84 STAT.]
PUBLIC LAW 91-598-DEC. 30, 1970
1641
during any twelve-month period if S I P C determines, in accordance with a bylaw or rule, that such rate of assessment during such period will not have a material adverse effect on the financial condition of its members or their customers, except that no assessments shall be made pursuant to such paragraph upon a member which require payments during any such period which exceed in the aggregate one per centum of such member's gross revenues from the securities business for such period, and (C) no assessment shall include any charge based upon the member's activities (i) in the distribution of shares of registered open end investment companies or unit investment trusts, (ii) in the sale of variable annuities, (iii) in the business of insurance, or (iv) in the business of rendering investment advisory services to one or more registered investment companies or insurance company separate accounts. (d) REQUIREMENTS RESPECTING CREDIT.— (1) ASSESSMENTS.—
ASSESSMENTS
AND L I N E S
or
(A) 3^ OF 1 PERCENT ASSESSMENT.—Subject to subsection (c)(3), S I P C shall impose upon each of its members an assessment at a rate of not less than one-half of 1 per centum per annum of the gross revenues from the securities business of such member— (i) until the balance of the fund aggregates not less than $150,000,000 (or such other amount as the Commission may determine in the public interest), (ii) during any period when there is outstanding borrowing by S I P C pursuant to subsection (f) or subsection (g) of this section, and (iii) whenever the balance of the fund (exclusive of confirmed lines of credit) is below $100,000,000 (or such other amount as the Commission may determine in the public interest). (B) 1^ OF 1 PERCENT ASSESSMENT.—During any period during which— (i) the balance of the fund (exclusive of confirmed lines of credit) aggregates less than $150,000,000 (or such other amount as the Commission has determined under paragraph (2)(B)), o r (ii) S I P C is required under paragraph (2)(B) to phase out of the fund all confirmed lines of credit, S I P C shall endeavor to make assessments in such a manner that the aggregate assessments payable by its members during such period shall not be less than one-fourth of 1 per centum per annum of the aggregate gross revenues from the securities business for such members during such period. (2) L I N E S or CREDIT.— (A) $50,000,000 LIMIT AFTER 1973.—After December 31,
1973, confirmed lines of credit shall not constitute more than $50,000,000 of the balance of the fund. (B) PHASEOUT REQUIREMENT.—When the balance of the fund aggregates $150,000,000 (or such other amount as the Commission may determine in the public interest) S I P C shall phase out of the fund all confirmed lines of credit. (e) PRIOR TRUSTS; OVERPAYMENTS AND UNDERPAYMENTS.— (1) PRIOR TRUSTS.—There may be contributed and transferred
at any time to S I P C any funds held by any trust established by a
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