11 U.S.C. § 742 — Effect of section 362 of this title in this sub-

Page 211 TITLE 11—BANKRUPTCY § 744 made under any Federal or State law, before Dec. 12, 2006, see section 7 of Pub. L. 109–390, set out as a note under section 101 of this title. 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. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title. § 742. Effect of section 362 of this title in this sub- chapter Notwithstanding section 362 of this title, SIPC may file an application for a protective decree under the Securities Investor Protection Act of 1970. The filing of such application stays all pro- ceedings in the case under this title unless and until such application is dismissed. If SIPC com- pletes the liquidation of the debtor, then the court shall dismiss the case. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 9, July 27, 1982, 96 Stat. 237; Pub. L. 103–394, title V, § 501(d)(26), Oct. 22, 1994, 108 Stat. 4146.) HISTORICAL AND REVISION NOTES LEGISLATIVE STATEMENTS Section 742 of the House amendment deletes a sen- tence contained in the Senate amendment requiring the trustee in an interstate stock-brokerage liquida- tion to comply with the provisions of subchapter IV of chapter 7 if the debtor is also a commodity broker. The House amendment expands the requirement to require the SIPC trustee to perform such duties, if the debtor is a commodity broker, under section 7(b) of the Secu- rities Investor Protection Act [15 U.S.C. 78ggg(b)]. The requirement is deleted from section 742 since the trust- ee of an intrastate stockbroker will be bound by the provisions of subchapter IV of chapter 7 if the debtor is also a commodity broker by reason of section 103 of title 11. SENATE REPORT NO. 95–989 Section 742 indicates that the automatic stay does not prevent SIPC from filing an application for a pro- tective decree under SIPA. If SIPA does file such an ap- plication, then all bankruptcy proceedings are sus- pended until the SIPC action is completed. If SIPC completes liquidation of the stockbroker then the bankruptcy case is dismissed. Editorial Notes REFERENCES IN TEXT The Securities Investor Protection Act of 1970, re- ferred to in text, is Pub. L. 91–598, Dec. 30, 1970, 84 Stat. 1636, which is classified generally to chapter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see sec- tion 78aaa of Title 15 and Tables. AMENDMENTS 1994—Pub. L. 103–394 struck out ‘‘(15 U.S.C. 78aaa et seq.)’’ after ‘‘Act of 1970’’. 1982—Pub. L. 97–222 substituted ‘‘title’’ for ‘‘chapter’’ after ‘‘all proceedings in the case under this’’. Statutory Notes and Related Subsidiaries 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. § 743. Notice The clerk shall give the notice required by section 342 of this title to SIPC and to the Com- mission. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 99–554, title II, § 283(t), Oct. 27, 1986, 100 Stat. 3118; Pub. L. 103–394, title V, § 501(d)(27), Oct. 22, 1994, 108 Stat. 4146.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Section 743 requires that notice of the order for relief be given to SIPC and to the SEC in every stockbroker case. Editorial Notes AMENDMENTS 1994—Pub. L. 103–394 substituted ‘‘342’’ for ‘‘342(a)’’. 1986—Pub. L. 99–554, which directed the amendment of this section by striking ‘‘(d)’’, rather than ‘‘(a)’’, could not be executed because ‘‘(d)’’ did not appear in text. See 1994 Amendment note above. Statutory Notes and Related Subsidiaries 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. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure. § 744. Executory contracts Notwithstanding section 365(d)(1) of this title, the trustee shall assume or reject, under section 365 of this title, any executory contract of the debtor for the purchase or sale of a security in the ordinary course of the debtor’s business, within a reasonable time after the date of the order for relief, but not to exceed 30 days. If the trustee does not assume such a contract within such time, such contract is rejected. (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, § 10, July 27, 1982, 96 Stat. 238.) HISTORICAL AND REVISION NOTES SENATE REPORT NO. 95–989 Section 744 instructs the court to give the trustee a reasonable time, not to exceed 30 days, to assume or re- ject any executory contract of the stockbroker to buy or sell securities. Any contract not assumed within the time fixed by the court is considered to be rejected.