Page:United States Statutes at Large Volume 92 Part 1.djvu/325

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PUBLIC LAW 95-000—MMMM. DD, 1978

PUBLIC LAW 95-283—MAY 21, 1978

92 STAT. 271

(b) Section 15(e) of such Act (15 U.S.C. 78kkk(e)), as redesignated by this Act, is amended to read as follows: "(e) ADVERTISIXG.—SIPC shall by bylaw prescribe the manner in which a member of SIPC may display any sign or signs (or include in any advertisement a statement) relating to the protection to customers and their accounts, or any other protections, afforded under this Act. No member may display any such sign, or include in an advertisement any such statement, except in accordance with such bylaws. SIPC may also by bylaw prescribe such minimal requirements as it considers necessary and appropriate to require a member of SIPC to i^rovide public notice of its membership in S I P C ". (c) Section 15(b) of such Act of (15 U.S.C. 78kkk(b)), as redes- Repeal. ignated by this Act, is repealed, and subsections (c) through (h) of section 15 are redesignated as subsections (b) through (g), respectively. DEFINITIONS

SEC. 15. Section 16 of such Act (15 U.S.C. 78111), as redesignated by this Act, is amended to read as follows: "SEC. 16. DEFINITIONS.

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"For purposes of this Act. including the application of the Bankruptcy Act to a liquidation proceeding: "(1) BANKRUPTCY ACT.—The term 'Bankruptcy Act' means, except where the context indicates otherwise, those provisions of the Bankruptcy Act relating to ordinary bankruptcy (chapters I through VII) as now in effect or as amended from time to time, r r and includes the rules of bankruptcy procedure promulgated ' with respect to such provisions, but does not include the provisions of section 60e of the Bankruptcy Act, relating to stock- fo^'> p- 2549 broker bankruptcies. "(2) COMMISSION.—The term 'Commission' means the Securities and Exchange Commission. "(3) CUSTOMER.—The term 'customer' of a debtor means any person (including any person with whom the debtor deals as principal or agent) who has a claim on account of securities received, acquired, or held by the debtor in the ordinary course of its business as a broker or dealer from or for the securities accounts of such person for safekeeping, with a view to sale, to cover consummated sales, pursuant to purchases, as collateral security, or for purposes of effecting transfer. The term 'customer' includes any person who has a claim against the debtor arising out of sales or conversions of such securities, and any person who has deposited cash with the debtor for the purpose of purchasing securities, but does not include— " (A) any person to the extent that the claim of such person arises out of transactions with a foreign subsidiary of a member of S I P C; or "(B) any person to the extent that such person has a claim ^ for (msh or securities which bj' contract, agreement, oi- understanding, or by operation of law, is part of the capital of the debtor, or is subordinated to the claims of any or all creditors of the debtor, notwithstanding that some ground exists for declaring such contract, agreement, or understanding void or voidable in a suit between the claimant and the debtor.