15 U.S.C. § 77iii: Effective time of…

Summary

An indenture is treated as qualified under this subchapter when the related security’s registration becomes effective, or when an application for qualification under section 77ggg becomes effective. Once an indenture is qualified, the SEC cannot issue a stop order under section 77h(d) to suspend that registration or application except for the specific reasons listed in section 77h or for a failure to file the application required by section 77eee(b)(2). Later rules, changes, or cancellations under this subchapter do not change the qualification, wording, or meaning of an indenture that was already qualified, except as allowed by subsection (a) of section 77nnn. A trustee of a qualified indenture is not liable just because the indenture fails to follow this subchapter or its rules. The Commission also has no power under this subchapter to investigate or enforce compliance with the terms of a qualified indenture.

Title 15, §77iii

Commerce and Trade, Source: USLM XML via OLRC

(a)Effective time of registration or application for qualification of indenture

The indenture under which a security has been or is to be issued shall be deemed to have been qualified under this subchapter—

(1)when registration becomes effective as to such security; or

(2)when an application for the qualification of such indenture becomes effective, pursuant to section 77ggg of this title.

(b)Stop orders after effective time of qualification

After qualification has become effective as to the indenture under which a security has been or is to be issued, no stop order shall be issued pursuant to section 77h(d) of this title, suspending the effectiveness of the registration statement relating to such security or of the application for qualification of such indenture, except on one or more of the grounds specified in section 77h of this title, or the failure of the issuer to file an application as provided for by section 77eee(b)(2) of this title.

(c)Effect of subsequent rule or regulation on qualification

The making, amendment, or rescission of a rule, regulation, or order under the provisions of this subchapter (except to the extent authorized by subsection (a) of section 77nnn of this title with respect to rules and regulations prescribed pursuant to such subsection) shall not affect the qualification, form, or interpretation of any indenture as to which qualification became effective prior to the making, amendment, or rescission of such rule, regulation, or order.

(d)Liability of trustee under qualified indenture

No trustee under an indenture which has been qualified under this subchapter shall be subject to any liability because of any failure of such indenture to comply with any of the provisions of this subchapter, or any rule, regulation, or order thereunder.

(e)Power of Commission to conduct investigation

Nothing in this subchapter shall be construed as empowering the Commission to conduct an investigation or other proceeding for the purpose of determining whether the provisions of an indenture which has been qualified under this subchapter are being complied with, or to enforce such provisions.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1990—Subsec. (b). Pub. L. 101–550 inserted before period at end “, or the failure of the issuer to file an application as provided for by section 77eee(b)(2) of this title”.

Executive Documents

Transfer of Functions

For

Transfer of Functions

of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

§77iii Effective Time of Qualification

Summary

Title 15, §77iii

Notes & Related Subsidiaries

Editorial Notes

Amendments

Executive Documents

Transfer of Functions

Transfer of Functions

Citations & Metadata