92 STAT. 266
PUBLIC LAW 95-283—MAY 21, 1978 " (4) no advance shall be made by SIPC to the trustee to pay or otherwise satisfy, directly or indirectly, any net equity claim of a customer who is a general partner, officer, or director of the debtor, a beneficial owner of five per centum or more of any class of equity security of the debtor (other than a nonconvertible stock having fixed preferential dividend and liquidation rights), a limited partner with a participation of five per centum or more in the net assets or net profits of the debtor, or a person who, directly or indirectly and through agreement or otherwise, exercised or had the power to exercise a controlling influence over the management or policies of the debtor; and "(5) no advance shall be made by SIPC to the trustee to pay or otherwise satisfy any net equity claim of any customer who is a broker or dealer or bank, other than to the extent that it shall be established to the satisfaction of the trustee, from the books and records of the debtor or from the books and records of a broker or dealer or bank, or otherwise, that the net equity claim of such broker or dealer or bank against the debtor arose out of transactions for customers of such broker or dealer or bank (which customers are not themselves a broker or dealer or bank or a person described in paragraph (4)), in which event each such customer of such broker or dealer or bank shall be deemed a separate customer of the debtor. To the extent moneys are advanced by SIPC to the trustee to pay or otherwise satisfy the claims of customers, in addition to all other rights it may have at law or in equity, SIPC shall be subrogated to the claims of such customers with the rights and priorities provided in this Act, except that SIPC as subrogee may assert no claim against customer property until after the allocation thereof to customers as provided in section 8(c). "(b) OTHER ADVANCES.—SIPC shall advance to the trustee—
"(1) such moneys as may be required to carry out section 8(e); and "(2) to the extent the general estate of the debtor is not sufficient to pay any and all costs and expenses of administration of the estate of the debtor and of the liquidation proceeding, the amount of such costs and expenses. "(c) DISCRETIONARY ADVANCES.—SIPC may advance to the trustee
such moneys as may be required to— "(1) pay or guarantee indebtedness of the debtor to a bank, lender, or other person under section 7(b)(2); " (2) guarantee or secure any indemnity under section 8(f); and " (3) purchase securities under section 8(d). 15 USC 78fff-4.
15 USC 78eee.
"SEC. 10. DIRECT PAYMENT PROCEDURE. "(a) DETERMINATION REGARDING DIRECT PAYMENTS.—If
SIPC
determines that— " (1) any member of SIPC (including a person who was a member within one hundred eighty days prior to such determination) has failed or is in danger of failing to meet its obligations to customers; "(2) one or more of the conditions specified in section 5(b)(1) exist with respect to such member; "(3) the claim of each customer of the member is within the limits of protection provided in section 9(a);
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