Page:United States Statutes at Large Volume 92 Part 1.djvu/313

 PUBLIC LAW 95-283—MAY 21, 1978

92 STAT. 259

retention in office of a trustee or attorney for a trustee on the grounds that such person is not disinterested.", (c) Section 5 of such Act (15 U.S.C. 78eee) is amended by adding at the end thereof the following new subsection: "(d) SIPC PARTICIPATION.—SIPC shall be deemed to be a party in interest as to all matters arising in a liquidation proceeding, with the right to be heard on all such matters, and shall be deemed to have intervened with respect to all such matters with the same force and effect as if a petition for such purpose had been allowed by the court.". GENERAL PROVISIONS OF A LIQUIDATIOX PROCEEDIXG

SEC. 8. Section 6 of such Act (15 U.S.C. 78fff) is amended to read as follows: "SEC. 6. GENERAL PROVISIONS OF A LIQUIDATION PROCEEDING.

"(a) PURPOSES.—The purposes of a liquidation proceeding under this Act shall be— "(1) as promptly as possible after the appointment of a trustee in such liquidation proceeding, and in accordance with the provisions of this Act— "(A) to deliver customer name securities to or on behalf of the customers of the debtor entitled thereto as provided in section 8(c)(2); and Post, p. 261. "(B) to distribute customer propert}^ and (in advance thereof or concurrently therewith) otherwise satisfy net equity claims of customers to the extent provided in this section; "(2) to sell or transfer offices and other productive units of the business of the debtor; "(3) to enforce rights of subrogation as provided in this Act; and " (4) to liquidate the business of the debtor. "(b) APPLICATION OF BANKRUPTCY ACT.—To the extent consistent Post, p. 2549. with the provisions of this Act, a liquidation proceeding shall be conducted in accordance with, and as though it were being conducted under, the Bankruptcy Act. For purposes of applying the Bankruptcy Act to this Act, any reference in the Bankruptcy Act to the date of commencement of proceedings under the Bankruptcy Act shall be deemed to be a reference to the filing date under this Act. "(c) DETERMINATION OF CUSTOMER STATUS.—In a liquidation proceeding under this Act, whenever a person has acted with respect to cash or securities with the debtor after the filing date and in a manner which would have given him the status of a customer with respect to such cash or securities had the action occurred prior to the filing date, and the trustee is satisfied that such action was taken by the customer in good faith and prior to the appointment of the trustee, the date on which such action was taken shall be deemed to be the filing date for purposes of determining the net equity of such customer with respect to such cash or securities. "(d) APPORTIONMENT.—In a liquidation proceeding under this Act, any cash or securities remaining after the liquidation of a lien or pledge made by a debtor shall be apportioned between his general estate and customer property in the proportion in which the general property of the debtor and the cash and securities of the customers of such debtor contributed to such lien or pledge. Securities apportioned

�