Page:United States Statutes at Large Volume 53 Part 2.djvu/696

 PUBLIC LAWS-CH. 411-AUG. 3, 1939 Undertaking for costs, provisions in- cluded. Proiso. Exceptions. "(3) such indenture may contain provisions protecting the indenture trustee with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the indenture securities at the time outstanding (determined as provided in subsection (a) of section 316) relating to the time, method, and place of conducting any proceeding for any remedy available to such trustee, or exercising any trust or power conferred upon such trustee, under such indenture. "Undertaking for Costs "(e) The indenture to be qualified may contain provisions to the effect that all parties thereto, including the indenture security holders, agree that the court may in its discretion require, in any suit for the enforcement of any right or remedy under such indenture, or in any suit against the trustee for any action taken or omitted by it as trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant: Provided,That the provisions of this subsection shall not apply to any suit instituted by such trustee, to any suit instituted by any indenture security holder, or group of indenture security holders, holding in the aggregate more than 10 per centum in principal amount of the indenture securities outstanding, or to any suit instituted by any indenture security holder for the enforcement of the payment of the principal of or interest on any indenture security, on or after the respective due dates expressed in such indenture security. "D IR ECTIONS AND WAIVERS BY BONDHOLDERS; PROHIBITION OF IMPAIRMENT OF HOLDER'S RIGHT TO PAYMENT Directions and "SEC. 316. (a) The indenture to be qualified may contain pro- waivers by bond- holders. visions- Direction of pro- "(1) authorizing the holders of not less than a majority in available to trustee, principal amount of the indenture securities at the time out- etc. standing (A) to direct the time, method, and place of conduct- ing any proceeding for any remedy available to such trustee, or exercising any trust or power conferred upon such trustee under Consent to waiver such indenture, or (B) on behalf of the holders of all such of past default. indenture securities, to consent to the waiver of any past default and its consequences; or Consent to post- "(2) authorizing the holders of not less than 75 per centum in ponement of any In- terest payment for principal amount of the indenture securities at the time out- designated period. standing to consent on behalf of the holders of all such indenture securities to the postponement of any interest payment for a period not exceeding three years from its due date. Exclusion of securi- For the purposes of this subsection and paragraph (3) of subsection ties owned by obligor, etc., in determining (d) of section 315, in determining whether the holders of the required whetherrequired er principal amount of indenture securities have concurred in any such direction or consent, indenture securities owned by any obligor upon the indenture securities, or by any person directly or indirectly con- trolling or controlled by or under direct or indirect common control Qualification. with any such obligor, shall be disregarded, except that for the pur- poses of determining whether the indenture trustee shall be protected n relying on any such direction or consent, only indenture securities which such trustee knows are so owned shall be so disregarded. 1172 [53 STAT.

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