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12 U.S.C. § 5388 — Orderly liquidation of covered brokers and dealers
Federal law — U.S. Code and appendices · legal_authorities
**(a) Appointment of SIPC as trustee**
(1) **Appointment** — Upon the appointment of the Corporation as receiver for any covered broker or dealer, the Corporation shall appoint, without any need for court approval, the Securities Investor Protection Corporation to act as trustee for the liquidation under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) of the covered broker or dealer.
(2) **Actions by SIPC**
(A) *Filing* — Upon appointment of SIPC under paragraph (1), SIPC shall promptly file with any Federal district court of competent jurisdiction specified in section 78u or 78aa of title 15, an application for a protective decree under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) as to the covered broker or dealer. The Federal district court shall accept and approve the filing, including outside of normal business hours, and shall immediately issue the protective decree as to the covered broker or dealer.
(B) *Administration by SIPC* — Following entry of the protective decree, and except as otherwise provided in this section, the determination of claims and the liquidation of assets retained in the receivership of the covered broker or dealer and not transferred to the bridge financial company shall be administered under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) by SIPC, as trustee for the covered broker or dealer.
(C) *Definition of filing date* — For purposes o
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Source location: Title 12, Chapter 53, § 5388; chapter-053-wall-street-reform-and-consumer-protection.md
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**(a) Appointment of SIPC as trustee**
(1) **Appointment** — Upon the appointment of the Corporation as receiver for any covered broker or dealer, the Corporation shall appoint, without any need for court approval, the Securities Investor Protection Corporation to act as trustee for the liquidation under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) of the covered broker or dealer.
(2) **Actions by SIPC**
(A) *Filing* — Upon appointment of SIPC under paragraph (1), SIPC shall promptly file with any Federal district court of competent jurisdiction specified in section 78u or 78aa of title 15, an application for a protective decree under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) as to the covered broker or dealer. The Federal district court shall accept and approve the filing, including outside of normal business hours, and shall immediately issue the protective decree as to the covered broker or dealer.
(B) *Administration by SIPC* — Following entry of the protective decree, and except as otherwise provided in this section, the determination of claims and the liquidation of assets retained in the receivership of the covered broker or dealer and not transferred to the bridge financial company shall be administered under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) by SIPC, as trustee for the covered broker or dealer.
(C) *Definition of filing date* — For purposes of the liquidation proceeding, the term “filing date” means the date on which the Corporation is appointed as receiver of the covered broker or dealer.
(D) *Determination of claims* — As trustee for the covered broker or dealer, SIPC shall determine and satisfy, consistent with this subchapter and with the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.), all claims against the covered broker or dealer arising on or before the filing date.
**(b) Powers and duties of SIPC**
(1) **In general** — Except as provided in this section, upon its appointment as trustee for the liquidation of a covered broker or dealer, SIPC shall have all of the powers and duties provided by the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.), including, without limitation, all rights of action against third parties, and shall conduct such liquidation in accordance with the terms of the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.), except that SIPC shall have no powers or duties with respect to assets and liabilities transferred by the Corporation from the covered broker or dealer to any bridge financial company established in accordance with this subchapter.
(2) **Limitation of powers** — The exercise by SIPC of powers and functions as trustee under subsection (a) shall not impair or impede the exercise of the powers and duties of the Corporation with regard to—
(A) any action, except as otherwise provided in this subchapter—
(i) to make funds available under [section 5384(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5384/d&num=0&edition=prelim);
(ii) to organize, establish, operate, or terminate any bridge financial company;
(iii) to transfer assets and liabilities;
(iv) to enforce or repudiate contracts; or
(v) to take any other action relating to such bridge financial company under [section 5390 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390&num=0&edition=prelim); or
(B) determining claims under subsection (e).
(3) **Protective decree** — SIPC and the Corporation, in consultation with the Commission, shall jointly determine the terms of the protective decree to be filed by SIPC with any court of competent jurisdiction under section 78u or 78aa of title 15, as required by subsection (a).
(4) **Qualified financial contracts** — Notwithstanding any provision of the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) to the contrary (including section 5(b)(2)(C) of that Act ([15 U.S.C. 78eee(b)(2)(C)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78eee/b/2/C&num=0&edition=prelim))), the rights and obligations of any party to a qualified financial contract (as that term is defined in [section 5390(c)(8) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390/c/8&num=0&edition=prelim)) to which a covered broker or dealer for which the Corporation has been appointed receiver is a party shall be governed exclusively by [section 5390 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390&num=0&edition=prelim), including the limitations and restrictions contained in [section 5390(c)(10)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390/c/10/B&num=0&edition=prelim).
**(c) Limitation on court action** Except as otherwise provided in this subchapter, no court may take any action, including any action pursuant to the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) or the Bankruptcy Code, to restrain or affect the exercise of powers or functions of the Corporation as receiver for a covered broker or dealer and any claims against the Corporation as such receiver shall be determined in accordance with subsection (e) and such claims shall be limited to money damages.
**(d) Actions by Corporation as receiver**
(1) **In general** — Notwithstanding any other provision of this subchapter, no action taken by the Corporation as receiver with respect to a covered broker or dealer shall—
(A) adversely affect the rights of a customer to customer property or customer name securities;
(B) diminish the amount or timely payment of net equity claims of customers; or
(C) otherwise impair the recoveries provided to a customer under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.).
(2) **Net proceeds** — The net proceeds from any transfer, sale, or disposition of assets of the covered broker or dealer, or proceeds thereof by the Corporation as receiver for the covered broker or dealer shall be for the benefit of the estate of the covered broker or dealer, as provided in this subchapter.
**(e) Claims against the Corporation as receiver** Any claim against the Corporation as receiver for a covered broker or dealer for assets transferred to a bridge financial company established with respect to such covered broker or dealer—
(1) shall be determined in accordance with [section 5390(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390/a/2&num=0&edition=prelim); and
(2) may be reviewed by the appropriate district or territorial court of the United States in accordance with [section 5390(a)(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390/a/5&num=0&edition=prelim).
**(f) Satisfaction of customer claims**
(1) **Obligations to customers** — Notwithstanding any other provision of this subchapter, all obligations of a covered broker or dealer or of any bridge financial company established with respect to such covered broker or dealer to a customer relating to, or net equity claims based upon, customer property or customer name securities shall be promptly discharged by SIPC, the Corporation, or the bridge financial company, as applicable, by the delivery of securities or the making of payments to or for the account of such customer, in a manner and in an amount at least as beneficial to the customer as would have been the case had the actual proceeds realized from the liquidation of the covered broker or dealer under this subchapter been distributed in a proceeding under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) without the appointment of the Corporation as receiver and without any transfer of assets or liabilities to a bridge financial company, and with a filing date as of the date on which the Corporation is appointed as receiver.
(2) **Satisfaction of claims by SIPC** — SIPC, as trustee for a covered broker or dealer, shall satisfy customer claims in the manner and amount provided under the Securities Investor Protection Act of 1970 ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.), as if the appointment of the Corporation as receiver had not occurred, and with a filing date as of the date on which the Corporation is appointed as receiver. The Corporation shall satisfy customer claims, to the extent that a customer would have received more securities or cash with respect to the allocation of customer property had the covered financial company been subject to a proceeding under the Securities Investor Protection Act ([15 U.S.C. 78aaa](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78aaa&num=0&edition=prelim) et seq.) without the appointment of the Corporation as receiver, and with a filing date as of the date on which the Corporation is appointed as receiver.
**(g) Priorities**
(1) **Customer property** — As trustee for a covered broker or dealer, SIPC shall allocate customer property and deliver customer name securities in accordance with section 8(c) of the Securities Investor Protection Act of 1970 ([15 U.S.C. 78fff–2(c)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78fff–2/c&num=0&edition=prelim)).
(2) **Other claims** — All claims other than those described in paragraph (1) (including any unpaid claim by a customer for the allowed net equity claim of such customer from customer property) shall be paid in accordance with the priorities in [section 5390(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5390/b&num=0&edition=prelim).
**(h) Rulemaking** The Commission and the Corporation, after consultation with SIPC, shall jointly issue rules to implement this section.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary is authorized to promulgate regulations to implement and administer the grant programs and undertakings authorized by this subchapter.
**(b) Regulatory authority** Regulations prescribed under this section may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for any class of grant programs, undertakings, or eligible entities, as, in the judgment of the Secretary, are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion of this subchapter, or to facilitate compliance with this subchapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5301
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Federal law — U.S. Code and appendices · legal_authorities
The members of the board of directors (or body performing similar functions) of a covered financial company shall not be liable to the shareholders or creditors thereof for acquiescing in or consenting in good faith to the appointment of the Corporation as receiver for the covered financial company under [section 5383 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5383&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5390
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Federal law — U.S. Code and appendices · legal_authorities
This chapter may be cited as the “Securities Investor Protection Act of 1970”.
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 78aaa
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Federal law — U.S. Code and appendices · legal_authorities
Page 1880
TITLE 12—BANKS AND BANKING
§ 5386
78aaa et seq.), as if the appointment of the
Corporation as receiver had not occurred, and
with a filing date as of the date on which the
Corporation is appointed as receiver. The Cor-
poration shall satisfy customer claims, to the
extent that a customer would have received
more securities or cash with respect to the al-
location of customer property had the covered
financial company been subject to a pro-
ceeding under the Securities Investor Protec-
tion Act (15 U.S.C. 78aaa et seq.) without the
appointment of the Corporation as receiver,
and with a filing date as of the date on which
the Corporation is appointed as receiver.
(g) Priorities
(1) Customer property
As trustee for a covered broker or dealer,
SIPC shall allocate customer property and de-
liver customer name securities in accordance
with section 8(c) of the Securities Investor
Protection Act of 1970 (15 U.S.C. 78fff–2(c)).
(2) Other claims
All claims other than those described in
paragraph (1) (including any unpaid claim by a
customer for the allowed net equity claim of
such customer from customer property) shall
be paid in accordance with the priorities in
section 5390(b) of this title.
(h) Rulemaking
The Commission and the Corporation, after
consultation with SIPC, shall jointly issue rules
to implement this section.
(Pub. L. 111–203, title II, § 205, July 21, 2010, 124
Stat. 1456.)
Editorial Notes
REFERENCES IN TEXT
The Securities Investor Protection Act of 1970, re-
ferred to in text, is Pub. L. 91–598, Dec. 30, 1970, 84 Stat.
1636, which is classified generally to chapter 2B–1
(§ 78aaa et seq.) of Title 15, Commerce and Trade. For
complete classification of this Act to the Code, see sec-
tion 78aaa of Title 15 and Tables.
Thi
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 5388
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 477
TITLE 15—COMMERCE AND TRADE
§ 78ccc
1 See References in Text note below.
(B) disclosing the action, if any, the Com-
mission intends to take with respect to the
finding or recommendation.
(h) Federal Advisory Committee Act
The Federal Advisory Committee Act (5 U.S.C.
App.) 1 shall not apply with respect to the Com-
mittee and its activities.
(June 6, 1934, ch. 404, title I, § 40, as added Pub.
L. 114–284, § 2(b), Dec. 16, 2016, 130 Stat. 1450.)
Editorial Notes
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsec. (h), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770,
which was set out in the Appendix to Title 5, Govern-
ment Organization and Employees, and was substan-
tially repealed and restated in chapter 10 (§ 1001 et seq.)
of Title 5 by Pub. L. 117–286, §§ 3(a), 7, Dec. 27, 2022, 136
Stat. 4197, 4361. For disposition of sections of the Act
into chapter 10 of Title 5, see Disposition Table pre-
ceding section 101 of Title 5.
§ 78rr. Data standards for security-based swap
reporting
(a) Requirement
The Commission shall, by rule, adopt data
standards for all reports related to security-
based swaps that are required under this chap-
ter.
(b) Consistency
The data standards required under subsection
(a) shall incorporate, and ensure compatibility
with (to the extent feasible), all applicable data
standards established in the rules promulgated
under section 5334 of title 12, including, to the
extent practicable, by having the characteristics
described in clauses (i) through (vi) of sub-
section (c)(1)(B) of such section 5334.
(June 6, 1934, ch. 404, title I, § 41, as added Pub.
L. 117–263, div. E, title LVIII, § 5821(h), Dec. 23,
2022, 136 Stat. 3427.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 78aaa
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78aaa. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination of need of protection**
(1) **Notice to SIPC** — If the Commission or any self-regulatory organization is aware of facts which lead it to believe that any broker or dealer subject to its regulation is in or is approaching financial difficulty, it shall immediately notify SIPC, and, if such notification is by a self-regulatory organization, the Commission.
(2) **Action by self-regulatory organization** — If a self-regulatory organization has given notice to SIPC pursuant to subsection (a)(1) with respect to a broker or dealer, and such broker or dealer undertakes to liquidate or reduce its business either pursuant to the direction of a self-regulatory organization or voluntarily, such self-regulatory organization may render such assistance or oversight to such broker or dealer as it considers appropriate to protect the interests of customers of such broker or dealer. The assistance or oversight by a self-regulatory organization shall not be deemed the assumption or adoption by such self-regulatory organization of any obligation or liability to customers, other creditors, shareholders, or partners of the broker or dealer, and shall not prevent or act as a bar to any action by SIPC.
(3) **Action by SIPC**
(A) *In general* — SIPC may, upon notice to a member of SIPC, file an application for a protective decree with any court of competent jurisdiction specified in section 78u(e) or 78aa of this title, except that no such application shall be filed with respect to a member, the only customers of which are persons whose claims could not be satisfied by SIPC advances pursuant to [section 78fff–3 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78fff-3&num=0&edition=prelim), if SIPC determines that—
(A) 11
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 78eee
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Federal law — U.S. Code and appendices · legal_authorities
Page 484
TITLE 15—COMMERCE AND TRADE
§ 78eee
1 So in original. Probably should be ‘‘(i)’’.
2 So in original. Probably should be ‘‘(ii)’’.
Stat. 1067, the first section of which enacted Title 31,
Money and Finance.
AMENDMENTS
2010—Subsec. (d)(1)(C). Pub. L. 111–203, § 929V(a), sub-
stituted ‘‘0.02 percent of the gross revenues from the se-
curities business of such member of SIPC’’ for ‘‘$150 per
annum’’.
Subsec. (h). Pub. L. 111–203, § 929C, substituted
‘‘$2,500,000,000’’ for ‘‘$1,000,000,000’’ in first sentence.
1978—Subsec. (a). Pub. L. 95–283, § 6(a), in par. (2) sub-
stituted ‘‘Except as otherwise provided in this section,
the’’ for ‘‘The’’, in par. (2)(C) inserted provisions for in-
applicability to other lines of credit, and added par. (4).
Subsec. (c). Pub. L. 95–283, § 6(b), in par. (2) struck out
‘‘or rule’’ after ‘‘bylaw’’, and in par. (3) struck out ref-
erence to section 78ccc(f) of this title in introductory
text and ‘‘or rule’’ after ‘‘bylaw’’ in subpar. (B).
Subsec. (d)(1)(C). Pub. L. 95–283, § 6(c), added subpar.
(C).
Subsec. (e). Pub. L. 95–283, § 6(d), in par. (2) sub-
stituted ‘‘be recoverable only against future payments
by such member, except as otherwise provided by SIPC
bylaw’’ for ‘‘not be recoverable except against future
payments by such member in accordance with a bylaw
or rule of SIPC’’, and in par. (3) substituted provisions
authorizing interest and penalty charges to be imposed
by SIPC bylaw and amount of penalty charge, for provi-
sions authorizing interest to be imposed by SIPC bylaw
or rule.
Subsec. (f). Pub. L. 95–283, § 6(e), struck out ‘‘exam-
ining authority as’’ before ‘‘collection agent for SIPC,
shall immediately be subject’’.
Subsec. (g). Pub. L. 95–283, § 6(f), redesignated cls. (A)
to (C) as (1) to (
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 78eee
Stored review status: historical_2024_not_currentness_verified. The source passage cites 15 U.S.C. § 78eee. This identifies an authority to review, not proof of applicability.