Page:United States Statutes at Large Volume 92 Part 1.djvu/310

 92 STAT. 2 5 6

PUBLIC LAW 95-283—MAY 21, 1978 application with a court for a protective decree with respect to a debtor, such court— " (i) shall have exclusive jurisdiction of such debtor and its property wherever located (including property located outside the territorial limits of such court and property held by any other person as security for a debt or subject to a l i e n); " ( i i) shall have exclusive jurisdiction of any suit against the trustee with respect to a liquidation proceeding; and " ( i i i) except as inconsistent with the provisions of this Act, shall have the jurisdiction, powers, and duties conferred upon a court of bankruptcy by the Bankruptcy Act, together with such other jurisdiction, powers, and duties as are prescribed by this Act. "(B)

Post, p. 2549.

STAY OF PENDING ACTIONS.—Pending the

issuance

of a protective decree under paragraph (1), the court with which an application has been filed— " (i) shall stay 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, and shall continue such stay upon appointment of a trustee pursuant to paragraph (3); " (ii) may stay any proceeding to enforce a lien against property of the debtor or any other suit against the debtor, including a suit by stockholders of the debtor which interferes with prosecution by the trustee of claims against former directors, officers, or employees of the debtor, and may continue such stay upon, appointment of a trustee pursuant to paragraph (3); " ( i i i) may stay enforcement of, and upon appointment of a trustee pursuant to paragraph (3), may continue the stay for such period of time as may be appropriate, b u t shall not abrogate, the right of setoff provided in section 68 of the Bankruptcy Act, and the r i g h t to enforce a valid, nonpreferential lien or pledge against the property of the debtor; and " ( i v) may appoint a temporary receiver. "(3)

APPOINTMENT OF TRUSTEE AND ATTORNEY.—If the court

issues a protective decree under paragraph (1), such court shall forthwith appoint, as trustee for the liquidation of the business of the debtor and as attorney for the trustee, such persons as S I P C, i n its sole discretion, specifies. The persons appointed as trustee and as attorney for the trustee may be associated with the same firm. S I P C may, in its sole discretion, specify itself or one of it s employees as trustee in any case in which S I P C has determined that the liabilities of the debtor to unsecured general creditors and to subordinated lenders appear to aggregate less than $750,000 and that there a p p e a r to be fewer than five hundred customers of such debtor. N o person may be appointed to serve as trustee or attorney for the trustee if such person is not disinterested within the meaning of paragraph (6), except that for any specified purpose other than to represent a trustee in

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