CITE

    15 USC Sec. 78kkk                                           01/08/2008

EXPCITE

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

HEAD

    Sec. 78kkk. Miscellaneous provisions

STATUTE

    (a) Public inspection of reports
      Any notice, report, or other document filed with SIPC pursuant to
    this chapter shall be available for public inspection unless SIPC
    or the Commission shall determine that disclosure thereof is not in
    the public interest. Nothing herein shall act to deny documents or
    information to the Congress of the United States or the committees
    of either House having jurisdiction over financial institutions,
    securities regulation, or related matters under the rules of each
    body. Nor shall the Commission be denied any document or
    information which the Commission, in its judgment, needs.
    (b) Liability of members of SIPC
      Except for such assessments as may be made upon such member
    pursuant to the provisions of section 78ddd of this title, no
    member of SIPC shall have any liability under this chapter as a
    member of SIPC for, or in connection with, any act or omission of
    any other broker or dealer whether in connection with the conduct
    of the business or affairs of such broker or dealer or otherwise
    and, without limiting the generality of the foregoing, no member
    shall have any liability for or in respect of any indebtedness or
    other liability of SIPC.
    (c) Liability of SIPC and Directors, officers, or employees
      Neither SIPC nor any of its Directors, officers, or employees
    shall have any liability to any person for any action taken or
    omitted in good faith under or in connection with any matter
    contemplated by this chapter.
    (d) Advertising
      SIPC shall by bylaw prescribe the manner in which a member of
    SIPC may display any sign or signs (or include in any advertisement
    a statement) relating to the protection to customers and their
    accounts, or any other protections, afforded under this chapter. No
    member may display any such sign, or include in an advertisement
    any such statement, except in accordance with such bylaws. SIPC may
    also by bylaw prescribe such minimal requirements as it considers
    necessary and appropriate to require a member of SIPC to provide
    public notice of its membership in SIPC.
    (e) SIPC exempt from taxation
      SIPC, its property, its franchise, capital, reserves, surplus,
    and its income, shall be exempt from all taxation now or hereafter
    imposed by the United States or by any State or local taxing
    authority, except that any real property and any tangible personal
    property (other than cash and securities) of SIPC shall be subject
    to State and local taxation to the same extent according to its
    value as other real and tangible personal property is taxed.
    Assessments made upon a member of SIPC shall constitute ordinary
    and necessary expenses in carrying on the business of such member
    for the purpose of section 162(a) of title 26. The contribution and
    transfer to SIPC of funds or securities held by any trust
    established by a national securities exchange prior to January 1,
    1970, for the purpose of providing assistance to customers of
    members of such exchange, shall not result in any taxable gain to
    such trust or give rise to any taxable income to any member of SIPC
    under any provision of title 26, nor shall such contribution or
    transfer, or any reduction in assessments made pursuant to this
    chapter, in any way affect the status, as ordinary and necessary
    expenses under section 162(a) of title 26, of any contributions
    made to such trust by such exchange at any time prior to such
    transfer. Upon dissolution of SIPC, none of its net assets shall
    inure to the benefit of any of its members.
    (f) Section 78t(a) of this title not to apply
      The provisions of subsection (a) of section 78t of this title
    shall not apply to any liability under or in connection with this
    chapter.
    (g) SEC study of unsafe or unsound practices
      Not later than twelve months after December 30, 1970, the
    Commission shall compile a list of unsafe or unsound practices by
    members of SIPC in conducting their business and report to the
    Congress (1) the steps being taken under the authority of existing
    law to eliminate those practices and (2) recommendations concerning
    additional legislation which may be needed to eliminate those
    unsafe or unsound practices.

SOURCE

    (Pub. L. 91-598, Sec. 15, formerly Sec. 11, Dec. 30, 1970, 84 Stat.
    1655; renumbered Sec. 15 and amended Pub. L. 95-283, Secs. 9, 14,
    May 21, 1978, 92 Stat. 260, 270; Pub. L. 99-514, Sec. 2, Oct. 22,
    1986, 100 Stat. 2095.)

REFERENCES IN TEXT

      This chapter, referred to in subsecs. (a) to (f), was in the
    original "this Act", meaning Pub. L. 91-598, Dec. 30, 1970, 84
    Stat. 1636. For complete classification of this Act to the Code,
    see Tables.

AMENDMENTS

      1986 - Subsec. (e). Pub. L. 99-514 substituted "Internal Revenue
    Code of 1986" for "Internal Revenue Code of 1954" wherever
    appearing, which for purposes of codification was translated as
    "title 26" thus requiring no change in text.
      1978 - Subsec. (b). Pub. L. 95-283, Sec. 14(c), redesignated
    subsec. (c) as (b). Former subsec. (b), relating to application of
    securities investor protection provisions to foreign members, was
    struck out.
      Subsec. (c). Pub. L. 95-283, Sec. 14(a), (c), redesignated
    subsec. (d) as (c) and inserted ", officers, or employees" after
    "Directors" in heading and text. Former subsec. (c) redesignated
    (b).
      Subsec. (d). Pub. L. 95-283, Sec. 14(b), (c), redesignated
    subsec. (e) as (d), inserted provisions authorizing SIPC to
    prescribe necessary and proper minimal requirements for providing
    public notice of membership by a member of SIPC in SIPC, and struck
    out provisions authorizing rules by SIPC to implement advertising
    requirements. Former subsec. (d) redesignated (c).
      Subsecs. (e) to (h). Pub. L. 95-283, Sec. 14(c), redesignated
    subsecs. (e) to (h) as (d) to (g), respectively.