2015 US Code
Title 11 - Bankruptcy (Sections 101 - 1532)
Chapter 7 - Liquidation (Sections 701 - 784)
Subchapter III - Stockbroker Liquidation (Sections 741 - 753)
Sec. 751 - Customer name securities
Publication Title | United States Code, 2012 Edition, Supplement 3, Title 11 - BANKRUPTCY |
Category | Bills and Statutes |
Collection | United States Code |
SuDoc Class Number | Y 1.2/5: |
Contained Within | Title 11 - BANKRUPTCY CHAPTER 7 - LIQUIDATION SUBCHAPTER III - STOCKBROKER LIQUIDATION Sec. 751 - Customer name securities |
Contains | section 751 |
Date | 2015 |
Laws In Effect As Of Date | January 3, 2016 |
Positive Law | Yes |
Disposition | standard |
Source Credit | Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2614. |
Statutes at Large Reference | 92 Stat. 2614 |
Public and Private Law | Public Law 95-598 |
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The trustee shall deliver any customer name security to or on behalf of the customer entitled to such security, unless such customer has a negative net equity. With the approval of the trustee, a customer may reclaim a customer name security after payment to the trustee, within such period as the trustee allows, of any claim of the debtor against such customer to the extent that such customer will not have a negative net equity after such payment.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614.)
HISTORICAL AND REVISION NOTESSENATE REPORT NO. 95–989Section 751 requires the trustee to deliver a customer name security to the customer entitled to such security unless the customer has a negative net equity. The customer's net equity will be negative when the amount owed by the customer to the stockbroker exceeds the liquidation value of the non-customer name securities in the customer's account. If the customer is a net debtor of the stockbroker, then the trustee may permit the customer to repay debts to the stockbroker so that the customer will no longer be in debt to the stockbroker. If the customer refuses to pay such amount, then the court may order the customer to endorse the security in order that the trustee may liquidate such property.
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