Page:United States Statutes at Large Volume 112 Part 5.djvu/473

 PUBLIC LAW 105-353—NOV. 3, 1998 112 STAT. 3231 "(i) ACTIONS PRESERVED. — Notwithstanding paragraph (1) or (2), a covered class action described in clause (ii) of this subparagraph that is based upon the statutory or common law of the State in which the issuer is incorporated (in the case of a corporation) or organized (in the case of any other entity) may be maintained in a State or Federal court by a private party. "(ii) PERMISSIBLE ACTIONS. — A covered class action is described in this clause if it involves— "(I) the purchase or sale of securities by the issuer or an af&liate of the issuer exclusively from or to holders of equity securities of the issuer; or "(II) any recommendation, position, or other communication with respect to the sale of securities of an issuer that— "(aa) is made by or on behalf of the issuer or an affiliate of the issuer to holders of equity securities of the issuer; and "(bb) concerns decisions of such equity holders with respect to voting their securities, acting in response to a tender or exchange offer, or exercising dissenters' or appraisal rights. "(B) STATE ACTIONS. — "(i) IN GENERAL. — Notwithstanding any other provision of this subsection, nothing in this subsection may be construed to preclude a State or political subdivision thereof or a State pension plan from bringing an action involving a covered security on its own behalf, or as a member of a class comprised solely of other States, political subdivisions, or State pension plans that are named plaintiffs, and that have authorized participation, in such action. "(ii) STATE PENSION PLAN DEFINED.— For purposes of this subparagraph, the term 'State pension plan' means a pension plan established and maintained for its employees by the government of a State or political subdivision thereof, or by any agency or instrumentality thereof. "(C) ACTIONS UNDER CONTRACTUAL AGREEMENTS BETWEEN ISSUERS AND INDENTURE TRUSTEES.— Notwithstanding paragraph (1) or (2), a covered class action that seeks to enforce a contractual agreement between an issuer and an indenture trustee may be maintained in a State or Federal court by a party to the agreement or a successor to such party. "(D) REMAND OF REMOVED ACTIONS. —In an action that has been removed from a State court pursuant to paragraph (2), if the Federal court determines that the action may be maintained in State court pursuant to this subsection, the Federal court shall remand such action to such State court. "(4) PRESERVATION OF STATE JURISDICTION.—The securities commission (or any agency or ofBce performing like functions)

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