Rule G-25 Improper Use of Assets

(a) Improper Use. No broker, dealer, or municipal securities dealer shall make improper use of municipal securities or funds held on behalf of another person.

(b) Guaranties. No broker, dealer, or municipal securities dealer shall guarantee or offer to guarantee a customer against loss in

(i) an account carried or introduced by such broker, dealer, or municipal securities dealer in which municipal securities are held or for which municipal securities are purchased, sold or exchanged or

(ii) a transaction in municipal securities with or for a customer.

Put options and repurchase agreements shall not be deemed to be guaranties against loss if their terms are provided in writing to the customer with or on the confirmation of the transaction and recorded in accordance with rule G-8(a)(v).


(c) Sharing Account. No broker, dealer, or municipal securities dealer shall share, directly or indirectly, in the profits or losses of

(i) an account of a customer carried or introduced by such broker, dealer, or municipal securities dealer in which municipal securities are held or for which municipal securities are purchased or sold or

(ii) a transaction in municipal securities with or for a customer.

Nothing herein contained shall be construed to prohibit an associated person of a broker, dealer, or municipal securities dealer from participating in his or her private capacity in an investment partnership or joint account, provided that such participation is solely in direct proportion to the financial contribution made by such person to the partnership or account.