THE AMERICAN LAW INSTITUTE

Norris Darrell, Chairman of the Council R. Ammi Cutter, President Roswell B. Perkins, President Designate Bernard G. Segal, 1st Vice President Edward T. Gignoux, 2d Vice President Bennett Boskey, Treasurer , Director Paul A. Wolkin, Executive Vice President

COUNCIL

Frederick A. Ballard Washington District of Columbia F. M. Bird Atlanta Georgia Bennett Boskey Washington District of Columbia Charles D. Breitel New York New York John G. Buchanan Pittsburgh Hugh Calkins Cleveland Ohio William T. Coleman, Jr. Washington District of Columbia Roger C. Cramton Ithaca New York Lloyd N. Cutler Washington District of Columbia R. Ammi Cutter Cambridge Massachusetts Norris Darrell New York New York Ronan E. Degnan Berkeley California Hardy C. Dillard Charlottesville Virginia H. Vernon Eney Baltimore Maryland William H. Erickson Denver Colorado Thomas E. Fairchild Chicago Jefferson B. Fordham Salt Lake City Utah John P. Frank Phoenix Arizona Paul A. Freund Cambridge Massachusetts Henry J. Friendly New York New York Edward T. Gignoux Portland Maine Ruth Bader Ginsburg New York New York Erwin N. Griswold Washington District of Columbia Clement F. Haynsworth, Jr. Greenville South Carolina Shirley M. Hufstedler Los Angeles California Vester T. Hughes, Jr. Dallas Texas William J. Jameson Billings Montana Joseph F. Johnston Birmingham Alabama Edward Hirsch Levi Chicago Illinois Robert MacCrate New York New York William L. Marbury Baltimore Maryland Hale McCown Lincoln Nebraska Wade H. McCree, Jr. Washington District of Columbia Carl McGowan Washington District of Columbia Vincent L. McKusick Portland Maine

I A.L.I.Fed.Sec.Code OFFICERS AND COUNCIL

COUNCIL-Continued Charles Merton Merrill San Francisco California Roswell B. Perkins New York New York Louis H. Pollak Pennsylvania H. Chapman Rose Cleveland Ohio Ernest J. Sargeant Boston Massachusetts Walter V. Schaefer Chicago Illinois Austin W. Scott Cambridge Massachusetts Bernard G. Segal Philadelphia Pennsylvania Lyman M. Tondel, Jr. New York New York Roger J. Traynor Berkeley California Patricia M. Wald Washington District of Columbia Lawrence E. Walsh New York New York William H. Webster Washington District of Columbia Charles H. Willard Guilford Connecticut James H. Wilson, Jr. Atlanta Georgia John Minor Wisdom New Orleans Louisiana Frank M. Wozencraft Houston Texas Austin Texas Charles E. Wyzanski, Jr. Boston Massachusetts FEDERAL SECURITIES CODE

REPORTER Louis Loss, Law School, Cambridge, Massachusetts

ASSISTANT REPORTER (for Part XIV) VICTOR BRUDNEY, Harvard University Law School, Cambridge, Massachu. setts CONSULTANTS MILTON H. COHEN, Chicago, Illinois VERN COUNTRYMAN, Harvard University Law School, Cambridge, Massa- chusetts (for Part XII) THEODORE H. FOCHT, Washington, District of Columbia (for Part XII) RAY GARRETT, JR., Chicago, Illinois (deceased 1980) L. C. B. GOWER, London, England ALTON B. HARRIS, Chicago, Illinois (for Parts VII-XI) DAVID S. HENKEL, New York, New York CHARLES JACKSON, JR., Boston, Massachusetts (for Part XIV) HOMER KRIPKE, New York University School of Law, New York, New York (as of 1971) MILTON P. KROLL, Washington, District of Columbia ROBERT H. MUNDHEIM, General Counsel, Treasury Department, Washing- ton, District of Columbia DAVID S. RUDER, Northwestern University School of Law, Chicago, Illinois (for Parts XVI and XVII) ADVISERS JEFFREY B. BARTELL, formerly Wisconsin Commissioner of Securities, Madison, Wisconsin (as of 1974) PETER A. BATOR, New York, New York KENNETH J. BIALKIN, New York, New York (as of 1974) GEORGE A. BLACKSTONE, San Francisco, California WILLIAM L. CARY, Columbia University School of Law, New York, New York MANUEL F. COHEN, Washington, District of Columbia (deceased 1977) RALPH H. DEMMLER, Pittsburgh, Pennsylvania THOMAS E. FAIRCHILD, Chief Judge, Court of Appeals for the Seventh Circuit, Chicago, Illinois ARTHUR FLEISCHER, JR., New York, New York HENRY J. FRIENDLY, Senior Circuit Judge, United States Court of Appeals for the Second Circuit, New York, New York THOMAS A. HALLERAN, New York, New York (deceased 1975) RICHARD W. JENNINGS, University of California School of Law, Berkeley, California PHILIP A. LOOMIS, JR., Commissioner, Securities and Exchange Commission, Washington, District of Columbia HAROLD L. MARSH, JR., Los Angeles, California VINCENT L. McKUSICK, Chief Justice, Supreme Judicial Court of Maine, Portland, Maine ERNEST J. SARGEANT, Boston, Massachusetts RICHARD B. SMITH, New York, New York A. A. SOMMER, JR., Washington, District of Columbia ALLEN E. THROOP, Washington, District of Columbia JOSEPH L. WEINER, New York, New York (deceased 1976) FRANCIS M. WHEAT, Los Angeles, California CHARLES SEYMOUR WHITMAN, III, New York, New York (as of 1974) 1 A.L..Fed.Sec.Code V REPORTERS, CONSULTANTS & ADVISERS

EX OFFICIO R. AMMi CUTTER, Cambridge, Massachusetts President, The American Law Institute HERBERT WECHSLER, New York, New York Director, The American Law Institute

OBSERVERS FRANZ F. OPPER, Counsel, Subcommittee on Commerce and Finance, House Committee on Interstate and Foreign Commerce, Washington, District of Columbia STEPHEN J. PARADISE, formerly Assistant Counsel, Senate Committee on Banking, Housing and Urban Affairs, Washington, District of Columbia