11 U.S.C. § 559 — Contractual right to liquidate, terminate,

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- Page 187 TITLE 11—BANKRUPTCY § 560 purchase agreement because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise lim- ited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title, unless, where the debtor is a stockbroker or securities clear- ing agency, such order is authorized under the provisions of the Securities Investor Protection Act of 1970 or any statute administered by the Securities and Exchange Commission. In the event that a repo participant or financial partic- ipant liquidates one or more repurchase agree- ments with a debtor and under the terms of one or more such agreements has agreed to deliver assets subject to repurchase agreements to the debtor, any excess of the market prices received on liquidation of such assets (or if any such as- sets are not disposed of on the date of liquida- tion of such repurchase agreements, at the prices available at the time of liquidation of such repurchase agreements from a generally recognized source or the most recent closing bid quotation from such a source) over the sum of the stated repurchase prices and all expenses in connection with the liquidation of such repur- chase agreements shall be deemed property of the estate, subject to the available rights of setoff. As used in this section, the term ‘‘con- tractual right’’ includes a right set forth in a rule or bylaw of a derivatives clearing organiza- tion (as defined in the Commodity Exchange Act), a multilateral clearing organization (as de- fined in the Federal Deposit Insurance Corpora- tion Improvement Act of 1991), a national secu- rities exchange, a national securities associa- tion, a securities clearing agency, a contract market designated under the Commodity Ex- change Act, a derivatives transaction execution facility registered under the Commodity Ex- change Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right, whether or not evidenced in writing, arising under com- mon law, under law merchant or by reason of normal business practice. (Added Pub. L. 98–353, title III, § 396(a), July 10, 1984, 98 Stat. 366; amended Pub. L. 103–394, title V, § 501(d)(21), Oct. 22, 1994, 108 Stat. 4146; Pub. L. 109–8, title IX, § 907(i), (o)(9), Apr. 20, 2005, 119 Stat. 178, 182.) 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. The Commodity Exchange Act, referred to in text, is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agri- culture. 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. For complete classification of this Act to the Code, see Short Title of 1991 Amend- ment note set out under section 1811 of Title 12, Banks and Banking, and Tables. AMENDMENTS 2005—Pub. L. 109–8, § 907(o)(9), inserted ‘‘or financial participant’’ after ‘‘repo participant’’ in two places. Pub. L. 109–8, § 907(i), substituted ‘‘Contractual right to liquidate, terminate, or accelerate a repurchase agreement’’ for ‘‘Contractual right to liquidate a repur- chase agreement’’ in section catchline, ‘‘liquidation, termination, or acceleration’’ for ‘‘liquidation’’ in first sentence, and ‘‘As used in this section, the term ‘con- tractual right’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a multilateral clear- ing organization (as defined in the Federal Deposit In- surance Corporation Improvement Act of 1991), a na- tional securities exchange, a national securities asso- ciation, a securities clearing agency, a contract market designated under the Commodity Exchange Act, a de- rivatives transaction execution facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act) or in a resolution of the governing board thereof and a right,’’ for ‘‘As used in this section, the term ‘contrac- tual right’ includes a right set forth in a rule or bylaw, applicable to each party to the repurchase agreement, of a national securities exchange, a national securities association, or a securities clearing agency, and a right,’’ in third sentence. 1994—Pub. L. 103–394 struck out ‘‘(15 U.S.C. 78aaa et seq.)’’ after ‘‘Act of 1970’’. 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. 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. § 560. Contractual right to liquidate, terminate, or accelerate a swap agreement The exercise of any contractual right of any swap participant or financial participant to cause the liquidation, termination, or accelera- tion of one or more swap agreements because of a condition of the kind specified in section 365(e)(1) of this title or to offset or net out any termination values or payment amounts arising under or in connection with the termination, liquidation, or acceleration of one or more swap agreements shall not be stayed, avoided, or oth- erwise limited by operation of any provision of this title or by order of a court or administra- tive agency in any proceeding under this title. As used in this section, the term ‘‘contractual right’’ includes a right set forth in a rule or bylaw of a derivatives clearing organization (as defined in the Commodity Exchange Act), a mul- tilateral clearing organization (as defined in the Federal Deposit Insurance Corporation Improve- ment Act of 1991), a national securities ex- change, a national securities association, a secu-