From: Robert S. Banks, Jr. [rbanks@bankslawoffice.com]
Sent: Friday, October 03, 2003 6:56 PM
To: rule-comments@sec.gov
Subject: NASD Rule 3110(f) (NASD-98-74)

I oppose the NASD's proposed amendment to Rule 3110[f].  THe rule would permit 
broker dealers to insert choice of law provisions that are against public policy 
and unenforceable in many states.  Under the proposed rule, which is unprecedented, 
firms could select the state's law that would apply to particular securities 
transactions.  Most brokerage firms would select New York law, and the rule would 
in most cases permit them to do so.  In so doing, investors in Oregon, as in other 
states, would be deprived of the protections of the blue sky laws that were enacted 
by their legislature to protect them.  No Oregon court would enforce such a waiver, 
and the NASD should not be permitted to allow firms to avoid this result in 
arbitration.  This problem would also add an additional ground for vacatur motions, 
on grounds that the law of the states preventing waiver of their state's securities 
laws were disregarded.  I urge you to reject this proposed amendment.


Robert S. Banks, Jr.
Banks Law Office, P.C.
Suite 1600
200 S.W. Market Street
Portland, Oregon 97201
503/222-7475 Telephone
503/248-0138 Facsimile
RBanks@BanksLawOffice.com
www.BanksLawOffice.com