I 

111TH CONGRESS 

1ST SESSION H. R. 3783 

To amend the Securities Exchange Act of 1934 to provide the Securities 

and Exchange Commission with the authority to contract for the collection of delinquent claims resulting from judgments or orders obtained 

by the Commission. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 8, 2009 

Mr. POSEY (for himself, Mr. BACHUS, Mr. PUTNAM, and Mrs. BACHMANN) 

introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Securities Exchange Act of 1934 to provide 

the Securities and Exchange Commission with the authority to contract for the collection of delinquent claims 

resulting from judgments or orders obtained by the Commission. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SEC Delinquent Judg5 ment Collection Act’’. 


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1 SEC. 2. AUTHORITY TO CONTRACT FOR COLLECTION OF 

2 DELINQUENT JUDGMENTS AND ORDERS. 

3 Subsection (b) of section 4 of the Securities Exchange 

4 Act of 1934 (15 U.S.C. 78d(b)) is amended— 

5 (1) in the heading of such subsection, by strik6 ing ‘‘AND LEASING AUTHORITY’’ and inserting ‘‘, 

7 LEASING AUTHORITY, AND CONTRACTING AUTHOR8 ITY’’; and 

9 (2) by adding at the end the following new 

10 paragraph: 

11 ‘‘(4) CONTRACTING AUTHORITY.— 

12 ‘‘(A) IN GENERAL.—Notwithstanding any 

13 other provision of law, the Commission is au14 thorized to enter into contracts to assist in the 

15 collection of any claim of indebtedness resulting 

16 from any judgment or order (either by litigation 

17 or settlement) obtained by the Commission in 

18 any judicial action or administrative proceeding 

19 brought by or on behalf of the Commission. 

20 This authority includes, but is not limited to, 

21 the retention of private legal counsel to furnish 

22 legal services, including representation in litiga23 tion, negotiation, compromise, and settlement. 

24 Private counsel retained under this paragraph 

25 may represent the Commission in such debt colVerDate Nov 24 2008 01:00 Oct 09, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3783.IH H3783

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1 lection matters to the same extent as the Com2 mission may represent itself. 

3 ‘‘(B) TERMS AND CONDITIONS OF CON4 TRACT.—Each such contract shall include such 

5 terms and conditions as the Commission con6 siders necessary and appropriate, and shall in7 clude provisions specifying— 

8 ‘‘(i) the amount of the fee to be paid 

9 under such contract or the method for cal10 culating that fee; 

11 ‘‘(ii) that the Commission retains the 

12 authority to represent itself, resolve a dis13 pute, compromise a claim, end collection 

14 efforts, and refer a matter to other counsel 

15 or to the Attorney General; and 

16 ‘‘(iii) that the Commission may termi17 nate either the contract or the private 

18 counsel’s representation of the Commission 

19 in particular cases for any reason, includ20 ing for the convenience of the Commission. 

21 ‘‘(C) PAYMENT OF FEES.—Notwith22 standing section 3302(b) of title 31, United 

23 States Code, a contract under this paragraph 

24 may provide that fees and costs incurred by priVerDate Nov 24 2008 01:00 Oct 09, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3783.IH H3783

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1 vate counsel under such contracts are payable 

2 from the amounts recovered. 

3 ‘‘(D) COMPETITION REQUIRED.—Nothing 

4 in this paragraph shall relieve the Commission 

5 of the competition requirements set forth in 

6 title III of the Federal Property and Adminis7 trative Services Act of 1949 (41 U.S.C. 251 et 

8 seq.). 

9 ‘‘(E) COUNTERCLAIMS.—In any action to 

10 recover indebtedness which is brought on behalf 

11 of the Commission by private counsel retained 

12 under this paragraph, no counterclaim may be 

13 asserted against the Commission unless the 

14 counterclaim is served directly on the Commis15 sion. Such service shall be made in accordance 

16 with the rules of procedure of the court in 

17 which the action is brought.’’. 

Æ 


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