§ 79c. — Exemptions regarding holding companies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC79c]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2C--PUBLIC UTILITY HOLDING COMPANIES
Sec. 79c. Exemptions regarding holding companies
(a) Exemption of holding companies
The Commission, by rules and regulations upon its own motion, or by
order upon application, shall exempt any holding company, and every
subsidiary company thereof as such, from any provision or provisions of
this chapter, unless and except insofar as it finds the exemption
detrimental to the public interest or the interest of investors or
consumers, if--
(1) such holding company, and every subsidiary company thereof
which is a public-utility company from which such holding company
derives, directly or indirectly, any material part of its income,
are predominantly intrastate in character and carry on their
business substantially in a single State in which such holding
company and every such subsidiary company thereof are organized;
(2) such holding company is predominantly a public-utility
company whose operations as such do not extend beyond the State in
which it is organized and States contiguous thereto;
(3) such holding company is only incidentally a holding company,
being primarily engaged or interested in one or more businesses
other than the business of a public-utility company and (A) not
deriving, directly or indirectly, any material part of its income
from any one or more subsidiary companies, the principal business of
which is that of a public-utility company, or (B) deriving a
material part of its income from any one or more such subsidiary
companies, if substantially all the outstanding securities of such
companies are owned, directly or indirectly, by such holding
company;
(4) such holding company is temporarily a holding company solely
by reason of the acquisition of securities for purposes of
liquidation or distribution in connection with a bona fide debt
previously contracted or in connection with a bona fide arrangement
for the underwriting or distribution of securities; or
(5) such holding company is not, and derives no material part of
its income, directly or indirectly, from any one or more subsidiary
companies which are, a company or companies the principal business
of which within the United States is that of a public-utility
company.
(b) Exemption of subsidiary companies of holding company
The Commission, by rules and regulations upon its own motion, or by
order upon application, shall exempt any subsidiary company, as such, of
a holding company from any provision or provisions of this chapter, the
application of which to such subsidiary company the Commission finds is
not necessary in the public interest or for the protection of investors,
if such subsidiary company derives no material part of its income,
directly or indirectly, from sources within the United States, and
neither it nor any of its subsidiary companies is a public-utility
company operating in the United States.
(c) Filing for exemption
Within a reasonable time after the receipt of an application for
exemption under subsection (a) or (b) of this section, the Commission
shall enter an order granting, or, after notice and opportunity for
hearing, denying or otherwise disposing of such application. The filing
of an application in good faith under subsection (a) of this section by
a person other than a registered holding company shall exempt the
applicant from any obligation, duty, or liability imposed in this
chapter upon the applicant as a holding company until the Commission has
acted upon such application. The filing of an application in good faith
under subsection (b) of this section shall exempt the applicant from any
obligation, duty, or liability imposed in this chapter upon the
applicant as a subsidiary company until the Commission has acted upon
such application. Whenever the Commission, on its own motion, or upon
application by the holding company or any subsidiary company thereof
exempted by any order issued under subsection (a) of this section, or by
the subsidiary company exempted by any order issued under subsection (b)
of this section, finds that the circumstances which gave rise to the
issuance of such order no longer exist, the Commission shall by order
revoke such order.
(d) Exemption of specified class or classes of persons
The Commission may, by rules and regulations, conditionally or
unconditionally exempt any specified class or classes of persons from
the obligations, duties, or liabilities imposed upon such persons as
subsidiary companies or affiliates under any provision or provisions of
this chapter, and may provide within the extent of any such exemption
that such specified class or classes of persons shall not be deemed
subsidiary companies or affiliates within the meaning of any such
provision or provisions, if and to the extent that it deems the
exemption necessary or appropriate in the public interest or for the
protection of investors or consumers and not contrary to the purposes of
this chapter.
(Aug. 26, 1935, ch. 687, title I, Sec. 3, 49 Stat. 810.)
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
Section Referred to in Other Sections
This section is referred to in sections 79z-5, 79z-5b, 79z-5c of
this title; title 26 section 1081.
