Page:United States Statutes at Large Volume 49 Part 1.djvu/959

 914 7 4TH CONGRESS. SESS. I. CH. 774 . AUGUST 27, 1935. trustee appointed under this section, or shall have been rejected by a receiver in equity in a proceeding pending prior to the institution of a proceeding under this section, or shall be rejected by any plan, Rights of injured any person injured by such nonadoption or rejection shall for all parties . purposes of this section be deemed to be a creditor of the debtor to the extent of the actual damage or injury determined in accord- ance with principles obtaining in equity proceedings. The provi- sio ns of section 60 of t his Act shall apply to a proceeding under this section. For all purposes of this section any creditor or stock- holder may act in person or by an attorney at law or by a duly authorized agent or committee subject to the provisions of subsec- S tatut esof limitation tion (p) hereof. The running of all statutes of limitation shall be sus pend ed. sus pended during the pen dency of a proceedin g under this section. (cc) After approving the petition : Duties of judge after (1) The judge shall forthwith (and in pending proceedings imme- diately of petition . diately upon the effective date of this amendatory section) require Notice of bearing. the debtor to give such notice as the order may direct to the mort- gage trustees, creditors and stockholders, and to cause publication thereof for such period and in such newspapers as the judge may direct, of a hearing to be held not later than thirty days after the date of such order, at which hearing or any adjournment thereof A p p o i n tm e n t the judge shall appoint one or more trustees of the debtor's prop- of trustees. e rty. Such appo intm ents shal l bec ome effe ctive upo n ra tific atio n thereof by the Commission without a hearing, unless the Commission shall deem a hearing necessary. Where a trustee is appointed who within one year prior thereto has been an officer, director, or employee of the debtor corporation, any subsidiary corporation, or Additiona l trustee. any holding company connected therewith, the judge, subject to ratification by the Commission as herein provided, shall appoint another trustee or trustees who shall not have had any such affilia- Proviso. tions : Provided, That the appointment of such additional trustee or Not required for t smaller debiors. rustees shall not be required for a debtor the annual operating revenu es of which w ere le ss than $1,00 0,000 f or the previ ous cal endar year. Fix amount of bond, ( 2) The judge shall fix the amount of the bond of every trustee. ate. He may thereafter terminate any such a ppointments on cause shown, Appo inti ng s ubst i- tute trustee. and may in that event and in the event of a vacancy from any other cause, in the manner and within the qualifications herein provided for the appointment of trustees, appoint a substitute trustee or trustees, and in the same manner and within the same qualifications may appoint an additional trustee, and shall fix the amount of the bond of ev ery suc h subs titute or add itional trust ee or t rustee s. The Legal counsel. judge shall in his discretion confirm the appointment of such legal counsel for the trustees as they shall select, with power of removal. Compensation. The trustee or trustees and thei r counsel shall recei ve only such compensation from the estate of the debtor as the judge may from time to time allow within such maximum limits as may be approved Bond, powers, etc. by the Commission as reasonable. The trustee or trustees so appointed, upon filing such bond, shall have all the title and shall exercise, subject to the control of the judge and consistently with the provisions of this section, all of the powers of a trustee appointed pursuant to section 44 of this Act or any other section of this Act, and, to the extent not inconsistent with this section, if authorized by the judge, the powers of a receiver in an equity proceeding, and, subject to the control of the judge and the jurisdiction of the Com- mission as provided by the Interstate Commerce Act as now or here- after amended, the power to operate the business of the debtor. atio of busi ness Pss esaf onan d op er- Prior to the appointment of a trustee, the debtor on behalf of the ,etc. court shall continue in the possession of the property and shall