Trust Indenture Act of 1939

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The United States Trust Indenture Act of 1939 (TIA), codified at 15 U.S.C. § 77aaa through 15 U.S.C. § 77bbbb, supplements the Securities Act of 1933 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.

[edit] History

Section 211 of The Securities Exchange Act of 1934 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. Douglas was convinced by November of 1934 that the system required legislative reform. In June, 1936, the Protective Committee Study "Trustees Under Indentures" was published.

[edit] See also

Securities regulation in the United States

[edit] External links

• Text of the TIA
• SEC rules under the TIA
• SEC forms under TIA
• ABA Section of Business Law Committee on Trust Indentures and Indenture Trustees