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U.S. Code as of:
01/19/04
Section 79c. Exemptions regarding holding companies
(a) Exemption of holding companies
The Commission, by rules and regulations upon its own motion, or
by order upon application, shall exempt any holding company, and
every subsidiary company thereof as such, from any provision or
provisions of this chapter, unless and except insofar as it finds
the exemption detrimental to the public interest or the interest of
investors or consumers, if -
(1) such holding company, and every subsidiary company thereof
which is a public-utility company from which such holding company
derives, directly or indirectly, any material part of its income,
are predominantly intrastate in character and carry on their
business substantially in a single State in which such holding
company and every such subsidiary company thereof are organized;
(2) such holding company is predominantly a public-utility
company whose operations as such do not extend beyond the State
in which it is organized and States contiguous thereto;
(3) such holding company is only incidentally a holding
company, being primarily engaged or interested in one or more
businesses other than the business of a public-utility company
and (A) not deriving, directly or indirectly, any material part
of its income from any one or more subsidiary companies, the
principal business of which is that of a public-utility company,
or (B) deriving a material part of its income from any one or
more such subsidiary companies, if substantially all the
outstanding securities of such companies are owned, directly or
indirectly, by such holding company;
(4) such holding company is temporarily a holding company
solely by reason of the acquisition of securities for purposes of
liquidation or distribution in connection with a bona fide debt
previously contracted or in connection with a bona fide
arrangement for the underwriting or distribution of securities;
or
(5) such holding company is not, and derives no material part
of its income, directly or indirectly, from any one or more
subsidiary companies which are, a company or companies the
principal business of which within the United States is that of a
public-utility company.
(b) Exemption of subsidiary companies of holding company
The Commission, by rules and regulations upon its own motion, or
by order upon application, shall exempt any subsidiary company, as
such, of a holding company from any provision or provisions of this
chapter, the application of which to such subsidiary company the
Commission finds is not necessary in the public interest or for the
protection of investors, if such subsidiary company derives no
material part of its income, directly or indirectly, from sources
within the United States, and neither it nor any of its subsidiary
companies is a public-utility company operating in the United
States.
(c) Filing for exemption
Within a reasonable time after the receipt of an application for
exemption under subsection (a) or (b) of this section, the
Commission shall enter an order granting, or, after notice and
opportunity for hearing, denying or otherwise disposing of such
application. The filing of an application in good faith under
subsection (a) of this section by a person other than a registered
holding company shall exempt the applicant from any obligation,
duty, or liability imposed in this chapter upon the applicant as a
holding company until the Commission has acted upon such
application. The filing of an application in good faith under
subsection (b) of this section shall exempt the applicant from any
obligation, duty, or liability imposed in this chapter upon the
applicant as a subsidiary company until the Commission has acted
upon such application. Whenever the Commission, on its own motion,
or upon application by the holding company or any subsidiary
company thereof exempted by any order issued under subsection (a)
of this section, or by the subsidiary company exempted by any order
issued under subsection (b) of this section, finds that the
circumstances which gave rise to the issuance of such order no
longer exist, the Commission shall by order revoke such order.
(d) Exemption of specified class or classes of persons
The Commission may, by rules and regulations, conditionally or
unconditionally exempt any specified class or classes of persons
from the obligations, duties, or liabilities imposed upon such
persons as subsidiary companies or affiliates under any provision
or provisions of this chapter, and may provide within the extent of
any such exemption that such specified class or classes of persons
shall not be deemed subsidiary companies or affiliates within the
meaning of any such provision or provisions, if and to the extent
that it deems the exemption necessary or appropriate in the public
interest or for the protection of investors or consumers and not
contrary to the purposes of this chapter.
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