§78fff–1 Powers and Duties of a Trustee

Summary

Gives the trustee the same powers and legal control over the debtor and the debtor’s property as a bankruptcy trustee under title 11, including the right to recover preferential payments. With SIPC’s approval and without needing court permission, the trustee may hire and set pay for staff and outside experts, use SIPC employees, and margin or manage customer accounts for the purpose named in section 78fff–2(f). Under the rules of this chapter or any court order, the trustee must follow the same duties as a chapter 7 bankruptcy trustee, including special duties if the debtor is a commodity broker. The trustee may, but does not have to, sell securities for cash. The trustee must return securities to customers when practical. With SIPC’s prior approval and no court approval required, the trustee may pay or guarantee the debtor’s debts if the securities to be obtained appear to be worth at least the payment. The trustee must give written reports to the court and SIPC about distributing cash and securities in the form the Commission requires, promptly investigate the debtor’s business and finances, question officers and others, report any fraud or mismanagement and possible legal claims, and send a written investigation report to SIPC and others the court names.