KF 1457 A32 787 1977 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 Stock No. 046-000-00114-1 312 Bondholders' lists--- 313 Reports by indenture trustee___. 314 315 Reports by obligor; evidence of compliance with indenture provision___ (b) Evidence of recording of indenture.. (c) Evidence of compliance with conditions precedent.__. (d) Certificates of fair value___. (e) Recitals as to basis of certificate or opinion.. (f) Parties may provide for additional evidence.... Duties and responsibility of the trustee.. (a) Duties prior to default__. (b) Notice of defaults___ (c) Duties of the trustee in case of default__. (d) Responsibility of the trustee. (e) Undertaking for costs__. Directions and waivers by bondholders, prohibition of impairment of Special powers of trustee; duties of paying agents.. Page 1 1 2 4 5 7 7889 9 9 12 12 15 15 316 holder's right to payment_ 317 318 Effect of prescribed indenture provisions.. 319 Rules, regulations, and orders_. 2222 320 Hearings by Commission____ 23 321 Special powers of the Commission___ 23 322 Court review of orders; jurisdiction of offenses and suits__ 24 323 Liability for misleading statements. 24 324 Unlawful representations__. 25 325 Penalties -- 25 326 Effect on existing law... 25 327 328 Contrary stipulations void.. Separability of provisions. 25 25 TRUST INDENTURE ACT OF 1939 AS AMENDED JUNE 4, 1975 [PUBLIC-No. 253-76TH CONGRESS] [CHAPTER 41-1ST SESSION] AN ACT AS AMENDED JUNE 4, 1975 P.L. 94-29 To provide for the regulation of the sale of certain securities in interstate and foreign commerce and through the mails, and the regulation of the trust indentures under which the same are issued, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act to provide full and fair disclosure of the character of securities sold in interstate and foreign commerce and through the mails, and to prevent frauds in the sale thereof, and for other purposes", approved May 27, 1933, as amended, is amended by adding at the end thereof the following: Short Title TITLE III1 SECTION 301. This title, divided into sections as follows, may be cited as the "Trust Indenture Act of 1939": Necessity for Regulation SEC. 302. (a) Upon the basis of facts disclosed by the reports of the Securities and Exchange Commission made to the Congress pursuant to section 211 of the Securities Exchange Act of 1934 and otherwise disclosed and ascertained, it is hereby declared that the national public interest and the interest of investors in notes, bonds, debentures, evidences of indebtedness, and certificates of interest or participation therein, which are offered to the public, are adversely affected (1) when the obligor fails to provide a trustee to protect and enforce the rights and to represent the interests of such investors, notwithstanding the fact that (A) individual action by such investors for the purpose of protecting and enforcing their rights is rendered impracticable by reason of the disproportionate expense of taking such action, and (B) concerted action by such investors in their common interest through representatives of their own selection is impeded by reason of the wide dispersion of such investors through many States, and by reason of the fact that information as to the names and addresses of such investors generally is not available to such investors; (2) when the trustee does not have adequate rights and powers, or adequate duties. and responsibilities, in connection with matters relating to the protection and enforcement of the rights of such investors; when, notwithstanding the obstacles to concerted action by such investors, and the general and reasonable assumption by such investors that the trustee is under an affirmative duty to take action for the protection and enforcement of their rights, trust indentures (A) generally provide that the trustee shall be under no duty to take any such action, even in the event of default, unless it receives notice of default, demand for action, and indemnity, from the holders of substantial percentages of the securities outstanding thereunder, and (B) generally relieve the trustee from lia 1 Title I of this Act is the Securities Act of 1933. Title II is the Corporation of Foreign Security Holders Act. This pamphlet contains only Title III, which is the Trust Indenture Act of 1939. |