Page:United States Statutes at Large Volume 84 Part 2.djvu/316

 1646

PUBLIC LAW 91-598-DEC. 30, 1970

[84 STAT.

graph (1) such court shall stay, and upon appointment by it of a trustee as provided in paragraph (3) such court shall continue the stay of, any pending bankruptcy, mortgage foreclosure, equity receivership, or other proceeding to reorganize, conserve, or liquidate the debtor or its property and any other suit against any receiver, conservator, or trustee of the debtor or its property. Pending such adjudication and upon the appointment by it of such trustee, the court may stay any proceeding to enforce a lien against property of the debtor or any other suit against the debtor. Pending such adjudication, such court may appoint a temporary receiver. (3) APPOINTMENT OF TRUSTEE.—If the court grants an applica' tion and makes an adjudication under paragraph (1), the court shall forthwith appoint as trustee for the liquidation of the business of the debtor in accordance with section 6, and as attorney for such trustee, such persons as S I P C shall specify. No person shall be appointed as such trustee or attorney if such person is not "disinterested" within the meaning of section 158 of the 52 Stat. 888 Bankruptcy Act. 11 USC 558, (4) DEBTOR AND FILING DATE DEFINED.—For purposes of this Act— (A) DEBTOR.—The term "debtor" means a member of S I P C in respect of whom an application has been filed pursuant to subsection (a)(2).. (B) F I L I N G DATE.—The term "filing date" means the date on which an application with respect to any debtor is filed under subsection (a)(2); except that if— (i) a petition was filed before such date by or against 30 Stat. 544. the debtor under the Bankruptcy Act, or 11 USC 1 et seq. (ii) the debtor is the subject oi a proceeding pending in any court or before any agency of the United States or any State in which a receiver, trustee, or liquidator for '' such debtor was appointed which proceeding was commenced before the date on which such application was filed, then the term "filing date" means the date on which such petition was filed or such proceeding commenced, (c) S E C PARTICIPATION I N PROCEEDINGS.—The Commission may, on its own motion, file notice of its appearance in any proceeding under this Act and may thereafter participate as a party. SEC. 6. LIQUIDATION PROCEEDINGS. (a) GENERAL PURPOSES OF LIQUIDATION PROCEEDING.—The purposes

of any proceeding in which a trustee has been appointed under section 5(b)(3) (hereafter in this section referred to as a "liquidation proceeding") shall be: (1) as promptly as possible after such appointment and in accordance with the provisions of this section— (A) to return specifically identifiable property to the customers of the debtor entitled thereto; (B) to distribute the single and separate fund, and (in advance thereof or concurrently therewith) pay to customers moneys advanced by S I P C, as provided in subsection (f); (2) to operate the business of the debtor in order to complete open contractual commitments of the debtor pursuant to subsection (d); (3) to enforce rights of subrogation as provided in this Act; and

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