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11 U.S.C. § 751 — Customer name securities
Federal law — U.S. Code and appendices · legal_authorities
The trustee shall deliver any customer name security to or on behalf of the customer entitled to such security, unless such customer has a negative net equity. With the approval of the trustee, a customer may reclaim a customer name security after payment to the trustee, within such period as the trustee allows, of any claim of the debtor against such customer to the extent that such customer will not have a negative net equity after such payment.
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Stable record: federal_law:legal_authorities:record_usc_024ccdb5da1f1c2c1a0e7795
Source file: Laws/federal/codes/united-states-code/title-11/section-751-customer-name-securities--bd62da21e5.md
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Passage SHA-256: b994c82880dcda571a71683d3bd1df145f5d732b0a4549acc567ca00375c562f
Source location: Title 11, Chapter 7, § 751; chapter-007-liquidation.md
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The trustee shall deliver any customer name security to or on behalf of the customer entitled to such security, unless such customer has a negative net equity. With the approval of the trustee, a customer may reclaim a customer name security after payment to the trustee, within such period as the trustee allows, of any claim of the debtor against such customer to the extent that such customer will not have a negative net equity after such payment.
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Federal law — U.S. Code and appendices · legal_authorities
In this subchapter—
(1) “Commission” means Securities and Exchange Commission;
(2) “customer” includes—
(A) entity with whom a person deals as principal or agent and that has a claim against such person on account of a security received, acquired, or held by such person in the ordinary course of such person’s business as a stockbroker, from or for the securities account or accounts of such entity—
(i) for safekeeping;
(ii) with a view to sale;
(iii) to cover a consummated sale;
(iv) pursuant to a purchase;
(v) as collateral under a security agreement; or
(vi) for the purpose of effecting registration of transfer; and
(B) entity that has a claim against a person arising out of—
(i) a sale or conversion of a security received, acquired, or held as specified in subparagraph (A) of this paragraph; or
(ii) a deposit of cash, a security, or other property with such person for the purpose of purchasing or selling a security;
(3) “customer name security” means security—
(A) held for the account of a customer on the date of the filing of the petition by or on behalf of the debtor;
(B) registered in such customer’s name on such date or in the process of being so registered under instructions from the debtor; and
(C) not in a form transferable by delivery on such date;
(4) “customer property” means cash, security, or other property, and proceeds of such cash, security, or property, received, acquired, or held by or for the account of the debtor, from or for the securities account of a customer—
(A) including—
(i) property that was unlawfully converted from and that is the lawful property of the estate;
(ii) a security held as property of the debtor to the extent such security is necessary to meet a net equity
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 741
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Federal law — U.S. Code and appendices · legal_authorities
As soon as practicable after the date of the order for relief, the trustee shall reduce to money, consistent with good market practice, all securities held as property of the estate, except for customer name securities delivered or reclaimed under [section 751 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section751&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 748
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Federal law — U.S. Code and appendices · legal_authorities
The trustee may not distribute a security except under [section 751 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section751&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 750
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Federal law — U.S. Code and appendices · legal_authorities
Page 213
TITLE 11—BANKRUPTCY
§ 751
(A) nonconvertible stock having fixed pref-
erential dividend and liquidation rights; or
(B) interests of limited partners in a lim-
ited partnership;
(3) a limited partner with a participation of
at least five percent in the net assets or net
profits of the debtor; or
(4) an entity that, directly or indirectly,
through agreement or otherwise, exercised or
had the power to exercise control over the
management or policies of the debtor.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L.
97–222, § 13, July 27, 1982, 96 Stat. 238.)
HISTORICAL AND REVISION NOTES
SENATE REPORT NO. 95–989
Section 747 subordinates to other customer claims,
all claims of a customer who is an insider, a five per-
cent owner of the debtor, or otherwise in control of the
debtor.
Editorial Notes
AMENDMENTS
1982—Pub. L. 97–222 substituted ‘‘the transaction giv-
ing rise to such claim occurred’’ for ‘‘such claim arose’’
in provisions preceding par. (1).
§ 748. Reduction of securities to money
As soon as practicable after the date of the
order for relief, the trustee shall reduce to
money, consistent with good market practice,
all securities held as property of the estate, ex-
cept for customer name securities delivered or
reclaimed under section 751 of this title.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614.)
HISTORICAL AND REVISION NOTES
SENATE REPORT NO. 95–989
Section 748 requires the trustee to liquidate all secu-
rities, except for customer name securities, of the es-
tate in a manner consistent with good market practice.
The trustee should refrain from flooding a thin market
with a large percentage of shares in any one issue. If
the trustee holds restricted securities or securities in
which trading has been suspended, then the
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 751
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