Page:United States Statutes at Large Volume 52.djvu/955

 914 PUBLIC LAWS-CH. 575-JUNE 22, 1938 [52 STAT. of such arrangement and that knowledge of such fraud has come to the petitioners since the confirmation of such arrangement- "(1) if the debtor has been guilty of or has participated in the fraud or has had knowledge thereof before the confirmation and has failed to inform the court of the fraud, the court may set aside the confirmation and thereupon, (a) where the petition was filed Aste, p. 07 . under section 321 of this Act, reinstate the pending bankruptcy proceeding, adjudge the debtor a bankrupt, if he has not already been so adjudged, and direct that the bankruptcy proceeding be proceeded with, or (b) where the petition was filed under section 322 of this Act, reinstate the proceeding, adjudge the debtor a bank- rupt, and direct that bankruptcy be proceeded with pursuant to the provisions of this Act; or "(2) the court may set aside the confirmation, reinstate the pro- ceeding under the petition filed under this chapter, and hear and determine applications for leave to propose, within such time as the court may fix alterations or modifications of the arrangement for the purpose of correcting the fraud; or "(3) the court may reinstate the proceeding under the petition filed under this chapter and modify or alter the arrangement for the purpose of correcting the fraud, but may not materially modify or alter the arrangement adversely to the interests of any party who did not participate in the fraud and who does not consent to such modification or alteration, or to the prejudice of any innocent person, who, for value, subsequent to the confirmation, acquired rights in reliance upon it. General provisions. "ARTICLE XII-GENERAL PROVISIONS Suspension of stat- "SEC. 391. All statutes of limitation affecting claims provable under utes of lim itation,etc., while proceeding this chapter and the running of all periods of time prescribed by pending. this Act in respect to the commission of acts of bankruptcy, the recovery of preferences and the avoidance of liens and transfers shall be suspended while a proceeding under this chapter is pending and until it is finally dismissed. Notices, how given. "SEC. 392. Unless otherwise directed by the court, all notices required by this chapter may be given by mail to the parties entitled thereto to their addresses ascertained in the manner prescribed for Ante, p. 867. other notices in section 58 of this Act. Prohibiions relat- "SE O. 393. a. The provisions of section 5 of the Securities Act of merce and the mails. 1933 shall not apply to- 4s US. I. 77e. "(1) any security issued by a receiver, trustee, or debtor in posses- Exemption of cer- tain securities. sion pursuant to section 344 of this Act; or Certain security "(2) any transaction in any security issued pursuant to an arrange- traactons ment in exchange for securities of or claims against the debtor or partly in such exchange and partly for cash and/or property, or issued upon exercise of any right to subscribe or conversion privilege so issued, except (a) transactions by an issuer or an underwriter in connection wit a distribution otherwise than pursuant to the arrange- ment, and (b) transactions by a dealer as to securities constituting the whole or a part of an unsold allotment to or subscription by such dealer as a participant in a distribution of such securities by the issuer or by or through an underwriter otherwise than pursuant to the arrangement. Term defined. "b. As used in this section, the terms 'security', 'issuer', 'under- writer', and 'dealer' shall have the meanings provided in section 2 of tu. 7s. T77tb. the Securities Act of 1933, and the term 'Securities Act of 1933' shall be deemed to refer to such Act as heretofore or hereafter amended.

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