The SIPA is codified in Title 15 of the
United States Code at Sections 78aaa - 111. The SIPA created the
SIPC, a nonprofit, private membership corporation to which most
registered brokers and dealers are required to belong. 15 U.S.C.
§ 78ccc. The SIPC fund, which constitutes an insurance program,
is authorized under 15 U.S.C. § 78ddd(a), and assessments against
members are authorized by 15 U.S.C. §§ 78ddd(c) and (d). The
fund is designed to protect the customers of brokers or dealers
subject to the SIPA from loss in case of financial failure of the
member. The fund is supported by assessments upon its members. If
the fund should become inadequate, the SIPA authorizes borrowing
against the U.S. Treasury. An analogy could be made to the role of
the Federal Deposit Insurance Corporation in the banking industry.