United Western Bancorp Inc (fka UWBKQ)

[imawswami]

Etrade update on Non-transferable status

Want to thank everyone who has contributed to the E*Trade struggle with share removal.

The Letter:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=155222870

...had been officially recieved and the response, that is system-wide status for all holders of UWBKQ securities, will be that the security stays in our account.

Though the particulars on permanency were not expressed, personal belief is that we will be charged a monthly fee, at some point, for that privilege.

Why?
This is the DTC 2020 fee schedule:

https://www.sec.gov/rules/sro/dtc/2018/34-84768-ex5.pdf

In particular:

Stock, bond, registered and
bearer muniIssue that have
been nontransferable for up to 6
years (surcharge)

0.20
Per issue per month

IssueStock, bonds, registered
and bearer muni that remains
nontransferable after 6 years
(surcharge)

$11.00
Per issue per month
--------------------------------

As you can see, big difference! Any broker holding issued stock (non-transferable beyond 6 years), are assessed a fee of $11 per month for each.

In the letter sent to corporate, Ally Invest (Ally Bank's brokerage arm) was given as an example of a broker who passes on such a fee to those shareholders of non-transferable securities of +6 years.

The failure of E^Trade (as a fiduciary) to pass on such a fee, was the fatal flaw in their argument (to clients) to unilaterally remove shares, presumably at the behest of the DTC. This was a fiction on their part.

The DTC will hold the shares, if the broker pays the fee. The DTC wants to make money, just like anyone else, so E^trade, just like other brokers was trying to quickly clean it's books of the non-transferables, to avoid the fee.

What does this mean for all investors of non-transferable securities (like UWBKQ) that have not had a transfer agent in more than 6 years?

Have money in your account, set aside to cover such an event, wherein the broker begins to levy such a charge. And be vigilant for such notifications. I believe they will be coming for all of us here (irregardless of broker) at some point.

Thanks again everyone. It has definitely been a group effort.

pete