§ 78h. Restrictions on borrowing and lending by members, brokers, and dealers

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. 1934

   Pub. L. 73–404 · 48 Stat. 881

   Enacted · 15 U.S.C. § 78h

   June 6, 1934, ch. 404, title I, § 8, 48 Stat. 888

   Source evidence

   Code source credit
   June 6, 1934, ch. 404, title I, § 8, 48 Stat. 888

2. 1975

   Securities Acts Amendments of 1975

   Pub. L. 94–29 § 5(1) · 89 Stat. 97

   Substituted · 15 U.S.C. § 78h

   Pub. L. 94–29, § 5(1), substituted “any registered broker or dealer, member of a national securities exchange, or broker or dealer who transacts a business in securities through the medium of any member of a national securities exchange” for “any member of a national securities exchange, or any broker or dealer who transacts a business in securities through the medium of any such member” in provisions preceding subsec. (a)

   Source evidence

   Code amendment note
   Pub. L. 94–29, § 5(1), substituted “any registered broker or dealer, member of a national securities exchange, or broker or dealer who transacts a business in securities through the medium of any member of a national securities exchange” for “any member of a national securities exchange, or any broker or dealer who transacts a business in securities through the medium of any such member” in provisions preceding subsec. (a).

   Enacted provision · exact public law section
   (1) The first sentence thereof is amended by striking out the phrase “any member of a national securities exchange, or any broker or dealer who transacts a business in securities through the medium of any such member” and by inserting in lieu thereof the phrase “any registered broker or dealer, member of a national securities exchange, or broker or dealer who transacts a business in securities through the medium of any member of a national securities exchange”.

   Effective date note
   Amendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title.

3. 1975

   Securities Acts Amendments of 1975

   Pub. L. 94–29 § 5(2) · 89 Stat. 97

   Redesignated · 15 U.S.C. § 78h(b)(d)

   Pub. L. 94–29, § 5(2), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and in subsec. (c) as so redesignated inserted “or in contravention of such rules and regulations as the Commissioner shall prescribe for the protection of investors” after “written consent of such customer”. Former subsec. (b), which covered the maximum allowable aggregate indebtedness of brokers, was struck out

   Source evidence

   Code amendment note
   Subsecs. (b) to (d). Pub. L. 94–29, § 5(2), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and in subsec. (c) as so redesignated inserted “or in contravention of such rules and regulations as the Commissioner shall prescribe for the protection of investors” after “written consent of such customer”. Former subsec. (b), which covered the maximum allowable aggregate indebtedness of brokers, was struck out.

   Enacted provision · exact public law section
   (2) The section is further amended by striking out subsection (b), redesignating subsections (e) and (d) thereof as subsections (b) and (c) respectively, and amending redesignated subsection (c) to read as follows: “(c) To lend or arrange for the lending of any securities carried for the account of any customer without, the written consent of such customer or in contravention of such rules and regulations as the Commission shall prescribe for the protection of investors.”

   Effective date note
   Amendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title.

4. 1984

   Secondary Mortgage Market Enhancement Act of 1984

   Pub. L. 98–440 title I § 103 · 98 Stat. 1689

   Inserted · 15 U.S.C. § 78h(a)

   Pub. L. 98–440 inserted provision that no person shall be deemed to have borrowed within the ordinary course of business, within the meaning of this subsection, by reason of a bona fide agreement for delayed delivery of a mortgage related security under certain conditions

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 98–440 inserted provision that no person shall be deemed to have borrowed within the ordinary course of business, within the meaning of this subsection, by reason of a bona fide agreement for delayed delivery of a mortgage related security under certain conditions.

   Enacted provision · exact public law section
   Sec. 103. borrowing in the course of business Section 8(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78h(a)) is amended by adding the following new sentence at the end thereof: “Subject to such rules and regulations as the Board of Governors of the Federal Reserve System may adopt in the public interest and for the protection of investors, no person shall be deemed to have borrowed within the ordinary course of business, within the meaning of this subsection, by reason of a bona fide agreement for delayed delivery of a mortgage related security against full payment of the purchase price thereof upon such delivery within one hundred and eighty days after the purchase, or within such shorter period as the Board of Governors of the Federal Reserve System may prescribe by rule or regulation.”.

5. 1994

   Small Business Loan Securitization and Secondary Market Enhancement Act of 1994

   Pub. L. 103–325 title II § 204 · 108 Stat. 2160

   Inserted · 15 U.S.C. § 78h(a)

   Pub. L. 103–325 inserted “or a small business related security” after “mortgage related security” in last sentence

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 103–325 inserted “or a small business related security” after “mortgage related security” in last sentence.

   Enacted provision · exact public law section
   SEC. 204. BORROWING IN THE COURSE OF BUSINESS. Section 8(a) of the Securities Exchange Act of 1934 (15 U.S.C 78h(a)) is amended in the last sentence by inserting “or a small business related security” after “mortgage related security”.

6. 1996

   Capital Markets Efficiency Act of 1996

   Pub. L. 104–290 title I § 104(b) · 110 Stat. 3416

   1. Redesignated · 15 U.S.C. § 78h

      Pub. L. 104–290 redesignated subsecs. (b) and (c) as (a) and (b), respectively

   2. Struck · 15 U.S.C. § 78h

      Pub. L. 104–290 struck out former subsec. (a) which related to borrowing in ordinary course of business as broker or dealer on any security, except exempted security, registered on national securities exchange

   Source evidence

   Code amendment note
   Pub. L. 104–290 redesignated subsecs. (b) and (c) as (a) and (b), respectively, and struck out former subsec. (a) which related to borrowing in ordinary course of business as broker or dealer on any security, except exempted security, registered on national securities exchange.

   Enacted provision · exact public law section
   (b) Borrowing by Members, Brokers, and Dealers.— Section 8 of the Securities Exchange Act of 1934 (15 U.S.C. 78h) is amended— (1) by striking subsection (a); and (2) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

6 of 7 references resolved to an enrolled provision · 1 partial