Page:United States Statutes at Large Volume 84 Part 2.djvu/326

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[84 STAT. 1656]
[84 STAT. 1656]
PUBLIC LAW 91-000—MMMM. DD, 1970

1656

7fi^l^l^q^'6^^' 7o Stat. y / b.

26 USC 162.

68A Stat. 3. 26 USC 1 et seq.

48 Stat. 899 15 USC 78t.

c^g?es's!°

52 Stat. 1070; 78 Stat. 574. 15 USC 78o-3.

PUBLIC LAW 91-598-DEC. 30, 1970

[84 STAT.

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. (d) LIABILITY or S I P C AND DIRECTORS.—Neither S I P C nor any of its Directors 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 Act. (e) ADVERTISING.—SIPC shall by bylaw or rule prescribe the manner in which a member of S I P C 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 Act. No member may display any such sign, or include in an advertisement any such statement, except in accordance with such bylaws and rules. (f) S I P C 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 S I P C 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 S I P C shall constitute ordinary and necessary expenses in carrying on the business of such member for the purpose of section 162(a) of the Internal Revenue Code of 1954. The contribution and transfer to S I P C of funds or •

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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 S I P C under any provision of the Internal Revenue Code of 1954, nor shall such contribution or transfer, or any reduction in assessments made pursuant to this Act, in any way affect the status, as ordinary and necessary expenses under section 162(a) of the Internal Revenue Code of 1954, of any contributions made to such trust by such exchange at any time prior to such transfer. Upon dissolution of S I P C, none of its net assets shall inure to the benefit of any of its members. (g) SECTION 20(a) OF 1934 ACT NOT To APPLY.—The provisions of subsection (a) of section 20 of the 1934 Act shall not apply to any liability under or in connection with this Act. (h) S E C STUDY OF UNSAFE OR UNSOUND PRACTICES.—Not later than twelve months after the date of enactment of this Act, the Commission shall compile a list of unsafe or unsound practices by mem^^^^ ^f S I P C 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. SEC. 12. DEFINITIONS. For purposes of this Act: (1) SELF-REIGULATORY ORGANIZATION.—The term "self-regulatory organization" means a national securities exchange or a national securities association registered pursuant to subsection (b) of section 15A of the 1934 Act. ^ ^