§ 78cc. Validity of contracts

872 words·~4 min read·/usc/title-15/section-78cc

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Waiver provisions Any condition, stipulation, or provision binding any person to waive compliance with any provision of this chapter or of any rule or regulation thereunder, or of any rule of a self-regulatory organization, shall be void.

(b)Contract provisions in violation of chapter Every contract made in violation of any provision of this chapter or of any rule or regulation thereunder, and every contract (including any contract for listing a security on an exchange) heretofore or hereafter made, the performance of which involves the violation of, or the continuance of any relationship or practice in violation of, any provision of this chapter or any rule or regulation thereunder, shall be void

(1)as regards the rights of any person who, in violation of any such provision, rule, or regulation, shall have made or engaged in the performance of any such contract, and

(2)as regards the rights of any person who, not being a party to such contract, shall have acquired any right thereunder with actual knowledge of the facts by reason of which the making or performance of such contract was in violation of any such provision, rule, or regulation: Provided,

(A)That no contract shall be void by reason of this subsection because of any violation of any rule or regulation prescribed pursuant to paragraph

(3)of subsection

(c)of section 78o of this title, and

(B)that no contract shall be deemed to be void by reason of this subsection in any action maintained in reliance upon this subsection, by any person to or for whom any broker or dealer sells, or from or for whom any broker or dealer purchases, a security in violation of any rule or regulation prescribed pursuant to paragraph

(1)or

(2)of subsection

(c)of section 78o of this title, unless such action is brought within one year after the discovery that such sale or purchase involves such violation and within three years after such violation. The Commission may, in a rule or regulation prescribed pursuant to such paragraph

(2)of such section 78o(c) of this title, designate such rule or regulation, or portion thereof, as a rule or regulation, or portion thereof, a contract in violation of which shall not be void by reason of this subsection.

(c)Validity of loans, extensions of credit, and creation of liens; actual knowledge of violation Nothing in this chapter shall be construed

(1)to affect the validity of any loan or extension of credit (or any extension or renewal thereof) made or of any lien created prior or subsequent to the enactment of this chapter, unless at the time of the making of such loan or extension of credit (or extension or renewal thereof) or the creating of such lien, the person making such loan or extension of credit (or extension or renewal thereof) or acquiring such lien shall have actual knowledge of facts by reason of which the making of such loan or extension of credit (or extension or renewal thereof) or the acquisition of such lien is a violation of the provisions of this chapter or any rule or regulation thereunder, or

(2)to afford a defense to the collection of any debt or obligation or the enforcement of any lien by any person who shall have acquired such debt, obligation, or lien in good faith for value and without actual knowledge of the violation of any provision of this chapter or any rule or regulation thereunder affecting the legality of such debt, obligation, or lien.

(June 6, 1934, ch. 404, title I, § 29, 48 Stat. 903; June 25, 1938, ch. 677, § 3, 52 Stat. 1076; Pub. L. 101–429, title V, § 507, Oct. 15, 1990, 104 Stat. 956; Pub. L. 111–203, title IX, §§ 927, 929T, July 21, 2010, 124 Stat. 1852, 1867.)

Connections52 cite this · traces to 3

Cited by 52 sections · top 39

statutes-at-large

CFR

bill

Traces to 3 documents

U.S. Code

11 references not yet in our index

June 6, 1934, ch. 404
48 Stat. 903
June 25, 1938, ch. 677, § 3
52 Stat. 1076
Pub. L. 101–429, title V, § 507
104 Stat. 956
Pub. L. 111–203, title IX
124 Stat. 1852
Pub. L. 111–203
Pub. L. 101–429
section 4 of Pub. L. 111–203

Citation graph

cites case law

§ 78cc

Validity of contracts

Fed. Reg.×31

Bills×11

Stat.×6

C.F.R.×4

U.S.C.§ 78a

U.S.C.§ 5301

U.S.C.§ 77g

ActJune 6, 1934, ch. 404

Stat.48 Stat. 903

ActJune 25, 1938, ch. 677, § 3

Stat.52 Stat. 1076

Pub. L.Pub. L. 101–429, title V, § 507

Cites 14 · showing 8Cited by 52 across 4 sources