11 U.S.C. § 556 — Contractual right to liquidate, terminate,

Page 184 TITLE 11—BANKRUPTCY § 555 Statutory Notes and Related Subsidiaries 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. 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. § 555. Contractual right to liquidate, terminate, or accelerate a securities contract The exercise of a contractual right of a stock- broker, financial institution, financial partici- pant, or securities clearing agency to cause the liquidation, termination, or acceleration of a se- curities contract, as defined in section 741 of this title, because of a condition of the kind specified in section 365(e)(1) of this title shall not be stayed, avoided, or otherwise limited by operation of any provision of this title or by order of a court or administrative agency in any proceeding under this title unless such order is authorized under the provisions of the Securi- ties Investor Protection Act of 1970 or any stat- ute administered by the Securities and Ex- change Commission. 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 Ex- change Act), a multilateral clearing organiza- tion (as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991), a na- tional securities exchange, a national securities association, a securities clearing agency, a con- tract market designated under the Commodity Exchange Act, a derivatives transaction execu- tion facility registered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity Exchange Act), or in a resolu- tion of the governing board thereof, and a right, whether or not in writing, arising under com- mon law, under law merchant, or by reason of normal business practice. (Added Pub. L. 97–222, § 6(a), July 27, 1982, 96 Stat. 236; amended Pub. L. 98–353, title III, § 469, July 10, 1984, 98 Stat. 380; Pub. L. 103–394, title V, § 501(b)(6), (d)(20), Oct. 22, 1994, 108 Stat. 4143, 4146; Pub. L. 109–8, title IX, § 907(g), (o)(7), Apr. 20, 2005, 119 Stat. 177, 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, as amended, which is classified generally to chap- ter 2B–1 (§ 78aaa et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables. 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(g)(1), substituted ‘‘Contrac- tual right to liquidate, terminate, or accelerate a secu- rities contract’’ for ‘‘Contractual right to liquidate a securities contract’’ in section catchline. Pub. L. 109–8, § 907(g)(2), (o)(7), in first sentence, in- serted ‘‘financial participant,’’ after ‘‘financial institu- tion,’’ and substituted ‘‘liquidation, termination, or ac- celeration’’ for ‘‘liquidation’’, and substituted second sentence for former second sentence which read as fol- lows: ‘‘As used in this section, the term ‘contractual right’ includes a right set forth in a rule or bylaw of a national securities exchange, a national securities as- sociation, or a securities clearing agency.’’ 1994—Pub. L. 103–394 substituted ‘‘section 741 of this title’’ for ‘‘section 741(7)’’ and struck out ‘‘(15 U.S.C. 78aaa et seq.)’’ after ‘‘Act of 1970’’. 1984—Pub. L. 98–353 inserted ‘‘, financial institution,’’ after ‘‘stockbroker’’. 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 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. § 556. Contractual right to liquidate, terminate, or accelerate a commodities contract or for- ward contract The contractual right of a commodity broker, financial participant, or forward contract mer- chant to cause the liquidation, termination, or acceleration of a commodity contract, as de- fined in section 761 of this title, or forward con- tract because of a condition of the kind specified in section 365(e)(1) of this title, and the right to a variation or maintenance margin payment re- ceived from a trustee with respect to open com- modity contracts or forward contracts, shall not be stayed, avoided, or otherwise limited by oper- ation of any provision of this title or by the order of a court in any proceeding under this title. As used in this section, the term ‘‘contrac- tual 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- rities clearing agency, a contract market des- ignated under the Commodity Exchange Act, a derivatives transaction execution facility reg- istered under the Commodity Exchange Act, or a board of trade (as defined in the Commodity 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;