Page:United States Statutes at Large Volume 92 Part 1.djvu/309

 PUBLIC LAW 95-283—MAY 21, 1978

92 STAT. 2 5 5

was a member within one hundred eighty days prior to such determination) has failed or is i n danger of failing to meet its obligations to customers; and " (B) one or more of the conditions specified in subsection (b)(1) exist with respect to such member, S I P C may, upon notice to such member, file a n application for a protective decree with any court of competent jurisdiction specified in section 21(e) or 27 of the 1934 Act, except that no such 15 USC 78u, application shall be filed with respect to a member the only cus- ^^^^• tomers of which a r e persons whose claims could not be satisfied by S I P C advances pursuant to section 9. 15 USC 78iii. " (4) E F F E C T OF OTHER PENDING ACTIONS.—An application with

respect to a member of S I P C filed with a court under paragraph (3)" (A) may, with the consent of the Commission, be combined with any action brought by the Commission, including an action by the Commission 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 o r 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) Section 5(b) of such Act (15 U.S.C. 78eee(b)) is amended to read as follows: " (b) COURT ACTION. — " (1) ISSUANCE OF PROTECTIVE DECREE.—Upon

receipt

of

an

application by S I P C under subsection (a)(3), the court shall forthwith issue a protective decree if the debtor consents thereto, if the debtor fails to contest such application, or if the court finds that such debtor— " (A) is insolvent within the meaning of the Bankruptcy Act, or is unable to meet its obligations as they m a t u r e; Post, p. 2549. " (B) has committed an act of bankruptcy within the meaning of the B a n k r u p t c y Act; ' " (C) is the subject of a proceeding pending in any court or before any agency of the United States o r any State in which a receiver, trustee, or liquidator for such debtor has been appointed; " (D) is not in compliance with applicable requirements under the 1934 Act or rules of the Commission or any self- 15 USC 78a. regulatory organization with respect to financial responsibility or hypothecation of customers' securities; or " (E) is unable to make such computations as may be necessary to establish compliance with such financial responsibility or hypothecation rules. Unless the debtor consents to the issuance of a protective decree, the application shall be heard three business days after the date on which i t is filed, or a t such other time as the court shall determine, taking into consideration the urgency which the circumstances require. " (2) JURISDICTION AND POWERS OF COURT.— " (A) EXCLUSIVE JURISDICTION.—Upon

the

filing

of

an

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