME UNDERLYING SECURITY OR INDEX. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $12,500 FINE. IN ADDITION TO THE MONETARY PENALTY, THE FIRM AGREED TO AN UNDERTAKING IN WHICH IT WOULD REVISE ITS WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO THE APPLICABLE LAWS AND REGULATIONS CONCERNING THE REPORTING OF OPTION CONTRACTS TO THE NASD WITHIN 30 DAYS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number:CMS030215
 09/19/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULES 3320, NASD MARKETPLACE RULE 4613(B) AND SEC RULE 11AC1-1, IN THAT IT FAILED TO HONOR ITS PUBLISHED QUOTATION FOR SPECIFIC TRANSACTIONS. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $6,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number:02-02
 11/14/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED EXCHANGE RULE 208 AND ARTICLE V, SECTION 4(H) OF THE EXCHANGE CONSTITUTION IN THAT THE FIRM DID NOT AGGREGATE MULTIPLE ODD-LOT ORDERS ENTERED BY A CUSTOMER THROUGH THE FIRM'S PER CONNECTION TO THE EXCHANGE FLOOR. IT WAS FURTHER ALLEGED THAT THE FIRM DID NOT HAVE REASONABLE POLICIES OR PROCEDURES IN PLACE TO DETECT OR PREVENT THIS VIOLATION FROM OCCURRING. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH AGREED TO A CENSURE AND A $30,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS030296
 12/23/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD MARKETPLACE RULE 6130(D) IN THAT IT FAILED TO REPORT TO THE AUTOMATED CONFIRMATION TRANSACTION SERVICE (ACT) THE CORRECT SYMBOL INDICATING WHETHER THE TRANSACTION WAS A BUY, SELL, SELL SHORT, SELL SHORT EXEMPT OR CROSS FOR SPECIFIC TRANSACTIONS IN ELIGIBLE SECURITIES. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO AN AWC AND AGREED TO A CENSURE AND A $9000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 03-99
 04/16/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
THE NYSE DIVISION OF ENFORCEMENT ALLEGED THAT MERRILL LYNCH VIOLATED EXCHANGE RULE 342(A) AND (B) IN THAT IT FAILED TO REASONABLY DISCHARGE ITS DUTIES AND OBLIGATIONS IN CONNECTION WITH SUPERVISION AND CONTROL OF AND PROVIDING SEPARATE SYSTEMS OF FOLLOW-UP AND REVIEW WITH RESPECT TO CERTAIN OF ITS BUSINESS ACTIVITIES BY FAILING TO ESTABLISH AND MAINTAIN APPROPRIATE PROCEDURES AND SYSTEMS NECESSARY TO ADEQUATELY SUPERVISE THE FOLLOWING: A) OBTAINING AND REVIEWING CUSTOMER NEW ACCOUNT FORMS; B.) MONITORING ACTIVITY IN CERTAIN OF THE FIRM'S WINTER PARK, FLORIDA OFFICE CUSTOMER ACCOUNTS; C) REVIEWING ACTIVELY TRADED CUSTOMER ACCOUNTS; D) PROPERLY REVIEWING ACCOUNTS FOR UNAPPROVED DISCRETIONARY TRADING; E) SUITABILITY OF INVESTMENTS IN CERTAIN OF THE FIRM WINTER PARK FLORIDA OFFICE CUSTOMER ACCOUNTS; F) ADEQUATELY FOLLOWING UP ON COMPLIANCE VISIT FINDINGS IN THE FIRMS WINTER PARK, FLORIDA OFFICE SO THAT CORRECTIVE ACTIONS WERE TAKEN; AND G) TIMELY ALLOCATING BLOCK ORDERS IN CERTAIN CUSTOMER ACCOUNTS. 2) VIOLATED EXCHANGE RULE 405 IN THAT THE FIRM FAILED TO LEARN THE ESSENTIAL FACTS RELATIVE TO CERTAIN OF ITS CUSTOMERS. 3) VIOLATED EXCHANGE RULE 440 AND SEC RULES 17A-3 AND 17A-4 BECAUSE CERTAIN INFORMATION ON ITS BOOKS AND RECORDS CONCERNING CUSTOMER ACCOUNTS WAS INACCURATE. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH AGREED TO A CENSURE AND A $900,000 FINE.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 04-30
 05/12/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH VIOLATED EXCHANGE RULES 342 AND 401 IN THAT IT FAILED TO HAVE AND REASONABLY IMPLEMENT APPROPRIATE PROCEDURES TO ENSURE COMPLIANCE BY ITS EMPLOYEES WITH RESPECT TO THE DISSEMINATION OF MATERIAL NON-PUBLIC INFORMATION AS IT RELATED TO CHANGES IN PENDING RESEARCH REPORT RATINGS AND/OR EARNINGS ESTIMATES. THE ALLEGATIONS ARE BASED ON ONE SPECIFIC OCCURRENCE IN JULY 2002. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH AGREED TO A CENSURE AND AN ADMINISTRATIVE FINE OF $625,000 PAID ON 5/12/2004.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C05040022
 04/29/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT BETWEEN APRIL 1996 AND DECEMBER 1999, MERRILL LYNCH FAILED TO ESTABLISH, MAINTAIN AND ENFORCE AN ADEQUATE SYSTEM TO SUPERVISE AND MONITOR ACTIVITIES IN CONNECTION WITH THE SALE OF VARIABLE LIFE INSURANCE PRODUCTS. WITHOUT ADMITTING OR DENYING, MERRILL LYNCH ENTERED INTO A SETTLEMENT AND AGREED TO A CENSURE AND AN ADMINISTRATIVE FINE OF $75,000 PAID ON 4/29/2004.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: S90-0012
 03/09/1992
10(e)(2)(iv).  The Court or body taking the Action and location:
ALABAMA SECURITIES COMMISSION
10(e)(2)(v).  Description of the action or claim:
PURSUANT TO AN INVESTIGATION INTO THE ACTIVITIES OF JOEL EDWARD PORTER, A FORMER EMPLOYEE IN THE BIRMINGHAM, AL, OFFICE, A SETTLEMENT AGREEMENT WAS ENTERED INTO BY MERRILL LYNCH.
10(e)(2)(vi).  Disposition of action or claim:
Disgorgement
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: SEC REL. 13769, SEC REL. 13770
 07/19/1977
10(e)(2)(iv).  The Court or body taking the Action and location:
U.S. SECURITIES AND EXCHANGE COMMISSION
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF SEC RULE 17A3. FIRM CONSENTED, WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, TO FINDING THAT IT VIOLATED RULE 17A3 AND HAS BEEN ORDERED BY THE SEC TO INSTITUTE CERTAIN RECORDKEEPING PROCEDURES TO AVOID A REPETITION OF THIS TYPE OF SITUATION.
10(e)(2)(vi).  Disposition of action or claim:
Undertaking
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS990035
 03/30/1999
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF SEC RULE 11AC-1 AND NAST RULES 2110, 3010, 3320 AND 4613(B). MERRILL LYNCH FAILED TO EXECUTE PREFERENCED SELECT NET ORDERS WHICH HAD BEEN PRESENTED TO THE FIRM AT THE FIRM'S PUBLISHED BID OR PUBLISHED OFFER IN AN AMOUNT UP TO ITS PUBLISHED QUOTATION SIZE AND THEREBY FAILED TO HONOR ITS PUBLISHED QUOTATION; FAILED TO ESTABLISH AND MAINTAIN WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING SEC AND NASD FIRM QUOTE RULES.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 98-89
 06/26/1998
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATIONS OF EXCHANGE RULE 440 AND SEC REGULATIONS 17A-3 AND 17A-4 AND VIOLATIONS OF EXCHANGE RULE 342. VIOLATED EXCHANGE RULE 440 AND SEC REG 17A3 AND 17A4 BY FAILING TO MAKE AND PRESERVE REQUIRED RECORDS RELATING TO RECEIPT AND EXECUTION OF CUSTOMER ORDERS, VIOLATED EXCHANGE RULE 342 BY FAILING TO REASONABLY SUPERVISE ACTIVITIES TO ASSURE COMPLIANCE WITH RULES FOR MAKING AND PRESERVING TIMELY ORDER RECORDS SHOWING ALLOCATION OF TRADES TO CUSTOMER ACCOUNTS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 97-SF0001
 11/12/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
CBOE
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH CONTROLLED A LONG CALL POSITION IN EXCESS OF APPLICABLE POSITION LIMITS IN VIOLATION OF CBOE RULES 4.11 AND 24.4(A). DURING THE PERIOD INVOLVED, THE APPLICABLE POSITION LIMIT IN THE S AND P STOCK INDEX CLASS OF OPTION CONTRACTS WAS 25,000 ON THE SAME SIDE OF THE MARKET. ON APRIL 10 AND 11, 1996, ML CONTROLLED A LONG CALL POSITION OF 30,625 OPTION CONTRACTS IN ONE OF ITS CUSTOMER ACCOUNTS.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 97-0018
 08/11/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
CBOE
10(e)(2)(v).  Description of the action or claim:
EXCEEDING THE EXCHANGE'S POSITION LIMIT IN THE ENVIRONMENTAL INDEX CLASS OF OPTION CONTRACTS ON ONE TRADE DATE - CBOE RULES 4.11 AND 24.4(A). FINE PAID AS OF 08/11/1997
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CAF040054
 07/19/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO COMPLY WITH DISCOVERY OBLIGATIONS IN 7 PROCEEDINGS PURSUANT TO THE APPLICABLE CODE OF ARBITRATION. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO THE AWC. THE FIRM WAS CENSURED, FINED (PAID 7/19/2004) AND REQUIRED TO NOTIFY ALL COUNSEL HANDLING ARBITRATION MATTERS OF THE FIRM'S POLICY OF COMPLYING WITH DISCOVERY OBLIGATIONS AND ORDERS FROM ARBITRATION PANELS RELATING TO DISCOVERY. THE FIRM ALSO WILL ESTABLISH WRITTEN PROCEDURES AS FOLLOWS: (1) REQUIRE AN ATTORNEY IN OGC TO REVIEW ANY ORDER BY AN ARBITRATION PANEL GRANTING A MOTION TO COMPEL; (2) REQUIRE REVIEW BY FVP OR SIMILAR OFFICER OF ANY SANCTIONS BY AN ARBITRATION PANEL FOR DISCOVERY VIOLATIONS TO ENSURE PROPER STEPS ARE TAKEN; AND (3) AT 6 MONTHS AND 1 YEAR THE FIRM SHALL CONFIRM TO THE NASD THAT IT HAS COMPLIED WITH THE AWC AND INFORM THE NASD OF ANY FVP REVIEWS AND THE ACTIONS TAKEN PURSUANT TO THE FVP REVIEW.
10(e)(2)(vi).  Disposition of action or claim:
UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS040131
 08/20/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 3370 AND MARKETPLACE RULE 613(D) IN THAT IT FAILED TO MAKE AN AFFIRMATIVE DETERMINATION PRIOR TO 9 SHORT SALE TRANSACTIONS AND FAILED TO REPORT THE CORRECT SYMBOLS AND TYPE OF TRANSACTION ON 202 TRANSACTIONS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH AGREED TO AN AWC, CENSURE AND A FINE OF $9,000 (PAID AS OF 8/20/2004).
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS040146
 09/20/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT THE FIRM VIOLATED NASD CONDUCT RULE 2110 AND MARKETPLACE RULES 6420(A) AND 6620(A). WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE MEMBER FIRM CONSENTED TO THE ENTRY OF FINDINGS AND DESCRIBED SANCTIONS INCLUDING A CENSURE AND FINE OF $27,000 PAID ON 9/20/2004.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLE-334
 07/12/1988
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH MADE UNSUITABLE RECOMMENDATIONS (UNCOVERED CALL OPTION CONTRACTS) FOR CUSTOMER AND FAILED TO ENFORCE WRITTEN PROCEDURES RELATING TO SUPERVISION. OFFER OF SETTLEMENT SUBMITTED BY FIRM WAS ACCEPTED AS A LETTER OF FUTURE OBSERVANCE AND COMPLIANCE. ADDITIONALLY, THE FIRM ISSUED AN INFORMATION MEMORANDUM TO ITS SALES MANAGEMENT, OPERATIONS MANAGERS AND WIRE OPERATORS SETTING FORTH THE FACTS OF THIS CASE AND REMINDING THEM OF THE NEED FOR ORDER TICKETS TO BE PROPERLY COMPLETED AND CODED AT THE TIME OF ORDER ENTRY.
10(e)(2)(vi).  Disposition of action or claim:
Undertaking
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CAF040088
 11/30/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THE MERRILL LYNCH VIOLATED NASD RULES BY FILING LATE AMENDMENTS TO FORMS U4 AND U5. ADDITIONALLY, IT WAS ALLEGED THAT THE FIRM HAD INCORRECT OFFICE ADDRESSES ON FORM U4 AND FAILED TO REPORT DISCLOSURES IN 12 INSTANCES. IT WAS ALLEGED THAT THE FIRM'S SUPERVISORY SYSTEMS AND PROCEDURES WERE NOT REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH ITS REPORTING OBLIGATIONS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO THE ENTRY OF FINDINGS AND SANCTIONS. THE FIRM IS CENSURED, FINED (PAID BY DECEMBER 10, 2004), AND PROHIBITED FROM REGISTERING ANY ASSOCIATED PERSONS IN A NON-SUPERVISORY SALES CAPACITY FOR 5 CONSECUTIVE BUSINESS DAYS (JANUARY 24, 2005 - JANUARY 28, 2005). THE FIRM SHALL CONDUCT PERIODIC AUDITS AND REPORT ITS FINDINGS AND RECOMMENDATIONS. ADDITIONALLY, AN OFFICER OF THE FIRM SHALL PERIODICALLY CERTIFY IN WRITING TO THE NASD THAT THE AUDITS WERE DONE AND THAT THE RECOMMENDATIONS HAVE BEEN IMPLEMENTED OR ARE IN THE PROCESS OF BEING IMPLEMENTED.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, PROHIBITION AND UNDERTAKINGS
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CMS040172
 11/09/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT WAS ALLEGED THAT MERRILL LYNCH FAILED TO REPORT TO TRACE THE CORRECT CONTRA-PARTY IDENTIFIER OF TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO THE ENTRY OF FINDINGS AND A $5,000 FINE PAID 12-14-2004.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C05040045
 06/28/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THE FIRM BY RELYING ON BIDS FROM ONLY ONE BROKER FAILED TO ENSURE THE 12 TRANSACTIONS IN MUNICIPAL SECURITIES WERE EXECUTED AT AGGREGATE PRICES THAT WERE FAIR IN REASONABLE. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO THE FOLLOWING SANCTIONS: CENSURED AND FINE $55,000 (PAID 6/28/2004); RESTITUTION TO CUSTOMERS OF $54,527.40 PLUS INTEREST; AND THE FIRM SHALL PROVIDE THE NASD WITH A COPY OF ITS WRITTEN SUPERVISORY PROCEDURES RELATING TO DETERMINING THE FMV OF MUNICIPAL SECURITIES BEING BOUGHT AND SOLD FROM A PUBLIC CUSTOMER.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, RESTITUTION AND UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 93-29
 05/25/1992
10(e)(2)(iv).  The Court or body taking the Action and location:
THE NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
ALLEGATIONS THAT MERRILL LYNCH DID NOT MAINTAIN ACCURATE ACCOUNT STATEMENTS. THE BOARD FOUND THAT THE FIRM DURING THE PERIOD OF 1985 - SEPTEMBER, 1988 FAILED TO CONFIRM TO ITS CUSTOMERS CERTAIN TRANSACTIONS WHICH HAD TAKEN PLACE. FIRM WAS FINED $90,000.00 TO BE PAID ON OR BEFORE DECEMBER 2, 1994.
10(e)(2)(vi).  Disposition of action or claim:
Censure
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 05-27
 10/03/2003
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT UPON LEARNING OF SHORT TERM TRADING OF MUTUAL FUNDS BY THREE OF ITS FINANCIAL ADVISORS, THE FIRM FAILED TO TAKE EFFECTIVE ACTION TO HALT TRADING, ENHANCE SUPERVISION, OR ISSUE SUFFICIENT FOLLOW-UP INSTRUCTIONS TO ENSURE ADHERENCE TO FIRM POLICIES AND PROCEDURES, AS WELL AS SECURITIES LAWS AND REGULATIONS. WITHOUT ADMITTING OR DENYING GUILT, MERRILL LYNCH CONSENTED TO A FINDING BY THE HEARING PANEL THAT THE FIRM VIOLATED EXCHANGE RULE 342 BY FAILING TO REASONABLY SUPERVISE CERTAIN BUSINESS ACTIVITIES, VIOLATED EXCHANGE RULE 342.16 IN THAT IT FAILED TO REVIEW AND MAINTAIN CERTAIN INCOMING AND OUTGOING COMMUNICATIONS WITH THE PUBLIC AND THAT IT VIOLATED SECTION 17(A) OF THE SEC ACT OF 1934 IN THAT IT FAILED TO MAKE AND/OR PRESERVE ACCURATE RECORDS RELATING TO ORDERS EXECUTED BY FIRM EMPLOYEES IN VARIABLE ANNUITY PRODUCT SUB-ACCOUNTS HELD AWAY FROM THE FIRM. THE FIRM HAS AGREED TO AN UNDERTAKING TO INFORM THE EXCHANGE IN WRITING THAT IT HAS ISSUED A GLOBAL COMPLIANCE ALERT COMMUNICATION DETAILING THE FIRM'S POLICIES AND PROCEDURES REGARDING INCOMING AND OUTGOING CORRESPONDENCE AS SET FORTH IN THE COMPLIANCE OUTLINE AND BRANCH OFFICE POLICY MANUAL. THE FIRM WILL ALSO IMPLEMENT A POLICY AND PROCEDURE ADDRESSING HOW FINANCIAL ADVISORS SHOULD DEAL WITH INSTRUCTIONS FROM CLIENTS TO TRADE MUTUAL FUNDS POSITIONS IN ACCOUNTS HELD OUTSIDE OF MERRILL LYNCH. THE COMMENCEMENT OF THE DEVELOPMENT OF TECHNOLOGY TO ALLOW THE RECORDING OF CLIENT REALLOCATION REQUESTS REGARDING THE UNDERLYING ACCOUNTS OF NON-PROPRIETARY VARIABLE ANNUITY PRODUCTS WHERE SUCH REQUESTS ARE RELAYED FROM A CLIENT TO THE INSURANCE CARRIER THROUGH A MERRILL LYNCH EMPLOYEE. AND, THE IMPLEMENTATION BY FINANCIAL DATA SERVICES (FDS), AN AFFILIATE OF MERRILL LYNCH, OF A PROCEDURE REQUIRING FDS TO PROVIDE CLIENT TAX ID NUMBERS TO NSCC WHEN TRANSMITTING ORDERS TO MUTUAL FUND COMPANIES ON BEHALF OF MERRILL LYNCH CLIENTS TO BUY/SELL MUTUAL FUNDS POSITIONS, PROVIDED THE MUTUAL FUND COMPANIES ELECT TO RECEIVE THE TAX ID NUMBER.
10(e)(2)(vi).  Disposition of action or claim:
Undertaking
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: FILE NO. S-04280 (LX)
 04/22/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
STATE OF WISCONSIN DEPARTMENT OF FINANCIAL INSTITUTIONS, DIVISION OF SECURITIES
10(e)(2)(v).  Description of the action or claim:
MERRILL LYNCH FAILED TO PROVIDE AN EXPLANATION REQUESTED BY THE STAFF REGARDING AN ITEM ON AN AGENT'S INSURANCE LICENSE IN A TIMELY MANNER. THEY ALSO FAILED TO UPDATE THE AGENT'S RECORD TO REFLECT HIS CURRENT ADDRESS. MERRILL LYNCH WAS ASKED TO PROVIDE AN EXPLANATION OF A YES ANSWER REGARDING A CONVICTION ON AN AGENT'S INSURANCE APPLICATION. MERRILL LYNCH FAILED TO PROVIDE THIS INFORMATION IN A TIMELY MANNER. MERRILL LYNCH ALSO FAILED TO UPDATE THE AGENT'S RECORD TO REFLECT HIS CURRENT ADDRESS. AS A RESULT, MERRILL LYNCH WAS CENSURED AND ORDERED TO PAY A FINE OF $7,000 PAID 4/29/2005.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050058
 05/19/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT BETWEEN OCTOBER 1 AND DECEMBER 31, 2003 MLPFS SUBMITTED REPORTS TO THE ORDER AUDIT TRAIL SYSTEM (OATS) THAT WERE NOT IN THE ELECTRONIC FORM PRESCRIBED BY THE NASD AND THAT WERE REPAIRABLE. THE SUBJECT REPORTS WERE REJECTED BY THE OATS SYSTEM AND NOTICE OF SUCH REJECTION WAS MADE AVAILABLE TO THE FIRM ON THE OATS WEBSITE. IT IS FURTHER ALLEGED THAT THE FIRM DID NOT CORRECT OR REPLACE 87.1 PERCENT OF THE SUBJECT REPORTS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MLPFS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED AND FINED $12,500.00 TO BE PAID ON 5/19/2005.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050067
 04/22/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
DURING THE PERIOD OF APRIL 1, 2002 - JUNE 28, 2002, THE FIRM FAILED TO DISPLAY IMMEDIATELY 77 CUSTOMER LIMIT ORDERS IN NASDAQ SECURITIES IN ITS PUBLIC QUOTATION, WHEN EACH SUCH ORDER WAS AT A PRICE THAT WOULD HAVE IMPROVED THE FIRM'S BID OR OFFER IN EACH SUCH SECURITY; OR WHEN THE ORDER WAS PRICED EQUAL TO THE FIRM'S BID OR OFFER AND THE NATIONAL BEST BID OR OFFER FOR EACH SUCH SECURITY AND THE SIZE OF THE ORDER REPRESENTED MORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZE ASSOCIATED WITH THE FIRM'S BID OR OFFER IN EACH SUCH SECURITY. MLPFS CENSURED AND FINE PAID OF $10,000.00
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CLG050079
 04/21/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
THE FIRM DID NOT CORRECT OR REPLACE 94.9 PERCENT OF THE REJECTED REPORTS SUBMITTED TO OATS DURING THE PERIOD JANUARY 1, 2003 THROUGH MARCH 31, 2003. MLPFS CONSENTS TO THE IMPOSITION AT A MAXIMUM OF A CENSURE, A $7,500.00 FINE AND AN UNDERTAKING TO REVISE MLPFS' WRITTEN SUPERVISORY PROCEDURES FOR COMPLIANCE WITH THE RULES APPLICABLE TO OATS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, FINE AND UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 05-87
 07/08/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT: MERRILL LYNCH FAILED TO DELIVER PROSPECTUSES IN CONNECTION WITH CERTAIN SALES OF REGISTERED SECURITIES; FAILED TO DELIVER PRODUCT DESCRIPTIONS IN CONNECTION WITH CERTAIN SALES OF EXCHANGE TRADED FUNDS; VIOLATED EXCHANGE RULE 345 IN THAT THE FIRM PERMITTED CERTAIN EMPLOYEES WHO WERE NOT PROPERLY REGISTERED WITH THE EXCHANGE TO PERFORM DUTIES WHICH REQUIRED SUCH REGISTRATION; FAILED TO FILE AND/OR FILE PROMPTLY CERTAIN FORMS U4 WITH THE EXCHANGE AND FAILED TO UPDATE CERTAIN CHANGES OF ADDRESS ON FORMS U4; FAILED TO FULLY COMPLY WITH AN UNDERTAKING IN CONNECTION WITH AN EARLIER EXCHANGE HEARING PANEL DECISION; FAILED TO PRESERVE CERTAIN ELECTRONIC MAIL AND FAILED TO TIMELY REGISTER AS A USER OF THE EFP/PI AS SET FORTH IN INFORMATION MEMORANDUM, AND TO RESPOND TO NUMEROUS EFP/PI REQUESTS, CAUSING THE FIRM'S FAILURE TO REPORT AND/OR PROMPTLY REPORT CERTAIN REPORTABLE MATTERS TO THE EXCHANGE; FAILED TO TIMELY REPORT AND/OR ACCURATELY REPORT TO THE EXCHANGE, STATISTICAL INFORMATION REGARDING CUSTOMER COMPLAINTS; ALLOWED CERTAIN INDIVIDUALS TO PERFORM DUTIES AS REGISTERED PERSONS AFTER FAILING TO COMPLY WITH CONTINUING EDUCATION REQUIREMENTS; FAILED TO PROVIDE CERTAIN CLIENTS WITH THE OPPORTUNITY TO DECLINE THE USE OF MARGIN; AND FAILED TO REASONABLY DISCHARGE ITS DUTIES AND OBLIGATIONS IN CONNECTION WITH SUPERVISION AND CONTROL INCLUDING MAINTAINING A SEPARATE SYSTEM OF FOLLOW UP AND REVIEW WITH RESPECT TO EACH OF THE ITEMS ENUMERATED ABOVE. CENSURE, FINE OF $10,000,000 AND AN UNDERTAKING TO REVIEW CURRENT POLICIES, PROCEDURES AND SUPERVISORY SYSTEMS RELEVANT TO THE MATTERS ADDRESSED HEREIN.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, FINE AND UNDERTAKING
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: EAF0300610002
 07/29/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH, PIERCE, FENNER AND SMITH FAILED TO PROVIDE ADVERTISING MATERIALS CONTAINING A FAIR AND BALANCED PRESENTATION OF THE RISKS AS WELL AS THE BENEFITS OF A MORTGAGE PROGRAM AND PROVIDE A SOUND BASIS FOR EVALUATING THE FACTS IN REGARD TO A MORTGAGE PROGRAM; AND THAT THEY HAD NO SUPERVISORY PROCEDURES IN PLACE RELATING TO THE ACTIVITIES OF THE FIRM'S REGISTERED REPRESENTATIVES IN CONNECTION WITH A MORTGAGE PROGRAM (THE PROGRAM). FINE OF 50,000.00 TO BE PAID IMMEDIATELY AND WITHIN 90 DAYS THE FIRM WILL COMPLY WITH THE APPLICABLE LAWS, REGULATIONS AND RULES RELATING TO THE PROGRAM.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 05-149
 09/28/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO SUBMIT ACCURATE ELECTRONIC BLUE SHEETS IN RESPONSE TO REQUESTS FOR SUCH INFORMATION FROM THE EXCHANGES; FAILED TO ESTABLISH AND MAINTAIN APPROPRIATE SYSTEMS AND PROCEDURES FOR THE BLUE SHEET REPORTING REQUIREMENTS; AND FAILED TO ESTABLISH A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW TO REASONABLY ENSURE COMPLIANCE WITH EXCHANGE RULES PERTAINING TO PREPARATION AND SUBMISSION OF ELECTRONIC BLUE SHEETS. A STIPULATION AND CONSENT TO PENALTY HAS BEEN EXECUTED AGREEING TO A FINE OF $250,000 WHICH WILL BE PAID BY APRIL 3, 2006, AS WELL AS A CENSURE AND DATA VALIDATION. DECISION IS FINAL AND EFFECTIVE IMMEDIATELY.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20042000043-01
 10/01/2002
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT DURING 07/01/2003 - 09/30/2003 MLCO HAD 58 TRANSACTIONS FOR OR WITH A CUSTOMER IN WHICH THE PRICE MOST FAVORABLE TO THE CUSTOMER WAS NOT OBTAINED. THE SAME ALLEGATION IS MADE WITH RESPECT TO 67 TRANSACTIONS BETWEEN 10/01/2002 - 12/31/2002. $40,000.00 PAID BY MLCO 11/14/2005 FOR THE TWO ALLEGATIONS INVOLVING BEST EXECUTION; AND RESTITUTION OF $2,697.32 WHICH MUST BE PAID NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, FINE AND RESTITUTION
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 05-22
 08/01/2004
10(e)(2)(iv).  The Court or body taking the Action and location:
PACIFIC STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH VIOLATED PCXE RULE 7.23(A)(1) ON FOUR DATES WHEN IT FAILED TO MAINTAIN CONTINUOUS TWO SIDED Q ORDERS FOR ISSUES IN WHICH IT IS REGISTERED AS A MARKET MAKER. $2,150.00 FINE LEVIED AGAINST MLPFS PAID ON 10/10/2005
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 05-95
 09/28/2005
10(e)(2)(iv).  The Court or body taking the Action and location:
AMERICAN STOCK EXCHANGE
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO SUBMIT ACCURATE ELECTRONIC BLUE SHEETS IN RESPONSE TO REQUESTS FOR SUCH INFORMATION FROM THE EXCHANGES; FAILED TO ESTABLISH AND MAINTAIN APPROPRIATE SYSTEMS AND PROCEDURES FOR THE BLUE SHEET REPORTING REQUIREMENTS; AND FAILED TO ESTABLISH A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW TO REASONABLY ENSURE COMPLIANCE WITH EXCHANGE RULES PERTAINING TO PREPARATION AND SUBMISSION OF ELECTRONIC BLUE SHEETS. A STIPULATION AND CONSENT TO PENALTY HAS BEEN EXECUTED AGREEING TO A FINE OF 250,000 WHICH WAS PAID BY MERRILL LYNCH ON 2/23/2006, AS WELL AS A CENSURE AND DATA VALIDATION. ML TO INFORM AMEX IN WRITING THAT VALIDATION HAS BEEN COMPLETED.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E062002029302
 01/24/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT RESPONDENT FIRM FAILED TO REASONABLY AND PROMPTLY RESPOND TO RED FLAGS RAISED BY CUSTOMER COMPLAINTS, WRITTEN COMMUNICATIONS, AND TELEPHONE CONVERSATIONS REGARDING POSSIBLE USE OF DISCRETION BY A REPRESENTATIVE AND ALLEGEDLY FAILED TO INSTITUTE HEIGHTENED SUPERVISORY PROCEDURES TARGETING POSSIBLE USE OF DISCRETION BY REPRESENTATIVE. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS THEREFORE, THE FIRM IS CENSURED AND FINED 20,000.00 TO BE PAID TEN BUSINESS DAYS AFTER FEBRUARY 7, 2006.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND FINE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E9B20030421-04
 03/15/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH DID NOT HAVE AN ADEQUATE SUPERVISORY SYSTEM AND PROCEDURES THAT WERE REASONABLY DESIGNED TO OVERSEE THE ACTIVITIES OF ITS INVESTMENT SERVICE ADVISORS (ISAS) AT THE FAC AND THAT CERTAIN OF THE ISAS ENGAGED IN A PATTERN OF MUTUAL FUND SWITCH RECOMMENDATIONS THAT WERE ACCOMPANIED BY MISREPRESENTATIONS AND OMISSIONS OF FACTS TO CUSTOMERS. IT IS ALSO ALLEGED THAT MERRILL LYNCH PERMITTED INDIVIDUALS LACKING THE PROPER LICENSES AS SECURITIES PRINCIPALS TO BE RESPONSIBLE FOR THE SUPERVISION OF THE ISAS AND THAT MERRILL LYNCH EMPLOYED AN INSUFFICIENT NUMBER OF REGISTERED PRINCIPALS TO REVIEW ALL OF THE TRANSACTIONS. IT IS FURTHER ALLEGED THAT IN 2002, THE FAC CONDUCTED THREE SALES CONTESTS WHICH IMPROPERLY AWARDED NON-CASH COMPENSATION TO ISAS BASED SOLELY ON THE SALE OF THE FIRM'S PROPRIETARY MUTUAL FUNDS. CONTESTS MUST BE BASED ON TOTAL SALES OF ALL PRODUCTS WITHIN A SINGLE CATEGORY, SUCH AS MUTUAL FUNDS. IT IS ALLEGED THAT MERRILL LYNCH FAILED TO DISCLOSE THAT THE ISAS OFTEN HAD FIVE YEARS OR LESS BROKERAGE EXPERIENCE, AND THAT WHEN MAKING RECOMMENDATIONS REGARDING SECURITIES, THEY WERE LIMITED TO MUTUAL FUNDS. FINALLY, IT IS ALLEGED THAT MERRILL LYNCH AMONG OTHER THINGS, LACKED ADEQUATE WRITTEN SUPERVISORY PROCEDURES REGARDING MUTUAL FUNDS RECOMMENDATIONS (INCLUDING SWITCH TRANSACTIONS); DID NOT CONDUCT ANNUAL COMPLIANCE AUDITS FOR TWO YEARS AND MUTUAL FUND SWITCHES WERE NOT ADEQUATELY REVIEWED BY MERRILL LYNCH PRINCIPALS. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED 5,000,000.00.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20042000136-01
 03/23/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO SUBMIT, FOR THE OFFSETTING RISK LESS PORTION OF THREE (3) TRANSACTIONS IN NASDAQ NATIONAL MARKET SECURITIES (NNM) EITHER A CLEARING-ONLY REPORT WITH A CAPACITY INDICATOR OF RISK LESS PRINCIPAL OR A NON-TAPE, NON-CLEARING REPORT WITH A CAPACITY INDICATOR OF RISK LESS PRINCIPAL; INCORRECTLY DESIGNATED AS .PRP THROUGH ACT LAST SALE REPORTS OF TWO (2) TRANSACTIONS IN NNM SECURITIES; IN SEVEN (7) INSTANCES FAILED TO REPORT THE CORRECT TIME OF EXECUTION THROUGH ACT THE LAST SALE REPORTS OF TRANSACTIONS IN ELIGIBLE SECURITIES FOR WHICH THE FIRM HAS RECORDING AND REPORTING OBLIGATIONS; IN TEN (10) INSTANCES FAILED TO REPORT TO ACT THE CORRECT SYMBOL INDICATING WHETHER THE FIRM EXECUTED TRANSACTIONS IN ELIGIBLE SECURITIES AS PRINCIPAL, RISK LESS PRINCIPAL, OR AGENT; IN TWO (2) INSTANCES FAILED TO REPORT TO ACT THE CORRECT SYMBOL INDICATING WHETHER TRANSACTIONS IN ELIGIBLE SECURITIES WERE A BUY, SELL, SELL SHORT, SELL SHORT EXEMPT, OR CROSS; FAILED WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH ACT LAST SALE REPORTS OF THREE (3) TRANSACTIONS IN CONSOLIDATED QUOTATION SYSTEM (CQS) SECURITIES AND FAILED TO DESIGNATE THROUGH ACT SUCH LAST SALE REPORTS AS LATE; INACCURATELY REPORTED THE PRICE THROUGH ACT OF ONE (1) LAST SALE REPORT OF A TRANSACTION IN A CQS SECURITY; IN SEPTEMBER 2003, FAILED TO ACCURATELY REPORT THE CUMULATIVE NUMBER OF SHARES OF COVERED ORDERS CANCELLED PRIOR TO EXECUTION IN NATIONAL MARKET SYSTEM SECURITIES THAT IT RECEIVED FOR EXECUTION FROM ANY PERSON AND ERRONEOUSLY INCLUDED NOT HELD ORDERS IN THE REPORT; FAILED IN ORDERS TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO CUSTOMERS ITS CORRECT CAPACITY TO THE TRANSACTION FOR TWO (2) ORDERS; FAILED IN TWO (2) INSTANCES TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THE CORRECT REPORTED PRICE; FOR A TOTAL OF THREE (3) FAILED TO SHOW EITHER THE CORRECT TIME OF RECEIPT AND/OR THE EXECUTION ON THE MEMORANDUM OF BROKERAGE ORDERS; IT IS ALSO ALLEGED THAT MERRILL LYNCH FAILED TO SHOW THE TERMS AND CONDITIONS ON THE MEMORANDUM OF BROKERAGE ORDERS FOR FIVE (5) ORDERS; AND THE FIRM'S SUPERVISORY SYSTEM FAILED TO PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING THE REGISTRATION OF ASSOCIATED PERSONS, THE FRONT RUNNING OF ORDERS IN CQS SECURITIES, SEC RULES 11AC1-5 AND 11AC1-6, AND NASD'S THREE QUOTE RULE. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, MERRILL LYNCH CONSENTED TO A CENSURE AND $45,000 FINE (PAID ON 4/17/2006), AS WELL AS UNDERTAKINGS TO REVISE THE FIRM'S WRITTEN SUPERVISORY PROCEDURES CONCERNING THE AFOREMENTIONED ALLEGATIONS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050000655-01
 04/25/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH NASDAQ MARKET CENTER LAST SALE REPORTS OF TRANSACTIONS IN NASDAQ SECURITIES; FAILED TO ACCEPT OR DECLINE IN NASDAQ MARKET CENTER TRANSACTIONS IN ELIGIBLE SECURITIES WITHIN 20 MINUTES AFTER EXECUTION; FAILED WITHIN 90 SECONDS AFTER EXECUTION, TO TRANSMIT THROUGH NASDAQ MARKET CENTER LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES; AND FAILED, WITHIN 90 SECONDS AFTER EXECUTION TO TRANSMIT THROUGH NASDAQ MARKET CENTER, LAST SALE REPORTS OF TRANSACTIONS IN OTC EQUITY SECURITIES AND FAILED TO DESIGNATE EACH SUCH TRANSACTION AS LATE TO NASDAQ MARKET CENTER. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM WAS CENSURED AND FINED $37,500.00 TO BE PAID PURSUANT TO NOTIFICATION OF DATE PAYMENT WILL BE DUE.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE, CIVIL MONEY PENALTY
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050034676-01
 11/20/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
IT IS ALLEGED THAT RESPONDENT FAILED TO INCLUDE A LEGEND REGARDING THE EXISTENCE OF CONTINGENT DEFERRED SALES CHARGES ON CERTAIN WRITTEN CONFIRMATIONS IT PROVIDED ITS CUSTOMERS EFFECTING FIRM'S EXCHANGE TRANSACTIONS AND EXECUTED TRANSACTIONS IN CALLABLE STRIDES EQUITY-LINKED FIXED INCOME SECURITIES ISSUED BY THE PARENT COMPANY IN CUSTOMERS DISCRETIONARY ACCOUNTS WITHOUT OBTAINING PRIOR WRITTEN APPROVAL FROM THE CUSTOMERS. WITHOUT ADMITTING OR DENYING THE FINDINGS; RESPONDENT MEMBER FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $20,000.00, WHICH WAS PAID ON DECEMBER 8, 2006.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HPD 07-005
 12/18/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
12/18/2006 STIPULATION AND CONSENT FILED BY NYSE REGULATIONS DIVISION OF ENFORCEMENT. CONSENTED TO FINDINGS: 1. VIOLATED NYSE RULE 342, IN THAT THE FIRM FAILED TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, APPROPRIATELY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULES AND FEDERAL SECURITIES LAWS REGARDING RECORDKEEPING REQUIREMENTS WITH RESPECT TO THE TRANSMISSION AND EXECUTION OF CERTAIN OF THE FIRM'S PROPRIETARY TRADES ON THE NYSE FLOOR. 2.VIOLATED NYSE RULE 401, IN THAT THE FIRM FAILED TO CONDUCT ITS BUSINESS AFFAIRS IN ACCORDANCE WITH PRINCIPLES OF GOOD BUSINESS PRACTICE BY FAILING TO ADEQUATELY DOCUMENT A CUSTOMER'S PERMISSION TO TRADE ALONG, WHICH PERMISSION IS REQUIRED BY NYSE RULE 92 (B). 3. VIOLATED SECTION 17 (A) OF THE EXCHANGE ACT AND RULES 17A-3 AND 17A-4 THERE UNDER, AND NYSE RULE 440, BY PREPARING AND MAINTAINING INACCURATE AND/OR INCOMPLETE BOOKS AND RECORDS. STIPULATED SANCTION: THE IMPOSITION BY THE EXCHANGE OF THE PENALTY: (A) A CENSURE; AND (B) A $ 175,000 FINE. 1/12/2007 HEARING BOARD DECISION 07-005 ISSUED DECISION: VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS, INCLUDING COMPLIANCE WITH NYSE RULES AND REVIEW, APPROPRIATELY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULES AND FEDERAL SECURITIES LAWS REGARDING CERTAIN PROPRIETARY TRADES ON NYSE FLOOR; VIOLATED NYSE RULE 401 BY FAILING TO ADEQUATELY DOCUMENT CUSTOMER'S PERMISSION TO TRADE ALONG, WHICH PERMISSION IS REQUIRED BY NYSE RULE 92 (B); VIOLATED SECTION 17 (A) OF SECURITIES EXCHANGE ACT OF 1934 AND RULES 17A-3 AND 17A-4 THERE UNDER, AND NYSE RULE 440, BY PREPARING AND MAINTAINING INACCURATE OR INCOMPLETE BOOKS AND RECORDS---CONSENT TO CENSURE AND $175,000.00 FINE. THE HEARING PANEL IMPOSED THE SANCTION, CONSENTED TO BY MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED, OF A CENSURE AND A FINE OF $175,000.00
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 0400672
 02/01/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
ILLINOIS
10(e)(2)(v).  Description of the action or claim:
A TRUST CERTIFICATION FORM FOR A CLIENT AT THE LADUE, MISSOURI OFFICE WAS IMPROPERLY NOTARIZED. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS MERRILL LYNCH AGREED TO ASSIST THE CLIENT INVOLVED BY PAYING CERTAIN LEGAL FEES INCURRED IN ADDRESSING CONCERNS RELATED TO THE NOTARIZATION. FURTHERMORE, MERRILL LYNCH AGREED TO DONATE $25,000 TO THE STATE OF ILLINOIS INVESTOR EDUCATION FUND AND $15,000 FOR THE COST OF INVESTIGATION.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HBD 07-93
 05/23/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
05/23/07 STIPULATION AND CONSENT TO PENALTY FILED BY THE DIVISION OF ENFORCEMENT OF NYSE REGULATION AND PENDING CONSENTED TO FINDINGS: 1. VIOLATED NYSE RULE 342 IN THAT THE FIRM FAILED TO IDENTIFY, REGISTER AND SUPERVISE ALTERNATE LOCATIONS FROM WHICH CERTAIN REGISTERED EMPLOYEES WERE CONDUCTING LIMITED BUSINESS; VIOLATED NYSE RULE 343 IN THAT THE FIRM PERMITTED OFFICE SHARING ARRANGEMENTS BETWEEN CERTAIN FIRM BRANCH OFFICES AND A FIRM AFFILIATE THAT HAD NOT BEEN APPROVED BY THE NYSE AS REQUIRED BY THE RULE. CONSENTED TO PENALTY: A CENSURE AND A PAYMENT IN THE AMOUNT OF $400,000. 06/20/07 DECISION 07-93 ISSUED BY NYSE HEARING BOARD DECISION: 1. VIOLATED NYSE RULE 342 IN THAT THE FIRM FAILED TO IDENTIFY, REGISTER AND SUPERVISE ALTERNATE LOCATIONS FROM WHICH CERTAIN REGISTERED EMPLOYEES WERE CONDUCTING LIMITED BUSINESS; AND 2. VIOLATED NYSE RULE 343 IN THAT THE FIRM PERMITTED OFFICE SHARING ARRANGEMENTS BETWEEN CERTAIN FIRM BRANCH OFFICES AND A FIRM AFFILIATE THAT HAD NOT BEEN APPROVED BY THE NYSE AS REQUIRED BY THE RULE. PENALTY: CONSENT TO CENSURE AND $400,000 FINE. PAYMENT MADE JULY 18,2007
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050021177-01
 06/19/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
SEC RULE 15C2-11, NASD RULES 2110, 3010, 6740 - MERRILL LYNCH, PIERCE, FENNER AND SMITH, INC. PUBLISHED QUOTATIONS IN OTC EQUITY SECURITIES OR, DIRECTLY OR INDIRECTLY, SUBMITTED SUCH QUOTATIONS FOR PUBLICATION IN A QUOTATION MEDIUM AND DID NOT HAVE IN ITS RECORDS THE DOCUMENTATION REQUIRED BY SEC RULE 15C2-11(A) (PARAGRAPH (A) INFORMATION); DID NOT HAVE A REASONABLE BASIS UNDER THE CIRCUMSTANCES FOR BELIEVING THAT THE PARAGRAPH (A) INFORMATION WAS ACCURATE IN ALL MATERIAL RESPECTS; AND DID NOT HAVE A REASONABLE BASIS UNDER THE CIRCUMSTANCES FOR BELIEVING THAT THE SOURCES OF THE PARAGRAPH(A) INFORMATION WERE RELIABLE; THE QUOTATIONS DID NOT REPRESENT A CUSTOMER'S INDICATION OF UNSOLICITED INTEREST. FOR EACH QUOTATION, THE FIRM FAILED TO FILE A FORM 211 WITH NASD AT LEAST THREE BUSINESS DAYS BEFORE THE FIRM'S QUOTATIONS WERE PUBLISHED OR DISPLAYED IN A QUOTATION MEDIUM. THE FIRM FAILED TO ENFORCE ITS WRITTEN SUPERVISORY PROCEDURES. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $15,000.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20050002612-01
 06/26/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 2320, 6130(D), 6955(A) - IN TRANSACTIONS FOR OR WITH A PUBLIC CUSTOMER, THE FIRM FAILED TO USE REASONABLE DILIGENCE TO ASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY OR SALE IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITS CUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILING MARKET CONDITIONS. THE FINDINGS STATED THAT THE FIRM FAILED TO REPORT THE CORRECT SYMBOL INDICATING WHETHER TRANSACTIONS IN ELIGIBLE SECURITIES WERE A BUY, SELL, SELL SHORT, SELL SHORT EXEMPT OR CROSS. THE FINDINGS ALSO STATED THAT THE FIRM TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA. WITHOUT ADMITTING OR DENYING THE FINDINGS, MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM WAS CENSURED, FINED $40,000 AND ORDERED TO PAY $927.90 PLUS INTEREST, IN RESTITUTION TO PUBLIC CUSTOMERS.
10(e)(2)(vi).  Disposition of action or claim:
CENSURE AND RESTITUTION
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HBD 07-123
 07/17/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
07/17/07 STIPULATION AND CONSENT TO PENALTY FILED BY THE DIVISION OF ENFORCEMENT OF NYSE REGULATION INC. AND PENDING A. MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED CONSENTS TO FINDINGS THAT IT: 1) VIOLATED NYSE RULE 123C BY FAILING TO COMPLY WITH REQUIREMENTS GOVERNING THE ENTRY AND CANCELLATION OF MOC AND LOC ORDERS; AND 2) VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE REQUIREMENTS FOR MOC AND LOC ORDERS UNDER NYSE RULE 342. B. THE IMPOSITION BY THE NYSE OF A: 1. CENSURE; AND 2. A FINE IN THE AMOUNT OF $100,000. 08/21/17 DECISION 07-123 ISSUED BY NYSE HEARING BOARD DECISION: VIOLATED NYSE RULE 123C BY FAILING TO COMPLY WITH REQUIREMENTS GOVERNING ENTRY AND CANCELLATION OF MARKET-ON-CLOSE AND LIMIT-ON-CLOSE ORDERS; VIOLATED NYSE RULE 342 BY FAILING TO IMPLEMENT ADEQUATE SUPERVISORY PROCEDURES (SEE LANGUAGE ABOVE) CONSENT TO CENSURE AND $100,000 FINE. FINE PAID OCTOBER 9, 2007.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CASE NO. 20060051501-01
 12/18/2007
10(e)(2)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110, 3010, 3310 - MERRILL LYNCH, PIERCE, FENNER AND SMITH'S AGGREGATE TRADE VOLUME (BUY AND SELL) FOR THREE EQUITY SECURITIES ADVERTISED IN PRIVATE SERVICE PROVIDERS FOR ONE MONTH SUBSTANTIALLY EXCEEDED THE FIRM'S EXECUTED TRADE VOLUME FOR THE SAME SECURITIES. THE FIRM FAILED TO DETERMINE WHETHER THE TRADE VOLUME THAT IT ADVERTISED IN THESE SERVICES ACCURATELY REFLECTED ITS EXECUTED TRADE VOLUME. THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING NASD RULE 3310 - THE IDENTIFICATION OF THE PERSON(S) RESPONSIBLE FOR SUPERVISION WITH RESPECT TO THE ADVERTISED TRADE VOLUME ON SUBSCRIBER SERVICES AND APPLICABLE RULES. THE FIRM DID NOT SUPERVISE THE TRADE VOLUME THAT IT ADVERTISED IN THESE SYSTEMS. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $200,000. WHICH WAS MAILED TO FINRA ON 01/04/2008.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: HBD 08-06
 01/17/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(e)(2)(v).  Description of the action or claim:
01/17/08 REVISED STIPULATION AND CONSENT TO PENALTY FILED BY NYSE REGULATION DIVISION OF ENFORCEMENT CONSENTED TO FINDINGS: 1. VIOLATED NYSE RULE 410 IN THAT, ON APPROXIMATELY 1,000 OCCASIONS, THE FIRM FAILED TO PREVENT A SALES TRADER FROM MAKING POST-EXECUTION ACCOUNT DESIGNATION CHANGES IN THE FIRM'S CUSTOMER ACCOUNTS WITHOUT PRIOR SUPERVISORY REVIEW AND WRITTEN APPROVAL. 2. VIOLATED NYSE RULE 342 IN THAT IT FAILED TO REASONABLY SUPERVISE OR CONTROL CERTAIN OF ITS BUSINESS ACTIVITIES, INCLUDING ESTABLISHING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW TO DETERMINE THAT DELEGATED AUTHORITY AND RESPONSIBILITY WAS BEING PROPERLY EXERCISED, IN THAT IT FAILED TO ENFORCE ITS POLICIES AND PROCEDURES REQUIRING PRIOR SUPERVISORY REVIEW AND WRITTEN APPROVAL OF POST-EXECUTION ACCOUNT DESIGNATION CHANGES. 3. VIOLATED SECTION 17(A)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULES 17A-3 AND 17A-4 THERE UNDER, AND NYSE RULE 440, IN THAT THE FIRM FAILED TO PREVENT A SALES TRADER FROM ENTERING INACCURATE INFORMATION ON THE FIRM'S BOOKS AND RECORDS RELATING TO CUSTOMER ORDERS. 4. VIOLATED NYSE RULE 342.17 IN THAT IT FAILED TO DEVELOP WRITTEN SUPERVISORY POLICIES AND PROCEDURES IN CONNECTION WITH THE REVIEW OF INSTANT MESSAGE COMMUNICATIONS WITH THE PUBLIC RELATING TO ITS BUSINESS. STIPULATED SANCTION: THE IMPOSITION BY NYSE REGULATION, INC. OF A CENSURE AND A $300,000 FINE. 02/28/08 HEARING BOARD DECISION ISSUED 1. VIOLATED NYSE RULE 410 IN THAT, ON APPROXIMATELY 1,000 OCCASIONS, THE FIRM FAILED TO PREVENT A SALES TRADER FROM MAKING POST-EXECUTION ACCOUNT DESIGNATION CHANGES IN THE FIRM'S CUSTOMER ACCOUNTS WITHOUT PRIOR SUPERVISORY REVIEW AND WRITTEN APPROVAL. FINE OF $300,000.00 WAS PAID ON 2/26/2008
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E-2008-0001
 01/17/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
COMMONWEALTH OF MASSACHUSETTS
10(e)(2)(v).  Description of the action or claim:
REGISTERED REPRESENTATIVES OF MLPFS SOLD UNSUITABLE INVESTMENTS TO THE CITY OF SPRINGFIELD, MASSACHUSETTS, WITHOUT DISCLOSING THE RISKS OF THE PRODUCTS, ONE OF WHICH WAS UNDERWRITTEN BY MLPFS. MLPFS DID NOT RECEIVE PROPER AUTHORIZATION BEFORE MAKING THE SALES.
10(e)(2)(vi).  Disposition of action or claim:
CEASE AND DESIST, DISGORGEMENT, CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: EAF0401090003
 02/28/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(e)(2)(v).  Description of the action or claim:
NASD RULES 2110 AND 3010: FROM JANUARY 1, 2002 THROUGH DECEMBER 31, 2004, MERRILL LYNCH FAILED TO ESTABLISH, MAINTAIN AND ENFORCE A SUPERVISORY SYSTEM AND PROCEDURES REASONABLY DESIGNED TO: (I) IDENTIFY CERTAIN OPPORTUNITIES FOR INVESTORS TO PURCHASE MUTUAL FUNDS AT NET ASSET VALUE (NAV) UNDER NAV TRANSFER PROGRAMS, AND (II) PROVIDE ELIGIBLE INVESTORS WITH THE BENEFIT OF AVAILABLE NAV TRANSFER PROGRAMS. FINE IN THE AMOUNT OF $250,000. WAS PAID ON MARCH 13, 2008.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 20080131324
 05/07/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(e)(2)(v).  Description of the action or claim:
NASD RULE 2210(D)(1)(A): A FIRM INFORMATIONAL BROCHURE DISTRIBUTED TO A NATIONAL TELECOMMUNICATIONS PROVIDER'S EMPLOYEES BETWEEN 1998 AND 2001 DETAILING THE FIRM'S HANDLING OF THE COMPANY'S EMPLOYEE STOCK OPTION PLAN FAILED TO PROVIDE A SOUND BASIS FOR EVALUATING THE FACTS IN REGARD TO EMPLOYING THE EXERCISE AND HOLD STRATEGY ON MARGIN BY OMITTING DISCLOSURE OF CERTAIN OF THE ASSOCIATED RISKS. THIRTEEN COMPANY EMPLOYEES WHO PURSUED THE EXERCISE AND HOLD STRATEGY DESCRIBED IN THE BROCHURE BROUGHT ARBITRATION ACTIONS AGAINST THE FIRM RESULTING IN AN AWARD AND SETTLEMENTS TOTALING APPROXIMATELY $6.7 MILLION IN DAMAGES. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED AND FINED $50,000.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: ATL-389
 06/12/1969
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
10(e)(2)(v).  Description of the action or claim:
ARTICLE III, SECTIONS 1 AND 27(A)OF THE RULES OF FAIR PRACTICE: FAILURE TO COMPLY WITH SEC NET CAPITA REQUIREMENT AND FAILURE TO PREPARE A SUPERVISION PROCEDURE. DECISION FINAL NOVEMBER 19, 1969, WHEREIN RESPONDENT MEMBER IS CENSURED AND FINED $500.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 2005000036701
 09/24/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
FINRA
10(e)(2)(v).  Description of the action or claim:
SEC RULES 10B-10, 17A-3, 17A-4, 200(G) OF REGULATION SHO, NASD RULES 2110, 2320, 3010, 3110, 4632, 4632(A), 4632(A)(7)[FORMERLY 6420(A)(8)], 6130, 6130(D), 6230(C)(6), 6230(E), 6620, 6620(F), 6955(A), INTERPRETATIVE MATERIAL 2110-2, MSRB RULE G-14 - MERRILL LYNCH, IN TRANSACTIONS FOR OR WITH A CUSTOMER, FAILED TO USE REASONABLE DILIGENCE TO ASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY OR SELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITS CUSTOMERS WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILING MARKET CONDITIONS; REPORTED TO THE ORDER AUDIT TRAIL SYSTEM (OATS)ROUTE OR COMBINED ORDER/ROUTE REPORTS THAT OATS WAS UNABLE TO LINK TO THE RELATED ORDER ROUTED TO SUPER-MONTAGE OR SELECTNET OR CORRESPONDING NEW ORDER SUBMITTED BY THE DESTINATION MEMBER FIRM DUE TO INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA; SUBMITTED TO OATS REPORTABLE ORDER EVENTS (ROES) THAT WERE REJECTED BY OATS FOR CONTEXT OR SYNTAX ERRORS AND FAILED TO REPAIR THEM; FAILED TO REPORT TO THE TRADE REPORTING AND COMPLIANCE ENGINE (TRACE) THE CORRECT CONTRA-PARTY IDENTIFIER FOR TRANSACTIONS IN TRACE ELIGIBLE SECURITIES; REPORTED TO TRACE TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES IT WAS NOT REQUIRED TO REPORT. FAILED TO CONTEMPORANEOUSLY OR PARTIALLY EXECUTE CUSTOMER LIMIT ORDERS IN NASDAQ SECURITIES AFTER IT TRADED EACH SUBJECT SECURITY FOR ITS OWN MARKET-MAKING ACCOUNT AT A PRICE THAT WOULD HAVE SATISFIED EACH CUSTOMER'S LIMIT ORDER. FAILED TO REPORT, OR TIMELY REPORT, TO THE NASDAQ MARKET CENTER (NMC) THE CANCELLATIONS OF TRADES PREVIOUSLY SUBMITTED TO NASDAQ; INCORRECTLY REPORTED TO THE NMC THE 2ND LEG OF RISK LESS PRINCIPAL TRANSACTIONS IN DESIGNATED SECURITIES AND INCORRECTLY DESIGNATED THE CAPACITY AS PRINCIPAL; FAILED TO REPORT TO THE NMC THE CORRECT SYMBOL INDICATING WHETHER IT EXECUTED TRANSACTIONS IN REPORTABLE SECURITIES IN A PRINCIPAL OR AGENCY CAPACITY; FAILED TO REPORT TO THE NMC OR THE FINRA/NASDAQ TRADE REPORTING FACILITY (FNTRF) THE CORRECT SYMBOL INDICATING WHETHER TRANSACTIONS WERE BUY, SELL, SELL SHORT, SELL SHORT EXEMPT OR CROSS FOR TRANSACTIONS IN REPORTABLE SECURITIES; FAILED TO REPORT TO THE NMC THE CORRECT EXECUTION TIME FOR TRANSACTIONS IN REPORTABLE SECURITIES. THE FIRM FAILED TO REPORT, OR TIMELY REPORT TO THE OTC REPORTING FACILITY THE CANCELLATIONS OF TRADES PREVIOUSLY SUBMITTED; TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA. FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT TRANSACTIONS WERE EXECUTED AT AN AVERAGE PRICE; FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING ITS EXECUTING CAPACITY IN A TRANSACTION. THE FIRM FAILED TO PRESERVE FOR A PERIOD OF NOT LESS THAN 3 YEARS, THE FIRST 2 IN AN ACCESSIBLE PLACE, BROKERAGE ORDER MEMORANDA; IN SHORT SALE ORDER TRANSACTIONS, FAILED TO PROPERLY MARK THE ORDERS AS SHORT; INCORRECTLY DESIGNATED AS .W TO THE FNTRF LAST SALE REPORTS OF DESIGNATED SECURITIES TRANSACTIONS; INCORRECTLY REPORTED TOP THE FNTRF THE 2ND LEG OF RISK LESS PRINCIPAL TRANSACTIONS IN DESIGNATED SECURITIES BECAUSE IT INCORRECTLY DESIGNATED THE CAPACITY AS PRINCIPAL; FAILED TO REPORT TO THE FNTRF LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES; INCORRECTLY DESIGNATED AS .PRP ONE LAST SALE REPORT; FAILED TO REPORT THE CANCELLATION OF ONE TRADE PREVIOUSLY SUBMITTED; FAILED TO REPORT THE CORRECT TIME OF EXECUTION OF A LAST SALE REPORT; REPORTED THE CANCELLATION OF ONE LAST SALE REPORT IT WAS NOT REQUIRED TO; FAILED TO REPORT TO THE FNTRF THE CORRECT SYMBOL INDICATING WHETHER IT EXECUTED TRANSACTIONS IN REPORTABLE SECURITIES IN A PRINCIPAL OR AGENCY CAPACITY. THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION DESIGNED TO ACHIEVE COMPLIANCE RE: TRACE, QUALITY OF MARKETS, TRANSACTION REPORTING, SHORT SALES, OATS, ETC. FINE OF $242,500.00 WAS PAID ON 10/16/2008.
10(e)(2)(vi).  Disposition of action or claim:
FINE, UNDERTAKING, CENSURE, AND RESTITUTION
10(e)(2)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 420-DISTRICT NO.8
 01/01/1972
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
REGISTRANT WAS FOUND BY THE DISTRICT BUSINESS CONDUCT COMMITTEE FOR DISTRICT 8 OF THE NASD TO HAVE PAID A SELLING GROUP COMMISSION TO A NONMEMBER FIRM IN VIOLATION OF SECTION 25 OF THE RULES OF FAIR PRACTICE. REGISTRANT CONSENTED TO CENSURE AND A DINE OF $5,000
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CHI - NO.514
 01/01/1974
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
ALLEGED FAILURE TO MAINTAIN CERTAIN BOOKS AND RECORDS AS REQUIRED. REGISTRANT CONSENTED TO CENSURE AND A FINE OF $9,000 AND THE INDIVIDUALS CONSENTED TO A CENSURE.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: C8A970008
 01/24/1997
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
FILING INACCURATE REPORTS ON MSRB FORM G-37/38 FOR QUARTERS ENDING JUN, 1995, SEP 1995 AND MAR 1996 IN THAT SIX UNDERWRITING TRANSACTIONS WERE NOT INCLUDED ON THE SCHEDULE A'S; RECORDKEEPING VIOLATIONS OF MSRB RULE G-8 IN MAY TO JUN 1996 WITH RESPECT TO A CONSULTANT USED BY THE REGISTRANT IN ALASKA. REGISTRANT CONSENTED TO SANCTIONS OF A CENSURE AND A FINE OF $2,000.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: CO5000043
 08/03/2000
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
THE INVESTIGATION CONCERNED ALLEGATIONS THAT JOHN NUVEEN AND CO INC. (NUVEEN INVESTMENTS AS OF 07/31/2000 AND HEREAFTER NUVEEN) SOLD TREASURY SECURITIES TO MUNICIPAL BOND ISSUERS AT MARK-UPS ALLEGED TO BE EXCESSIVE AND UNDISCLOSED IN CONNECTION WITH CERTAIN ADVANCE REFUNDING TRANSACTIONS. THE SALE OF TREASURY SECURITIES AT SUCH MARK-UPS IS REFERRED TO AS YIELD BURNING. RELATED LITIGATION WAS ALSO BROUGHT AGAINST NUVEEN AND A NUMBER OF INDUSTRY PARTICIPANTS IN A CASE CAPTIONED UNITED STATES OF AMERICA EX. REL LISSACK VS. JOHN NUVEEN AND CO. INC. ALLEGING THAT NUVEEN ENGAGED IN YIELD BURNING AND VIOLATED THE FEDERAL FALSE CLAIMS ACT. SETTLED VIA LETTER OF ACCEPTANCE, WAIVER AND CONSENT
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
NUVEEN INVESTMENTS, LLC
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E8A2005015202
 04/27/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
10(e)(2)(v).  Description of the action or claim:
ALLEGED LATE TRADE REPORTING AND INADEQUATE BOOKS AND RECORDS IN VIOLATION OF MSRB RULE G-14 AND MSRB RULE G-8 RESPECTIVELY. APPLICANT CONSENTED TO SANCTIONS OF A CENSURE AND A FINE OF $5,000 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OF VIOLATIONS.
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
THE MUNICENTER.COM
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: E1020050239-02
 03/21/2006
10(e)(2)(iv).  The Court or body taking the Action and location:
NASD
10(e)(2)(v).  Description of the action or claim:
REPORTING OF MSRB TRANSACTIONS WITH AN INACCURATE TIME AND PRICE. DID NOT REPORT YIELD TO TRACE AND TRADES WERE REPORTED LATE. WRITTEN SUPERVISORY PROCEDURES DID NOT ADEQUATELY ADDRESS TRACE REPORTING. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM CONSENTED TO A CENSURE AND A FINE OF $8,500
10(e)(2)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH PROFESSIONAL CLEARING CORP.
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: N/A
 12/10/2008
10(e)(2)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OF OPTIONS EXCHANGE
10(e)(2)(v).  Description of the action or claim:
VIOLATED RULE 4.11 POSITION LIMITS IN REGARD TO THE DENDREON CORPORATION (DNDN) OPTION CLASS. ON TRADE DATES AUGUST 6, 7, 8, 11 AND 22, AND OCTOBER 13, 2008, BAM OPPORTUNITY FUND, A CUSTOMER OF MERRILL LYNCH PROFESSIONAL CLEARING CORPORATION (MERRILL), HELD POSITIONS AT THE CLOSE OF TRADING OVER THE APPLICABLE POSITION LIMIT IN DNDN OPTIONS OF 250,000 CONTRACTS ON THE SHORT (SHORT CALL/LONG PUT) SIDE OF THE MARKET. AUGUST 6-11, 2008 IS CONSIDERED ONE (1) INSTANCE AND IS THE FIRM'S FIFTH VIOLATION. AUGUST 22 AND OCTOBER 13, 2008 ARE THE FIRM'S SIXTH AND SEVENTH VIOLATIONS WITHIN A TWENTY-FOUR MONTH PERIOD. SUMMARY FINE AMOUNT: FIFTH $5,000; SIXTH $5,000; SEVENTH $5,000. TOTAL FINE AMOUNT: $15,000.00
10(e)(2)(vi).  Disposition of action or claim:
FINE OF $ 15,000.00 PAID ON 12/31/2008
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket/Case Number: 0903521
 06/01/2009
10(e)(2)(iv).  The Court or body taking the Action and location:
Chicago Board of Trade
10(e)(2)(v).  Description of the action or claim:
CBOT alleged MLPFS' timestamp exception rate of 10.95 percent for the month ending March 2009 exceeded the acceptable rate which is in violation of Chicago Mercantile
10(e)(2)(vi).  Disposition of action or claim:
Fine and Settlement
10(e)(2)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED (MLFPS)
10(e)(2)(ii).  Title of Action 10(e)(2)(iii).  Date of Action
Docket / Case Number: 0903874
 07/22/2009
10(e)(2)(iv).  The Court or body taking the Action and location:
Chicagoe Board of Trade (CBOT)
10(e)(2)(v).  Description of the action or claim:
CBOT alleged MLPFS' timestamp exception rate of 9.06 percent for the month ending June 2009 exceeded the acceptable rate which is in violation of Chicago Mercantile Exchange In Rule 536.A.1. Said violation was the third timestamp exception violation within the last 12 months. Without admitting or denying the allegations, MLFPS agreed to pay a fine to settle the matter.
10(e)(2)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(e)(3). found the applicant or a control affiliate to have been the cause of an investment-related business losing its authorization to do business?
   Yes X No
10(e)(4). disciplined the applicant or a control affiliate by expelling or suspending it from membership, by barring or suspending its association with other members, or by otherwise restricting its activities?
   Yes X No
10(f). Has any foreign government, court, regulatory agency, or exchange ever entered an order against the applicant or a control affiliate related to investments or fraud?
X Yes    No
10(f)(1)(i).  The individuals named in the action or claim:
CRABBE HUSON GROUP, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
ORDER PURSUANT TO SECTION 127(1)
 07/22/1999
10(f)(1)(iv).  The Court or body taking the Action and location:
ONTARIO (CANADA) SECURITIES COMMISSION
10(f)(1)(v).  Description of the action or claim:
THE ONTARIO SECURITIES COMMISSION ALLEGED THAT THE CRABBE HUSON GROUP, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) FAILED TO TIMELY FILE CERTAIN REPORTS CONCERNING THE AGGREGATE OWNERSHIP OF IT'S CLIENTS IN A CANADIAN COMPANY. THE ONTARIO SECURITIES COMMISSION ALSO ORDERED THAT THE CRABBE HUSON GROUP, INC. (NKA COLUMBIA MANAGEMENT ADVISORS, INC.) MAKE A MONETARY CONTRIBUTION IN THE AMOUNT OF CDN $40,000.00 TOWARDS THE COST OF THE COMMISSION'S INVESTIGATION OF THIS MATTER.
10(f)(1)(vi).  Disposition of action or claim:
FINE CDN $40,000.00
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH PHATRA SECURITIES COMPANY LTD. (THAILAND)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 05/13/1999
10(f)(1)(iv).  The Court or body taking the Action and location:
THE STOCK EXCHANGE OF THAILAND
10(f)(1)(v).  Description of the action or claim:
ALLEGATIONS OF VARIOUS SALES PRACTICE AND OPERATIONS VIOLATIONS. THE ALLEGED VIOLATIONS OCCURRED PRIMARILY BEFORE ANY MERRILL LYNCH AFFILIATE WAS RESPONSIBLE FOR CONTROL OF THE ENTITY IN QUESTION.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
SMITH ZAIN SECURITIES SDN BHD
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/09/1999
10(f)(1)(iv).  The Court or body taking the Action and location:
SECURITIES COMMISSION OF MALAYSIA
10(f)(1)(v).  Description of the action or claim:
VIOLATION OF THE MALAYSIA SECURITIES INDUSTRY ACT IN PERMITTING AN EMPLOYEE TO EFFECT SECURITIES TRANSACTIONS FROM MAY 1996 TO SEPTEMBER 1997 WITHOUT BEING LICENSED TO DO SO. THE INDIVIDUAL IN QUESTION WAS EMPLOYED PRIOR TO THE TIME THAT ANY MERRILL LYNCH AFFILIATE HAD MANAGEMENT CONTROL OF SMITH ZAIN SECURITIES. AFTER MANAGEMENT CONTROL WAS OBTAINED IN 1997, AND AS SOON AS THE ISSUE WAS IDENTIFIED BY MERRILL LYNCH MANAGEMENT, THE EMPLOYEE WAS TERMINATED AND THE MATTER WAS REPORTED TO THE MALAYSIAN SECURITIES COMMISSION.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH PHATRA SECURITIES COMPANY (THAILAND)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 01/27/1999
10(f)(1)(iv).  The Court or body taking the Action and location:
THAI SECURITIES AND EXCHANGE COMMISSION
10(f)(1)(v).  Description of the action or claim:
ALLEGATIONS STEMMING FROM AN EXAM BY THE THAI SEC THAT CERTAIN VIOLATIONS OF THE THAI SEC HAD OCCURRED, INCLUDING FAILURE TO HAVE CERTAIN ACCOUNT OPENING OR ADVISORY AGREEMENTS, EFFECTING CUSTOMER SELL ORDERS FOR SECURITIES NOT ON DEPOSIT IN THEIR ACCOUNT ERRONEOUSLY PURCHASING SECURITIES FOR FOREIGN CLIENTS ON THE WRONG TRADING BOARD, FAILURE TO APPOINT OR EMPLOY A CUSTODIAN FOR MANAGED ACCOUNT CLIENTS, AND FAILURE TO HAVE CERTAIN ORDER ALLOCATION PROCEDURES. THE ALLEGED VIOLATIONS OCCURRED PRIMARILY BEFORE ANY MERRILL LYNCH AFFILIATE WAS RESPONSIBLE FOR CONTROL OF THE ENTITY IN QUESTION.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/30/1997
10(f)(1)(iv).  The Court or body taking the Action and location:
LONDON STOCK EXCHANGE
10(f)(1)(v).  Description of the action or claim:
MERRILL LYNCH INTERNATIONAL BREACHED LONDON STOCK EXCHANGE RULE 2.11 (CONDITIONAL TRADES).
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH CANADA LIMITED
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/24/1981
10(f)(1)(iv).  The Court or body taking the Action and location:
INVESTMENT DEALERS ASSOCIATION OF CANADA
10(f)(1)(v).  Description of the action or claim:
FAILED TO OBTAIN ESSENTIAL NEW ACCOUNT INFORMATION FOR VARIOUS CUSTOMERS; FAILED TO PREVENT A REGISTERED REPRESENTATIVE FROM EXECUTING UNAUTHORIZED TRADES IN THE ACCOUNTS OF CUSTOMERS; FAILED TO PREVENT IMPROPER CROSS TRADING BY THE AFORESAID ACCOUNT EXECUTIVE; AND PERMITTED CERTAIN ACCOUNTS TO BECOME UNDER-MARGINED. THE FIRM AGREED TO ACCEPT A FINE IN THE AMOUNT OF $250,000.00.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH (ASIA PACIFIC) LIMITED (MLAP)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: N/A
 03/31/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND FUTURES COMMISSION OF HONG KONG (SFC)
10(f)(1)(v).  Description of the action or claim:
SFC CONDUCTED AN INVESTIGATION OF FORMER MLAP STAFF MEMBERS RELATING TO UNAUTHORIZED AND IMPROPER TRADING OF ML WARRANTS THROUGH NOMINEE ACCOUNTS MAINTAINED BY THEM AT THIRD PARTY UNRELATED BROKERS IN HONG KONG. SFC ISSUED A PRESS RELEASE ANNOUNCING A SEVERE REPRIMAND OF MLAP AND MERRILL LYNCH FAR EAST LIMITED FOR THEIR FAILURE TO ADEQUATELY SUPERVISE THE TRADING BY FORMER MLAP EMPLOYEES OF ML WARRANTS.
10(f)(1)(vi).  Disposition of action or claim:
Reprimand
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL AND CO. C.V. (MLICO)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: N/A
 03/31/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
STOCK EXCHANGE OF HONG KONG LIMITED (SEHK)
10(f)(1)(v).  Description of the action or claim:
INACCURATE AND INCOMPLETE INFORMATION WAS PROVIDED TO THE SEHK WITH RESPECT TO THE PLACING AND TRADING ML WARRANTS. SEHK ISSUED A PRESS RELEASE ANNOUNCING A SEVERE REPRIMAND OF MLICO ARISING FROM AN INVESTIGATION OF TRADING IN ML WARRANTS BY THE SECURITIES AND FUTURES COMMISSION OF HONG KONG.
10(f)(1)(vi).  Disposition of action or claim:
Reprimand
10(f)(1)(i).  The individuals named in the action or claim:
MERRIL LYNCH PHATRA SECURITIES COMPANY LIMITED (MLP)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/22/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
THE OFFICE OF THE SEC. & EXCH. COMM. OF THAILAND (SEC)
10(f)(1)(v).  Description of the action or claim:
FOLLOWING THE ANNUAL EXAMINATION OF OPERATIONS BY THE OFFICE OF THAI SEC, MLP WAS FINED FOR SELLING THAI SECURITIES ON BEHALF OF CLIENTS WITHOUT HAVING TAKEN POSSESSION OF SUCH SECURITIES, FAILURE TO COMPLY WITH MANAGER QUALIFICATION PROCEDURES IN CONNECTION WITH THE MANAGEMENT OF PRIVATE FUNDS. MLP ORDERED TO PAY MONETARY FINE.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH JAPAN, INCORPORATED (MLJ)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: FSA NO. 2214
 06/30/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
FINANCIAL SUPERVISERY (KINYU KANTOKU CHO) OF JAPAN (FSA)
10(f)(1)(v).  Description of the action or claim:
VIOLATION IN CONNECTION WITH APPROVAL OF SIDELINE BUSINESSES. THE FSA FOUND THAT MLJ, TOKYO BRANCH ENGAGED IN CERTAIN SWAP TRANSACTIONS AND ACTED AS INTERMEDIARY FOR CERTAIN LOANS WITHOUT OBTAINING THE REQUISITE APPROVALS FOR SUCH BUSINESS. IN ADDITION THE FSA FOUND THAT MLJ HAD NOT PROVIDED NOTIFICATION THAT MLJ DIRECTOR ALSO SERVED AS PART TIME DIRECTOR FOR AN AFFILIATED ENTITY. THE FSA ORDERED THAT MLJ SUSPEND CERTAIN ACTIVITIES FOR 5 BUSINESS DAYS WITH REGARD TO THE INTEREST RATE AND CURRENCY SWAP TRANSACTIONS.
10(f)(1)(vi).  Disposition of action or claim:
Suspension
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH MEXICO, S.A. DE C.V.,CASA DE BOLSA ML MEXICO
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 08/30/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
COMICION NACIONAL BANCARIA Y DE VALORES
10(f)(1)(v).  Description of the action or claim:
FOLLOWING AN EXAMINATION BY CNBV OF ML MEXICO OPERATIONS, THE CNBV IDENTIFIED CERTAIN VIOLATIONS RELATING TO ML MEXICO'S STOCK LENDING BUSINESS. FINE WAS 185,320 MEXICAN PESOS, APPROXIMATELY 19,862.81 U.S. DOLLARS
10(f)(1)(vi).  Disposition of action or claim:
FINE
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 10/19/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
LONDON STOCK EXCHANGE
10(f)(1)(v).  Description of the action or claim:
CONTRARY TO LSE RULE 4.64(E) MLI MISTAKENLY SUBMITTED AN ORDER TO THE ORDER BOOK WITH AN ERRONEOUS PRICE IN BREACH OF ITS OBLIGATION TO HAVE AT ALL TIMES SUFFICIENT ORDER MANAGEMENT SYSTEMS, PROCEDURES AND CONTROLS TO PREVENT THE ENTRY OF SUCH ERRONEOUS ORDERS. FINE WAS 10,000 POUNDS (UK) (APPROXIMATELY $14,240 US)
10(f)(1)(vi).  Disposition of action or claim:
FINE
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH PRIVATE (AUSTRALIA) PTY LIMITED
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: INSPECTION REPORT 1999116
 08/22/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
AUSTRALIAN STOCK EXCHANGE LIMITED A.C.N. (ASX)
10(f)(1)(v).  Description of the action or claim:
MERRILL LYNCH AUSTRALIA WAS FINED FOR BREACHING VARIOUS ASX BUSINESS RULES RELATING TO THE BOOKING AND SUPERVISION OF CERTAIN CLIENT TRANSACTIONS IN A STOCK LISTED ON THE ASX. FINE WAS $18,000 (AUSTRALIA) APPROXIMATELY $9,400 (US).
10(f)(1)(vi).  Disposition of action or claim:
FINE
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH SIM S.P.A.
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 11/28/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
TREASURY/FINANCE,BUDGET & ECONOMIC PLANNING MINISTRY (ITALY)
10(f)(1)(v).  Description of the action or claim:
MERRILL LYNCH SIM S.P.A.; AN ENTITY IN LIQUIDATION WAS FINED FOR ALLEGED VIOLATIONS OF VARIOUS ARTICLES OF THE TREASURY/FINANCE, BUDGET AND ECONOMIC PLANNING MINISTRY (ITALY) RELATING TO CERTAIN CONDUCT OF BROKERAGE BUSINESS ACTIVITIES ON BEHALF OF ITALIAN INVESTORS. FINE WAS 66,000,000 (SIXTY-SIX MILLION ITALIAN LIRA) APPROXIMATELY 33,014 (US).
10(f)(1)(vi).  Disposition of action or claim:
FINE
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL BANK LIMITED
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: N/A
 05/23/2001
10(f)(1)(iv).  The Court or body taking the Action and location:
SECURITIES AND FUTURES AUTHORITY LIMITED (SFA)
10(f)(1)(v).  Description of the action or claim:
THE SFA HAS DECIDED TO INSTITUTE DISCIPLINARY PROCEEDINGS AGAINST MLIB ON THE GROUNDS THAT MLIB VIOLATED CERTAIN FSA PRINCIPLES ARISING FROM A MISAPPROPRIATION BY A FORMER MLIB EMPLOYEE. MLIB IMMEDIATELY TOOK THE APPROPRIATE STEPS TO COMPENSATE THE CUSTOMER, TOOK OTHER CORRECTIVE ACTION AND HAS COOPERATED FULLY WITH THE SFA.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL BANK, LTD.
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 04/03/2002
10(f)(1)(iv).  The Court or body taking the Action and location:
THE SECURITIES AND FUTURES AUTHORITY LIMITED (SFA)
10(f)(1)(v).  Description of the action or claim:
IT WAS ALLEGED THE MLIB FAILED TO ACT WITH DUE SKILL, CARE AND DILIGENCE AND FAILED TO ARRANGE PROPER PROTECTION FOR A CLIENT'S ASSETS IN INSTRUCTING THE TRANSFERS OF NINE SECURITIES, IN BREACH OF PRINCIPLES 2 AND 7 OF SFA'S STATEMENTS OF PRINCIPLE. MLIB ENTERED INTO A SETTLEMENT WITH THE SFA WAS REPRIMANDED, FINED $177,500 AND HAS AGREED TO PAY A CONTRIBUTION OF $56,800 TOWARDS SFA'S COSTS.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines, REPRIMAND
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH INTERNATIONAL
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: NO DOCKET NUMBER
 08/04/2006
10(f)(1)(iv).  The Court or body taking the Action and location:
FINANCIAL SERVICES AUTHORITY
10(f)(1)(v).  Description of the action or claim:
FROM SEPTEMBER 1996 TO DECEMBER 2001, MERRILL LYNCH BREACHED SFA RULE 5.49 BY FAILING TO ACCURATELY REPORT THE CAPACITY IN WHICH IT EXECUTED TRANSACTIONS IN NON-UK EUROPEAN EQUITIES WHEN REPORTING TRANSACTIONS TO THE SFA. FROM DECEMBER 2001 UNTIL JANUARY 2006, MERRILL LYNCH BREACHED FSA RULE SUP 17.6.2R BY FAILING TO ACCURATELY REPORT THE CAPACITY IN WHICH IT EXECUTED TRANSACTIONS IN NON-UK EUROPEAN EQUITIES WHEN REPORTING TRANSACTIONS TO THE FSA. MONETARY FINE WAS 150,000.00 IN BRITISH POUNDS. UNABLE TO ENTER IN PREFORMATTED US DOLLAR SPACE ABOVE.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH EQUITIES AUSTRALIA LIMITED (MLEAL)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: REF: 2003052
 05/08/2003
10(f)(1)(iv).  The Court or body taking the Action and location:
THE AUSTRALIAN STOCK EXCHANGE (ASX)
10(f)(1)(v).  Description of the action or claim:
ALLEGATIONS THAT DEFICIENCIES WERE IDENTIFIED IN MLEAL'S RELEVANT ORDER RECORDS, SYSTEMS AND PROCESSES. THERE WERE ALLEGATIONS OF DEFICIENCIES IN THREE SEPARATE AGENCY ORDER RECORD MATTERS. THE DEFICIENCIES IDENTIFIED IN THE RELEVANT ORDER RECORDS OF THREE MATTERS EVIDENCED FAILINGS OF MLEAL'S SYSTEMS AND PROCESSES AND ITS OBLIGATION TO COMPLY WITH RULE 1.2.1.2. THE FLAWS IN ITS RECORD-KEEPING SYSTEM, AND THE FAILURE TO INPUT OR RECORD DATA CORRECTLY, RESULTED IN THE CREATING OF COMPLETE AND ERRONEOUS ORDER RECORDS. FINE TOTALING $35,000.00 (AUD) FOR MATTERS TRANSACTION ON MAY 6TH AND MAY 7TH, 2003.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH FUTURES (SINGAPORE) PTE. LTD.
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 02/10/1999
10(f)(1)(iv).  The Court or body taking the Action and location:
SINGAPORE INTERNATIONAL MONETARY EXCHANGE LIMITED
10(f)(1)(v).  Description of the action or claim:
MERRILL LYNCH FUTURES (SINGAPORE) PTE. LTD. VIOLATED CERTAIN RULES RELATING TO THE EXECUTION OF ALL OR NON AND CROSS TRADES ON THE FLOOR OF THE SIMEX IN CONNECTION WITH THE NIKKEI 225 FUTURES CONTRACT. A FINE OF 4000 SINGAPORE DOLLARS (APPROXIMATELY $2500 U.S.) AND AN ORDER TO CEASE AND DESIST FROM ANY FUTURE SUCH CONDUCT.
10(f)(1)(vi).  Disposition of action or claim:
A FINE OF 4000 SINGAPORE DOLLARS (APPROXIMATELY $2500 U.S.) AND AN ORDER TO CEASE AND DESIST FROM ANY FUTURE SUCH CONDUCT.
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH JAPAN INCORPORATED
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: MOF 1698
 11/02/1995
10(f)(1)(iv).  The Court or body taking the Action and location:
MINISTRY OF FINANCE JAPAN
10(f)(1)(v).  Description of the action or claim:
THE TOKYO BRANCH OF MERRILL LYNCH JAPAN INCORPORATED EXECUTED CERTAIN PROPRIETARY PURCHASES OF SECURITIES UNDERWRITTEN BY MERRILL LYNCH JAPAN DURING STABILIZATION PERIODS WHICH MAY HAVE BEEN VIOLATIVE WITH MINISTRY OF FINANCE RULES. THE EQUITY PROPRIETARY TRADING ACTIVITIES OF THE ASIA PORTFOLIO TRADING DIVISION OF THE ARBITRAGE GROUP OF THE MERRILL LYNCH JAPAN TOKYO BRANCH WERE SUSPENDED FOR TWO DAYS (NOVEMBER 7,8, 1995).
10(f)(1)(vi).  Disposition of action or claim:
Suspension
10(f)(1)(i).  The individuals named in the action or claim:
MERRIL LYNCH PHATRA SECURITIES COMPANY LIMITED (MLP)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: UNKNOWN
 06/22/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
THE OFFICE OF THE SEC. AND EXCH. COMM. OF THAILAND (SEC)
10(f)(1)(v).  Description of the action or claim:
FOLLOWING THE ANNUAL EXAMINATION OF OPERATIONS BY THE OFFICE OF THAI SEC, MLP WAS FINED FOR SELLING THAI SECURITIES ON BEHALF OF CLIENTS WITHOUT HAVING TAKEN POSSESSION OF SUCH SECURITIES, FAILURE TO COMPLY WITH MANAGER QUALIFICATION PROCEDURES IN CONNECTION WITH THE MANAGEMENT OF PRIVATE FUNDS. MLP ORDERED TO PAY MONETARY FINE.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH JAPAN, INCORPORATED (MLJ)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: FSA NO. 2214
 06/30/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
FINANCIAL SUPERVISERY (KINYU KANTOKU CHO) OF JAPAN (FSA)
10(f)(1)(v).  Description of the action or claim:
VIOLATION IN CONNECTION WITH APPROVAL OF SIDELINE BUSINESSES. THE FSA FOUND THAT MLJ, TOKYO BRANCH ENGAGED IN CERTAIN SWAP TRANSACTIONS AND ACTED AS INTERMEDIARY FOR CERTAIN LOANS WITHOUT OBTAINING THE REQUISITE APPROVALS FOR SUCH BUSINESS. IN ADDITION THE FSA FOUND THAT MLJ HAD NOT PROVIDED NOTIFICATION THAT MLJ DIRECTOR ALSO SERVED AS PART TIME DIRECTOR FOR AN AFFILIATED ENTITY. THE FSA ORDERED THAT MLJ SUSPEND CERTAIN ACTIVITIES FOR 5 BUSINESS DAYS WITH REGARD TO THE INTEREST RATE AND CURRENCY SWAP TRANSACTIONS.
10(f)(1)(vi).  Disposition of action or claim:
Suspension
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH EQUITIES AUSTRALIA LIMITED (MLEAL)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: REF: 2003052
 05/08/2003
10(f)(1)(iv).  The Court or body taking the Action and location:
THE AUSTRALIAN STOCK EXCHANGE (ASX)
10(f)(1)(v).  Description of the action or claim:
ALLEGATIONS THAT DEFICIENCIES WERE IDENTIFIED IN MLEAL'S RELEVANT ORDER RECORDS, SYSTEMS AND PROCESSES. THERE WERE ALLEGATIONS OF DEFICIENCIES IN THREE SEPARATE AGENCY ORDER RECORD MATTERS. THE DEFICIENCIES IDENTIFIED IN THE RELEVANT ORDER RECORDS OF THREE MATTERS EVIDENCED FAILINGS OF MLEAL'S SYSTEMS AND PROCESSES AND ITS OBLIGATION TO COMPLY WITH RULE 1.2.1.2. THE FLAWS IN ITS RECORD-KEEPING SYSTEM, AND THE FAILURE TO INPUT OR RECORD DATA CORRECTLY, RESULTED IN THE CREATING OF COMPLETE AND ERRONEOUS ORDER RECORDS. FINE TOTALING $35,000.00 (AUD) FOR MATTERS TRANSACTION ON MAY 6TH AND MAY 7TH, 2003.
10(f)(1)(vi).  Disposition of action or claim:
Civil and Administrative Penalties/Fines
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH JAPAN INCORPORATED
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: MOF 1698
 11/02/1995
10(f)(1)(iv).  The Court or body taking the Action and location:
MINISTRY OF FINANCE JAPAN
10(f)(1)(v).  Description of the action or claim:
THE TOKYO BRANCH OF MERRILL LYNCH JAPAN INCORPORATED EXECUTED CERTAIN PROPRIETARY PURCHASES OF SECURITIES UNDERWRITTEN BY MERRILL LYNCH JAPAN DURING STABILIZATION PERIODS WHICH MAY HAVE BEEN VIOLATIVE WITH MINISTRY OF FINANCE RULES. THE EQUITY PROPRIETARY TRADING ACTIVITIES OF THE ASIA PORTFOLIO TRADING DIVISION OF THE ARBITRAGE GROUP OF THE MERRILL LYNCH JAPAN TOKYO BRANCH WERE SUSPENDED FOR TWO DAYS (NOVEMBER 7,8, 1995).
10(f)(1)(vi).  Disposition of action or claim:
Suspension
10(f)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH JAPAN, INCORPORATED (MLJ)
10(f)(1)(ii).  Title of Action 10(f)(1)(iii).  Date of Action
Docket/Case Number: FSA NO. 2214
 06/30/2000
10(f)(1)(iv).  The Court or body taking the Action and location:
FINANCIAL SUPERVISERY (KINYU KANTOKU CHO) OF JAPAN (FSA)
10(f)(1)(v).  Description of the action or claim:
VIOLATION IN CONNECTION WITH APPROVAL OF SIDELINE BUSINESSES. THE FSA FOUND THAT MLJ, TOKYO BRANCH ENGAGED IN CERTAIN SWAP TRANSACTIONS AND ACTED AS INTERMEDIARY FOR CERTAIN LOANS WITHOUT OBTAINING THE REQUISITE APPROVALS FOR SUCH BUSINESS. IN ADDITION THE FSA FOUND THAT MLJ HAD NOT PROVIDED NOTIFICATION THAT MLJ DIRECTOR ALSO SERVED AS PART TIME DIRECTOR FOR AN AFFILIATED ENTITY. THE FSA ORDERED THAT MLJ SUSPEND CERTAIN ACTIVITIES FOR 5 BUSINESS DAYS WITH REGARD TO THE INTEREST RATE AND CURRENCY SWAP TRANSACTIONS.
10(f)(1)(vi).  Disposition of action or claim:
Suspension
10(g). Is the applicant or a control affiliate now the subject of any proceeding that could result in a yes answer to questions 10(a) - 10(f)?
X Yes    No
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: 99-0056
 12/15/1999
10(g)(1)(iv).  The Court or body taking the Action and location:
CHICAGO BOARD OPTIONS EXCHANGE
10(g)(1)(v).  Description of the action or claim:
THE FIRM HAS BEEN NOTIFIED THAT THE CBOE BUSINESS CONDUCT COMMITTEE ISSUED A STATEMENT OF CHARGES ALLEGING THAT THE FIRM FAILED TO SUPERVISE AND FAILED TO ESTABLISH AND IMPLEMENT ADEQUATE PROCEDURES REASONABLY DESIGNED TO SUPERVISE THE ACTIVITIES OF A REGISTERED REPRESENTATIVE WHO ALLEGEDLY EFFECTED EXCESSIVE AND UNSUITABLE STOCK AND OPTIONS TRANSACTIONS FOR PUBLIC CUSTOMERS. THIS MATTER IS PENDING. THE FIRM HAS CONTENDED THAT ITS SUPERVISION AND SUPERVISORY PROCEDURES WERE ADEQUATE AND REASONABLY DESIGNED TO SUPERVISE THE REGISTERED REPRESENTATIVE IN QUESTION.
10(g)(1)(vi).  Disposition of action or claim:
PENDING
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: 9000151
 03/11/1991
10(g)(1)(iv).  The Court or body taking the Action and location:
STATE OF ILLINOIS
10(g)(1)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FAILED TO PROPERLY SUPERVISE A FINANCIAL ADVISOR WHEN STOCKS AND BONDS WERE SOLD BY THE FINANCIAL ADVISOR TO AT LEAST THREE ILLINOIS RESIDENTS. MERRILL LYNCH WAS DISMISSED. NO FURTHER ACTION.
10(g)(1)(vi).  Disposition of action or claim:
Other
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: 9000144
 07/23/1990
10(g)(1)(iv).  The Court or body taking the Action and location:
STATE OF ILLINOIS
10(g)(1)(v).  Description of the action or claim:
ILLINOIS ISSUED A NOTICE OF HEARING SEEKING AN ORDER OF PROHIBITION AGAINST THE RESPONDENT BASED UPON ALLEGED MISREPRESENTATION AND THE FAILURE OF THE DEALER TO SUPERVISE. MERRILL LYNCH WAS DISMISSED. NO FURTHER ACTION.
10(g)(1)(vi).  Disposition of action or claim:
Other
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: 8900697
 06/19/1990
10(g)(1)(iv).  The Court or body taking the Action and location:
ILLINOIS SECURITIES DEPARTMENT
10(g)(1)(v).  Description of the action or claim:
IT IS ALLEGED THAT MERRILL LYNCH FINANCIAL ADVISOR HOFFMAN MISREPRESENTED OR OMITTED MATERIAL FACTS IN RECOMMENDING AND PURCHASING CERTAIN SECURITIES AND THE SECOND COUNT TO ALLEGE UNSUITABLE RECOMMENDATIONS. MERRILL LYNCH WAS DISMISSED. NO FURTHER ACTION.
10(g)(1)(vi).  Disposition of action or claim:
Other
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: HBD 07-163
 12/12/2007
10(g)(1)(iv).  The Court or body taking the Action and location:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
10(g)(1)(v).  Description of the action or claim:
12/12/07 STIPULATION OF FACTS AND CONSENT TO PENALTY FILED BY NYSE REGULATION'S DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: 1. VIOLATED NYSE RULE 411(B) (1) BY INTRODUCING FOR EXECUTION ON THE NYSE, PRIOR TO THE OPENING, CUSTOMER ODD-LOT MARKET ORDERS THAT AGGREGATE 100 SHARES OR MORE WITHOUT HAVING THOSE ORDERS CONSOLIDATED INTO ROUND LOTS AS FAR AS POSSIBLE; AND 2. VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULES AND POLICIES PERTAINING TO ODD-LOT MARKET ORDERS BEING ROUTED TO THE NYSE PRIOR TO THE OPENING THROUGH THE FIRM'S ELECTRONIC ORDER ENTRY SYSTEM. STIPULATED SANCTION: CENSURE AND FINE IN THE AMOUNT OF $160,000. 12/20/07 DECISION NO. 07-163 ISSUED BY NYSE HEARING BOARD. DECISION: VIOLATED NYSE RULE 411(B)(1) BY INTRODUCING FOR EXECUTION ON THE NYSE, PRIOR TO THE OPENING, CUSTOMER ODD-LOT MARKET ORDERS THAT AGGREGATE 100 SHARES OR MORE WITHOUT HAVING THOSE ORDERS CONSOLIDATED INTO ROUND LOTS AS FAR AS POSSIBLE; AND VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE CONTROLS, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NYSE RULES AND POLICIES PERTAINING TO ODD-LOT MARKET ORDERS BEING ROUTED TO THE NYSE PRIOR TO THE OPENING THROUGH THE FIRM'S ELECTRONIC ORDER ENTRY SYSTEM. CONSENT TO CENSURE AND $160,000 FINE. 02/13/08 THE DECISION BECAME FINAL AS OF THE CLOSE OF BUSINESS ON JANUARY 14, 2008 AND THE FINE BECAME PAYABLE ON THAT SAME DATE. FINE OF $160,000.00 WAS PAID ON FEBRUARY 26, 2006.
10(g)(1)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(g)(1)(i).  The individuals named in the action or claim:
MERRILL LYNCH, PIERCE, FENNER AND SMITH INCORPORATED
10(g)(1)(ii).  Title of Action 10(g)(1)(iii).  Date of Action
Docket/Case Number: 2007009456801
 02/25/2008
10(g)(1)(iv).  The Court or body taking the Action and location:
FINANCIAL INDUSTRY REGULATORY AUTHORITY
10(g)(1)(v).  Description of the action or claim:
SECURITIES EXCHANGE ACT OF 1934 RULES 10B-10(A) AND 17A-3, NASD RULES 2110, 2230, 2260, 3010(A) AND (B) AND 3110: FROM AT LEAST JANUARY 2001 UNTIL JANUARY 2006, AS A RESULT OF CERTAIN OPERATIONAL AND SUPERVISORY DEFICIENCIES, MERRILL LYNCH FAILED TO TIMELY AND CONSISTENTLY UPDATE THE FIRM'S RECORD SYSTEM RELATING TO CERTAIN INVESTMENT ADVISORY AND FEE-BASED ACCOUNTS. THE FIRM CAUSED PROXIES TO BE DELIVERED TO THE WRONG ADDRESS WHEN CERTAIN CLIENTS IN THE AFFECTED INVESTMENT ADVISORY OR FEE-BASED ACCOUNTS EITHER (I) CHANGED INVESTMENT ADVISORS, (II) CHANGED INVESTMENT ADVISORY OR FEE-BASED PROGRAMS, OR (III) TERMINATED THEIR ENROLLMENT IN THE AFFECTED PROGRAMS. THE CLIENT'S ORIGINAL INVESTMENT ADVISOR CONTINUED TO RECEIVE PROXIES THAT SHOULD HAVE BEEN DELIVERED TO EITHER ANOTHER INVESTMENT ADVISOR OR THE CLIENT. MERRILL LYNCH'S OPERATIONAL PROBLEM ALSO RESULTED IN THE FIRM'S FAILURE TO DELIVER TRADE CONFIRMATIONS TO CERTAIN CLIENTS WHO TERMINATED ENROLLMENT IN THE AFFECTED INVESTMENT ADVISORY AND FEE-BASED PROGRAMS AND THE MISDELIVERY OF TRADE CONFIRMATIONS TO CERTAIN CLIENTS WHO CHANGED INVESTMENT ADVISORS OR INVESTMENT ADVISORY OR FEE-BASED PROGRAMS. ALTHOUGH THE AFFECTED CLIENTS CONTINUED TO RECEIVE MONTHLY ACCOUNT STATEMENTS THAT REFLECTED DETAILS ABOUT THE TRANSACTIONS EXECUTED IN THEIR RESPECTIVE ACCOUNTS, THE MONTHLY ACCOUNT STATEMENTS WERE NOT PRODUCED PRIOR TO OR CONTEMPORANEOUSLY WITH SECURITIES TRANSACTIONS. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE THE FIRM IS CENSURED, FINED $175,000.00. THE FINE WAS PAID ON MARCH 8, 2008.
10(g)(1)(vi).  Disposition of action or claim:
FINE AND CENSURE
10(h). Has a bonding company denied, paid out on, or revoked a bond for the applicant or a control affiliate?
   Yes X No
10(i). Does the applicant or a control affiliate have any unsatisfied judgments or liens against it?
   Yes X No

ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL CRIMINAL VIOLATIONS. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a)
SIGNATURE: The Registrant submitting this Form, and as required, the SEC supplement and Schedules A-D, And the executing official hereby represent that all the information contained herein is true, correct and complete.
11(a).  Signature of Official responsible for Form:
Joanne Kane
 11(b).  Telephone Number:
(617) 585-4111
11(c).  Title of Signing Officer:
Senior Vice President
 11(d).  Date Signed (Month/Day/Year)
10/06/2009