Page:United States Statutes at Large Volume 53 Part 2.djvu/663

 53 STAT.] 76TH CONG. , 1 ST SESS.-CH. 393-JULY 28, 1939 petitioner for expenses, fees, reimbursement or compensation of any character whatsoever incurred in connection with the proceed- ing and plan, or preliminary thereto or in aid thereof, together with all the facts and circumstances relating to the incurring thereof, have been fully disclosed to the Court so far as such amounts or considerations can be ascertained at the time of such hearings, that all such amounts or consideration are fair and rea- sonable, and to the extent that any such amounts or considerations are not then ascertainable, the same are to be so disclosed to the Court when ascertained, and are to be subject to approval by the special court as fair and reasonable, and except with such approval no amounts or considerations covered by this clause (6) shall be paid. Said court shall file an opinion setting forth its conclusions and the reasons therefor and shall enter a decree approving and confirming such plan and the adjustment provided thereby, which decree shall be binding upon the petitioner and upon all creditors and security holders of the petitioner; and thereafter the petitioner shall have full power and authority to and shall put into effect and carry out the plan and the orders of the special court relative thereto and issue the securities provided by the plan without further reference to or authority from the Commission or any other authority, State or Federal, except where required by any law relating to the Recon- struction Finance Corporation, and the rights of all creditors and security holders with respect to claims and securities affected by the plan shall be those provided by the plan as so approved and con- firmed: Provided, however, That the title of any owner, whether as trustee or otherwise, to rolling-stock equipment leased or condi- tionally sold to the petitioner, and any right of such owner to take possession of such property in compliance with the provisions of any such lease or conditional sale contract, shall not be affected by the provisions of this chapter. "No plan shall be approved under this chapter unless the special court finds that with respect to the continuation of, or any change in, the voting rights in the petitioner, control of the petitioner, and the identity of, and the power and manner of selection of the persons who are to be directors, officers, or voting trustees, if any, upon the con- summation of the plan and their respective successors, the plan makes full disclosure, is adequate, equitable, in the best interests of creditors and stockholders of each class, and consistent with public policy. "SEC. 726. After the special court shall have approved as properly filed a petition pursuant to article III hereof, the special court, from time to time during the pendency of the proceedings hereunder, may enjoin the institution of, or stay, for a reasonable time, any action or proceeding to enforce any right against the petitioner or its prop- erty based upon claims affected by the proposed plan of adjustment in any court, State or Federal, whether for the enforcement of any such claim or for the appointment of receivers in equity or of the institution or prosecution of a proceeding under section 77 of the Bankruptcy Act or otherwise: Provided, however, That no such stay shall affect any proceeding based on or to enforce any claim which would be required to be paid if the plan of adjustment proposed by the petitioner were then in effect. "SEC. 727. Unless the plan of adjustment as submitted or as modi- fied shall have been confirmed by the special court within one year from the date of filing the petition, the proceedings shall be dis- missed unless, for good cause shown, on motion of any party in interest the court, if satisfied that confirmation of a plan is in immediate prospect shall determine otherwise. Conditional upon being fair and reason- able. Approval by spe- cial court. Opinion and decree of court. Power and authori- ty of petitioner. Proviso. Title of any owner to rolling-stock equip- ment. Findings by court as condition for ap- proval. Protection of crel- itors and stockholders. Stay of proceed- ings, injunctions, etc. Ante, p. 1135 . 47 Stat. 1474. 11U. .C.i205; Supp. IV, § 205. Proviso. Claims required to be paid if plan then in effect. Time limitation for confirmation.

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