15 U.S.C. § 77iii — Effective time of qualification

submitted 93 years ago by ch. 38 to r/title-15-COMMERCE-AND-TRADE · 344 words · no verdicts yet

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This section says when an indenture's qualification takes effect and what follows. Qualification happens once the security's registration or the indenture's own application takes effect. After that, stop orders need specific grounds and trustees aren't liable for indenture defects.

(a) Effective time of registration or qualification application An indenture under which a security has been or will be issued is treated as qualified under this subchapter (1) once registration takes effect for the security, or (2) once an application to qualify the indenture takes effect under section 77ggg. (b) Stop orders after qualification takes effect Once an indenture is qualified, the SEC cannot issue a stop order under section 77h(d) suspending the registration statement or qualification application for that security, except on the specific grounds listed in section 77h, or because the issuer failed to file an application required by section 77eee(b)(2). (c) Effect of a later rule or regulation on qualification Making, changing, or canceling a rule, regulation, or order under this subchapter does not affect the qualification, form, or reading of an indenture that already qualified before that change — except as far as subsection (a) of section 77nnn specifically allows for rules made under that subsection. (d) Liability of trustee under a qualified indenture A trustee under a qualified indenture is not liable just because the indenture fails to comply with a provision of this subchapter or a rule, regulation, or order under it. (e) Power of the Commission to investigate Nothing in this subchapter lets the SEC investigate or hold a proceeding to check whether a qualified indenture's terms are actually being followed, or to enforce those terms.

the actual law source: uscode.house.gov ↗public domain

(a) Effective time of registration or application for qualification of indenture

The indenture under which a security has been or is to be issued shall be deemed to have been qualified under this subchapter—

(1)

when registration becomes effective as to such security; or

(2)

when an application for the qualification of such indenture becomes effective, pursuant to section 77ggg of this title.

(b) Stop orders after effective time of qualification

After qualification has become effective as to the indenture under which a security has been or is to be issued, no stop order shall be issued pursuant to section 77h(d) of this title, suspending the effectiveness of the registration statement relating to such security or of the application for qualification of such indenture, except on one or more of the grounds specified in section 77h of this title, or the failure of the issuer to file an application as provided for by section 77eee(b)(2) of this title.

The making, amendment, or rescission of a rule, regulation, or order under the provisions of this subchapter (except to the extent authorized by subsection (a) of section 77nnn of this title with respect to rules and regulations prescribed pursuant to such subsection) shall not affect the qualification, form, or interpretation of any indenture as to which qualification became effective prior to the making, amendment, or rescission of such rule, regulation, or order.

(d) Liability of trustee under qualified indenture

No trustee under an indenture which has been qualified under this subchapter shall be subject to any liability because of any failure of such indenture to comply with any of the provisions of this subchapter, or any rule, regulation, or order thereunder.

(e) Power of Commission to conduct investigation

Nothing in this subchapter shall be construed as empowering the Commission to conduct an investigation or other proceeding for the purpose of determining whether the provisions of an indenture which has been qualified under this subchapter are being complied with, or to enforce such provisions.

Source credit: (May 27, 1933, ch. 38, title III, § 309, as added Aug. 3, 1939, ch. 411, 53 Stat. 1157; amended Pub. L. 101–550, title IV, § 405, Nov. 15, 1990, 104 Stat. 2723.)

history & why it existsrecord from the source credit

1933Enacted · Act of May 27, 1933, ch. 38 · 53 Stat. 1157
1990Amended · Pub. L. 101-550 · 104 Stat. 2723

A history note hasn’t been published yet. The record shows enactment by ch. 38 on 1933-05-27.

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