Page:United States Statutes at Large Volume 53 Part 2.djvu/689

 53 STAT.] 76TH CONG. , 1 ST SESS.-CH. 411 -AUG. 3, 1939 of at least six months preceding the date of such application, such institutional trustee shall, at its election, either- "(1) afford to such applicants access to all information so fur- nished to or received by such trustee; or "(2) inform such applicants as to the approximate number of indenture security holders according to the most recent informa- tion so furnished to or received by such trustee, and as to the approximate cost of mailing to such indenture security holders the form of proxy or other communication, if any, specified in such application. If such trustee shall elect not to afford to such applicants access to such information, such trustee shall, upon the written request of such applicants, mail to all such indenture security holders copies of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to such trustee of the material to be mailed and of payment, or provision for the pay- ment, of the reasonable expenses of such mailing, unless within five days after such tender, such trustee shall mail to such applicants, and file with the Commission together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of such trustee, such mailing would be contrary to the best interests of the indenture security holders or would be in violation of appli- cable law. Such written statement shall specify the basis of such opinion. After opportunity for hearing upon the objections specified in the written statement so filed, the Commission may, and if demanded by such trustee or by such applicants shall, enter an order either sustaining one or more of such objections or refusing to sustain any of them. If the Commission shall enter an order refusing to sustain any of such objections, or if, after the entry of an order sus- taining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all objections so sus- tained have been met, and shall enter an order so declaring, such trustee shall mail copies of such material to all such indenture secur- ity holders with reasonable promptness after the entry of such order and the renewal of such tender. "(c) The disclosure of any such information as to the names and addresses of the indenture security holders in accordance with the provisions of this section, regardless of the source from which such information was derived, sha'll not be deemed to be a violation of any existing law, or of any law hereafter enacted which does not specifically refer to this section, nor shall such trustee be held account- able by reason of mailing any material pursuant to a request made under subsection (b) of this section. "RE PORTS BY INDENTURE TRUSTEE "SEC. 313. (a) The indenture to be qualified shall contain provi- sions requiring the indenture trustee to transmit to the indenture security holders as hereinafter provided, at stated intervals of not more than 12 months, a brief report with respect to- "(1) its eligibility and its qualifications under section 310, or in lieu thereof, if to the best of its knowledge it has continued to be eligible and qualified under such section, a written statement to such effect; "(2) the character and amount of any advances made by it, as indenture trustee, which remain unpaid on the date of such report, and for the reimbursement of which it claims or may claim a lien or charge, prior to that of the indenture securities, on the trust estate or on property or funds held or collected by it as such trustee, if such advances so remaining unpaid aggre- 1165 If trustee elects not to afford access. Intervention by Commission. 1)isclosure not dl*etled violation of law. Protection of trustee from accountability. Reports by inden- ture trustee. Eligibility and qual- ifications. Unpaid advances; character and amount.

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