---
kind: "section"
citation: "15 U.S.C. § 77iii"
title: "15"
title_heading: "Commerce and Trade"
number: "77iii"
heading: "Effective time of qualification"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/77iii"
units:
  - "Chapter 2A — Securities and Trust Indentures"
  - "Subchapter III — Trust Indentures"
---

# §77iii. Effective time of qualification

- (a) **Effective time of registration or application for qualification of indenture—** The [indenture](/usc/15/77ccc.md?p=7) under which a [security](/usc/15/77b.md?p=a-1) has been or is to be issued shall be deemed to have been qualified under this subchapter—
  - (1) when registration becomes effective as to such [security](/usc/15/77b.md?p=a-1); or
  - (2) when an [application](/usc/15/77ccc.md?p=8) for the qualification of such [indenture](/usc/15/77ccc.md?p=7) becomes effective, pursuant to [section 77ggg of this title](/usc/15/77ggg.md).
- (b) **Stop orders after effective time of qualification—** After qualification has become effective as to the [indenture](/usc/15/77ccc.md?p=7) under which a [security](/usc/15/77b.md?p=a-1) has been or is to be issued, no stop order shall be issued pursuant to [section 77h(d) of this title](/usc/15/77h.md?p=d), suspending the effectiveness of the [registration statement](/usc/15/77b.md?p=a-8) relating to such [security](/usc/15/77b.md?p=a-1) or of the [application for qualification](/usc/15/77ccc.md?p=8) of such [indenture](/usc/15/77ccc.md?p=7), except on one or more of the grounds specified in [section 77h of this title](/usc/15/77h.md), or the failure of the [issuer](/usc/15/77b.md?p=a-4) to file an [application](/usc/15/77ccc.md?p=8) as provided for by [section 77eee(b)(2) of this title](/usc/15/77eee.md?p=b-2).
- (c) **Effect of subsequent rule or regulation on qualification—** The making, amendment, or rescission of a rule, regulation, or order under the provisions of this subchapter (except to the extent authorized by subsection (a) of [section 77nnn of this title](/usc/15/77nnn.md) with respect to rules and regulations prescribed pursuant to such subsection) shall not affect the qualification, form, or interpretation of any [indenture](/usc/15/77ccc.md?p=7) as to which qualification became effective prior to the making, amendment, or rescission of such rule, regulation, or order.
- (d) **Liability of trustee under qualified indenture—** No trustee under an [indenture](/usc/15/77ccc.md?p=7) which has been qualified under this subchapter shall be subject to any liability because of any failure of such [indenture](/usc/15/77ccc.md?p=7) to comply with any of the provisions of this subchapter, or any rule, regulation, or order thereunder.
- (e) **Power of Commission to conduct investigation—** Nothing in this subchapter shall be construed as empowering the [Commission](/usc/15/77ccc.md?p=15) to conduct an investigation or other proceeding for the purpose of determining whether the provisions of an [indenture](/usc/15/77ccc.md?p=7) which has been qualified under this subchapter are being complied with, or to enforce such provisions.

## Source credit

(May 27, 1933, ch. 38, title III, § 309, as added Aug. 3, 1939, ch. 411, 53 Stat. 1157; amended Pub. L. 101–550, title IV, § 405, Nov. 15, 1990, 104 Stat. 2723.)

## Notes

### Editorial Notes

### Amendments

1990—Subsec. (b). Pub. L. 101–550 inserted before period at end “, or the failure of the issuer to file an application as provided for by section 77eee(b)(2) of this title”.

### Executive Documents

### Transfer of Functions

For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.