Page:United States Statutes at Large Volume 53 Part 1.djvu/630

 APPENDIX edge 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 under section 321 of this Act, reinstate the pending bank- ruptcy 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 bankrupt, and direct that bankruptcy be pro- ceeded with pursuant to the provisions of this Act; or (2) the court may set aside the confirmation, reinstate the proceeding 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 modifica- tions 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. ARTICLE XII--GENEBAL PROVISIONS SEC. 391 All statutes of limitation affecting claims provable under this chapter and the running of all periods of time prescribed by 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. 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 other notices in section 58 of this Act. SEe. 393. a. The provisions of section 5 of the Securities Act of 1933 shall not apply to- (1) any security issued by a receiver, trustee, or debtor in possession pursuant to section 344 of this Act; or (2) any transaction in any security issued pursuant to an arrangement in ex- change 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 sub- scribe or conversion privilege so issued, except (a) transactions by an issuer or an underwriter in connection with a distribution otherwise than pursuant to the arrangement, 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. b. As used in this section, the terms "security," "issued," "underwriter," and "dealer" shall have the meanings provided in section 2 of 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. SEC. 394. The clerk and, in the case of a reference, the referee after such reference, shall forthwith transmit to the Secretary of the Treasury copies of- (1) all petitions filed under sections 321 and 322 of this Act; (2) all notices given in a proceeding under this chapter; (3) all orders dismissing proceedings or directing that bankruptcy be pro- ceeded with, discharging debtors, closing estates, and setting aside confirmations; (4) all orders appointing receivers or continuing debtors in possession; (5) all orders confirming arrangements, together with copies of such arrange- ments; (6) all orders approving alterations or modifications in arrangements, together with copies of such alterations or modifications; (7) all applications for allowances for compensation and expenses, and the orders making or refusing to make such allowances and (8) such other papers filed in the proceedings as the Secretary of the Treasury may request or which the court may direct to be transmitted to him. Any order fixing the time for confirming an arrangement which affects claims of the United States shall include a notice to the Secretary of the Treasury of not less than fifteen days. SEC. 395. Except as provided in section 396 of this Act, no income or profit, taxable under any law of the United States or of any State now in force or which may hereafter be enacted, shall, in respect to the adjustment of the indebtedness of a debtor in a proceeding under this chapter, be deemed to have accrued to or to have been realized by a debtor or a corporation organized or made use of for effectuating an arrangement under this chapter by reason of a modification in or cancellation in whole or in part of any such indebtedness CXXV

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