The United States
Trust Indenture Act of 1939 (TIA), codified at through , supplements the
Securities Act of 1933Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression. It is often referred to as the 1933 Act, the '33 Act, or the Securities Act...
in the case of the distribution of debt securities. Generally speaking, the TIA requires the appointment of a suitably independent and qualified trustee to act for the benefit of the holders of the securities, and specifies various substantive provisions for the trust indenture that must be entered into by the issuer and the trustee.
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The United States
Trust Indenture Act of 1939 (TIA), codified at through , supplements the
Securities Act of 1933Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression. It is often referred to as the 1933 Act, the '33 Act, or the Securities Act...
in the case of the distribution of debt securities. Generally speaking, the TIA requires the appointment of a suitably independent and qualified trustee to act for the benefit of the holders of the securities, and specifies various substantive provisions for the trust indenture that must be entered into by the issuer and the trustee. The TIA is administered by the U.S. Securities and Exchange Commission (SEC), which has made various regulations under the act.
History
Section 211 of The
Securities Exchange Act of 1934The Securities Exchange Act of 1934 is a law governing the secondary trading of securities in the United States of America. The Act, , codified at et seq., was a sweeping piece of legislation. The Act and related statutes form the basis of regulation of the financial markets and their...
mandated that the SEC conduct various studies. Although not expressly required to study the trustee system then in use for the issuance of debt securities, SEC Chairman
William O. DouglasWilliam Orville Douglas was a United States Supreme Court Associate Justice. With a term lasting 36 years and 209 days, he is the longest-serving justice in the history of the Supreme Court...
was convinced by November 1934 that the system required legislative reform. In June, 1936, the Protective Committee Study "Trustees Under Indentures" was published.
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