Page:United States Statutes at Large Volume 84 Part 2.djvu/94

 1424 Securities, retroactive registration. 54 Stat. 825; 68 Stat. 689.

Reorganization pian consummation, enjoinment.

Unit investment trust, securities, substitution. Commission, approval.

Contract.

Periodic payment plan certificates, regulations.

PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

(b) Section 24 of such Act (15 U.S.C. 80a-24) is further amended by adding at the end thereof a new subsection to read as follows: "(f) In the case of securities issued by a face-amount certificate company or redeemable securities issued by an open-end management company or unit investment tmst, which are sold in an amount in excess of the number of securities included in an effective registration statement of any such company, such company may, in accordance with such rules and regulations as the Commission shall adopt as it deems necessary or appropri-ate in the public interest or for the protection of investors, elect to have the registration of such securities ueemed effective as of the time of their sale, upon payment to the Commission, within six months after any such sale, of a registration fee of three times the amount of the fee which would have otherwise been applicable to such securities. Upon any such election and payment, the registration statement of such company shall be considered to have been in effect with respect to such shares. The Commission may also adopt rules and regulations as it deems necessary or appropriate in the public interest or for the protection of investors to permit the registration of an indefinite number of the securities issued by a face-amount certificate company or redeemable securities issued by an open-end management company or unit investment trust." SEC. 14. Section 25(c) of the Investment Company Act of 1940 (15 T'.S.C. 8a-25(c)) is amended to read as follows: "(c) Any district court of the United States in the State of incorporation of a registered investment company, or any such court for the district in which such company maintains its principal place of business, is authorized to enjoin the consummation of any plan of reorganization of such registered investment company upon proceedings instituted by the Commission (which is authorized so to proceed upon behalf of security holders of such registered company, or any class thereof), if such court shall determine that any such plan is not fair and equitable to all security holders." SEC. 15. (a) Section 26 of the Investment Company Act of 1940 (15 LLS.C. 80a-26) is amended by redesignating subsections (b) and (c) thereof as subsections (c) and (d), respectively, and by inserting immediately after subsection (a) a new subsection as follows: " (b) I t shall be unlawful for any depositor or trustee of a, registered unit investment trust holding the security of a single issuer to substitute another security for such security unless the Commission shall have approved such substitution. The Commission shall issue an order approving such substitution if the evidence establishes that it is consistent with the protection of investors and the purposes fairly intend by the policy and provisions of this title." (b) Eedesignated subsection (c) (formerly subsection (b)) of section 26 of such Act is amended to read as follows: "(c) In the event that a trust indenture, agreement of custodianship, or other instrument pursuant to which securities of a registered unit investment trust are issued does not comply with the requirements of subsection (a) of this section, such instrument will be deemed to meet such requirements if a written contract or agreement binding on the parties and embodying such requirements has been executed by the depositor on the one part and the trustee or custodian on the other part, and three copies of such contract of agreement have been filed with the Commission." SEC. 16. Section 27 of the Investment Company Act of 1940 (15 U.S.C. 80a-27) is amended by adding at the end thereof the following new subsections: " (d) Notwithstanding subsection (a) of this section, it shall be unlawful for any registered investment company issuing periodic

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