Trust Indenture Reform Act of 1989

Trust Indenture Reform Act of 1989 - Amends the Trust Indenture Act of 1939 to revise the authority of the Securities and Exchange Commission (SEC) to exempt certain securities from the provisions of such Act. Allows the SEC to exempt conditionally or unconditionally any person, security, or transaction, or any class or classes of persons, securities, or transactions from any one or more provisions of such Act. (Presently, such authority is limited to exemptions for securities issued by persons existing under the laws of a foreign government.)

Revises the authority of the SEC to refuse to permit the registration of certain securities in cases in which securities shall not be sold until a date subsequent to the effective date of the registration statement relating to such securities. Specifies that in such cases the SEC shall not be required to refuse registration if, prior to the sale of such securities, the obligor of such securities has filed an application for qualification for the indenture under which such securities shall be issued pursuant to SEC regulations.

Authorizes the SEC to permit a corporation or other person organized and doing business under the laws of a foreign government to act as sole trustee under a qualified indenture, provided that: (1) such corporation or other person is authorized to exercise corporate trust powers and is subject to supervision or examination equivalent to supervision or examination applicable to U.S. institutional trustees; and (2) reciprocal treatment is afforded to U.S. institutional trustees under the laws of such foreign government.

Prohibits any obligor upon indenture securities or person directly or indirectly controlling, controlled by, or under common control with such obligor from serving as trustee upon such indenture securities.

Revises rules for the disqualification of indenture trustees who have or who acquire any conflicting interest. Permits a trustee to serve under a qualified indenture so long as there is no default under the indenture. Specifies that a default shall be determined as such term is defined in the indenture, but exclusive of any period of grace or requirement of notice. Provides that, except in cases of a default in the payment of the principal of, or interest on, an indenture security or in the payment of any sinking or purchase fund installment, the indenture trustee shall not be required to resign if such trustee can prove that the default may be cured or waived and that doing so would not be inconsistent with the interests of holders of the indenture security. Provides that any resignation of an indenture trustee shall become effective only upon the appointment of a successor trustee and such successor's acceptance of such an appointment.

Decreases from four months to three months the time period allowed for the preferential collection of claims against an obligor in cases where the trustee becomes a creditor of the obligor. Maintains the four-month cases in any pending bankruptcy cases.

Makes mandatory: (1) the periodic filing of information by an obligor with a trustee and the granting of access of security holders to information; (2) certain reports by indenture trustees to security holders, to stock exchanges, and to certain additional parties; (3) certain reports by obligors concerning evidence of compliance with indenture provisions; and (4) certain duties and responsibilities of a trustee.

Authorizes an obligor upon any qualified indenture to set a record date for purposes of determining the identity of indenture security holders entitled to vote or consent to any action which is authorized or permitted by vote or consent.

Makes mandatory the special powers of indenture trustees and the duties of paying agents.

Specifies that any mandatory duties imposed by the Trust Indenture Act of 1939 as amended by this Act shall be deemed a part of, and shall govern, every qualified indenture, whether or not specifically contained in the indenture. Provides that any provision which may be included at the option of an obligor shall not be deemed a part of an indenture unless specifically included.

Provides that Federal and State courts shall have concurrent jurisdiction concerning lawsuits brought regarding violations of the duties imposed by this Act.