PUBLIC LAWS-CHS. 677, 678-JUNE 25, 1938 48 Stat. 93. SEO. 3 . Subsection (b) of section 29 of such Act is amended by 5. s.§ inserting before the period at the end thereof a colon and the follow- Validity of desig- ing: "Provided, (A) That no contract shall be void by reason of this subsection because of any violation of any rule or regulation pre- scribed pursuant to paragraph (2) or (3) of subsection (c) of section Ante, p. 1075. 15 of this title, and (B) that no contract shall be deemed to be void by reason of this subsection in any action maintained in reliance upon this subsection, by any person to or for whom any broker or dealer sells, or from or for whom any broker or dealer purchases, a security in violation of any rule or regulation prescribed pursuant to para- graph (1) of subsection (c) of section 15 of this title, unless such Time limitation, action is brought within one year after the discovery that such sale or purchase involves such violation and within three years after such violation". 48 Stat. 904; 49 Stat. SEC. 4 . Section 32 of such Act, as amended, is amended by adding 1380. 15 U. S . C. § 78ff; at the end thereof the following new subsection: SUppe Ie, tc7. (C) The provisions of this section shall not apply in the case of ablecton iolation lof any violation of any rule or regulation prescribed pursuant to para- designatedrules; ex- graph (3) of subsection (c) of section 15 of this title, except a viola- ception. eAnte, p. 1075. tion which consists of making, or causing to be made, any statement in any report or document required to be filed under any such rule or regulation, which statement was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact." ords, etc.; require- S. 5 . Subsection (a) of section 17 of such Act, as amended, is ments. amended by inserting immediately after the words "every broker or 1379. 4'tat dealer who transacts a business in securities through the medium of Su5 p. i.C.I 78q; any such member," the words "every registered securities association,". Approved, June 25, 1938. [CHAPTER 678] AN ACT June 25, 1938 [H. R. 1531] Extending the classified civil service to include postmasters of the first, second, [Public, No. 720] and third classes, and for other purposes. Postal Service. Postmasters of the first, second, and third classes. Appointment in classified service with- out term. Proriso. Status of present incumbents. Manner of appoint- ment. Classification, non- competitively. Promotion. Competitive exam- ination. Residence require- ment. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That postmasters of the first, second, and third classes shall hereafter be appointed in the classified service without term by the President by and with the advice and consent of the Senate: Provided, That postmasters now serving may continue to serve until the end of their terms, but they shall not acquire a classified civil service status at the expiration of such terms of office except as provided in Section 2 hereof. SEC. 2. Appointments to positions of postmaster at first-, second-, and third-class post offices shall be made by the reappointment and classification, non-competitively, of the incumbent postmaster, or by promotion from within the Postal Service in accordance with the pro- visions of the Civil Service Act and Rules, or by competitive examina- tion, in accordance with the provisions of the Civil Service Act and Rules. No person shall be eligible for appointment under this section unless such person has actually resided within the delivery of the office to which he is appointed, or within the city or town where the same is situated for one year next preceding the date of such appointment, if the appointment is made without competitive examinationi or for one year preceding the date fixed for the close of receipt of applications for examination, if the appointment is made after competitive examination. 1076 [52 STAT.
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