§11365. Effect of change on other persons
(a) When a change becomes effective under this subchapter, the change is binding on, and changes the rights of-
(1) each holder of a security of the carrier of each class affected by the change; and
(2) a trustee or other party to an instrument under which a class of securities has been issued or by which it is secured.
(b) An authorization and approval of a change under this subchapter is authority for, and approval of, a corresponding change of the obligation of another carrier that assumed liability related to that class of securities if that carrier consents to the change in writing. When consent is given, the corresponding change becomes effective when the change of the class of securities or instrument becomes binding. A person who is liable or obligated on a class of securities issued by a carrier is a carrier with respect to that class for the purposes of this subchapter.
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| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
|---|---|---|
| 11365(a) | 49:20b(2) (less 1st–9th sentences). | Feb. 4, 1887, ch. 104, |
| 11365(b) | 49:20b(4). |
In subsection (a), the word "securities" is substituted for "obligations" for consistency in view of the definition of "security" in section 11301(a)(2) of the revised title. The word "binding" is retained for clarity in view of the context. The words "changes the rights of" are substituted for "shall be correspondingly altered or modified" for clarity.
In subsection (b), the words "under this subchapter" are substituted for "hereunder" for clarity. The words "is authority for, and approval of", are substituted for "shall be deemed to constitute authorization and approval of" for clarity. The words "liability related to that class of securities" are substituted for "liability in respect of such class of securities as guarantor, endorser, surety, or otherwise" for clarity and as being more inclusive. The word "if" is substituted for "Provided, That" for clarity. The words "consents to the change in writing" are substituted for "consents in writing to such alteration or modification of such class of securities" for clarity. The words "in respect of which it has assumed liability or of the instrument pursuant to which such class of securities has been issued or by which it is secured" are omitted as surplus. The words "When consent is given" are substituted for "and, such consent having been given" for clarity. The words "without other action" are omitted as surplus. The words "becomes binding" are substituted for "shall become and be binding" for clarity. The words "contingently or otherwise" are omitted as surplus. The words "is a carrier" are substituted for "shall . . . be deemed a carrier" for clarity.