Sec. 218.780 Exemption for banks from
liability under section 29 of the Securities
Exchange Act of 1934.
(a) No contract entered into before
March 31, 2009, shall be void or
considered voidable by reason of section
29(b) of the Act (15 U.S.C. 78cc(b))
because any bank that is a party to the
contract violated the registration
requirements of section 15(a) of the Act
(15 U.S.C. 78o(a)), any other applicable
provision of the Act, or the rules and
regulations thereunder based solely on
the bank’s status as a broker when the
contract was created.
(b) No contract shall be void or
considered voidable by reason of section
29(b) of the Act (15 U.S.C. 78cc(b))
because any bank that is a party to the
contract violated the registration
requirements of section 15(a) of the Act
(15 U.S.C. 78o(a)) or the rules and
regulations thereunder based solely on
the bank’s status as a broker when the
contract was created, if:
(1) At the time the contract was
created, the bank acted in good faith and
had reasonable policies and procedures
in place to comply with section
3(a)(4)(B) of the Act (15 U.S.C.
78c(a)(4)(B)) and the rules and
regulations thereunder; and
(2) At the time the contract was
created, any violation of the registration
requirements of section 15(a) of the Act
by the bank did not result in any
significant harm or financial loss or cost
to the person seeking to void the
contract.
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