New procedures for DTC payments effective in early 2011.

• Position: News & Numbers - Depository Trust Company - Brief article

Beginning February 7, 2011, the Depository Trust Company (DTC) will more strictly enforce its rules for principal and interest payments. The DTC, which collects and allocates payments daily for municipal and other types of securities, requires that payments, along with allocation details for such payments, are made to the DTC no later than 3 p.m., Eastern time, so it can make timely and accurate payments to bondholders.

Currently, the DTC makes payments to bondholders on their scheduled dates for nearly all payments, even when the DTC receives payments after the intra-day cut-off time or when details about the payments are missing. Beginning in early February, the DTC will make payments to the bondholders only after the funds and the accompanying allocation details are received from the paying agent or government.

To comply with the DTC's rules...