15 U.S.C. § 77ooo : US Code - Section 77OOO: Duties and responsibility of the trustee

Search 15 U.S.C. § 77ooo : US Code - Section 77OOO: Duties and responsibility of the trustee

(a) Duties prior to default
The indenture to be qualified shall automatically be deemed
(unless it is expressly provided therein that any such provision is
excluded) to provide that, prior to default (as such term is
defined in such indenture) -
(1) the indenture trustee shall not be liable except for the
performance of such duties as are specifically set out in such
indenture; and
(2) the indenture trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions
expressed therein, in the absence of bad faith on the part of
such trustee, upon certificates or opinions conforming to the
requirements of the indenture;
but the indenture trustee shall examine the evidence furnished to
it pursuant to section 77nnn of this title to determine whether or
not such evidence conforms to the requirements of the indenture.
(b) Notice of defaults
The indenture trustee shall give to the indenture security
holders, in the manner and to the extent provided in subsection (c)
of section 77mmm of this title, notice of all defaults known to the
trustee, within ninety days after the occurrence thereof: Provided,
That such indenture shall automatically be deemed (unless it is
expressly provided therein that such provision is excluded) to
provide that, except in the case of default in the payment of the
principal of or interest on any indenture security, or in the
payment of any sinking or purchase fund installment, the trustee
shall be protected in withholding such notice if and so long as the
board of directors, the executive committee, or a trust committee
of directors and/or responsible officers, of the trustee in good
faith determine that the withholding of such notice is in the
interests of the indenture security holders.
(c) Duties of the trustee in case of default
The indenture trustee shall exercise in case of default (as such
term is defined in such indenture) such of the rights and powers
vested in it by such indenture, and to use the same degree of care
and skill in their exercise, as a prudent man would exercise or use
under the circumstances in the conduct of his own affairs.
(d) Responsibility of the trustee
The indenture to be qualified shall not contain any provisions
relieving the indenture trustee from liability for its own
negligent action, its own negligent failure to act, or its own
willful misconduct, except that -
(1) such indenture shall automatically be deemed (unless it is
expressly provided therein that any such provision is excluded)
to contain the provisions authorized by paragraphs (1) and (2) of
subsection (a) of this section;
(2) such indenture shall automatically be deemed (unless it is
expressly provided therein that any such provision is excluded)
to contain provisions protecting the indenture trustee from
liability for any error of judgment made in good faith by a
responsible officer or officers of such trustee, unless it shall
be proved that such trustee was negligent in ascertaining the
pertinent facts; and
(3) such indenture shall automatically be deemed (unless it is
expressly provided therein that any such provision is excluded)
to contain provisions protecting the indenture trustee with
respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the holders of not less
than a majority in principal amount of the indenture securities
at the time outstanding (determined as provided in subsection (a)
of section 77ppp of this title) relating to the time, method, and
place of conducting any proceeding for any remedy available to
such trustee, or exercising any trust or power conferred upon
such trustee, under such indenture.
(e) Undertaking for costs
The indenture to be qualified shall automatically be deemed
(unless it is expressly provided therein that any such provision is
excluded) to contain provisions to the effect that all parties
thereto, including the indenture security holders, agree that the
court may in its discretion require, in any suit for the
enforcement of any right or remedy under such indenture, or in any
suit against the trustee for any action taken or omitted by it as
trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable
attorney's fees, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses
made by such party litigant: Provided, That the provisions of this
subsection shall not apply to any suit instituted by such trustee,
to any suit instituted by any indenture security holder, or group
of indenture security holders, holding in the aggregate more than
10 per centum in principal amount of the indenture securities
outstanding, or to any suit instituted by any indenture security
holder for the enforcement of the payment of the principal of or
interest on any indenture security, on or after the respective due
dates expressed in such indenture security.