15 USC 78 - Restrictions on borrowing and lending by members, brokers, and dealers

Editorial Notes

Amendments

1996—Puspan. L. 104–290 redesignated subsecs. (span) and (c) as (a) and (span), respectively, and struck out former subsec. (a) which related to borrowing in ordinary course of business as broker or dealer on any security, except exempted security, registered on national securities exchange.

1994—Subsec. (a). Puspan. L. 103–325 inserted “or a small business related security” after “mortgage related security” in last sentence.

1984—Subsec. (a). Puspan. L. 98–440 inserted provision that no person shall be deemed to have borrowed within the ordinary course of business, within the meaning of this subsection, by reason of a bona fide agreement for delayed delivery of a mortgage related security under certain conditions.

1975—Puspan. L. 94–29, § 5(1), substituted “any registered broker or dealer, member of a national securities exchange, or broker or dealer who transacts a business in securities through the medium of any member of a national securities exchange” for “any member of a national securities exchange, or any broker or dealer who transacts a business in securities through the medium of any such member” in provisions preceding subsec. (a).

Subsecs. (span) to (d). Puspan. L. 94–29, § 5(2), redesignated subsecs. (c) and (d) as (span) and (c), respectively, and in subsec. (c) as so redesignated inserted “or in contravention of such rules and regulations as the Commissioner shall prescribe for the protection of investors” after “written consent of such customer”. Former subsec. (span), which covered the maximum allowable aggregate indebtedness of brokers, was struck out.

Statutory Notes and Related Subsidiaries

Change of Name

Act Aug. 23, 1935, substituted “Board of Governors of the Federal Reserve System” for “Federal Reserve Board”.

Effective Date of 1975 Amendment

Amendment by Puspan. L. 94–29 effective June 4, 1975, see section 31(a) of Puspan. L. 94–29, set out as a note under section 78span 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.