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PUBLIC LAW 91-598-DEC. 30, 1970

[84 STAT.

Public Law 91-598 December 30, 1970

[H. R. 19333]

Securities Inv e s to r Protection Act of 1970.

^N

ACT

To provide greater protection for cnstomers of registered brokers and dealers and members of national securities exchanges.

Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

of the

SECTION 1. SHORT TITLE, ETC.

(a) SHORT TITLE; TABLE OF CONTENT^.—This Act, with the following table of contents, may be cited as the "Securities Investor Protection Act of 1970". T A B L E OF CONTENTS Sec. 1. Short title, etc. (a) siiort title; table of contents. (b) Section headings. Sec*. 2. Application of Securities Exehangie Act of 1984, Sec. 3. Securities Investor Protection Corporation, (a) Creation. (b) Powers. (c) Board of Directors. (d) Meetings of Board. (e) Bylaws. (f) Other members. Sec, 4. SIPC Fund, (a) I n general, (b) Initial required balance for fund. (c) Assessments. (d) Requirements respecting assessments and lines of cretlit. (e) Prior t r u s t s; overpayments and underpayments. (f) Borrowing authority. (g) SEC loans to SIPC. (h) SEC notes issued to Treasury, (i) "Gross revenue" defined. Sec.."). Protection of customers. (a) Determination of need of protection. (b) Court action. (c) SEC participation in proceedings. Sec. 6. Liquidation proceedings. (a) General purposes of liquidation proceeding, (b) Powers and duties of trustee, (e) Application of Bankruptcy Act. (d) Completion of open contractual commitments. (e) Notice. (f) SIPC advances to trustee. (g) Payments to c u s to m e r s; no proof of claim required, (h) Proof of claim by associates and others. (i) Reports by trustee to court. (j) E}ffect of Act on claims. Sec. 7. SEC functions. (a) Administrative procedure. (b) Enforcement of actions. (c) Examinations and reports. (d) Financial responsibility. Sec. 8. Examining authority functions. Sec. 9. Functions of self-regulatory organizations. (a) Collecting agent. (b) Immunity. (c) Inspections. (d) Reports. (e) Consultation. (f) Financial condition of members. Sec. 10. Prohibited acts. (a) F a i l u r e to pay assessment, etc. (b) Engaging in business after appointment of trustee. (c) Embezzlement, etc., of assets of SIPC.

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