§ 78fff. General provisions of a liquidation proceeding

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1970

   Securities In rest or Protection Act of 1970

   Pub. L. 91–598 § 6 · 84 Stat. 1620

   Enacted · 15 U.S.C. § 78fff

   Pub. L. 91–598, § 6, Dec. 30, 1970, 84 Stat. 1646

   Source evidence

   Code source credit
   Pub. L. 91–598, § 6, Dec. 30, 1970, 84 Stat. 1646

   Enacted provision · exact public law section
   SEC. 6. LIQUIDATION PROCEEDINGS. (a) General Purposes of Liquidation Proceeding.— The purposes of any proceeding in which a trustee has been appointed under section 5(b) (3) (hereafter in this section referred to as a “liquidation proceeding”) shall be; (1) as promptly as possible after such appointment and in accordance with the provisions of this section— (A) to return specifically identifiable property to the customers of the debtor entitled thereto; (B) to distribute the single and separate fund, and (in advance thereof or concurrently therewith) pay to customers moneys advanced by SIPC, as provided in subsection (f); (2) to operate the business of the debtor in order to complete open contractual commitments of the debtor pursuant to subsection (d); (3) to enforce rights of subrogation as provided in this Act; and (4) to liquidate the business of the debtor. (b) Powers and Duties of Trustee,— (1) Trustee powers.— A trustee appointed under section 5(b) (3) (hereinafter referred to as “trustee”) shall be vested with the same powers and title with respect to the debtor and the property of the debtor, and the same rights to avoid preferences, as a trustee in bankruptcy and a trustee under chapter X of the Bankruptcy Act have with respect to a bankrupt and a chapter X 52 Stat. 883. 80 Stat. 1278. 11 USC 501. debtor. In addition, a trustee shall have the right— (A) with the approval of SIPC. to hire and fix the compensation of all personnel (including officers and employees of the debtor and of its examining authority) and other persons (including but not limited to accountants) that are deemed by such trustee necessary for all or any purposes of the liquidation proceeding, and (B) to operate the business of the debtor in order to complete open contractual commitments pursuant to subsection (d), and no approval of the court shall be required therefor, (2) Trustee duties.— Except as inconsistent with the provisions of this Act or otherwise ordered by the court, a trustee shall 1« subject to the same duties as a trustee appointed under section 44 of the Bankruptcy Act, except that a trustee may, but shall 52 Stat. 860. 54 Stat. 836. 11 USC 72. have no duty to, reduce to money any securities in the single and separate fund (provided under subsection (c)(2)(B)) or in the general estate of the debtor. (c) Application of Bankruptcy Act.— (1) General provisions applicable.— Except as inconsistent with the provisions of this Act and except that in no event shall a plan of reorganization be formulated, a liquidation proceeding shall lie conducted in accordance with, and as though it were being conducted under, the provisions of chapter X and such of the provisions (other than section 60e) of chapters I to VII, inclusive, of 11 USC 96. the Bankruptcy Act as section 102 of chapter X would 52 Stat. 840–872. 11 USC 1–101. make applicable if an order of the court had been entered directing that bankruptcy be proceeded with pursuant to the provisions of such chapters I to VII, inclusive; except that, the court may, for such period as may be appropriate, stay enforcement of, but shall not abrogate, the rights provided in section 68 of the Bankruptcy Act and the right to enforce a valid, non-preferential lien or pledge against the property of the debtor. For purposes of applying the Bankruptcy Act in carrying out this section, any reference in the Bankruptcy Act 11 USC 108. to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the tiling date (as defined in section 5(b)(4)(B)). (2) Special provisions,— The following subparagraphs of this paragraph shall apply to a liquidation proceeding in lieu of section 60e of the Bankruptcy Act; (A) Definitions.— Except as otherwise expressly provided in this section, for purples of this section and the application of the Bankruptcy Act to a liquidation proceeding— (i) “property” includes cash and securities, whether or not negotiable and all property of a similar character; (ii) “customers” of a debtor means persons (including persons with whom the debtor deals as principal or agent) who have claims on account of securities received, acquired, or held by the debtor from or for the account of such persons (1) for safekeeping, or (II) with a view to sale, or (III) to cover consummated sales, or (IV) pursuant to purchases, or (V) as collateral security, or (VI) by way of loans of securities by such persons to the debtor, and shall include persons who have claims against the debtor arising out of sales or conversions of such securities, and shall include any person who has deposited cash with the debtor for the purpose of purchasing securities, but shall not include any person to the extent that such person has a claim for property which by contract, agreement, or understanding, or by operation of law, is part, of the capital of the debtor or is subordinated to the claims of creditors of the debtor; (iii) “cash customer” means, with respect to any securities or cash, customers entitled to immediate possession of such securities or cash without the payment of any sum to the debtor, and for purposes of this clause, the same person may be a cash customer with reference to certain securities or cash and not a cash customer with reference to other securities or cash; (iv) “net equity” of a customer’s account or accounts means the dollar amount thereof determined by giving effect to open contractual commitments completed as provided in subsection (d), by excluding any specifically identifiable property reclaimable by the customer, and by subtracting the indebtedness, if any, of the customer to the debtor from the sum which would have been owing by the debtor to the customer had the debtor liquidated, by sale or purchase on the filing date, all other securities and contractual commitments of the customer, and for purposes of this definition, accounts held by a customer in separate capacities shall be deemed to be accounts of separate customers; and (v) “securities” has the same meaning as such term has under section 60e of the Bankruptcy Act. (B) Single and separate fund.— All property at any time received, acquired, or held by or for the account of a debtor from or for the account of customers except cash customers who are able to identify specifically their property in the manner prescribed in subparagraph (C), and the proceeds of all customers property transferred by the debtor, including property unlawfully converted, shall constitute a single and separate fund; and all customers except such cash customers shall constitute a single and separate class of creditors, entitled to share ratably in such fund on the basis of their respective net equities as of the filing date and in priority to all other payments, except that (i) there shall be repaid to SIPC, in priority to all other claims pavable from such single and separate fund, the amount of all advances made by SIPC to the trustee to permit the completion of open contractual commitments pursuant to subsection (d), and (ii) to the extent that any other assets of the debtor may be available therefor or as otherwise ordered by the court., all costs and expenses specified in clauses (1) and (2) of section 64a of the 81 Stat. 511. 11 USC 104. Bankruptcy Act shall be paid from such single and separate fund in priority to the claims of such single and separate class of creditors, and any moneys advanced by SIPC for such costs and expenses shall be recouped as such. If such single and separate fund shall not be sufficient to pay in full the claims of such single and separate class of creditors, the creditors of such class shall be entitled, to the extent only of their respective unpaid balances, to share in the general estate with general creditors. In, or for the purpose of, distributing such fund, all property other than cash shall be valued as of the close of business on the filing date. To the greatest, extent considered practicable by the trustee, the trustee shall deliver in payment, of claims of customers for their net equities based upon securities held on the filing date in their accounts (after giving effect to open contractual commitments completed as hereinafter provided), securities of the same class and series of an issuer ratably up to the respective amounts which were so held in such accounts. Any property remaining after the liquidation of a lien or pledge made by a debtor shall be. apportioned between his general estate and the single and separate fund in the proportion in which the general property of the debtor and the property of his customers contributed to such lien or pledge. (C) Specifically identifiable property.— The trustee shall return specifically identifiable property to the customers of the debtor, entitled thereto. No cash or securities at any time received, acquired, or held by or for the account of a debtor from or for the accounts of customers shall for the purposes of this paragraph be deemed to be specifically identified, unless such property remained in its identical form in the debtor’s possession until the filing date, or unless such property was allocated to or physically set aside for such customers on the filing date. In determining whether property was allocated to or physically set aside for such customers, it shall be sufficient that on the filing date: (i) securities are segregated individually, or in bulk for customers collectively; (ii) in the case of securities held for the account of the debtor as part of any central certificate service of any clearing corporation or any similar depositary— (I) the records of the debtor show or there is otherwise established to the satisfaction of the trustee that all or a specified part of the securities held by such clearing corporation or other similar depositary are held for specified customers, or for customers collectively, and (II) such records of the debtor also show or there is otherwise established to the satisfaction of the trustee the identities of the particular customers entitled to receive specified numbers or units of such securities so held for customers collectively; or (iii) such property is held for the account of customers of the debtor in such other manner as the Commission, for the protection of customers and other creditors on a fair and equitable basis, by rule or regulation shall have determined to be sufficiently identifiable as the property of such customers. If there is any shortage in securities of the same class and series of an issuer so segregated in bulk or otherwise held for customers pursuant to this subparagraph, as compared to the aggregate rights of particular customers to receive securities of such class and series, the respective interests of such customers in such securities of such class and series shall be prorated, without prejudice, however, to the satisfaction of any claim for deficiencies as otherwise provided in this section. (D) Where such single and separate fund is not sufficient to pay in full the claims of such single and separate class of creditors, a transfer by a debtor of any property which, except for such transfer, would have been a part of such fund may be recovered by the trustee for the benefit of such fund, if such transfer is voidable or void under the 30 Stat. 544. 11 USC 1 et seq. provisions of the Bankruptcy Act. For the purpose of such recovery, the property so transferred shall be deemed to have been the property of the debtor and, if such transfer was made, to a customer or for his benefit, such customer shall be deemed to have been a creditor, the laws of any State to the contrary notwithstanding. Subject to the provisions of paragraph (D), if any securities received or acquired by a debtor from a cash customer are transferred by the debtor, such customer shall not have any specific interest, in or specific right, to any securities of like kind on hand on the filing date, but such securities of like kind or the proceeds thereof shall become part of such single and separate fund. (d) Completion of Open Contractural Commitments.— The trustee shall complete those, contractual commitments of the debtor relating to transactions in securities which were made in the ordinary course of debtor’s business and which were outstanding on the filing date— (1) in which a customer had an interest, except those commitments the completion of which the Commission shall have determined by rule or regulation not to be in the public interest, or (2) in which a customer did not. have an interest, to the extent, that the Commission shall by rule or regulation have determined the completion of such commitments to be in the public interest. “Customer.” For purposes of this subsection (but not for any other purpose of this Act) (i) the term “customer” means any person other than a broker or dealer, and (ii) a customer shall be deemed to have had an interest in a transaction if a broker participating in the transaction was acting as agent for a customer, or if a dealer participating in the transaction held a customer’s order which was to be executed as a part of the transaction. All property at any time received, acquired, or held by or for the account of the debtor (except, for cash or securities that are specifically identifiable as the property of particular customers and are not the subject of an open contractual commitment), and all property in the single and separate fund, shall be available to complete open contractual commitments pursuant to this subsection. Securities purchased or cash received by the trustee upon completion of any such commitment shall constitute specifically identifiable property of a customer to the extent, that such commitment was completed with property which constituted specifically identifiable property of such customer on the filing date, or was paid or delivered by or for the account of such customer to the debtor or the trustee after the filing date. (e) Notice.— Promptly after his appointment, the trustee shall cause, notice of the commencement of proceedings under this section to be published in 52 Stat. 855. 11 USC 51. accordance with a designation of the court, made in accordance with the requirements of section 28 of the Bankruptcy Act, and at the same time shall cause to be mailed a copy of such notice to each of the customers of the debtor as their addresses shall appear from the debtor’s books and records. Except as the trustee may other-wise permit, claims for specifically identifiable property (other than securities registered in the name of the claimant or segregated for him in his individual name) or claims payable from property in the single and separate fund or payable with moneys advanced by SIPC, shall not be paid other than from the general estate of the debtor unless filed within such period of time (not exceeding sixty days after such publication) as may be fixed by the court, and no claim shall be allowed after the time specified in section 57 of the Bankruptcy Act. Subject to 52 Stat. 866; 76 Stat. 570. 11 USC 93. the foregoing, and without limiting the powers and duties of the trustee to discharge promptly obligations as specified in this section, the court may make appropriate provision for proof and enforcement of all claims against the debtor including those of any subrogee. (f) SIPC’ Advances to Trustee.— (1) Advances for customers’ claims.— In order to provide for prompt payment and satisfaction of the net equities of customers of debtor, SIPC shall advance to the trustee such moneys as may be required to pay or otherwise satisfy claims in full of each customer, but not to exceed $50,000 for such customer; except, that— (A) insofar as all or any portion of the net equity of a customer is a claim for cash, as distinct from securities, the amount advanced by reason of such claim to cash shall not exceed $20,000; (B) a customer who holds accounts with the debtor in separate capacities shall be deemed to be a different customer in each capacity; (C) no such advance shall be made by SIPC to the trustee to pay or otherwise satisfy, directly or indirectly, any claims of any customer who is a general partner, officer, or director of the debtor, the beneficial owner of 5 per centum or more of any class of equity security of the debtor (other than a non-convertible stock having fixed preferential dividend and liquidation rights) or limited partner with a participation of 5 per centum or more in the net assets or net profits of the debtor; and (D) no such advance shall be made by SIPC to the trustee to pay or otherwise satisfy claims of any customer who is a broker or dealer or bank other than to the extent that it shall be established to the satisfaction of the trustee, from the books and records of the debtor or from the books and records of a broker or dealer or bank or otherwise, that, claims of such broker or dealer or bank against the debtor arise out of transactions for customers of such broker or dealer or bank, in which event, each such customer of such broker or dealer or bank shal! be deemed a separate customer of the debtor. To the extent that moneys are advanced by SIPC to the trustee to pay the claims of customers, SIPC shall be subrogated to the claims of such customers with the rights and priorities provided in this section. (2) Other advances.— SIPC may advance to the trustee such moneys as may be required to effectuate subsection (b)(1)(A). SIPC shall advance to the trustee such moneys as (with those available pursuant to subsection (d)) may be required to effectuate subsection (d). (g) Payments to Customers; No Proof of Claim Required.— It shall be the duty of the trustee to discharge promptly, in accordance with the provisions of this section, all obligations of the debtor to each of its customers relating to, or net equities based upon, securities or cash by the delivery of securities or the effecting of payments to such customer (subject to subsection (f)(1), to the extent that such payments are made out of advances from SIPC under such subsection) insofar as such obligations are ascertainable from the books and records of the debtor or are otherwise established to the satisfaction of the trustee, whether or not such customer shall have filed formal proof of such claim. For that purpose the court among other things shall— (1) in respect of claims relating to securities or cash, authorize the trustee to make payment out of moneys made available to the trustee by SIPC notwithstanding the fact that there shall not have been any showing or determination that there are sufficient funds of the debtor available to make such payment; and (2) in respect of claims relating to, or net equities based upon, securities of a class and series of an issuer, which are ascertainable from the books and records of the debtor or are otherwise established to the satisfaction of the trustee, authorize the trustee to deliver securities of such class and series if and to the extent available to satisfy such claims in whole or in part, with partial deliveries to be made pro rata to the greatest extent considered practicable by the trustee. Any payment or delivery of property pursuant to this subsection may be conditioned upon the trustee requiring claimants to execute in a form to be determined by the trustee, appropriate receipts, supporting affidavits, and assignments, but shall be without prejudice to the right of any claimant to file formal proof of claim within the period specified in subsection (e) for any balance of securities or cash to which he may deem himself entitled. (h) Proof of Claim by Associates and Others.— The provisions of this section permitting discharge of obligations of the debtor to pay cash or to deliver securities without formal proof of claim shall not apply to any person “associated” with the debtor as defined in section 78 Stat. 565. 15 USC 78c. 3(a) (18) of the 1934 Act, to any beneficial owner of 5 per centum or more of the voting stock of the debtor, or to any member of the immediate family of any of the foregoing. (i) Reports by Trustee to Court.— All reports to the court by a trustee (other than reports required to be filed pursuant to section 52 Stat. 890. 11 USC 567. 48 Stat. 897; 52 Stat. 1076. 15 USC 78q. 167 (3) of the Bankruptcy Act) shall lie in such form and detail as, having due regard to the requirements of section 17 of the 1934 Act and the rules and regulations thereunder and the magnitude of items and transactions involved in connection with the operations of a broker or dealer, the Commission shall determine by rules and regulations to present fairly the results of such proceeding as at the dates or for the periods covered by such reports. (j) Effect of Act on Claims.— Except as otherwise provided in this section, nothing in this section shall limit the right of any person to establish by formal proof such claims as such person may have to payment, or to delivery of specific securities, without resort to moneys advanced by SIPC to the trustee.

2. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff

   Pub. L. 95–283 substituted “General provisions of a liquidation proceeding” for “Liquidation proceedings” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 95–283 substituted “General provisions of a liquidation proceeding” for “Liquidation proceedings” in section catchline.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

3. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff(a)

   Pub. L. 95–283 in heading substituted “Purposes” for “General purposes of liquidation proceeding”, in introductory text substituted provisions relating to purposes of liquidation proceedings under this chapter, for provisions relating to purposes of any proceeding in which a trustee has been appointed under section 78eee(b)(3) of this title, in par. (1) substituted provisions requiring execution of authorities to deliver customer name securities and distribute customer property in accordance with this chapter, for provisions requiring execution of authorities to return specifically identifiable property and distribute the single and separate fund in accordance with this section, and in par. (2) substituted provisions authorizing sale, etc., of productive units of the debtor, for provisions authorizing operation of the business of the debtor

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 95–283 in heading substituted “Purposes” for “General purposes of liquidation proceeding”, in introductory text substituted provisions relating to purposes of liquidation proceedings under this chapter, for provisions relating to purposes of any proceeding in which a trustee has been appointed under section 78eee(b)(3) of this title, in par. (1) substituted provisions requiring execution of authorities to deliver customer name securities and distribute customer property in accordance with this chapter, for provisions requiring execution of authorities to return specifically identifiable property and distribute the single and separate fund in accordance with this section, and in par. (2) substituted provisions authorizing sale, etc., of productive units of the debtor, for provisions authorizing operation of the business of the debtor.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

4. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff(b)

   Pub. L. 95–283 in heading substituted “Application of Bankruptcy Act” for “Powers and Duties of Trustee”, and in text substituted provisions relating to applicability of Bankruptcy Act to liquidation proceedings, for provisions relating to the powers and duties of trustees. See section 78fff–1 of this title

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 95–283 in heading substituted “Application of Bankruptcy Act” for “Powers and Duties of Trustee”, and in text substituted provisions relating to applicability of Bankruptcy Act to liquidation proceedings, for provisions relating to the powers and duties of trustees. See section 78fff–1 of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

5. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff(c)

   Pub. L. 95–283 in heading substituted “Determination of customer status” for “Application of Bankruptcy Act”, and in text substituted provisions relating to determination of status of a customer with respect to cash or securities, for provisions setting forth general and special provisions of the Bankruptcy Act applicable to liquidation proceedings, and defining terms for purposes of such applicability and the provisions of this section. See subsec. (b) of this section and section 78fff–2(c) of this title

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 95–283 in heading substituted “Determination of customer status” for “Application of Bankruptcy Act”, and in text substituted provisions relating to determination of status of a customer with respect to cash or securities, for provisions setting forth general and special provisions of the Bankruptcy Act applicable to liquidation proceedings, and defining terms for purposes of such applicability and the provisions of this section. See subsec. (b) of this section and section 78fff–2(c) of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

6. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff(d)

   Pub. L. 95–283 in heading substituted “Apportionment” for “Completion of open contractual commitments”, and in text substituted provisions relating to apportionment of cash or securities remaining after the liquidation of a lien or pledge made by a debtor, for provisions relating to completion by the trustee of open contractual commitments, which were made in the ordinary course of the debtor’s business and which were outstanding on the filing date. See section 78fff–2(e) of this title

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 95–283 in heading substituted “Apportionment” for “Completion of open contractual commitments”, and in text substituted provisions relating to apportionment of cash or securities remaining after the liquidation of a lien or pledge made by a debtor, for provisions relating to completion by the trustee of open contractual commitments, which were made in the ordinary course of the debtor’s business and which were outstanding on the filing date. See section 78fff–2(e) of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

7. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Substituted · 15 U.S.C. § 78fff(e)

   Pub. L. 95–283 in heading substituted “Costs and expense of administration” for “Notice”, and in text substituted provisions relating to costs and expenses of administration of the estate of the debtor and of the liquidation proceeding, for provisions relating to notice requirements for the trustee subsequent to appointment as trustee. See section 78fff–2(a)(l) of this title

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 95–283 in heading substituted “Costs and expense of administration” for “Notice”, and in text substituted provisions relating to costs and expenses of administration of the estate of the debtor and of the liquidation proceeding, for provisions relating to notice requirements for the trustee subsequent to appointment as trustee. See section 78fff–2(a)(l) of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

8. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Struck · 15 U.S.C. § 78fff(f)

   Pub. L. 95–283 struck out subsec. (f) requiring advances by the SIPC to the trustee for customers’ claims and completion of open contractual commitments, and authorizing discretionary advances to the trustee for compensation of personnel deemed necessary for the liquidation proceeding. See section 78fff–3 of this title

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 95–283 struck out subsec. (f) requiring advances by the SIPC to the trustee for customers’ claims and completion of open contractual commitments, and authorizing discretionary advances to the trustee for compensation of personnel deemed necessary for the liquidation proceeding. See section 78fff–3 of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

9. 1978

   Securities Investor Protection Act Amendments of 1978

   Pub. L. 95–283 § 8 · 92 Stat. 249

   Struck · 15 U.S.C. § 78fff(g)

   Pub. L. 95–283 struck out subsec. (g) setting forth provisions relating to payments to customers by the trustee, and provisions respecting the quantum of proof of claim required for such payment. See section 78fff–2(a)(2) and (b) of this title

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 95–283 struck out subsec. (g) setting forth provisions relating to payments to customers by the trustee, and provisions respecting the quantum of proof of claim required for such payment. See section 78fff–2(a)(2) and (b) of this title.

   Enacted provision · exact public law section
   Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

10. 1978

    Securities Investor Protection Act Amendments of 1978

    Pub. L. 95–283 § 8 · 92 Stat. 249

    Struck · 15 U.S.C. § 78fff(h)

    Pub. L. 95–283 struck out subsec. (h) relating to nonapplicability of provisions to proof of claim by associates and others connected in some way with the debtor. See section 78fff–2(a)(2) of this title

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 95–283 struck out subsec. (h) relating to nonapplicability of provisions to proof of claim by associates and others connected in some way with the debtor. See section 78fff–2(a)(2) of this title.

    Enacted provision · exact public law section
    Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

11. 1978

    Securities Investor Protection Act Amendments of 1978

    Pub. L. 95–283 § 8 · 92 Stat. 249

    Struck · 15 U.S.C. § 78fff(i)

    Pub. L. 95–283 struck out subsec. (i) setting forth provisions relating to reports by the trustee to the court. See section 78fff–1(c) of this title

    Source evidence

    Code amendment note
    Subsec. (i). Pub. L. 95–283 struck out subsec. (i) setting forth provisions relating to reports by the trustee to the court. See section 78fff–1(c) of this title.

    Enacted provision · exact public law section
    Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

12. 1978

    Securities Investor Protection Act Amendments of 1978

    Pub. L. 95–283 § 8 · 92 Stat. 249

    Struck · 15 U.S.C. § 78fff(j)

    Pub. L. 95–283 struck out subsec. (j) which related to nonapplicability of provisions to rights of persons to establish by formal proof such claims as they may have to payment or delivery of specific securities. See section 78fff–2(a)(4) of this title

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 95–283 struck out subsec. (j) which related to nonapplicability of provisions to rights of persons to establish by formal proof such claims as they may have to payment or delivery of specific securities. See section 78fff–2(a)(4) of this title.

    Enacted provision · exact public law section
    Sec. 8. general provisions of a liquidation proceeding Section 6 of such Act (15 U.S.C. 78fff ) is amended to read as follows: “SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING. “(a) Purposes.— The purposes of a liquidation proceeding under this Act shall be— “(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— “(A) to deli 1er customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(e)(2); and Post, p. 261. “(B) to distribute customer property and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; “(2) to sell or transfer offices and other productive units of the business of the debtor; “(3) to enforce rights of subrogation as provided in this Act; and “(4) to liquidate the business of the debtor. “(b) Application of Bankruptcy Act.— To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act, For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. “(c) Determination of Customer Status.— In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to Such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. “(d) Apportionment.— In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned to the general estate under this subsection shall be subject to the provisions Post, p. 271. of section 16(5)(A). “(e) Costs and Expenses of Administration.— All costs and expenses of administration of the estate of the debtor and of the liquidation proceeding shall be borne by the general estate of the debtor to the extent it is sufficient therefor, and the priorities of distribution from the general estate shall be as provided in the Bankruptcy Post, p. 2549. Post, p. 261. Act. Costs and expenses of administration shall include payments pursuant to section 8(e) and section 9(c)(1)(to the extent such payments recovered securities which were apportioned to the general estate pursuant to subsection (d)) and costs and expenses of Infra. SIPC employees utilized by the trustee pursuant to section 7(a)(2). All funds advanced by SIPC to a trustee for such costs and expenses of administration shall be recouped from the general estate as a first priority under the Bankruptcy Act.”.

13. 1978

    Pub. L. 95–598 § 308(g) · 92 Stat. 2549

    1. Substituted · 15 U.S.C. § 78fff(b)

       Pub. L. 95–598, § 308(g), in heading substituted “title 11” for “Bankruptcy Act”

    2. Substituted · 15 U.S.C. § 78fff(b)

       Pub. L. 95–598, § 308(g), in heading substituted “under chapters 1, 3, and 5 and subchapters I and II of chapter 7 of title 11. For the purposes of applying such title in carrying out this section, a reference in such title to the date of the filing of the petition shall be deemed to be a reference to the filing date under this chapter.” for “under, the Bankruptcy Act. For purposes of applying the Bankruptcy Act to this chapter, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this chapter.”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 95–598, § 308(g), in heading substituted “title 11” for “Bankruptcy Act” and in text “under chapters 1, 3, and 5 and subchapters I and II of chapter 7 of title 11. For the purposes of applying such title in carrying out this section, a reference in such title to the date of the filing of the petition shall be deemed to be a reference to the filing date under this chapter.” for “under, the Bankruptcy Act. For purposes of applying the Bankruptcy Act to this chapter, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this chapter.”

    Enacted provision · exact public law section
    (g) Section 6(b) of such Act (15 U.S.C. 78fff(b)) is amended— (1) by striking out “, the Bankruptcy Act.” and all that follows through the end of subsection (b), and inserting in lieu thereof “chapters 1, 3, and 5 and subchapters I and II of chapter 7 of title Ante, pp. 2549, 2558, 2578, 2604, 2606. 11 of the United States Code. For the purposes of applying such title in carrying out this section, a reference in such title to the date of the filing of the petition shall be deemed to be a reference to the filing date under this Act.”; and (2) by striking out “Application of Bankruptcy Act” and inserting “Application of Title 11 of the United States Code” in lieu thereof.

14. 1978

    Pub. L. 95–598 § 308(h) · 92 Stat. 2549

    1. Substituted · 15 U.S.C. § 78fff(e)

       Pub. L. 95–598, § 308(h), substituted in first sentence “section 726 of title 11” for “the Bankruptcy Act”

    2. Substituted · 15 U.S.C. § 78fff(e)

       Pub. L. 95–598, § 308(h), substituted in first sentence “under section 507(a)(1) of title 11” for “as a first priority under the Bankruptcy Act”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 95–598, § 308(h), substituted in first sentence “section 726 of title 11” for “the Bankruptcy Act” and in last sentence “under section 507(a)(1) of title 11” for “as a first priority under the Bankruptcy Act”.

    Enacted provision · exact public law section
    (h) Section 6(e) of such Act (15 U.S.C. 78fff(e)) is amended— Ante, p. 260. (1) by striking out “in the Bankruptcy Act” and inserting “in section 726 of title 11 of the United States Code” in lieu thereof; Ante, p. 2608. and (2) by striking out “as a first priority under the Bankruptcy Act” and inserting “under section 507(a)(1) of title 11 of the Ante, p. 2583. United States Code” in lieu thereof.

15. 2005

    Pub. L. 109–8 title XV § 1502(b) · 119 Stat. 23

    Substituted · 15 U.S.C. § 78fff(e)

    Pub. L. 109–8 substituted “507(a)(2)” for “507(a)(1)”

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 109–8 substituted “507(a)(2)” for “507(a)(1)”.

    Enacted provision · exact public law section
    (b) Related Conforming Amendment.— Section 6(e) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78fff(e)) is amended by striking “507(a)(1)” and inserting “507(a)(2)”.

    Effective date note
    Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under Title 11, Bankruptcy, before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of Title 11.

17 of 17 references resolved to an enrolled provision