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7 U.S.C. § 24 — Customer property with respect to commodity broker debtors; definitions
Federal law — U.S. Code and appendices · legal_authorities
**(a) Regulations respecting commodity broker debtors** Notwithstanding title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of title 11, by rule or regulation—
(1) that certain cash, securities, other property, or commodity contracts are to be included in or excluded from customer property or member property;
(2) that certain cash, securities, other property, or commodity contracts are to be specifically identifiable to a particular customer in a specific capacity;
(3) the method by which the business of such commodity broker is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation;
(4) any persons to which customer property and commodity contracts may be transferred under [section 766 of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section766&num=0&edition=prelim); and
(5) how the net equity of a customer is to be determined.
**(b) Definitions** As used in this section, the terms “commodity broker”, “commodity contract”, “customer”, “customer property”, “member property”, “net equity”, and “security” have the meanings assigned such terms for the purposes of subchapter IV of chapter 7 of title 11.
**(c) Portfolio margining accounts** The Commission shall exercise its authority to ensure that securities held in a portfolio margining account carried as a futures account are customer property and the owners of those accounts are customers for the purposes of subchapter IV of chapter 7 of title 11.
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Stable record: federal_law:legal_authorities:record_usc_a36b416e4629324f5ac9a567
Source file: Laws/federal/codes/united-states-code/title-7/section-24-customer-property-with-respect-to-commodity-broker-debtors-definitions--f83485dd4e.md
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Passage SHA-256: 24a5af487871cf5a901e14b466e9cb5e4258a9c621aff26ce43bd326f23e361a
Source location: Title 7, Chapter 1, § 24; chapter-001-commodity-exchanges.md
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**(a) Regulations respecting commodity broker debtors** Notwithstanding title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of title 11, by rule or regulation—
(1) that certain cash, securities, other property, or commodity contracts are to be included in or excluded from customer property or member property;
(2) that certain cash, securities, other property, or commodity contracts are to be specifically identifiable to a particular customer in a specific capacity;
(3) the method by which the business of such commodity broker is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation;
(4) any persons to which customer property and commodity contracts may be transferred under [section 766 of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section766&num=0&edition=prelim); and
(5) how the net equity of a customer is to be determined.
**(b) Definitions** As used in this section, the terms “commodity broker”, “commodity contract”, “customer”, “customer property”, “member property”, “net equity”, and “security” have the meanings assigned such terms for the purposes of subchapter IV of chapter 7 of title 11.
**(c) Portfolio margining accounts** The Commission shall exercise its authority to ensure that securities held in a portfolio margining account carried as a futures account are customer property and the owners of those accounts are customers for the purposes of subchapter IV of chapter 7 of title 11.
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Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter:
(1) **Alternative trading system** — The term “alternative trading system” means an organization, association, or group of persons that—
(A) is registered as a broker or dealer pursuant to section 15(b) of the Securities Exchange Act of 1934 [[15 U.S.C. 78](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78&num=0&edition=prelim)o(b)] (except paragraph (11) thereof);
(B) performs the functions commonly performed by an exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934 [[15 U.S.C. 78c(a)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78c/a/1&num=0&edition=prelim)]);
(C) does not—
(i) set rules governing the conduct of subscribers other than the conduct of such subscribers’ trading on the alternative trading system; or
(ii) discipline subscribers other than by exclusion from trading; and
(D) is exempt from the definition of the term “exchange” under such section 3(a)(1) [[15 U.S.C. 78c(a)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78c/a/1&num=0&edition=prelim)] by rule or regulation of the Securities and Exchange Commission on terms that require compliance with regulations of its trading functions.
(2) **Appropriate Federal banking agency** — The term “appropriate Federal banking agency”—
(A) has the meaning given the term in [section 1813 of title 12](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813&num=0&edition=prelim);
(B) means the Board in the case of a noninsured State bank; and
(C) is the Farm Credit Administration for farm credit system institutions.
(3) **Associated person of a security-based swap dealer or major security-based swap participant** — T
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1a
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 101
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The trustee shall answer all margin calls with respect to a specifically identifiable commodity contract of a customer until such time as the trustee returns or transfers such commodity contract, but the trustee may not make a margin payment that has the effect of a distribution to such customer of more than that to which such customer is entitled under subsection (h) or (i) of this section.
**(b)** The trustee shall prevent any open commodity contract from remaining open after the last day of trading in such commodity contract, or into the first day on which notice of intent to deliver on such commodity contract may be tendered, whichever occurs first. With respect to any commodity contract that has remained open after the last day of trading in such commodity contract or with respect to which delivery must be made or accepted under the rules of the contract market on which such commodity contract was made, the trustee may operate the business of the debtor for the purpose of—
(1) accepting or making tender of notice of intent to deliver the physical commodity underlying such commodity contract;
(2) facilitating delivery of such commodity; or
(3) disposing of such commodity if a party to such commodity contract defaults.
**(c)** The trustee shall return promptly to a customer any specifically identifiable security, property, or commodity contract to which such customer is entitled, or shall transfer, on such customer’s behalf, such security, property, or commodity contract to a commodity broker that is not a debtor under this title, subject to such rules or regulations as the Commission may prescribe, to the extent that the value of such security, property, or commodity contract does not exceed the amount to which such customer would be entitled under subs
Source: Supplied U.S. Code snapshot — release unconfirmed · 11 U.S.C. § 766
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Federal law — U.S. Code and appendices · legal_authorities
Page 145
TITLE 7—AGRICULTURE
§ 24
(B) Notwithstanding any other provision of
law, for purposes of completing such report the
Commission may direct, by rule, regulation, or
order, a futures association registered under
this chapter to render such assistance as the
Commission shall specify.
(C) Such report shall include the findings and
any recommendations of the Commission con-
cerning—
(i) whether such transactions serve an eco-
nomic purpose;
(ii) the most efficient manner, consistent
with the public interest, to permit additional
persons to engage in the business of offering to
enter into, entering into, and confirming the
execution of such transactions; and
(iii) the appropriate regulatory scheme to
govern such transactions to ensure the finan-
cial solvency of such transactions and to pre-
vent manipulation or fraud.
(2) The report shall also include Commission
regulations governing such transactions. The
regulations shall provide for permitting addi-
tional persons to engage in such transactions.
The regulations shall become effective on the
expiration of 90 calendar days on which either
House of Congress is in session after the date of
the transmittal of the report to Congress. The
regulations—
(A) may authorize or require, notwith-
standing any other provision of law, a futures
association registered under this chapter to
perform such responsibilities in connection
with such transactions as the Commission
may specify; and
(B) may require that permission for addi-
tional persons to engage in such business be
given on a gradual basis, so as not to place an
undue burden on the resources of the Commis-
sion.
(d) Savings provision
This section shall not affect any rights or obli-
gations arising out of any transaction subject to
this sec
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 24
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