CITE

    15 USC Sec. 78fff-1                                         01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B091 - SECURITIES INVESTOR PROTECTION

HEAD

    Sec. 78fff-1. Powers and duties of a trustee

STATUTE

    (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).

SOURCE

    (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.