SUBJECT: NSCC’S MUTUAL FUND SERVICES TRANSFER SERVICE

National Securities Clearing Corporation ("NSCC" or the "Corporation") filed a rule change with the Securities and Exchange Commission ("SEC"), pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934.

On November 15, 1996, the Commission approved an NSCC rule filing which enabled the Corporation to facilitate transfers of eligible assets in any type of retirement plan account, including but not limited to Individual Retirement Accounts ("IRA"). In that filing, NSCC indicated that it will initially transfer eligible assets in IRAs. The Commission’s Approval Order appears to limit transfers to assets held in IRAs.

This filing clarifies that the Corporation may permit the transfer of eligible assets in all types of retirement plans.

 NSCC Members will be notified by Important Notice when the Corporation intends to effect these changes, which is expected to be in December 1998.

Written comments on the proposed rule filing may be addressed to David F. Hoyt, Assistant Secretary, National Securities Clearing Corporation, 55 Water Street, New York, New York 10041, and your comments will be forwarded to the Securities and Exchange Commission. You may also address your written comments to the Secretary of the Commission, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549. We request that you provide NSCC with a copy of your comments.

Questions regarding the rule filing should be directed to Richard J. Paley, Associate Counsel, at (212) 412-8874. Questions regarding the ToRA service should be directed to your account manager, NSCC’s Mutual Fund Services Hotline, at (212) 412-8893, or Adam H. Purcell, Participant Services Representative, at (212) 412-8848.

 Robert J. Woldow
Managing Director and General Counsel