An Act to amend section 77, subsection (c) (3), of the Bankruptcy Act, as amended
PL 82-194 (H.R.4693), enacted 10/24/1951

606 
PUBLIC LAW 194—OCT. 24, 1951 
[65 STAT. 
of the Army through the Corps of Engineers of the United States 
Army is authorized to provide a channel twelve feet deep and one 
hundred and eighty feet wide from the Gulf of Mexico into Choctaw-
hatchee Bay via the existing East Pass and to provide maintenance of 
a six- by one-hundred-foot channel from East Pass Channel to the 
harbor at Destin, Florida, generally in accordance with the plans and 
subject to the conditions in House Document Numbered 470, Eighty-
first Congress. 
Approved October 24, 1951. 
October 24, 1961 
[H. R. 4693] 
Public Law 194 
CHAPTER 5 4 3 
AN ACT 
To amend section 77, subsection (c) (3), of the Bankruptcy Act, as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
arMadmra^*"^ ^^^' United States of America in Congress assemhled^ That, section 77, 
47 Stat. 1474. 
11 U. S. C. § 205. 
41 Stat. 494. 
49 IT. S. C. § 20a. 
Effective date. 
subsection (c) (3), of the Bankruptcy Act, as amended, be, and it is 
hereby, amended to read as follows: 
"(3) The judge may, upon not less than fifteen days' notice pub-
lished in such manner and in such newspapers as the judge may in his 
discretion determine, which notice so determined shall be sufficient, for 
cause shown, and with the approval of the Commission, in accordance 
with section 20a of the Interstate Commerce Act, as now or hereafter 
amended, authorize the trustee or trustees to issue certificates for cash, 
property, or other consideration approved by the judge, for such lawful 
purposes and upon such terms and conditions and with such security 
and such priority in payments over existing obligations, secured or 
unsecured, or receivership charges, as might in an equity receivership 
be lawful. 
Where such certificates are authorized to provide funds to 
pay for the acquisition, assembly or installation of safety equipment 
or materials related thereto, or for the purpose of reimbursing the 
trustee or trustees for funds so expended, the jud^e may direct (with-
out limitation of his power to make such direction m the absence of this 
provision) that the certificates shall have such lien on the property of 
the debtor and shall be entitled to such priority in payments over exist-
ing obligations, secured or unsecured, and receivership charges and 
present or future duties, debts or taxes or other obligations in favor of 
or payable to any State or any subdivision, agency or instrumentality 
thereof and interest or penalties, and to such parity with all or any 
portion of the other costs or expenses of administration or operation as 
in the particular case the judge may find equitable at the time of author-
izing the issuance of such certificates, regardless of whether such obli-
gations, charges, costs or expenses, duties, debts, or taxes constitute or 
are secured by liens on real or personal property or shall have become 
payable before or after the issuance of such certificates." 
SEC. 2. This Act shall take effect immediately upon the date of its 
approval and shall apply to any authorization given by the judge, 
regardless of whether such authorization shall have been given before 
or shall be given after such date. Neither the enactment of this Act 
nor anything herein contained shall be construed as implying that, 
prior to the date of approval of this Act, the judge was not vested 
with the power which is expressly granted to him by this Act. 
Approved October 24, 1951.