Jayne Logan, a Loan Officer at State National Bank, Has

Jayne Logan, a loan officer at State National Bank, has recently recruited Mr. David Roberts as a new loan customer. She has known Mr. Roberts for 10 years and handled his lending transactions at another bank where she previously worked. As his first transaction with State National Bank, Mr. Roberts pledges stock that is traded on the NYSE. The stock is received directly from Mr. Roberts, who has his secretary personally deliver it to the bank. Is the bank required, in this instance, to send a lost or stolen securities inquiry regarding the stock? Why or why not?

A) No. Because Ms. Logan has known Mr. Roberts for more than five years, no inquiry must be sent.
B) Yes. Because Mr. Logan is a new customer to the bank, the inquiry must be sent.
C) No. Because Mr. Logan's secretary personally delivered the stock certificates, no inquiry must be sent.
D) Yes. All stock pledged against a loan that is traded on the NYSE must have an inquiry sent.