Page:United States Statutes at Large Volume 104 Part 4.djvu/408

 104 STAT. 2724 PUBLIC LAW 101-550—NOV. 15, 1990 (7) by striking "the indenture to be qualified shall require that" in paragraph (4); and (8) by inserting "shall" after "the indenture trustee or trustees" in paragraph (4). SEC. 407. PERSONS INELIGIBLE FOR APPOINTMENT AS TRUSTEE. Section 310(a) of the Trust Indenture Act of 1939 (15 U.S.C. 77j[ij(a)) is amended by adding at the end thereof the following new paragraph: "(5) No obligor upon the indenture securities or person directly or indirectly controlling, controlled by, or under common control with such obligor shall serve as trustee upon such indenture securities.". SEC. 408. DISQUALIFICATION OF TRUSTEE. Section 310(b) of the Trust Indenture Act of 1939 (15 U.S.C. 77iij(b)) is amended to read as follows: "(b) If any indenture trustee has or shall acquire any conflicting interest as hereinafter defined— "(i) then, within 90 days after ascertaining that it has such conflicting interest, and if the default (as defined in the next sentence) to which such conflicting interest relates has not been cured or duly waived or otherwise eliminated before the end of such 90-day period, such trustee shall either eliminate such conflicting interest or, except as otherwise provided below in this subsection, resign, and the obligor upon the indenture securities shall take prompt steps to have a successor appointed in the manner provided in the indenture; "(ii) in the event that such trustee shall fail to comply with the provisions of clause (i) of this subsection, such trustee shall, within 10 days after the expiration of such 90-day period, transmit notice of such failure to the indenture security holders in the manner and to the extent provided in subsection (c) of section 313; and "(iii) subject to the provisions of subsection (e) of section 315, unless such trustee's duty to resign is stayed as provided below in this subsection, any security holder who has been a bona fide holder of indenture securities for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of such trustee, and the appointment of a successor, if such trustee fails, after written request thereof by such holder to comply with the provisions of clause (i) of this subsection. "For the purposes of this subsection, an indenture trustee shall be deemed to have a conflicting interest if the indenture securities are in default (as such term is defined in such indenture, but exclusive of any period of grace or requirement of notice) and— "(1) such trustee is trustee under another indenture under which any other securities, or certificates of interest or participation in any other securities, of an obligor upon the indenture securities are outstanding or is trustee for more than one outstanding series of securities, as hereafter defined, under a single indenture of an obligor, unless— "(A) the indenture securities are collateral trust notes under which the only collateral consists of securities issued under such other indenture,

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