Page:United States Statutes at Large Volume 92 Part 1.djvu/318

 9 2 STAT. 2 6 4

PUBLIC LAW 95-283—MAY 21, 1978 " (e) CLOSEOUTS.—

" (1) IN GENERAL.—Any contract of the debtor for the purchase or sale of securities in the ordinary course of its business with other brokers or dealers which is wholly executory on the filing date shall not be completed by the trustee, except to the extent permitted by S I P C rule. Upon the adoption by S I P C of rules with respect to the closeout of such a contract but prior to the adoption of rules with respect to the completion of such a contract, the other broker o r dealer shall close out such contract, without unnecessary delay, in the best available market and pursuant to such S I P C rules. U n t i l such time as S I P C adopts rules with respect to the completion or closeout of such a contract, such a contract shall be closed out in accordance with Commission Rule S 6 (d) - 1 as in effect on the date of enactment of this section, or any comparable rule of the Commission subsequently adopted, to the extent not inconsistent with the provisions of this subsection. " (2) N E T PROFIT OR LOSS.—A broker or dealer shall net all profits and losses on all contracts closed out under this subsection and— " (A) if such broker or dealer shows a net profit on such contracts, he shall pay such net profit to the trustee; and " (B) if such broker or deader sustains a net l o ^ on such contracts, he shall be entitled to file a claim against the debtor with the trustee in the amount of such net loss. To the extent that a net loss sustained by a broker or dealer arises from contracts pursuant to which such broker or dealer was acting for its own customer, such broker or dealer shall be entitled to receive funds advanced by S I P C to the trustee in the amount of such loss, except that such broker or dealer may not n>ceive more than $40,000 for each separate customer with respect to whom i t sustained a loss. W i t h respect to a net loss which is not payable under the preceding sentence from funds advanced by S I P U, the broker or dealer shall be entitled to participate in the general estate as an unsecured creditor. "(3)

REGISTERED CLEARING AGENCIES.—Neither

a

registered

clearing agency which by its rules has an established procedure for the closeout of open contracts between an insolvent broker or dealer and its participants, nor its participants to the extent such participants' claims are or may be processed within the registered clearing agency, shall be entitled to receive S I P C funds in payment of any losses on such contracts, except as S I P C may otherwise provide by rule. I f such registered clearing agency or its participants sustain a net loss on the closeout of such contracts with the debtor, they shall have the r i g h t to participate in the general estate as unsecured creditors to the extent of such loss. Any funds or other property owed to the debtor, after the closeout of such contracts, shall be promptly paid to the trustee. Rules adopted by S I P C under this paragraph shall provide that in no case may a registered clearing agency or its participants, to the extent such participants' claims are or may be processed within the registered clearing agency, be entitled to receive funds advanced by S I P C in an amount greater, in the aggregate, than could be received by the participants if such participants proceeded individually under paragraph s (1) and (2). " (4) DEFINITION. — For purposes of this subsection, the term 'customer' does not include any person who—

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