Page:United States Statutes at Large Volume 116 Part 1.djvu/827

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PUBLIC LAW 107-204-^ULY 30, 2002 116 STAT. 801 (b) CLERICAL AMENDMENT. —The table of sections at the beginning of chapter 73 of title 18, United States Code, is amended by adding at the end the following new items: "1519. Destruction, alteration, or falsification of records in Federal investigations and bankruptcy. "1520. Destruction of corporate audit records.". SEC. 803. DEBTS NONDISCHARGEABLE IF INCURRED IN VIOLATION OF SECURITIES FRAUD LAWS. Section 523(a) of title 11, United States Code, is amended— (1) in paragraph (17), by striking "or" after the semicolon; (2) in paragraph (18), by striking the period at the end and inserting "; or"; and (3) by adding at the end, the following: " (19) that— "(A) is for— "(i) the violation of any of the Federal securities laws (as that term is defined in section 3(a)(47) of the Securities Exchange Act of 1934), any of the State securities laws, or any regulation or order issued under such Federal or State securities laws; or "(ii) common law fraud, deceit, or manipulation in connection with the purchase or sale of any security; and "(B) results from— "(i) any judgment, order, consent order, or decree entered in any Federal or State judicial or administrative proceeding; "(ii) any settlement agreement entered into by the debtor; or "(iii) any court or administrative order for any damages, fine, penalty, citation, restitutionary pay- ment, disgorgement payment, attorney fee, cost, or other payment owed by the debtor.". SEC. 804. STATUTE OF LIMITATIONS FOR SECURITIES FRAUD. (a) IN GENERAL. —Section 1658 of title 28, United States Code, is amended— (1) by inserting "(a)" before "Except"; and (2) by adding at the end the following: "(b) Notwithstanding subsection (a), a private right of action that involves a claim of fraud, deceit, manipulation, or contrivance in contravention of a regulatory requirement concerning the securities laws, as defined in section 3(a)(47) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(47)), may be brought not later than the earlier of— "(1) 2 years after the discovery of the facts constituting the violation; or "(2) 5 years after such violation.". (b) EFFECTIVE DATE.—The limitations period provided by sec- 28 USC 1658 tion 1658(b) of title 28, United States Code, as added by this note. section, shall apply to all proceedings addressed by this section that are commenced on or after the date of enactment of this Act. (c) No CREATION OF ACTIONS. —Nothing in this section shall 28 USC 1658 create a new, private right of action. . note.