Page:United States Statutes at Large Volume 84 Part 2.djvu/315

 84 STAT. ]

PUBLIC LAW 91-598-DEC. 30, 1970

1645

customers and that there exists one or more of the conditions specified in subsection (b)(1)(A), S I P C, upon notice to such member, may apply to any court of competent jurisdiction specified in section 27 or 21 (e) of the 1934 Act for a decree adjudicating ^^^^^ ^tat. 902. that customers of such member are in need of the protection pro- 15 USC 78aa, vided by this Act, '^^"• (3) EFFECT OF OTHER PENDING ACTIONS.—An application under paragraph (2) — (A) with the consent of the Commission, may be combined with any action brought by the Commission including an action by it for a temporary receiver pending an appointment of a trustee under subsection (b)(3), and (B) may be filed notwithstanding the pendency in the same or any other court of any bankruptcy, mortgage foreclosure, or equity receivership proceeding or any proceeding to reorganize, conserve, or liquidate such member or its property, or any proceeding to enforce a lien against property of such member. (b)

COURT ACTION.— (1) ISSUANCE OF DECREE.— (A) FINDINGS BY COURT.—A

court to which application is jnade pursuant to subsection (a)(2) shall grant the application and issue a decree adjudicating that customers of the member named in the application are in need of protection under this Act if it finds that such member— (i) is insolvent within the meaning of section 1(19) of the Bankruptcy Act, or is unable to meet its obliga- ^^ Stat. 84i. tions as they mature, or (ii) has committed an act of bankruptcy within the meaning of section 3 of the Bankruptcy Act, or ^stat^*' ^'^'^' (iii) is the subject of a proceeding pending in any court 11 USC 21*. or before any agency of the United States or any State in which a receiver, trustee, or liquidator for such member has been appointed, or (iv) is not in compliance with applicable requirements under the 1934 Act or rules or regulations of the Com- ^^ use y^si" mission or any self-regulatory organization with respect to financial responsibility or hypothecation of customers' securities, or (v) is unable to make such computations as may be necessary to establish compliance with such financial responsibility or hypothecation rules or regulations. (B) UNCONTESTED, ETC., APPLICATIONS.—If within three business days after the filing of an application pursuant to subsection (a)(2), or such other period as the court may order, the debtor shall consent to or fail to contest such application or shall fail to show facts sufficient to contorvert any material allegation of such application, the court shall forthwith grant the application and issue a decree adjudicating that customers of the member named in the application are in need of protection under this Act. (2) EXCLUSIVE JURISDICTION OVER DEBTOR,—Upon the filing of an application pursuant to subsection (a)(2), the court to which application is made shall have exclusive jurisdiction of the debtor involved and its property wherever located with the powers, to the extent consistent with the purposes of this Act, of a court of bankruptcy and of a court in a proceeding under chapter X of the Bankruptcy Act. Pending an adjudication under para- 8o^stat^*i'1278. 80 Stat. 2*7s^' 11 USC 501.

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