============= Page 1 of 2 ============= REPORTING BURDEN F.R. U-1 Public reporting burden for this collection at inlorn .t is estimated to average 1.66 minutes (0.031 hours) per resp...-e, D.M.B. No. 7100-0115 including the lime for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and Approval expires June 30. 1994 completing and reviewing the collection of information. Send comments regarding this burden estimate, including suggestions for reducing this burden, to Secretary. Board of Governors of the Federal Reserve System, 20th and C Streets, N.W., Washington, D.C. 20551: and to the Office of Management and Budget, Paperwork Reduction Project (7100-0115), Washington, D.C. 20503. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Statement of Purpose for an Extension of Credit Secured By Margin Stock Charter National Bank - Houston Name of Bank (Federal Reserve Form U-1) This form is required by law (15 U.S.C. 78g and 78w; 12 CFR 221). INSTRUCTIONS 1. This form must be completed when a bank extends credit in excess nated as qualified for trading in the National Market System under a of $100,000 secured directly or indirectly, in whole or in part, by any designation plan approved by the Securities and Exchange margin stock. Commission (NMS security); and (4) shares of mutual funds, unless 95 per cent of the assets of the fund are continuously invested in U.S. 2. The term "margin stock" is defined in Regulation U (12 CFR 221) government, agency, state, or municipal obligations. and includes, principally: (1) stocks that are registered on a national securities exchange or that are on the Federal Reserve Board's List 3. Please print or type (if space is inadequate, attach separate sheet). of Marginable OTC Stocks; (2) debt securities (bonds) that are con- vertible into margin stocks; (3) any over-the-counter security desig- PART I. To be completed by borrower(s). 1. What is the amount of the credit being extended? $7,500,000.00 2.;Will any part of this credit be used to purchase or carry margin stock? Yes ,N No If the answer is "no", describe the specific purpose of the credit. m i s r e 1 1 an eou s expenses I (we) have read this form and certify that to the best of my (our) ing this credit are authentic, genuine, unaltered, and not stolen, forged, knowledge and belief the information given is true, accurate, and or counterfeit. complete, and that the margin stock and any other securities collateraliz- Signed: Signed: orrower(s Signature Date Borrowe ' )gnature Date Kenneth T . lay Linda P. Lav Print or Type Name Print or Type Name This form should not be signed in blank. A borrower who falsely certifies the purpose of a credit on this form or otherwise willfully or intentionally evades the provisions of Regulation U will also violate Federal Reserve Regulation X, "Borrowers Who Obtain Securities Credit." BOANFBIILAY: 30930 BF002-00172 GOVERNMENT EXHIBIT 188 Crim. No. H-04-25 (S-2) ============= Page 2 of 2 ============= 09-28-1994 Loan No 79729-001 FEDERAL RESERVE FORM U- (Continued) Page 2 PART 11. To be completed by bank only if the purpose of the credit is to purchase or carry margin stock (Part 1 (2) answered "yes"). 1. List the margin stock securing this credit; do not include debt securities convertible into margin stock. The maximum loan to value of margin stock is _ per cent of its current market value under the current supplement to Regulation U. No, of shares Issue Market price per share Date and source of valuation (See note below) Total market value per issue 2. List the debt securities convertible into margin stock securing this credit. The maximum loan value of such debt securities is _ per cent of the current market value under the current Supplement to Regulation U. Principal amount Issue Market price Date and source of valuation (See note below) Total market value per issue 3. List other collateral including non margin stock securing this credit. Describe briefly Market price Date and source of valuation (See note below) Good faith loan value Note: Bank need not complete' Date and source of valuation' if the market value was obtained from regularly published information in a journal of general circulation. PART III. To be signed by a bank officer in all instances. I am a duly authorized officer of the bank and understand that this credit secured by margin stock may be subject to the credit restrictions of Regulation U. I have read this form and any attachments, and I have accepted the customer's statement in Part I in good faith as required by Regulation U', and I certify that to the best of my knowledge and belief, all the information given is true, accurate, and complete. I also certify that it any securities that directly secure the credit are not or will not be registered in the name of the borrower or its nominee, I have or will cause to have examined the written consent of the registered owner to pledge such securities. I further certify that any securities that have been or will be physically delivered to the bank in connection with this credit have been or will be examined, that all validation procedures required by bank policy and the Securities Exchange Act of 1934 (section 17 (f), as amended) have been or will be performed, and that I am satisfied to the best of my knowledge and belief that such securities are genuine and not stolen or forged and their faces have not been altered. Date Title Signed: r_ Bank officer's signature Print or type name To accept the customer's statement in good faith, the officer of the bank must be alert to the circumstances surrounding the credit and, it in possession of any information that would cause a prudent person not to accept the Statement without inquiry, must have investigated and be satisfied that the statement is truthful. Among the facts which would require such investigation are receipt of the statement through the mail or from a third party. This form must be retained by the bank for at least three years after the credit is extinguished. BOAIFBI/LAY: 30931 X002-00173