§ 69f. Enforcement of sections 69-69j.

(a) (1) Except as otherwise specifically provided in section 69-69j of this title, sections 69a, 69d, and 69h (b) of this title shall be enforced by the Federal Trade Commission under rules, regulations, and procedure provided for in the Federal Trade Commission Act.

(2) The Commission is authorized and directed to prevent any person from violating the provisions of sections 69a, 69d, and 69h (b) of this title in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of sections 69-69j of this title; and any such person violating any provision of section 69a, 69d, or 69h (b) of this title shall be subject to the penalties and entitled to the privileges and immunities provided in said Federal Trade Commission Act as though the applicable terms and provisions of the said Act were incorporated into and made a part of sections 69-69j of this title.

(b) The Commission is authorized and directed to prescribe rules and regulations governing the manner and form of disclosing information required by sections 69a-69j of this title, and such further rules and regulations as may be necessary and proper for purposes of administration and enforcement of said sections.

(c) The Commission is authorized (1) to cause inspections, analyses, tests, and examinations to be made of any fur product or fur subject to sections 69a-69j of this title; and (2) to cooperate, on matters related to the purposes of said sections, with any department or agency of the Government; with any State, Territory, or possession, or with the District of Columbia; or with any department, agency, or political subdivision thereof; or with any person.

(d) (1) Every manufacturer or dealer in fur products or furs shall maintain proper records showing the information required by sections 69-69j of this title with respect to all fur products or furs handled by him, and shall preserve such records for at least three years.

(2) The neglect or refusal to maintain and preserve such records is unlawful, and any such manufacturer or dealer who neglects or refuses to maintain and preserve such records shall forfeit to the United States the sum of $100 for each day of such failure which shall accrue to the United States and be recoverable by a civil action. (Aug. 8, 1951, ch. 298, § 8, 65 Stat. 179.)

REFERENCES IN TEXT

The Federal Trade Commission Act, referred to in text, is classified to sections 41-46 and 47-58 of this title. "Said Act", referred to in text, refers to the Federal Trade Commission Act.

EFFECTIVE DATE

Section to take effect one year after August 8, 1951, see note following section 69 of this title.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950

Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64
Stat. 1264, set out in note following section 41 of this
title.
CROSS REFERENCES

Power of Commission to make rules and regulations, see section 46 of this title.

§ 69g. Condemnation and injunction proceedings.

(a) (1) Any fur product or fur shall be liable to be proceeded against in the district court of the United States for the district in which found, and to be seized for confiscation by process of libel for condemnation, if the Commission has reasonable cause to believe such fur product or fur is being manufactured or held for shipment, or shipped, or held for sale or exchange after shipment, in commerce, in violation of the provisions of sections 6969j of this title, and if after notice from the Commission the provisions of said sections with respect to such fur product or fur are not shown to be complied with. Proceedings in such libel cases shall conform as nearly as may be to suits in rem in admiralty, and may be brought by the Commission.

(2) If such fur products or furs are condemned by the court, they shall be disposed of, in the discretion of the court, by destruction, by sale, by delivery to the owner or claimant thereof upon payment of legal costs and charges and upon execution of good and sufficient bond to the effect that such fur or fur products will not be disposed of until properly marked, advertised, and invoiced as required under the provisions of sections 69—69j, of this title; or by such charitable disposition as the court may deem proper. If such furs or fur products are disposed of by sale, the proceeds, less legal costs and charges, shall be paid into the Treasury of the United States as miscellaneous receipts.

(b) Whenever the Commission has reason to believe that

(1) any person is volating,' or is about to violate, sections 69a, 69d, or 69h (b) of this title; and

(2) it would be to the public interest to enjoin such violation until complaint is issued by the Commission under the Federal Trade Commission Act and such complaint dismissed by the Commission or set aside by the court on review, or until order to cease and desist made thereon by the Commission has become final within the meaning of said Act, the Commission may bring suit in the district court of the United States or in the United States court of any Territory, for the district or Territory in which such person resides or transacts business, to enjoin such violation, and upon proper showing a temporary injunction or restraining order shall be granted without bond. (Aug. 8, 1951, ch. 298, § 9, 65 Stat. 180.)

REFERENCES IN TEXT

The Federal Trade Commission Act, referred to in text, is classified to sections 41-46 and 47-58 of this title. "Said Act", referred to in text, refers to the Federal Trade Commission Act.

EFFECTIVE DATE

Section to take effect one year after August 8, 1951, see note following section 69 of this title.

1 So in original. Probably should read "violating".

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264, set out in note following section 41 of this title.

§69h. Guaranty.

(a) No person shall be guilty under section 69a of this title if he establishes a guaranty received in good faith signed by and containing the name and address of the person residing in the United States by whom the fur product or fur guaranteed was manufactured or from whom it was received, that said fur product is not misbranded or that said fur product or fur is not falsely advertised or invoiced under the provisions of sections 69a-69j of this title. Such guaranty shall be either (1) a separate guaranty specifically designating the fur products or fur guaranteed, in which case it may be on the invoice or other paper relating to such fur product or fur; or (2) a continuing guaranty filed with the Commission applicable to any fur product or fur handled by a guarantor, in such form as the Commission by rules and regulations may prescribe.

(b) It shall be unlawful for any person to furnish, with respect to any fur product or fur, a false guaranty (except a person relying upon a guaranty to the same effect received in good faith signed by and containing the name and address of the person residing in the United States by whom the fur product or fur guaranteed was manufactured or from whom it was received) with reason to believe the fur product or fur falsely guaranteed may be introduced, sold, transported, or distributed in commerce, and any person who violates the provisions of this subsection is guilty of an unfair method of competition, and an unfair or deceptive act or practice, in commerce within the meaning of the Federal Trade Commission Act. (Aug. 8, 1951, ch. 298, § 10, 65 Stat.

181.)

REFERENCE IN TEXT

The Federal Trade Commission Act, referred to in text, is classified to sections 41-46 and 47-58 of this title.

EFFECTIVE DATE

Section to take effect one year after August 8, 1951, see note following section 69 of this title.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264, set out in note following section 41 of this title.

§ 691. Criminal penalty.

(a) Any person who willfully violates sections 69a, 69d, or 69h (b) of this title shall be guilty of a misdemeanor and upon conviction shall be fined not more than $5,000, or be imprisoned not more than one year, or both, in the discretion of the court.

(b) Whenever the Commission has reason to believe any person is guilty of a misdemeanor under this section, it shall certify all pertinent facts to the Attorney General, whose duty it shall be to cause appropriate proceedings to be brought for the en

forcement of the provisions of this section against such person. (Aug. 8, 1951, ch. 298, § 11, 65 Stat.

181.)

EFFECTIVE DATE

Section to take effect one year after August 8, 1951, see note following section 69 of this title.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264, set out in note following section 41 of this title. CROSS REFERENCES

Misdemeanor defined, see section 1 of Title 18, Crimes and Criminal Procedure.

§ 69j. Application of other laws.

The provisions of sections 69-69j of this title shall be held to be in addition to, and not in substitution for or limitation of, the provisions of any other Act of Congress. (Aug. 8, 1951, ch. 298, § 12, 65 Stat. 181.)

EFFECTIVE DATE

Section to take effect one year after August 8, 1951, see note following section 69 of this title.

PREVENTION OF UNFAIR METHODS OF COMPETITION

§ 71. Definition.

When used in sections 71-76 of this title the term "person" includes partnerships, corporations, and associations. (Sept. 8, 1916, ch. 463, § 800, 39 Stat. 798.)

§ 72. Importation or sale of articles at less than market value or wholesale price.

It shall be unlawful for any person importing or assisting in importing any articles from any foreign country into the United States, commonly and systematically to import, sell or cause to be imported or sold such articles within the United States at a price substantially less than the actual market value or wholesale price of such articles, at the time of exportation to the United States, in the principal markets of the country of their production, or of other foreign countries to which they are commonly exported after adding to such market value or wholesale price, freight, duty, and other charges and expenses necessarily incident to the importation and sale thereof in the United States: Provided, That such act or acts be done with the intent of destroying or injuring an industry in the United States, or of preventing the establishment of an industry in the United States, or of restraining or monopolizing any part of trade and commerce in such articles in the United States.

Any person who violates or combines or conspires with any other person to violate this section is guilty of a misdemeanor, and, on conviction thereof, shall be punished by a fine not exceeding $5,000, or imprisonment not exceeding one year, or both, in the discretion of the court.

Any person injured in his business or property by reason of any violation of, or combination or conspiracy to violate, this section, may sue therefor in the district court of the United States for the dis

trict in which the defendant resides or is found or has an agent, without respect to the amount in controversy, and shall recover threefold the damages sustained, and the cost of the suit, including a reasonable attorney's fee.

The foregoing provisions shall not be construed to deprive the proper State courts of jurisdiction in actions for damages thereunder. (Sept. 8, 1916, ch. 463, § 801, 39 Stat. 798.)

CROSS REFERENCES

Misdemeanor defined, see section 1 of Title 18, Crimes and Criminal Procedure.

FEDERAL RULES OF CIVIL PROCEDURE

Costs, see Rule 54, following section 2072 of Title 28, Judiciary and Judicial Procedure.

Effect of Rule 54 on this section, see note by Advisory Committee under said Rule 54.

§ 73. Agreements involving restrictions in favor of imported goods.

If any article produced in a foreign country is imported into the United States under any agreement, understanding, or condition that the importer thereof or any other person in the United States shall not use, purchase, or deal in, or shall be restricted in his using, purchasing, or dealing in, the articles of any other person, there shall be levied, collected, and paid thereon, in addition to the duty otherwise imposed by law, a special duty equal to double the amount of such duty: Provided, That the above shall not be interpreted to prevent the establishing in this country on the part of a foreign producer of an exclusive agency for the sale in the United States of the products of said foreign producer or merchant, nor to prevent such exclusive agent from agreeing not to use, purchase, or deal in the article of any other person, but this proviso shall not be construed to exempt from the provisions of this section any article imported by such exclusive agent if such agent is required by the foreign producer or if it is agreed between such agent and such foreign producer that any agreement, understanding or condition set out in this section shall be imposed by such agent upon the sale or other disposition of such article to any person in the United States. (Sept. 8, 1916, ch. 463, § 802, 39 Stat. 799.)

§ 74. Rules and regulations.

The Secretary of the Treasury shall make such rules and regulations as are necessary for the carrying out of the provisions of section 73 of this title. (Sept. 8, 1916, ch. 463, § 803, 39 Stat. 799.)

§ 75. Retaliation against country prohibiting importations.

Whenever any country, dependency, or colony shall prohibit the importation of any article the product of the soil or industry of the United States and not injurious to health or morals, the President shall have power to prohibit, during the period such prohibition is in force, the importation into the United States of similar articles, or in case the United States does not import similar articles from that country, then other articles, the products of such country, dependency, or colony.

And the Secretary of the Treasury, with the approval of the President, shall make such rules and

regulations as are necessary for the execution of the provisions of this section. (Sept. 8, 1916, ch. 463, § 804, 39 Stat. 799.)

§ 76. Retaliation against restriction of importations in time of war.

Whenever, during the existence of a war in which the United States is not engaged, the President shall be satisfied that there is reasonable ground to believe that under the laws, regulations, or practices of any country, colony, or dependency contrary to the law and practice of nations, the importation into their own or any other country, dependency, or colony of any article the product of the soil or industry of the United States and not injurious to health or morals is prevented or restricted the President is authorized and empowered to prohibit or restrict during the period such prohibition or restriction is in force, the importation into the United States of similar or other articles, products of such country, dependency, or colony as in his opinion the public interest may require; and in such case he shall make proclamation stating the article or articles which are prohibited from importation into the United States; and any person or persons who shall import, or attempt or conspire to import, or be concerned in importing, such article or articles, into the United States contrary to the prohibition in such proclamation, shall be liable to a fine of not less than $2,000 nor more than $50,000, or to imprisonment not to exceed two years, or both, in the discretion of the court. The President may change, modify, revoke, or renew such proclamation in his discretion. (Sept. 8, 1916, ch. 463, § 805, 39 Stat. 799.)

§ 77. Discrimination against neutral Americans in time of war.

Whenever, during the existence of a war in which the United States is not engaged, the President shall be satisfied that there is reasonable ground to believe that any vessel, American or foreign, is, on account of the laws, regulations, or practices of a belligerent Government, making or giving any undue or unreasonable preference or advantage in any respect whatsoever to any particular person, company, firm, or corporation, or any particular description of traffic in the United States or its possessions or to any citizens of the United States residing in neutral countries abroad, or is subjecting any particular person, company, firm, or corporation or any particular description of traffic in the United States or its possessions, or any citizens of the United States residing in neutral countries abroad to any undue or unreasonable prejudice, disadvantage, injury, or discrimination in regard to accepting, receiving, transporting, or delivering, or refusing to accept, receive, transfer, or deliver any cargo, freight, or passengers, or in any other respect whatsoever, he is authorized and empowered to direct the detention of such vessels by withholding clearance or by formal notice forbidding departure, and to revoke, modify, or renew any such direction.

Whenever, during the existence of a war in which the United States is not engaged, the President shall be satisfied that there is reasonable ground to believe that under the laws, regulations, or practices of any

belligerent country or Government, American ships or American citizens are not accorded any of the facilities of commerce which the vessels or citizens of that belligerent country enjoy in the United States or its possessions, or are not accorded by such belligerent equal privileges or facilities of trade with vessels or citizens of any nationality other than that of such belligerent, the President is authorized and empowered to withhold clearance from one or more vessels of such belligerent country until such belligerent shall restore to such American vessels and American citizens reciprocal liberty of commerce and equal facilities of trade; or the President may direct that similar privileges and facilities, if any, enjoyed by vessels or citizens of such belligerent in the United States or its possessions be refused to vessels or citizens of such belligerent; and in such case he shall make proclamation of his direction, stating the facilities and privileges which shall be refused, and the belligerent to whose vessels or citizens they are to be refused, and thereafter the furnishing of such prohibited privileges and facilities to any vessel or citizen of the belligerent named in such proclamation shall be unlawful; and he may change, modify, revoke, or renew such proclamation; and any person or persons who shall furnish or attempt or conspire to furnish or be concerned in furnishing or in the concealment of furnishing facilities or privileges to ships or persons contrary to the prohibition in such proclamation shall be liable to a fine of not less than $2,000 nor more than $50,000 or to imprisonment not to exceed two years, or both, in the discretion of the court.

In case any vessel which is detained by virtue of sections 71-76 of this title shall depart or attempt to depart from the jurisdiction of the United States without clearance or other lawful authority, the owner or master or person or persons having charge or command of such vessel shall be severally liable to a fine of not less than $2,000 nor more than $10,000, or to imprisonment not to exceed two years, or both, and in addition such vessel shall be forfeited to the United States.

The President of the United States is authorized and empowered to employ such part of the land or naval forces of the United States as shall be necessary to carry out the purposes of sections 71-76 of this title. (Sept. 8, 1916, ch. 463, § 806, 39 Stat. 799.)

Chapter 2A.-SECURITIES AND TRUST INDENTURES

SUBCHAPTER I-DOMESTIC SECURITIES

Prohibitions relating to interstate commerce and

Registration of securities and signing of registra

77bb.

77cc.

77dd.

77ee. 77ff. 77gg. 77hh.

77ii. 77jj.

77kk.

7711. 77mm.

77aaa.

Injunctions and prosecution of offenses.

Hearings by Commission.

Jurisdiction of offenses and suits.

Unlawful representations.

Penalties.

Jurisdiction of other Government agencies over securities.

Separability of provisions.

Schedule of information required in registration statement.

SUBCHAPTER II-FOREIGN SECURITIES

"Corporation of Foreign Security Holders"; creation; principal office; branch offices.

Same; directors; appointment, term of office, and removal.

Same; powers and duties generally.

Same; directors, powers and duties generally. Same; accounts and annual balance sheet; audits. Same; annual report; printing and distribution. Same; assessments on holders of foreign securities. Same; subscriptions accepted as loans; repayment. Same; loans from Reconstruction Finance Corporation authorized.

Same; representations as acting for Department of State or United States forbidden; interference with foreign negotiations forbidden. Effective date of subchapter.

Short title.

SUBCHAPTER III-TRUST INDENTURES

Short title.

77e.

the mails.

771.

indenture provisions.

(a) Periodic reports.

(b) Evidence of recording of indenture.

(c) Evidence of compliance with conditions

precedent.

(d) Certificates of fair value.

(e) Recitals as to basis of certificate or

opinion.

(f) Parties may provide for additional evi

dence.

Duties and responsibility of the trustee.

(a) Duties prior to default.

(b) Notice of defaults.

(c) Duties of the trustee in case of default.

(d) Responsibility of the trustee.

(e) Undertaking for costs.

Regulation of securities

Corporation of Foreign Bondholders Act, 1933, as constituting sections 77b to 77mm of this title, see section 77mm of this title.

Investment Advisers Act of 1940 as constituting sections 80b-1 to 80b-21 of this title, see section 80b-20 of this title.

Investment Company Act of 1940 as constituting sections 80a-1 to 80a-52 of this title and sections 72 (a), last sentence, and 107 (f) of Title 11, Bankruptcy, see section 80a-51 of this title.

Public Utility Holding Company Act of 1935 as constituting sections 79 to 792-6 of this title, see section 79 of this title.

Securities Exchange Act of 1934 as constituting sections 78a-78jj of this title, see section 78a of this title.

Trust Indenture Act of 1939 as constituting sections 77aaa-77bbb of this title, see section 77aaa of this title.

Reorganization of railroads engaged in interstate commerce, this subchapter, as inapplicable to issuance, sale or exchange of certain classes of securities, see section 205 (f) of Title 11, Bankruptcy.

§ 77b. Definitions.

When used in this subchapter, unless the context otherwise requires

(1) The term "security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, or, in general, any interest or instrument commonly known as a "security", or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

(2) The term "person" means an individual, a corporation, a partnership, an association, a joint-stock company, a trust, any unincorporated organization, or a government or political subdivision thereof. As used in this paragraph the term "trust" shall include only a trust where the interest or interests of the beneficiary or beneficiaries are evidenced by a security.

(3) The term "sale", "sell", "offer to sell", or "offer for sale" shall include every contract of sale or disposition of, attempt or offer to dispose of, or solicitation of an offer to buy, a security or interest in a security, for value; except that such terms shall not include preliminary negotiations or agreements between an issuer and any underwriter. Any security given or delivered with, or as a bonus on account of, any purchase of securities or any other thing, shall be conclusively presumed to constitute a part of the subject of such purchase and to have been sold for value. The issue or transfer of a right or privilege, when originally issued or transferred with a security, giving the holder of such security the right to convert such security into another security of the same issuer or of another person, or giving a right to subscribe to another security of the same issuer or of another person, which right cannot be exercised until some future date, shall not be deemed to be a sale of such other security; but the issue or transfer of such other security upon the exercise of such right of conversion or subscription shall be deemed a sale of such other security.

(4) The term "issuer" means every person who issues or proposes to issue any security; except that with respect to certificates of deposit, voting-trust certificates, or collateral-trust certificates, or with respect to certificates of interest or shares in an unincorporated investment trust not having a board of directors (or persons performing similar functions) or of the fixed, restricted management, or unit type, the term "issuer" means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued; except that in the case of an unincorporated association which provides by its articles for limited liability of any or all of its members, or in the case of a trust, committee, or other legal entity, the trustees or members thereof shall not be individually liable as issuers of any security issued by the association, trust, committee, or other legal entity; except that with respect to equipment-trust certificates or like securities, the term “issuer” means the person by whom the equipment or property is or is to be used; and except that with respect to fractional undivided interests in oil, gas, or other mineral rights, the term "issuer" means the owner of any such right or of any interest in such right (whether whole or fractional) who creates fractional interests therein for the purpose of public offering.

(5) The term "Commission" means the Securities and Exchange Commission.

(6) The term "Territory" means Alaska, Hawaii, Puerto Rico, Canal Zone, the Virgin Islands, and the insular possessions of the United States.

(7) The term "interstate commerce" means trade or commerce in securities or any transportation or communication relating thereto among the several States or between the District of Columbia or any Territory of the United States and any State or other Territory, or between any foreign country and any State, Territory, or the District of Columbia, or within the District of Columbia.