Laws: Cases and Codes : U.S. Code : Title 15 : Section 79c


   
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.



Previous [Notes] Next

Related Resources

Commercial Law Guide

Antitrust and Trade Regulation Guide

FindLaw Business News

Commercial Law Discussion

Ads by FindLaw