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directors were $1,000 for full and associate memberships, $350
for GIM and COM memberships, and no fee for an IDEM membership.
In the early 1970's petitioner's board of directors increased the
transfer fees for full and associate memberships from $500 to
$750. During this same period, petitioner constructed the new
trading floor. In 1978, petitioner's board of directors
increased the transfer fee for full and associate memberships
from $750 to $1,000, effective in 1979 when petitioner began
construction of the adjacent 22-story commercial building.
The final sentence of rule 243 states that “The transfer fee
so collected shall be used to purchase, retire or redeem the
indebtedness encumbering the Board of Trade Building.”4 In 1988,
1989, and 1990, petitioner received transfer fees totaling
$319,800, $333,350, and $345,050, respectively. The amount of
4 In 1937, petitioner and Chicago Board of Trade Safe
Deposit Co. (a corporation affiliated with petitioner, which
owned and leased the CBOT building to petitioner because at that
time petitioner was not permitted under Illinois law to own
property with a value in excess of $200,000), had an opportunity
to refinance the CBOT building at a lower interest rate and on
more favorable payment terms, provided that the outstanding
mortgage principal balance was reduced by $1,218,000. In order
to raise capital needed to reduce the mortgage principal,
petitioner made a special assessment against all members, and
rule 111 was amended to require that all transfer fees be used
for the purchase, retirement, or reduction of the mortgage
obligation. In 1947, after repeal of the property ownership
prohibition, petitioner acquired its building from Chicago Board
of Trade Safe Deposit Co., and rule 111 was amended to reflect
the ownership change of the CBOT building. As amended, rule 111
required that all transfer fees be used for the purchase,
retirement, or redemption of the indebtedness encumbering the
CBOT building.
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