§ 78fff-1. — Powers and duties of a trustee.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC78fff-1]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2B-1--SECURITIES INVESTOR PROTECTION
Sec. 78fff-1. Powers and duties of a trustee
(a) Trustee powers
A trustee shall be vested with the same powers and title with
respect to the debtor and the property of the debtor, including the same
rights to avoid preferences, as a trustee in a case under title 11. In
addition, a trustee may, with the approval of SIPC but without any need
for court approval--
(1) hire and fix the compensation of all personnel (including
officers and employees of the debtor and of its examining authority)
and other persons (including accountants) that are deemed by the
trustee necessary for all or any purposes of the liquidation
proceeding;
(2) utilize SIPC employees for all or any purposes of a
liquidation proceeding; and
(3) margin and maintain customer accounts of the debtor for the
purposes of section 78fff-2(f) of this title.
(b) Trustee duties
To the extent consistent with the provisions of this chapter or as
otherwise ordered by the court, a trustee shall be subject to the same
duties as a trustee in a case under chapter 7 of title 11, including, if
the debtor is a commodity broker, as defined under section 101 of such
title, the duties specified in subchapter IV of such chapter 7, except
that a trustee may, but shall have no duty to, reduce to money any
securities constituting customer property or in the general estate of
the debtor. In addition, the trustee shall--
(1) deliver securities to or on behalf of customers to the
maximum extent practicable in satisfaction of customer claims for
securities of the same class and series of an issuer; and
(2) subject to the prior approval of SIPC but without any need
for court approval, pay or guarantee all or any part of the
indebtedness of the debtor to a bank, lender, or other person if the
trustee determines that the aggregate market value of securities to
be made available to the trustee upon the payment or guarantee of
such indebtedness does not appear to be less than the total amount
of such payment or guarantee.
(c) Reports by trustee to court
The trustee shall make to the court and to SIPC such written
reports as may be required of a trustee in a case under chapter 7 of
title 11, and shall include in such reports information with respect to
the progress made in distributing cash and securities to customers. Such
reports shall be in such form and detail as the Commission determines by
rule to present fairly the results of the liquidation proceeding as of
the date of or for the period covered by such reports, having due regard
for the requirements of section 78q of this title and the rules
prescribed under such section and the magnitude of items and
transactions involved in connection with the operations of a broker or
dealer.
(d) Investigations
The trustee shall--
(1) as soon as practicable, investigate the acts, conduct,
property, liabilities, and financial condition of the debtor, the
operation of its business, and any other matter, to the extent
relevant to the liquidation proceeding, and report thereon to the
court;
(2) examine, by deposition or otherwise, the directors and
officers of the debtor and any other witnesses concerning any of the
matters referred to in paragraph (1);
(3) report to the court any facts ascertained by the trustee
with respect to fraud, misconduct, mismanagement, and
irregularities, and to any causes of action available to the estate;
and
(4) as soon as practicable, prepare and submit, to SIPC and such
other persons as the court designates and in such form and manner as
the court directs, a statement of his investigation of matters
referred to in paragraph (1).
(Pub. L. 91-598, Sec. 7, as added Pub. L. 95-283, Sec. 9, May 21, 1978,
92 Stat. 260; amended Pub. L. 95-598, title III, Sec. 308(i)-(k), Nov.
6, 1978, 92 Stat. 2675.)
Prior Provisions
A prior section 7 of Pub. L. 91-598 was renumbered section 11 and is
classified to section 78ggg of this title.
Amendments
1978--Subsec. (a). Pub. L. 95-598, Sec. 308(i), substituted
``trustee in a case under title 11'' for ``trustee in bankruptcy under
the Bankruptcy Act has with respect to a bankrupt and the property of a
bankrupt''.
Subsec. (b). Pub. L. 95-598, Sec. 308(j), substituted ``trustee in a
case under chapter 7 of title 11, including, if the debtor is a
commodity broker, as defined under section 101 of such title, the duties
specified in subchapter IV of such chapter 7,'' for ``trustee in
bankruptcy''.
Subsec. (c). Pub. L. 95-598, Sec. 308(k), substituted ``required of
a trustee in a case under chapter 7 of title 11'' for ``required by the
Bankruptcy Act''.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note preceding
section 101 of Title 11, Bankruptcy.
Section Referred to in Other Sections
This section is referred to in sections 78fff, 78fff-2, 78fff-3,
78fff-4 of this title.
