Page:United States Statutes at Large Volume 92 Part 1.djvu/321

 PUBLIC LAW 95-283—MAY 21, 1978

92 STAT. 2(57

"(4) the claims of all customers of the member aggregate less than $250,000; "(5) the cost to SIPC of satisfying customer claims under this section will be less than the cost under a liquidation proceeding; and "(6) such member's registration as a broker-dealer under section 15(b) of the 1934 Act has been terminated, or such member 15 USC 78o. has consented to the use of the direct payment procedure set forth in this section, SIPC may, in its discretion, use the direct payment procedure set forth in this section in lieii of instituting a liquidation proceeding with respect to such member. "(b) NOTICE.—Promptly after a determination under subsection Publication, (a) that the direct payment procedure is to be used with respect to a member, SIPC shall cause notice of such direct payment procedure to be published in one or more newspapers of general circulation in a form and manner detenmined by SIPC, and at the same time shall cause to be mailed a copy of such notice to each person who appears, from the books and records of such member, to have been a customer j* of the member with an open account within the past twelve months, to the address of such person as it appears from the books and records of such member. Such notice shall state that SIPC will satisfy customer claims directly, without a liquidation proceeding, and shall set forth the form and manner in which claims may be presented. A direct payment procedure shall be deemed to commence on the date of fii"st publication under this subsection and no claim by a customer shall be paid or otherwise satisfied by SIPC unless received within the six-month period beginning on such date, except that SIPC shall, upon application within such period, and for cause shown, grant a reasonable, fixed extension of time for the filing of a claim by the United States, by a State or political subdivision thereof, or by an infant or incompetent person without a guardian. "(c) PAYMENTS TO CUSTOMERS.—SIPC shall promptly satisfy all •-,,j obligations of the member to each of it customers relating to, or net etjuity claims based upon, securities or cash by the delivery of securities or the effecting of payments to such customer (subject to the provisions of section 8(d) and section 9(a)) insofar as such obligations are ascertainable from the books and records of the member or are otherwise established to the satisfaction of SIPC. For purposes of distributing securities to customers, all securities shall be valued as of the close of business on the date of publication under subsection (b). Any payment or delivery of securities pursuant to this section may be conditioned upon the execution and delivery, in a form to be determined by SIPC, of appropriate receipts, supporting affidavits, releases, and assignments. To the extent moneys of SIPC are used to satisfy the claims of customers, in addition to all other rights it may have at law or in equity, SIPC shall be subrogated to the claims of such customers against the member. "(d) EFFECT ON CLAIMS.—Except as otherwise provided in this section, nothing in this section shall limit the right of any person, including any subrogee, to establish h^ formal proof or otherwise such claims as such person may have agamst the member, including claims for the payment of money and the delivery of specific securities, without resort to moneys of SIPC.

39-194 O—80—pt. 1

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