74TH CONGRESS . SESS. I. CH . 687. AUGUST 26, 1935 .
811 (1) such holding company, and every subsidiary company thereof which is a public-utility company from which such holding company derives, directly or indirectly, any material part of its incom e, a re p redo mina ntly int rast ate in c hara cter and car ry on their b usines s subs tantia lly in a sing le Sta te in which s uch ho lding company and every such sub sidiary company thereof are or ganized ; (2) such holding company is predominantly a public-utility company whose operations as such do not extend beyond the State in which it is organized and S tates contiguou s thereto ; (3) such holding company is only incidentally a holding com- pany, being primarily engaged or interested in one or more busi- nesses other than the business of a public-utility company and (A) not deriving, directly or indirectly, any material part of its income from any one or more subsidiary companies, the principal bu siness of whi ch is that o f a pu blic-u tility compan y, or (B) de riv- ing a material part of its income from any one or more such subsidiary companies, if substantially all the outstanding securities of such companies are owned, directly or indirectly, by such hold- ing company ; (4) such holding company is temporarily a holding company solely by reason of the acquisition of securities for purposes of liqu idation or dist ribution in con nection with a bona fide debt previously contracted or in connection with a bona fide arrange- ment for the underwriting or distribution of securities ; or (5) such holding co mpany is not, a nd derives no material part of its income, directly or indirectly, from any one or more sub- sidiary companies which are, a company or companies the prin- cipal business of which within the United States is that ofa public-utility company . (b) The Co mmissi on, by rules and reg ulatio ns upon its own Du ty of Co mmi ss ion motion, or by order upon application, shall exempt any subsidiary to grant exemptions. company, as suc h, of a holding company from a ny provision o r pro- visions of this title, the application of which to such subsidiary company the Commission finds is not necessary in the public interest or fo r the protect ion of inves tors, if such subsi diary compan y deri ves no material part of its income, directly or indirectly, from sources withi n the United States , and neithe r it no r any of its subsi diary com- panies is a pub lic-utility com pany operating in the United Sta tes . (c) Within a rea sonabl e time after the re ceipt of an applica tion f or deo ny g application . °r exemption under subsection (a) or (b ), the Commission shall enter an order granting, or, after notice and opportunity for hearing, deny- ing or otherwise disposing of such application . The filing of a n can Exemption ob ofaions, application in good faith under subsection (a) by a person other etc ., imposed by title . than a registered holding company shall exempt the applicant from any obligation, duty, or liability imposed in this title upon the appli- cant as a ho lding company until the Commi ssion has acted upon such application . The fil ing of an ap plicat ion in good f aith u nder s ubsec- tion (b) shall exempt the applicant from any obligation, duty, or liabi lity i mposed in thi s titl e upon the ap plican t as a subsi diary com- pany until t he Commission has acted upon such applicatio n . W hen - Revocation of order . ever the Commis sion, on its ow n motion, or up on application by the holding company or any subsidiary company thereof exempted by any order iss ued unde r su bsec tion (a), or by the subsidiary company exempted by any order issued under subsection (b), finds that the circumstances which gave rise to the issuance of such order no longer exist, the Commission shall by order revoke such order . (d) The Comm ission may, by rules and regu lations, condit ionally Rules and regula tions or unconditionally exempt any specified class or classes of persons granting exemptions . from th e obli gation s, dut ies, or liabi lities impos ed upon such person s
