View all text of Chapter 2 B- 1 [§ 78aaa - § 78lll]
§ 78ddd. SIPC Fund
(a) In general
(1) Establishment of fund
(2) Balance of the fund
Except as otherwise provided in this section, the balance of the fund at any time shall consist of the aggregate at such time of the following items:
(A) Cash on hand or on deposit.
(B) Amounts invested in United States Government or agency securities.
(C) Such confirmed lines of credit as SIPC may from time to time maintain, other than those maintained pursuant to paragraph (4).
(3) Confirmed lines of credit
(4) Other lines
(b) Initial required balance for fund
(c) Assessments
(1) Initial assessments
(2) General assessment authority
(3) Limitations
Notwithstanding any other provision of this chapter—
(A) no assessment shall be made upon a member otherwise than pursuant to paragraph (1) or (2) of this subsection,
(B) an assessment may be made under paragraph (2) of this subsection at a rate in excess of one-half of one per centum during any twelve-month period if SIPC determines, in accordance with a bylaw, that such rate of assessment during such period will not have a material adverse effect on the financial condition of its members or their customers, except that no assessments shall be made pursuant to such paragraph upon a member which require payments during any such period which exceed in the aggregate one per centum of such member’s gross revenues from the securities business for such period, and
(C) no assessment shall include any charge based upon the member’s activities (i) in the distribution of shares of registered open end investment companies or unit investment trusts, (ii) in the sale of variable annuities, (iii) in the business of insurance, or (iv) in the business of rendering investment advisory services to one or more registered investment companies or insurance company separate accounts.
(d) Requirements respecting assessments and lines of credit
(1) Assessments
(A) ½ of 1 percent assessment
Subject to subsection (c)(3), SIPC shall impose upon each of its members an assessment at a rate of not less than one-half of 1 per centum per annum of the gross revenues from the securities business of such member—
(i) until the balance of the fund aggregates not less than $150,000,000 (or such other amount as the Commission may determine in the public interest),
(ii) during any period when there is outstanding borrowing by SIPC pursuant to subsection (f) or subsection (g) of this section, and
(iii) whenever the balance of the fund (exclusive of confirmed lines of credit) is below $100,000,000 (or such other amount as the Commission may determine in the public interest).
(B) ¼ of 1 percent assessment
During any period during which—
(i) the balance of the fund (exclusive of confirmed lines of credit) aggregates less than $150,000,000 (or such other amount as the Commission has determined under paragraph (2)(B)), or
(ii) SIPC is required under paragraph (2)(B) to phase out of the fund all confirmed lines of credit,
SIPC shall endeavor to make assessments in such a manner that the aggregate assessments payable by its members during such period shall not be less than one-fourth of 1 per centum per annum of the aggregate gross revenues from the securities business for such members during such period.
(C) Minimum assessment
(2) Lines of credit
(A) $50,000,000 limit after 1973
(B) Phaseout requirement
(e) Prior trusts; overpayments and underpayments
(1) Prior trusts
(2) Overpayments
(3) Underpayments
(f) Borrowing authority
(g) SEC loans to SIPC
(h) SEC notes issued to Treasury
(i) Consolidated group
(Pub. L. 91–598, § 4, Dec. 30, 1970, 84 Stat. 1639; Pub. L. 95–283, § 6, May 21, 1978, 92 Stat. 253; Pub. L. 111–203, title IX, §§ 929C, 929V(a), July 21, 2010, 124 Stat. 1852, 1868.)