An Act to amend the Bankruptcy Act to limit the use of false financial statements as a bar to discharge
PL 86-621 (H.R.4346), enacted 07/12/1960

108 
PUBLIC LAW 86-620-JULY 12, 1960 
[74 S T A T , 
48 Stat. 885. 
SEC. 3. The fourth sentence of subsection (a) of section 4 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78 (d)) is amended to 
read as follows: "Each Commissioner shall receive a salary at the 
rate of $20,000 a year and shall hold office for a term of five years 
and until his successor is appointed and has qualified, except that 
he shall not so continue to serve beyond the expiration of tne next 
session of Congress subsequent to the expiration of said fixed term of 
office, and except (1) anj^ Commissioner appointed to fill a vacancy 
occurring, prior to the expiration of the term for which his predecessor 
was appointed shall be appointed for the remainder of such term, and 
(2) the terms of office of the Commissioners first taking office after 
the enactment of this title shall expire as designated by the President 
at the time of nomination, one at the end of one year, one at the 
end of two years, one at the end of three years, one at the end of 
four years, and one at the end of five years, after the date of the enact-
ment of this title." 
Approved July 12, 1960. 
July 12, 1960 
[S. 35 45] 
Alaska. 
Agricultural Col-
lege and School of 
Mines. 
45 Stat. 1091. 
Public Law 86-620 
AN ACT 
To amend section 4 of the Act of January 21, 1929 (48 U.S.C. 354a (c)), and 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assenibled^ That the second 
sentence of section 4 of the Act of January 21, 1929 (48 U.S.C. 
354a (c)), is amended by inserting after the words "public auction" the 
first time they occur therein the words "or, in the case of a lease, to the 
person who submits the highest bid at a public auction or through 
sealed competitive bidding" and by deleting the words "public auc-
tion" the second time they appear therein and inserting in lieu thereof 
the words "proposed sale or lease". 
SEC. 2. The said Act is further amended by striking the words 
"Territory" or "Territorial" wherever they appear and inserting in 
lieu thereof the word "State". 
Approved July 12, 1960. 
July 12, 1960 
IH. R. 4346] 
Public Law 86-621 
AN ACT 
To amend the Bankruptcy Act to limit the use of false financial statements as 
a bar to discharge. 
Be it enacted hy the Senate and House of Representatives 
of the 
at^^ment.''^ ^'^^' United States of America in Congress assemhled^ That section 14c (3) 
False financial of the Bankruptcy Act, as amended (11 U.S.C. 32(c) (3)), is amended 
52 Stat. 850. 
to read as lollows: 
"(3) while engaged in business as a sole proprietor, partner-
ship, or as an executive of a corporation, obtained for such busi-
ness money or property on credit or as an extension or renewal of 
credit by making or publishing or causing to be made or published 
in any manner whatsoever a materially false statement in writing 
respecting his financial condition or the financial condition of 
such partnership or corporation; or" 
74 S T A T . ] 
PUBLIC LAW 86-622-JULY 12, 1960 
409 
SEC. 2. Subdivision a. of section 17 of the Bankruptcy Act, as 
amended (11 U.S.C. 35a), is amended to read as follows: 
^^ ^*°** ^'^^' 
"a. A discharge in bankruptcy shall release a bankrupt from all of 
his provable debts, whether allowable in full or in part, except such as 
(1) are due as a tax levied by the United States, or any State, county, 
district, or municipality; (2) are liabilities for obtaining money or 
property by false pretenses or false representations, or for obtaining 
money or property on credit or obtaining an extension or renewal of 
credit in reliance upon a materially false statement in writing respect-
ing his financial condition made or published or caused to be made 
or published in any manner whatsoever with intent to deceive, or for 
willful and malicious injuries to the person or property qf another, 
or for alimony due or to become due, or for maintenance or support 
of wife or child, or for.seduction of an unmarried female, or for 
breach of promise of marriage accompanied by seduction, or for 
criminal conversation; (3) have not been duly scheduled in time for 
E
roof and allowance, with the name of the creditor if known to the 
ankrupt, unless such creditor had notice or actual knowledge of the 
proceedings in bankruptcy; (4) were created by his fraud, embezzle-
ment, misappropriation or defalcation while acting as an officer or 
in any fiduciary capacity; (5) are for wages which have been earned 
within three months before the date of commencement of the proceed-
ings in bankruptcy due to workmen, servants, clerks, or traveling or 
city salesmen, on salary or commission basis, whole or part time, 
whether or not selling exclusively for the bankrupt; or (6) are due 
for moneys of an employee received or retained by his employer to 
secure the faithful performance by such employee of the terms of a 
contract of employment." 
Approved July 12, 1960. 
Public Law 86-622 
AN ACT 
July 12, I960 
To amend the Civil Service Retirement Act so as to provide for disposition of 
[s. 28,5 7] 
contributions in tlie case of annuitants wliose lengtli of service exceeds the 
amount necessary to provide the maximum annuity allowable under such Act, 
and for other purposes. 
Civil 
S
> e rv i c e 
R e t i r e m e n t 
Act, 
mendment. 
70 Stat. 755. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That (a) section 11 
of the Civil Service Ketirement Act (5 U.S.C. 2261) is amended by "^"^n^sJ^f 
* 
adding at the end thereof a new subsection as follows: 
"(h) Any amounts deducted and withheld from the basic salary 
of an employee or Member from the first day of the first month which 
begins after he shall have performed sufficient service (exclusive of 
any service which the employee or Member elects to eliminate for pur-
poses of annuity computation under section 9) to entitle him to the 
maximum annuity provided by section 9, together with interest on 
such amounts at the rate of 3 per centum per annum compounded 
annually from the date of such deductions to the date of retirement 
or death, shall be applied toward any deposit due under section 4, and 
any balance not so required shall be deemed to be a voluntary contribu-
tion for the purposes of section 12." 
(b) The amendment made by subsection (a) of this section shall be 
effective only with respect to employees or Members separated from 
the service after the date of enactment of this Act.