U.S Code last checked for updates: Apr 26, 2024
All TitlesTitle 12Chapter 53Subchapter II
§ 5385.
Orderly liquidation of covered brokers and dealers
(a)
Appointment of SIPC as trustee
(1)
Appointment
(2)
Actions by SIPC
(A)
Filing
(B)
Administration by SIPC
(C)
Definition of filing date
(D)
Determination of claims
(b)
Powers and duties of SIPC
(1)
In general
(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;
(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; or
(B)
determining claims under subsection (e).
(3)
Protective decree
(4)
Qualified financial contracts
(c)
Limitation on court action
(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 et seq.).
(2)
Net proceeds
(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; 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.
(f)
Satisfaction of customer claims
(1)
Obligations to customers
(2)
Satisfaction of claims by SIPC
(g)
Priorities
(1)
Customer property
(2)
Other claims
(h)
Rulemaking
(Pub. L. 111–203, title II, § 205, July 21, 2010, 124 Stat. 1456.)
cite as: 12 USC 5385
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