Page:United States Statutes at Large Volume 54 Part 1.djvu/861

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54 STAT.] 7 6TH CONG. , 3 D SESS.-CH. 686-AUG. 22, 1940 days) before final action is taken in relation to such plan at any meeting of security holders called to act in relation thereto, or any adjournment of any such meeting, or if no meeting be called, then prior to the final date of acceptance of such plan by security holders. In respect of securities not registered as to ownership, in lieu of mailing a copy of such advisory report, such registered company shall publish promptly a statement of the existence of such advisory report in a newspaper of general circulation in its principal place of business and shall make available copies of such advisory report upon request. Notwithstanding the provision of this section the Commission shall not render such advisory report although so requested by any such investment company or -such security holders if the fairness or feasibility of said plan is in issue in any proceed- ing pending in any court of competent jurisdiction unless such plan is submitted to the Commission for that purpose by such court. (c) Any district court of the United States in the State of incor- poration of a registered investment company or any such court for the district in which such company maintains its principal place of business is authorized to enjoin the consummation of any plan of reorganization of such registered investment company upon proceed- ings instituted by the Commission (which is authorized so to pro- ceed upon behalf of security holders of such registered company, or any class thereof), if such court shall determine any such plan to be grossly unfair or to constitute gross misconduct or gross abuse of trust on the part of the officers, directors, or investment advisers of such registered company or other sponsors of such plan. (d) Nothing contained in this section shall in any way affect or derogate from the powers of the courts of the United States and the Commission with reference to reorganizations contained in the Bankruptcy Act of 1898, as amended. UNIT INVESTMENT TRUSTS SEC. 26. (a) No principal underwriter for or depositor of a regis- tered unit investment trust shall sell, except by surrender to the trustee for redemption, any security of which such trust is the issuer (other than short-term paper), unless the trust indenture, agreement of custodianship, or other instrument pursuant to which such security is issued- (1) designates one or more trustees or custodians, each of which is a bank, and provides that each such trustee or custodian shall have at all times an aggregate capital, surplus, and undi- vided profits of a specified minimum amount, which shall not be less than $500,000 (but may also provide, if such trustee or custodian publishes reports of condition at least annually, pur- suant to law or to the requirements of its supervising or exam- ining authority, that for the purposes of this paragraph the aggregate capital, surplus, and undivided profits of such trustee or custodian shall be deemed to be its aggregate capital, surplus, and undivided profits as set forth in its most recent report of condition so published); (2) provides, in substance, (A) that during the life of the trust the trustee or custodian, if not otherwise remunerated, may charge against and collect from the income of the trust, and from the corpus thereof if no income is available, such fees for its services and such reimbursement for its expenses as are pro- vided for in such instrument; (B) that no such charge or collec- tion shall be made except for services theretofore performed or expenses theretofore incurred; (C) that no payment to the 827 Securities not reg istered as to owner- ship. Publication in newspapers. When advisory re- port not rendered. Enjoinment of con- summation of reor- ganization plan. Functions and du- ties not affected. 30 Stat. 544. 11U.S.C .; Supp.V . Sale of certain trust securities. 1)osignation of bank as trustle. Fees for services. etc.