ROLE OF THE
DISTRICT COURT (Page
15 U.S.C. § 78eee(b)(2)(B)(I - iv)
In addition, upon the filing of a SIPC
application, 11 U.S.C. § 362 comes into effect.
The SIPA provides that the district court
will issue a protective decree if the debtor consents, the debtor
fails to contest the application for a protective decree, or the
district court finds that one of the conditions specified in 15
U.S.C. § 78eee(b)(1) exist. If the court issues a protective
decree, then the court will appoint a trustee and an attorney for
the trustee whom the SIPC, in its sole discretion, specifies. 15
U.S.C. § 78eee(b)(3). Upon the issuance of a protective decree
and appointment of a trustee, or a trustee and counsel, the
district court will order the removal of the entire liquidation
proceeding to the bankruptcy court in the same judicial district.
15 U.S.C. § 78eee(b)(4).