11 U.S.C. § 557 — Expedited determination of interests in,

Page 185 TITLE 11—BANKRUPTCY § 557 Exchange Act) or in a resolution of the gov- erning board thereof and a right, whether or not evidenced in writing, arising under common law, under law merchant or by reason of normal busi- ness practice. (Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236; amended Pub. L. 101–311, title II, § 205, June 25, 1990, 104 Stat. 270; Pub. L. 103–394, title V, § 501(b)(7), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 109–8, title IX, §§ 907(h), (o)(8), Apr. 20, 2005, 119 Stat. 178, 182.) Editorial Notes REFERENCES IN TEXT The Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Federal Deposit Insurance Corporation Improve- ment Act of 1991, referred to in text, is Pub. L. 102–242, Dec. 19, 1991, 105 Stat. 2236, as amended. For complete classification of this Act to the Code, see Short Title of 1991 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables. AMENDMENTS 2005—Pub. L. 109–8, § 907(o)(8), inserted ‘‘, financial participant,’’ after ‘‘commodity broker’’ in first sen- tence. Pub. L. 109–8, § 907(h), substituted ‘‘Contractual right to liquidate, terminate, or accelerate a commodities contract or forward contract’’ for ‘‘Contractual right to liquidate a commodities contract or forward contract’’ in section catchline, ‘‘liquidation, termination, or ac- celeration’’ for ‘‘liquidation’’ in first sentence, and ‘‘As used in this section, the term ‘contractual right’ in- cludes a right set forth in a rule or bylaw of a deriva- tives clearing organization (as defined in the Com- modity Exchange Act), a multilateral clearing organi- zation (as defined in the Federal Deposit Insurance Cor- poration Improvement Act of 1991), a national securi- ties exchange, a national securities association, a secu- rities clearing agency, a contract market designated under the Commodity Exchange Act, a derivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as de- fined in the Commodity Exchange Act) or in a resolu- tion of the governing board thereof and a right,’’ for ‘‘As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a clear- ing organization or contract market or in a resolution of the governing board thereof and a right,’’ in second sentence. 1994—Pub. L. 103–394 substituted ‘‘section 761 of this title’’ for ‘‘section 761(4)’’. 1990—Pub. L. 101–311 inserted before period at end ‘‘and a right, whether or not evidenced in writing, aris- ing under common law, under law merchant or by rea- son of normal business practice’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title. § 557. Expedited determination of interests in, and abandonment or other disposition of grain assets (a) This section applies only in a case con- cerning a debtor that owns or operates a grain storage facility and only with respect to grain and the proceeds of grain. This section does not affect the application of any other section of this title to property other than grain and pro- ceeds of grain. (b) In this section— (1) ‘‘grain’’ means wheat, corn, flaxseed, grain sorghum, barley, oats, rye, soybeans, other dry edible beans, or rice; (2) ‘‘grain storage facility’’ means a site or physical structure regularly used to store grain for producers, or to store grain acquired from producers for resale; and (3) ‘‘producer’’ means an entity which en- gages in the growing of grain. (c)(1) Notwithstanding sections 362, 363, 365, and 554 of this title, on the court’s own motion the court may, and on the request of the trustee or an entity that claims an interest in grain or the proceeds of grain the court shall, expedite the procedures for the determination of inter- ests in and the disposition of grain and the pro- ceeds of grain, by shortening to the greatest ex- tent feasible such time periods as are otherwise applicable for such procedures and by estab- lishing, by order, a timetable having a duration of not to exceed 120 days for the completion of the applicable procedure specified in subsection (d) of this section. Such time periods and such timetable may be modified by the court, for cause, in accordance with subsection (f) of this section. (2) The court shall determine the extent to which such time periods shall be shortened, based upon— (A) any need of an entity claiming an inter- est in such grain or the proceeds of grain for a prompt determination of such interest; (B) any need of such entity for a prompt dis- position of such grain; (C) the market for such grain; (D) the conditions under which such grain is stored; (E) the costs of continued storage or disposi- tion of such grain; (F) the orderly administration of the estate; (G) the appropriate opportunity for an enti- ty to assert an interest in such grain; and (H) such other considerations as are relevant to the need to expedite such procedures in the case. (d) The procedures that may be expedited under subsection (c) of this section include— (1) the filing of and response to— (A) a claim of ownership; (B) a proof of claim; (C) a request for abandonment; (D) a request for relief from the stay of ac- tion against property under section 362(a) of this title; (E) a request for determination of secured status; (F) a request for determination of whether such grain or the proceeds of grain— (i) is property of the estate; Page 186 TITLE 11—BANKRUPTCY § 558 (ii) must be turned over to the estate; or (iii) may be used, sold, or leased; and (G) any other request for determination of an interest in such grain or the proceeds of grain; (2) the disposition of such grain or the pro- ceeds of grain, before or after determination of interests in such grain or the proceeds of grain, by way of— (A) sale of such grain; (B) abandonment; (C) distribution; or (D) such other method as is equitable in the case; (3) subject to sections 701, 702, 703, 1104, 1183, 1202, and 1302 of this title, the appointment of a trustee or examiner and the retention and compensation of any professional person re- quired to assist with respect to matters rel- evant to the determination of interests in or disposition of such grain or the proceeds of grain; and (4) the determination of any dispute con- cerning a matter specified in paragraph (1), (2), or (3) of this subsection. (e)(1) Any governmental unit that has regu- latory jurisdiction over the operation or liquida- tion of the debtor or the debtor’s business shall be given notice of any request made or order en- tered under subsection (c) of this section. (2) Any such governmental unit may raise, and may appear and be heard on, any issue relating to grain or the proceeds of grain in a case in which a request is made, or an order is entered, under subsection (c) of this section. (3) The trustee shall consult with such govern- mental unit before taking any action relating to the disposition of grain in the possession, cus- tody, or control of the debtor or the estate. (f) The court may extend the period for final disposition of grain or the proceeds of grain under this section beyond 120 days if the court finds that— (1) the interests of justice so require in light of the complexity of the case; and (2) the interests of those claimants entitled to distribution of grain or the proceeds of grain will not be materially injured by such additional delay. (g) Unless an order establishing an expedited procedure under subsection (c) of this section, or determining any interest in or approving any disposition of grain or the proceeds of grain, is stayed pending appeal— (1) the reversal or modification of such order on appeal does not affect the validity of any procedure, determination, or disposition that occurs before such reversal or modification, whether or not any entity knew of the pend- ency of the appeal; and (2) neither the court nor the trustee may delay, due to the appeal of such order, any pro- ceeding in the case in which such order is issued. (h)(1) The trustee may recover from grain and the proceeds of grain the reasonable and nec- essary costs and expenses allowable under sec- tion 503(b) of this title attributable to pre- serving or disposing of grain or the proceeds of grain, but may not recover from such grain or the proceeds of grain any other costs or ex- penses. (2) Notwithstanding section 326(a) of this title, the dollar amounts of money specified in such section include the value, as of the date of dis- position, of any grain that the trustee distrib- utes in kind. (i) In all cases where the quantity of a specific type of grain held by a debtor operating a grain storage facility exceeds ten thousand bushels, such grain shall be sold by the trustee and the assets thereof distributed in accordance with the provisions of this section. (Added Pub. L. 98–353, title III, § 352(a), July 10, 1984, 98 Stat. 359; amended Pub. L. 99–554, title II, § 257(p), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 116–54, § 4(a)(10), Aug. 23, 2019, 133 Stat. 1086.) Editorial Notes AMENDMENTS 2019—Subsec. (d)(3). Pub. L. 116–54 inserted ‘‘1183,’’ after ‘‘1104,’’. 1986—Subsec. (d)(3). Pub. L. 99–554 inserted reference to section 1202 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure. EFFECTIVE DATE Section effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title. § 558. Defenses of the estate The estate shall have the benefit of any de- fense available to the debtor as against any en- tity other than the estate, including statutes of limitation, statutes of frauds, usury, and other personal defenses. A waiver of any such defense by the debtor after the commencement of the case does not bind the estate. (Added Pub. L. 98–353, title III, § 470(a), July 10, 1984, 98 Stat. 380.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as an Effective Date of 1984 Amendment note under section 101 of this title. § 559. Contractual right to liquidate, terminate, or accelerate a repurchase agreement The exercise of a contractual right of a repo participant or financial participant to cause the liquidation, termination, or acceleration of a re-