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Title 15 — Commerce and TradeRelease 119-73

§687c Injunctions and other orders

Title 15 › Chapter CHAPTER 14B— - SMALL BUSINESS INVESTMENT PROGRAM › Subchapter SUBCHAPTER III— - INVESTMENT DIVISION PROGRAMS › Part Part A— - Small Business Investment Companies › § 687c

Last updated Apr 6, 2026|Official source

Summary

The Administration can go to a federal court and ask for an order to stop or force compliance when it believes a licensee or any other person is breaking, or is about to break, the law, its rules, or an existing court order. If the Administration shows the court that the bad acts are happening or likely, the court must issue a temporary or permanent order to stop them, and it must do so without requiring a bond. The court may take full control of the licensee and its assets, wherever they are, and can appoint someone (a trustee or receiver) to hold or manage those assets under the court’s direction. The Administration may act as that trustee or receiver if it asks the court to appoint it, unless the court finds that doing so would be unfair or otherwise inappropriate because of special circumstances.

Full Legal Text

Title 15, §687c

Commerce and Trade — Source: USLM XML via OLRC

(a)Whenever, in the judgment of the Administration, a licensee or any other person has engaged or is about to engage in any acts or practices which constitute or will constitute a violation of any provision of this chapter, or of any rule or regulation under this chapter, or of any order issued under this chapter, the Administration may make application to the proper district court of the United States or a United States court of any place subject to the jurisdiction of the United States for an order enjoining such acts or practices, or for an order enforcing compliance with such provision, rule, regulation, or order, and such courts shall have jurisdiction of such actions and, upon a showing by the Administration that such licensee or other person has engaged or is about to engage in any such acts or practices, a permanent or temporary injunction, restraining order, or other order, shall be granted without bond.
(b)In any such proceeding the court as a court of equity may, to such extent as it deems necessary, take exclusive jurisdiction of the licensee or licensees and the assets thereof, wherever located; and the court shall have jurisdiction in any such proceeding to appoint a trustee or receiver to hold or administer under the direction of the court the assets so possessed.
(c)The Administration shall have authority to act as trustee or receiver of the licensee. Upon request by the Administration, the court may appoint the Administration to act in such capacity unless the court deems such appointment inequitable or otherwise inappropriate by reason of the special circumstances involved.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

For definition of “this chapter”, referred to in subsec. (a), see

References in Text

note set out under section 661 of this title.

Amendments

1984—Subsec. (a). Pub. L. 98–620 struck out provision that the proceedings in such a case had to be made a preferred cause and had to be expedited in every way. 1966—Subsec. (c). Pub. L. 89–779 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98–620, set out as an

Effective Date

note under section 1657 of Title 28, Judiciary and Judicial Procedure.

Reference

Citations & Metadata

Citation

15 U.S.C. § 687c

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73