2016 US Code
Title 11 - Bankruptcy
Chapter 7 - Liquidation
Subchapter III - Stockbroker Liquidation
Sec. 748 - Reduction of securities to money
| 11 U.S.C. § 748 (2016) |
| §748. Reduction of securities to money |
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As soon as practicable after the date of the order for relief, the trustee shall reduce to money, consistent with good market practice, all securities held as property of the estate, except for customer name securities delivered or reclaimed under section 751 of this title. |
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(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614.) |
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HISTORICAL AND REVISION NOTES
SENATE REPORT NO. 95–989
Section 748 requires the trustee to liquidate all securities, except for customer name securities, of the estate in a manner consistent with good market practice. The trustee should refrain from flooding a thin market with a large percentage of shares in any one issue. If the trustee holds restricted securities or securities in which trading has been suspended, then the trustee must arrange to liquidate such securities in accordance with the securities laws. A private placement may be the only exemption available with the customer of the debtor the best prospect for such a placement. The subsection does not permit such a customer to bid in his net equity as part of the purchase price; a contrary result would permit a customer to receive a greater percentage on his net equity claim than other customers. |
| 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. 748 - Reduction of securities to money |
| section 748 |
| 2016 |
| January 6, 2017 |
| Yes |
| standard |
| 92 Stat. 2614 |
| Public Law 95-598 |
