Following SEC Independence and Nonaudit Services.

Section Co. completed a private placement of long-term bonds during the year under audit. The bonds were distributed to 40 qualified-exempt investors through the brokerage firm of Amalgamated Exchange Inc., which is 50 percent owned by the public accounting firm and 50 percent owned by Lynch Merrill Investment Corporation.

Is Independence impaired on these SEC filing audits according to SEC independence rules regarding nonaudit services?