,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #hbg  ,,in ,,the ,,house ,,of   
,,representatives  ,february #bf1 #bjac 
,mr4 ,cassidy 7for himself and ,mr4     
,deutch7 introduced the following bill2 
which was referred to the ,committee on 
,financial ,services  ,a ,,bill  ,to    
amend the ,securities ,investor         
,protection ,act of #aigj to provide    
one-time payments from the ,,sipc ,fund 
for customers during a pending lawsuit  
by the ,securities and ,exchange        
,commission against the ,securities     
,investor ,protection ,corporation1 and 
for other purposes4  #a4 ,short title   
,this ,act may be cited as the          
,improving ,security for ,investors and 
,providing ,closure ,act of #bjac or the
 ,improving ,,sipc ,act of #bjac4  #b4  
,customer payment during pending action 
7a7 ,in general ,section #aa of the     
,securities ,investor ,protection ,act  
of #aigj 7#ae ,u4,s4,c4 #gh;ggg7 is     
amended--  7#a7 by redesignating        
subsections 7c7 and 7d7 as subsections  

7d7 and 7e71 respectively2 and  7#b7 by 
inserting after subsection 7b7 the      
following3  7c7 ,customer payment during
 pending action  7#a7 ,one-time payment 
permitted  7,a7 ,in general ,at the time
 that an action is initiated under      
subsection 7b71 ,,sipc may choose to    
allow all customers of the debtor to    
elect to receive a one-time payment from
 the ,,sipc ,fund4  7,b7 ,customer      
election ,if ,,sipc allows customers to 
make the election described under       
subparagraph 7,a71 each customer        
choosing to make such election must make
 such election during the action brought
 under subsection 7b71 but in no case   
later than the #ahj-;day period         
beginning on the date that ,,sipc       
chooses to allow such election4  7#b7   
,method of payment  7,a7 ,in general ,to
 the extent practicable1 one-time       
payments made under this subsection     
shall be made in the same manner as     
payments of net equity claims of        
customers of a debtor are made under the

 other provisions of this ,act4  7,b7   
,payment amount limited to claims ,the  
amount paid to a customer under this    
subsection shall be equal to the lesser 
of--  7i7 the customer's net equity     
claim against the debtor2 and  7ii7 the 
cap set under paragraph 7#c74  7#c7 ,cap
 on one-time payments ,at the time the  
action is initiated under subsection    
7b71 ,,sipc shall set a cap on the      
amount of one-time payments that can be 
made under this subsection1 and such    
cap--  7,a7 shall not exceed #ejj1jjj2  
and  7,b7 shall apply equally to all    
customers of the debtor4  7#d7 ,effect  
of election  7,a7 ,no ,,sipc advance    
,section #i7;a7 shall not apply with    
respect to any customer who receives a  
one-time payment under this subsection4 
7,b7 ,subrogation ,with respect to any  
customer who receives a one-time payment
 under this subsection1 ,,sipc shall be 
subrogated to all rights of such        
customer against the debtor once the    
customer recovers an amount equal to the

 customer's net equity claim against the
 debtor4  7#e7 ,notice2 technical       
assistance ,if ,,sipc allows customers  
to make the election described under    
paragraph 7#a77;,a71 ,,sipc shall--     
7,a7 promptly notify each customer of   
the debtor of their rights under this   
subsection2 and  7,b7 provide technical 
assistance to such customers to         
determine if they should make an        
election under paragraph 7#a77;,b74     
7#f7 ,treatment of certificates of      
deposit ,for purposes of this           
subsection1 a certificate of deposit    
purchased by a person through an account
 with the debtor shall be treated as    
cash deposited and held by the debtor in
 an amount equal to the amount the      
person paid for the certificate of      
deposit1 less any amounts paid to such  
person on the certificate of deposit4   
7#g7 ,judicial review of certain ,,sipc 
determinations ,with respect to any     
person who is not permitted to make an  
election under this subsection because  

,,sipc does not identify them as a      
customer of the debtor1 such person may 
commence an action against ,,sipc in the
 appropriate ,united ,states district   
court to challenge the determination by 
,,sipc that they are not a customer of  
the debtor4  7#h7 ,rulemaking ,,sipc may
 issue such regulations as may be       
necessary to carry out this subsection4 
7#i7 ,debtor defined ,for purposes of   
this subsection1 the term debtor means  
the broker or dealer that is the subject
 of the action brought under subsection 
7b74  4  7b7 ,application ,with respect 
to an ongoing action brought under      
section #aa7;b7 of the ,securities      
,investor ,protection ,act of #aigj 7#ae
 ,u4,s4,c4 #gh;ggg7b77 before the date  
of the enactment of this ,act1 the      
customer election available under       
section #aa7;c7 of such ,act may be made
 during the #ahj-;day period beginning  
on the date of the enactment of this    
,act4  7c7 ,rule of ,construction ,a    
person's qualification as a customer for

 purposes of section #aa7;c7 of the     
,securities ,investor ,protection ,act  
of #aigj shall have no effect on whether
 such person qualifies as a customer    
under any other provision of such ,act4