SIPA

Securities Investor Protection Act

Although the Bankruptcy Code provides for a stockbroker liquidation proceeding (11 U.S.C. § 741 et seq.), it is far more likely that a failing brokerage will find itself involved in a proceeding under the Securities Investor Protection Act of 1970 ("SIPA") (15 U.S.C. §§ 78aaa et seq.), rather than a Bankruptcy Code liquidation case.

a. Overview

b. History

c. SIPA

d. Bankruptcy Liquidation versus the SIPA Liquidation in Bankruptcy Court

e. Role of the District Court

f. Removal to Bankruptcy Court

g. Liquidation Proceedings

h. Powers of the Trustee

i. Claims

j. Distribution

k. Advances

l. Direct Payment Under SIPA Outside the Bankruptcy Court

m. Role of Securities and Exchange Commission

n. Compensation in a SIPA Action