REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT.

SEC. 404. SECURITIES REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT. Section 305 of the Trust Indenture Act of 1939 (15 U.S.C. 77eee) is amended— (1) in subsection (a)(1), by striking “or has a conflicting interest as defined in subsection (b) of section 310”; (2) in subsection (b)— (A) by striking “The Commission shall issue” and inserting “(1) Except as may be permitted by paragraph (2) of this subsection, the Commission shall issue”; (B) by redesignating paragraph (1) as subparagraph (A); (C) by inserting “or” at the end thereof; (D) by striking paragraph (2); (E) redesignating paragraph (3) as subparagraph (B); (F) in such subparagraph (B), by striking “or has any conflicting interest as defined in subsection (b) of section 310”; and (G) by adding at the end of subsection (b) the following new paragraph: “(2) In the case of securities registered under the Securities Act of 1933, which securities are eligible to be issued, offered, or sold on a delayed basis by or on behalf of the registrant, the Commission shall not be required to issue an order pursuant to paragraph (1) of subsection (b) of section 305 for failure to designate a trustee eligible to act under subsection (a) of section 310 if, in accordance with such rules and regulations as may be prescribed by the Commission, the issuer of such securities files an application for the purpose of determining such trustee’s eligibility under subsection (a) of section 310. The Commission shall issue an order prior to the effective date of such application refusing to permit the application to become104 STAT. 2723 effective, if it finds that any person designated as trustee under such indenture is not eligible to act as such under subsection (a) of section 310, but no order shall be issued except after notice and opportunity for hearing within the periods and in the manner required with respect to refusal orders pursuant to section 8(b) of the Securities Act of 1933. If after notice and opportunity for hearing the Commission issues an order under this provision, the obligor shall within 5 calendar days appoint a trustee meeting the requirements of subsection (a) of section 310. No such appointment shall be effective and such refusal order shall not be rescinded by the Commission until a person eligible to act as trustee under subsection (a) of section 310 has been appointed. If no order is issued, an application filed pursuant to this paragraph shall be effective the tenth day after filing thereof or such earlier date as the Commission may determine, having due regard to the adequacy of information provided therein, the public interest, and the protection of investors.”.