I 
112TH CONGRESS 
1ST SESSION 
H. R. 757 
To amend the Securities Investor Protection Act of 1970 to confirm that 
a customer’s net equity claim is based on the customer’s last statement 
and that certain recoveries are prohibited, to change how trustees are 
appointed, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 17, 2011 
Mr. GARRETT (for himself, Mr. KING of New York, and Ms. ROS-LEHTINEN) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To amend the Securities Investor Protection Act of 1970 
to confirm that a customer’s net equity claim is based 
on the customer’s last statement and that certain recov-
eries are prohibited, to change how trustees are ap-
pointed, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Equitable Treatment 
of Investors Act’’. 
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SEC. 2. SECURITIES INVESTOR PROTECTION ACT OF 1970 
AMENDMENTS. 
(a) NET EQUITY BASED ON LAST STATEMENT.— 
Section 16(11) of the Securities Investor Protection Act 
of 1970 (15 U.S.C. 78lll(11)) is amended to read as fol-
lows: 
‘‘(11) NET EQUITY.— 
‘‘(A) IN GENERAL.—The term ‘net equity’ 
means the dollar amount of the account or ac-
counts of a customer, to be determined by— 
‘‘(i) calculating the sum which would 
have been owed by the debtor to such cus-
tomer if the debtor had liquidated, by sale 
or purchase on the filing date— 
‘‘(I) all securities positions of 
such customer (other than customer 
name securities reclaimed by such 
customer); and 
‘‘(II) all positions in futures con-
tracts and options on futures con-
tracts held in a portfolio margining 
account carried as a securities account 
pursuant to a portfolio margining pro-
gram approved by the Commission, in-
cluding all property collateralizing 
such positions, to the extent that such 
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property is not otherwise included 
herein; minus 
‘‘(ii) any indebtedness of such cus-
tomer to the debtor on the filing date; plus 
‘‘(iii) any payment by such customer 
of such indebtedness to the debtor which is 
made with the approval of the trustee and 
within such period as the trustee may de-
termine (but in no event more than sixty 
days after the publication of notice under 
section 8(a)). 
‘‘(B) TREATMENT
OF
CERTAIN
COM-
MODITY FUTURES CONTRACTS.—A claim for a 
commodity futures contract received, acquired, 
or held in a portfolio margining account pursu-
ant to a portfolio margining program approved 
by the Commission or a claim for a security fu-
tures contract, shall be deemed to be a claim 
with respect to such contract as of the filing 
date, and such claim shall be treated as a claim 
for cash. 
‘‘(C) TREATMENT OF ACCOUNTS HELD BY 
A CUSTOMER IN SEPARATE CAPACITIES.—In de-
termining net equity under this paragraph, ac-
counts held by a customer in separate capac-
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