2016 US Code
Title 11 - Bankruptcy
Chapter 7 - Liquidation
Subchapter III - Stockbroker Liquidation
Sec. 747 - Subordination of certain customer claims
| 11 U.S.C. § 747 (2016) |
| §747. Subordination of certain customer claims |
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Except as provided in section 510 of this title, unless all other customer net equity claims have been paid in full, the trustee may not pay in full or pay in part, directly or indirectly, any net equity claim of a customer that was, on the date the transaction giving rise to such claim occurred— (1) an insider; (2) a beneficial owner of at least five percent of any class of equity securities of the debtor, other than— (A) nonconvertible stock having fixed preferential dividend and liquidation rights; or (B) interests of limited partners in a limited partnership; (3) a limited partner with a participation of at least five percent in the net assets or net profits of the debtor; or (4) an entity that, directly or indirectly, through agreement or otherwise, exercised or had the power to exercise control over the management or policies of the debtor. |
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(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2613; Pub. L. 97–222, §13, July 27, 1982, 96 Stat. 238.) |
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HISTORICAL AND REVISION NOTES
SENATE REPORT NO. 95–989
Section 747 subordinates to other customer claims, all claims of a customer who is an insider, a five percent owner of the debtor, or otherwise in control of the debtor. AMENDMENTS1982—Pub. L. 97–222 substituted "the transaction giving rise to such claim occurred" for "such claim arose" in provisions preceding par. (1). |
| United States Code, 2012 Edition, Supplement 4, Title 11 - BANKRUPTCY |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 11 - BANKRUPTCY CHAPTER 7 - LIQUIDATION SUBCHAPTER III - STOCKBROKER LIQUIDATION Sec. 747 - Subordination of certain customer claims |
| section 747 |
| 2016 |
| January 6, 2017 |
| Yes |
| standard |
| 92 Stat. 2613 96 Stat. 238 |
| Public Law 95-598, Public Law 97-222 |
